Although it is too early to gauge public purchasing reaction to the now infamous MLC generic pigmeat advertising at least one multiple has started to take precautions to conserve bacon business. Tesco has put together POS material telling customers that all its bacon is produced to UK standards and other multiples are also stepping up promotion. There is considerable concern among traders that there will be a backlash against the pigmeat sector as a whole. "It's made people talk, but not positively," said one. Meanwhile, the trade is heading for its summer trough, when bacon sales traditionally ease off, so it is hard to see how the success of the campaign can be measured in slacker trading times. However, Danish middles and backs firmed 4p/lb, reflecting the lower slaughtering numbers and the slowly tightening supplies of slicing products. It follows a similar rise for gammons last week. Danish clean pig prices firmed 2% on last week, but are running 53% higher than the same week last year. The picture in Holland is similar, where a 2.7% rise in prices leaves them 67% higher than last year. The British industry, with a 4.8% y-o-y rise in sow and boar slaughterings and a 12.3% drop in clean pig numbers is seeing year on year auction prices rising by about 10%, according to MLC. Spot buying for British backs remains as difficult as ever. Since so much of the business is working to contract with the multiples, only small volumes reach the open market. {{PROVISIONS }}

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