May 6, 2022

UK swine sector trade body calls for Tesco to support producers

The UK National Pig Association (NPA) has called on Tesco, the country's largest supermarket group, to do more to help struggling swine farmers or face losing access to UK pork supply, Reuters reported.

Rob Mutimer, chairman of the NPA, said the supermarket group is well positioned to stop the collapse of the UK swine industry.

He said this in an open letter to Ken Murphy, chief executive of Tesco.

Mutimer said that UK swine farmers are experiencing historic losses from soaring production costs caused by record swine feed prices and rising wheat prices triggered by the Ukraine conflict.

He said producing a swine costs between GBP 2.03 (~US$2.51; GBP 1 = US$1.23) and GBP 2.16 (~US$2.67) per kg, while typical swine prices remain below GBP 1.70 (~US$2.10) per kg, suggesting that many producers are losing tens of thousands of pounds weekly.

He also said Sainsbury's, Asda, Morrisons, Aldi, the Co-op, Marks & Spencer, and Waitrosewere paying their suppliers more for British pork than Tesco.

Tesco responded by saying it understood the issue affecting UK swine farmers and was working closely with its suppliers to figure out what it could do to help the industry.

A representative from Tesco said their suppliers have increased payments to farmers by GBP 3.4 million pounds (~US$4.2 million) through current procurement models, adding that they are working with their suppliers on a more expanded payment plan to help farmers in the short term.

Tesco announced a 36% increase in earnings for 2021-22 last month, but warned of a decline this fiscal year as rising prices puts pressure on the retail chain and its consumers.

-      Reuters