April 19, 2012

 

EU pig producers to implement partial stalls, tethers ban next year

 

 

When it comes into force in January next year, pig producers in fewer than half of the EU's member states are expected to be ready to implement the partial stalls and tethers ban.

 

The British Pig Executive (Bpex) said the lack of readiness could have major implications for the market and warned that EU pig production could fall by between 5-10%, which may cause substantial rises in the cost of pig meat.

 

Bpex's latest report was carried out in conjunction with its counterparts in other EU countries and looks in detail at the possible repercussions of the changes.

 

Some EU Member States are reporting that "significant numbers" of producers are set to quit the industry because they are either unable or unwilling to comply with the sow stall ban.

 

Bpex said that it was clear the size of the EU pig herd will decline because of the changes, leading to a tightening of supply and an increase in costs. The actual outcome will depend on how producers, processors, retailers, food service customers, assurance schemes and enforcement organisations react to the ban, the report said.

 

Pig producers complying with the legislation will be in a better position to operate at a profit and will have greater confidence to reinvest in a business.

 

Bpex said: "If it can be said that animal welfare doesn't come on the cheap, then equally, profit potential can improve pig welfare faster than legislation."

 

The EU has already stated it expects the new rules to be enforced rigorously and will take infraction proceedings against States which do not comply fully.

 

Agriculture and Horticulture Development Board (AHDB) senior analyst Stephen Howarth said: "The experience of the egg sector shows that it is very likely that the regulations will have a major impact on the EU pig meat market.

 

"The latest information confirms that there are many producers who still won't have complied with the rules by the end of the year, while others will have stopped breeding altogether. Historically, even small changes in pig production have led to significant shifts in price.

 

"With production likely to fall by 5%, prices could be at least 10% higher, possibly more."

 

Bpex Chairman Stewart Houston said: "It is imperative for retailers and processors to ensure contract arrangements that guarantee the supply of pig meat under terms that allow sensible business decisions to be made and for everyone in the supply chain to work towards a sustainable, profitable sector.

 

"Getting this right will demonstrate the integrity of the EU Commission and Member States in enforcing legislation that they have agreed, it will demonstrate the integrity of the whole supply chain that it will protect pig welfare and above all it will benefit consumers through the continued supply of high welfare, high quality pork and pork products."