September 27, 2007

Scottish pig industry in crisis as supermarkets hold off price increases

The Scottish pork industry is facing a crisis as eight major pig companies, comprising 11 percent of the market said they would be winding down their operations if there continues to be no major increase in ex-farm prices.

Donald Biggar, chairman of Quality Meat Scotland, QMS, the red meat promotional agency which announced the news, said feed costs have doubled in the last year and with mounting losses, many producers are now seriously considering whether they have any future left in the industry.

FMD outbreaks and the movement restrictions means that pig producers have been left with higher feed costs as they have more animals to feed.

Scotland's rich heritage of producing excellent-tasting pork may be in serious jeopardy, the QMS said.

The lower prices can be seen in the wide disparity between ex-farm and retail prices.

The current ex-farm price is 109p per kg, or GBP 85 per head, but average retail price is 304p per kg, or GBP 237 per animal, nearly triple the ex-farm price.

Scotland's First Minister and industry representatives recently met with representatives from major supermarket buyers and warned the latter that their repeated claims of support for domestic production should be translated into action swiftly.