February 29, 2012

Irish pig prices remain stagnant

Irish pig prices have remained at stagnant levels despite an increasing market price for finished pigs in continental markets.

All the positive elements supporting producer prices, such as strong exports and dwindling supplies, are present and while EU producers are benefitting, Irish farmers are not.

IFA National Pigs and Pigmeat Committee Chairman Tim Cullinan said: "I recently visited a number of pig farms in Germany; the price being paid for finished pigs is in excess of EUR1.60 (US$2.15) per kilogramme. Furthermore, the German producer has the added advantage of an 80% kill out, a figure, which Irish factories never reach. This equates in value terms to almost EUR5 (US$6.70) per pig. Our European counterparts are paying EUR75 (US$101) for 28 kilogramme weaners while Irish farmers can only get EUR50 (US$67) for an even heavier weaner pig. Indications from producers on the ground in Germany are that supplies are very tight. This is supported by recently-published Europstat figures which show a fall off in pig numbers as well as the European breeding herd."

Concluding, he said that Irish pig farmers need EUR0.20 (US$0.27) per kilogramme to get themselves into a profitable situation. "A price rise to cope with the sow welfare requirements is vital and factories must act immediately to put the industry on a more secure footing. The feed industry is equally answerable and must not profit on the back of farmers. The primary producer simply cannot carry the rest of food chain either up and down stream."