The Grocer has reported that wholesale pork prices have declined 12 percent year on year. An increase in pork suppliers and good weather has resulted in heavier pigs producing more meat. The Russian trade embargo has reduced EU prices which has also contributed to the decrease in UK prices. Retailers appear to have acknowledged this and have slowly brought down their base price of pork this year. The average base price reduction since the start of the year is 3.9 percent across Aldi, Asda, Lidl, Ocado, Sainsbury’s and Tesco. The average promoted price has fallen at a greater rate dropping 5.4 percent since the start for the year.
Over the last 11 months Asda have reduced its average base pork prices by 0.24 percent however its average promoted price has not moved at all. The greatest reduction in base prices has come from Tesco, reducing it’s average pork price by 7.5 percent, it’s average promoted price dropped 6.2 percent. Aldi and Ocado appear to be offer reductions in pork via promotions as their average promoted price has decreased more than their average base price.
The discounters Aldi and Lidl have had the lowest percentage of their range on offer since the start of the year with an average of 10.1 percent and 20.3 percent respectively. Tesco have had the highest average percentage of their range on promotion at 37 percent. It also has had the greatest percentage of range on promotion for 24 of 46 weeks analysed. Sainsbury’s are second with 16 of 46 weeks. Going into November Sainsbury’s has the greatest percentage of range on promotion at 31.2 percent.
When on promotions Aldi and Lidl have depths of cut of 18.6 percent and 17 percent. However if we include those weeks that they ran no promotions their average depth of cut drops to 11.3 percent and 15.5 percent. Asda has the lowest average depth of cut of the remaining retailers at 16 percent. Tesco has the greatest average depth of cut at 23.2 percent, 2.1 percent more than the next highest retailer Sainsbury’s. Going into November Aldi, Ocado and Tesco are increasing their depth of cut the remaining retailers are keeping theirs stable.
5 out of the 6 retailers have passed on reductions in pork prices to consumers, Asda are the only retailer to not pass on significant reductions. Aldi and Ocado appear to be passing on reductions via promotions whereas Lidl, Sainsburys and Tesco are passing on reductions via promotions and reducing the base price. The consumer can expect further reductions as wholesale pork prices are predicted to drop further in 2015 due to lower grain prices bringing production costs down as well as the continuing Russian import ban.
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