ASCA roundtable event hears from pig producers hit by market turmoil

Under-pressure pig farmers have highlighted the dire situation they face at a roundtable with the Agricultural Supply Chain Adjudicator (ASCA) and Defra representatives.

Last week’s roundtable, organised by NPA, featured eight independent pig producers who had all been given notice on a least a proportion of their pigs by their processor.

They set out what this would mean for their businesses, with some reducing their herd sizes and one having made the decision to get out of pigs altogether.

Some producers also highlighted the extremely low prices they are receiving, way below the industry averages quoted each week, and revealed how they face heavy financial losses as a result of this and the contract cuts.

Richard Thompson was appointed as the ASCA to oversee the Fair Dealing Obligations (FDO) regulations that currently apply to the dairy and pigs supply chains and are being developed for other sectors.

The roundtable also highlighted numerous concerns over how new pig contracts have been formulated and negotiated over the summer, in order to comply with the FDOP regulations, which came fully into force on August 13.

In some cases, the contracts being offered were convoluted and unappealing to the producers, who felt, however, that they had nowhere else to go in the current marketplace. Producers also spoke of the length of time it had taken to get sight of their contracts, how long the process was taking and of poor communications from processors.

Valuable exercise

NPA chief executive Lizzie Wilson said: “This was a hugely valuable exercise that enabled independent producers to voice their concerns directly to the ASCA, who has been clear all along that he wants to engage directly with people on the frontline.

“What was discussed was deeply concerning, as producers highlighted the impact on them and their businesses of the turmoil we are seeing in the marketplace, and, in some cases, the way contract negotiations have been handled.

“The adjudicator and his office were left in no doubt about the seriousness of the situation facing independent pig producers – and we hope this feedback will be useful as we seek some much-needed support for the sector.”

The roundtable discussion echoed the findings from an NPA survey that highlights the problems producers are facing.