February 23, 2021

 

UK swine industry badly affected by COVID-19 pandemic and Brexit

 

Pork producers in Britain have seen profits affected by COVID-19, an African swine fever (ASF) outbreak in Germany, and Brexit red tape that has battered exports and hurt demand from major purchasers such as German sausage makers, Reuters reported.

 

UK government data showed 862,000 swine were slaughtered last month, 10% lower compared to January 2020. Sows and boars saw a 29% decline to 14,000.

 

Prices for swine, especially sows, are on the downtrend while feed costs rise.

 

90% of cull sows in the UK are shipped to Germany to be processed into patties, sausages, salamis, and other cured meats. But exports to the European Union have been hampered following Brexit.

 

As the UK's meat exports are currently at 50% of lower levels, prices have dropped by close to two-thirds for in the heavily export-dependent sow market, barely covering costs for sending sows to slaughter.

 

Meanwhile, an ASF outbreak in Germany meant China and top Asian countries banning pork imports from Germany. This has resulted in excess pork supplies and declining prices for the meat in Europe.

 

More than 80% of the 69 members of the National Pig Association (NPA) said in a poll that estimate to be in a loss-making position this quarter.

 

Data from the Agriculture and Horticulture Development Board (AHDB) shows animal feed grade wheat prices in the UK are 80% up year-on-year, while UK swine prices are at 1-1/2 year lows as farmers cannot compete with cheaper EU imports.

 

Swine prices in the EU are currently at four-year lows. These cheaper pork products are easily imported into the UK because authorities are only phasing in custom checks on EU products over six months, instead of immediately implementing them on January 1.

 

One meatpacker in Germany told Reuters that supplies are easily exported into the UK and increasing, as imports are shipped through customs without fuss.

 

- Reuters