May 19, 2008

British retailers causing pork to remain high in the UK

Even as pork and pork product prices rose in the big four British retial chains, farmers were just getting a tenth of the price increase, British Pig Executive (BPEX) chief executive Mick Sloyan said at last week's British Pig and Poultry Fair.

Noting that since last August the average retail price of pork and pork products has risen by almost GBP1 (EUR1.26) a kg, Sloyan said the price paid to producers has gone up by just GBP 0.10 (EUR 0.13) a kg.

That is against a background of rocketing feed prices with the cost of wheat, the chief European feed, doubling.

Sloyan said that producers throughout North Western Europe are facing the same problems, mainly caused by increasing demand to feed in India or China, poor harvests, drought and competition from biofuels.

Highlighting the increase of GBP 1 for pork and pork products from the big four retailers (Tesco, Asda, Sainsbury's, Morrisons) when the price paid to producers has risen by just 10 pence, he questioned where the extra money has gone to.

He said if retailers take a strategic view of their business and ensure sufficient money gets down the chain to pig producers to cover their costs, everyone will benefit.

Consumers will not need to pay much more, retailers will continue to make a profit and most important of all, producers will be able to meet continuing demand of British consumers for top quality pork products, he said.

Meanwhile, the BPEX launched a new feed price area in its website, for better help and information. In addition, there is a paper looking at alternative feeds and what effect they can have and finally practical day-to-day advice on improving efficiency.