Pig sector ‘standing on the precipice’ – NPA

The NPA has highlighted the precarious situation the pig sector finds itself in, as part of a wider ‘crisis point’ facing UK agriculture.

Just a few years after the previous industry crisis, pig farmers across the UK are cutting the size of their breeding herds or, in some cases, leaving the sector. This is in response to a prolonged market downturn, driven partly by oversupply and a challenging market and rock bottom prices across Europe, and an unprecedented number of contract terminations from processors this year.

The situation, like other sectors of agriculture, has been exacerbated by this summer’s extreme heat, which has affected pig performance, and global conflicts that have pushed up the cost of inputs.

A group of farming organisations, led by the NFU and including the NPA, has warned that, without immediate action, next year’s food production and the future of the next generation of farmers are at risk.

They highlighted the financial crisis point threatening Britain’s farmers, as the worst drought in 50 years has resulted in historically low harvests, stunted grass growth and crop failures because of a lack of water, compounded by increased production costs.

NPA chief executive Lizzie Wilson said the pig industry is facing its own unique challenges.

“The UK pig sector is, once again, standing on a precipice, facing a further contraction that threatens to compromise the UK’s ability to produce the high-quality British pork products that our consumers desire,” she said.

“Many independent pig producers are heading into the autumn with no clarity about where they will be able to sell the pigs they produce and are facing a potential financial and welfare crisis.

“Many are also being forced to accept pig prices far below the cost of production and are losing thousands of pounds a week.

“All of this is being compounded by the impact of the hot weather and rising costs. As a result, we are going to lose more of our valued independent pig producers at a time when we should be looking to produce more British pork products to satisfy public’s demand.”

NPA action

In response to the latest crisis, the NPA has:

• Requested a support package from government, including financial support for those hardest hit, longer-term elements such a better forecasting and commitments to prioritise British pigmeat in procurement policies.
• Requested an industry roundtable to discuss short- and long-term solutions.
• Engaged with the Agricultural Supply Chain Adjudicator to ensure pig contract requirements are being adhered to.
• Urged the foodservice sector to support British pig producers and be more transparent in its sourcing policies.
• Engaged with processors and retailers to ensure they are aware of the crisis facing producers and to seek support.
• Lobbied MPs, who have raised the industry’s plight in various parliamentary debates.

Lizzie added: “We are seeking support from government and across the supply chain to alleviate the short-term damage and find longer-term solutions. If the situation does not improve, we will end up with a smaller and weakened independent pig sector and a supply chain that is even more reliant on imported pork.”

Key investments

The wider farming organisations called for some specific measures to support UK agriculture, including:

• Keep Britain Growing Loan – A government backed, interest free loan, linked to the losses caused by drought to give farm businesses the working capital to produce next year’s food.
• Fallen stock scheme – To help livestock farmers affected by bluetongue disease to meet the rising costs of fallen stock collection and disposal.

NFU president Tom Bradshaw said: “Action is needed now to secure the future of British farming and enable the next generation to keep producing the nation’s food. We will continue working with government to help farmers withstand this crisis and deliver on its commitment that food security is national security.”