March 15, 2006

 

UK hog industry faces hard times

 

 

A 2005 Survey of Agriculture showed the UK's pig breeding herd has fallen to 441,000 head, compared to 475,000 a year before.

 

The UK herd now accounts for only an estimated 3.5 percent of the EU total.

 

A further reduction in the size of the national herd also hit slaughter rates, with many pig plants operating at well below capacity.

 

Large-scale producers will also need to comply with upcoming Integrated Pollution Prevention and Control measures, which come into effect in 2007,  adding more to production costs.

 

Unless pig prices have returned to profitable levels this year, some producers may have to downsize or close their units.

 

The UK pig industry has rarely seen sorrier times. Weekly slaughter has fallen by half from 306,000/ week in 1999 to 160,000/ week last year.

 

On top of falling production, the industry is also shedding market share in its domestic markets.

 

A return to better UK pig prices would also help to encourage further re-investment in stock and equipment, as spot pig prices are currently 8 percent below their level a year ago.

 

With imports now accounting for over 60 percent of UK pigmeat consumption, any rises in EU prices would swiftly lift domestic prices.

 

Signs of EU consumers switching from poultry to pork due to bird flu concerns may help UK producers at a time when price rises are desperately needed.