November 7, 2023

Irish swine farmers hit by ongoing price cuts

The Irish Farmers' Association (IFA) has expressed concerns about the ongoing price cuts affecting swine farmers in Ireland, warning that these reductions are endangering food security and the generational renewal of the industry, Agriland reported.

According to IFA National Pig Committee chairman Roy Gallie, processors recently announced another 4 cents per kilogram (c/kg) reduction in pig prices, marking the fifth price cut in a series of such reductions in recent weeks. These price cuts have totalled 20 c/kg or a reduction of EUR 18 per pig sold.

For the average-sized family farm, this amounts to a weekly income drop of over EUR 6,000. Gallie stressed that these continuous reductions aren't justified by significant downward pressure on retail pork prices. In fact, recent Kantar data for October indicates an increase in the average pork price.

Gallie revealed that swine farmers have accumulated losses of approximately EUR 585,000 from August 2021 to May 2023. With the overall high cost of production, it will likely take at least another 12 months for these farms to recover their losses, and many may not break even until the following year.

As a result of the global swine crisis in 2021 and 2022, Ireland has seen a 12% reduction in breeding sow numbers. If farmers cannot achieve sustainable margins, further reductions in the national sow herd are expected.

Gallie said there is a need for a sustained period of profitable margins to recover from the unprecedented losses. He questioned who within the food value chain is benefiting from swine price reductions while product prices to consumers rise.

-      Agriland