July 31, 2023

 

Pig farmers in Ireland may see average price return increased during rest of 2023

 

 

 

The current average price return to pig farmers in Ireland is set to remain at current levels or see moderate increases for the remainder of 2023, according to Teagasc.

 

In its Situation and Outlook For Irish Agriculture, published on July 25, Teagasc said that the current Irish pig price of 2.36c/kg "is an historic high".

 

The Irish pig price has risen from a low level in March 2022 of €1.42/kg (US$1.56) to the current high. However, the new high would have to remain until April 2024 in order for pig farmers to recoup their losses sustained over the 2021 and 2022 period.

 

Pig prices in other EU countries are also at historic highs currently, up about 40% year-on-year. EU pig prices are also set to remain at their current high plateau throughout 2023 due to tight pork supply volumes.

 

In terms of Irish pork production, the Irish sow herd has remained very stable over the last 20 years, ranging from 145,000 to 150,000 sows. In the second quarter of 2022, the Irish sow herd contracted significantly through a 12,500 sow reduction.

 

The national pig herd stabilised since then, with only limited further destocking occurring. Government support via the Pig Exceptional Payment Scheme (PEPS) payments helped to mitigate some of the cashflow problem experienced, according to Teagasc.

 

The year-to-date slaughter figure is down 11% and is expected to fall further to 13% before a modest recovery emerges. Live exports to Northern Ireland are down 17% year-to-date.

 

Looking at the input costs for the sector, feed remains the largest input in pig production, currently representing 75% of the total cost of production.

 

Tight global feed ingredient stocks, combined with the Russian invasion of Ukraine, brought feed prices to an historic high in 2022.

 

Feed ingredients prices have fallen by about €130/tonne (US$143) from the peak in October 2022, while composite feed prices have declined by about €60/t (US$66) and are expected to fall further this autumn with the new harvest.

 

According to Teagasc, the pig farm income outlook for 2023 is that the sector will remain profitable due to declining feed prices and high pig prices remaining high.

 

There is also set to be a modest recovery in pig numbers in 2024.

Between January and April this year, Irish pork exports decreased 12% in volume, but increased 1% in value, reflecting the higher prices available to farmers for pigs.

 

- Agriland