A flood of German pigmeat on the European market as a result of China's ban on such products is expected to hinder future pig values in the UK.

China banned all imports of pigment from Germany last week, when a case of African swine fever was identified in a wild boar in German state of Brandenburg, close to the Border with Poland.

With a further five suspected cases in the same area, and news that as much as 14% of German pigmeat was exported to China, this now puts significant pressure on all European pig markets.

The ban on German exports immediately reduced values by 20€ cents per kg, putting German pigmeat at €1.27 which equates to just over 117p sterling and is significantly lower than the 160-163p per kg being paid to UK producers.

The ban on German exports immediately reduced values by 20€ cents per kg, putting German pigmeat at €1.27 which equates to just over 117p sterling and is significantly lower than the 160-163p per kg being paid to UK producers.

Despite the huge difference in values, Andy McGowan, managing director of Scottish Pig Producers, does nevertheless remain upbeat about the situation, claiming it is still far too early to say for definite how trade will be affected when most producers are locked into various contracts. However, he admitted the likelihood is some 'downward pressure,' on prices.

"Most pigs are sold on contract so there won't be an immediate impact on prices, but the direction of travel is likely to be downwards especially when UK supplies are also up and values have been slipping back since early July due to the increase in pig slaughterings and the summer holidays," said Mr McGowan.

"The last 18 months have seen some particularly healthy and stable end prices well above 160p per dwkg, which coupled with reduced costs of production have been really positive for the industry. These prices are well above the five-year average of about 149p, and while costs of production are now creeping up, margins are still good.

"We have to remember that while there is now a glut of German pigmeat on the market, prices have been supported by the huge demand for pigmeat in China, and that the UK could also benefit from more exports there, although there so many other places the Chinese could decide to buy from outwith Europe too."

Of more concern is the fact that as yet, no-one knows how the disease moved across the Border from Poland into Germany, and it could just as easily move to the UK when it can be transported by animals, food and people, Mr McGowan said.

Latest figures show the GB UK-spec SPP fell to 158.28p per kg, down by more than a penny on the previous week, but 8p above 2019’s level for the same week.

Weekly estimated slaughter totalled 186,100 head, higher than the previous week, with carcase weights reaching 87.38kg – more than 2kg higher than the same week in 2019.

The GB UK-spec APP fell to 162.61p per kg in the week ended August 29. The SPP fell by slightly less in the same week, so the gap between the two series narrowed to 3.11p.