January 5, 2023

 

UK swine farmers hoping pork production will return to profitability in 2023

Rob Mutimer, chairman of the UK National Pig Association (NPA), said swine farmers hope pork production will return to profitability in 2023 after a bad 2022 for the industry, with many producers still losing money due to rising feed costs, Eastern Daily Press reported.

 

Livestock feed costs have been rising last year driven by the Ukraine-Russia conflict and its impact on wheat prices.

 

Even though those prices had begun to decline, more constructive development was required to guarantee that everyone in the supply chain received a fair share of the reward and to encourage struggling farms to make investments in the future.

 

Mutimer said more advantages exist now than there have in the past, adding that there will soon be a swine shortage in the UK and the EU, but he is unsure of the extent and timing of the problem.

 

He said wheat prices are down by GBP 120 per tonne from the peak in May 2022, but many of farmers bought ahead out of concern that the market was short. He was disappointed that pig prices has stopped going up since it reached GBP 2 per kg in September last year.

 

He also said decreasing grain prices and tightening pig supplies do give hope, and farmers will need to make up for the enormous losses they suffered and attract new investment to the sector.

 

Mutimer said people haven't been able to invest in their herds for the past 18 months, and if they don't start doing so again, they won't be in this business for very long.

 

One significant development in 2023, according to Mutimer, will be the next phase of Defra's review of the contractual relationships in the pork supply chain.

 

To ensure that there is enough money in the supply chain for all parties, he said, they need to have more discussions with Defra. 

 

Mutimer added that he will also be keeping a close eye on changes to government policies in 2023, including those involving gene editing, veterinary medicine, animal health, and trade talks with significant pork exporters like Canada and the US.

 

-      Eastern Daily Press