November 24, 2010

 

British pig sector remain under pressure on soaring feed prices

 
 

The sustainability of the British pig industry is under severe threat because of rocketing feed prices and the fact that supply chain payments have not increased to keep pace, according to the sector's levy group.

 

The British Pig Executive's (Bpex) latest report, The Impact of Feed Costs on the English Pig Industry, looks at the issue in detail and suggests how the supply chain can help producers.

 

Wheat is the main ingredient of pig feed and grain price increases have pushed costs up by 30% overnight. These are still rising on the back of the Russian and Ukrainian export bans, as well as increased demand and extreme weather conditions across the globe.

 

The rise in feed prices has also coincided with a fall in the price paid for a finished pig, measured by the Deadweight Average Pig Price (DAPP). Bpex is advocating a three-point plan to improve pig farmers' situations, starting with an increase in the DAPP, support for English high welfare pig meat production and co-operation throughout the supply chain.

 

Bpex head of marketing Chris Lamb, said it was essential the sector averted a crisis similar to the problems it suffered two years ago, when the ''Pigs are Worth It!'' campaign was introduced to increase prices and prevent producers going out of business.

 

"The only sustainable solution is for farmers to obtain a higher price for their pigs. Second, we need to remind retailers of the importance of supporting English/Red Tractor pigmeat production with its high welfare and quality assurance standards. And finally, the whole supply chain needs to pull together to ensure a profitable production sector and that the industry continues to meet demand for quality, farm assured product, such as pork which carries the Red Tractor logo,'' Lamb said.

 

"The message we're taking to industry with this new report is clear: failure to act in the face of this challenge from high feed costs could have a devastating impact on pig production in this country. It's no exaggeration to say that the sustainability of the English pig industry is at stake," he added.

Video >

Follow Us

FacebookTwitterLinkedIn