Pig prices up and China to stay key market in 2017

The rise was welcomed by IFA pigs committee chair Tom Hogan.

“We needed it as the last few years have been very tough. Last year was slightly better but 2015 was pretty bad.

“We did lose a few producers over the last few years, not all necessarily because of financial reasons, but it is still sad to see people go. People were working for nothing.”

Demand from Asia

For the outlook for 2017, “the Chinese market is looking quite good," he added.

"The export prospects are quite strong and better than the past few years."

Exports of Irish pigmeat grew last year and were 4% higher at €615m.

In particular, international markets grew strongly last year. This was driven by higher demand from Asia, particularly China.

China is now the second most important market for Irish pigmeat, with exports exceeding 65,000t.

However, domestic supplies are expected to recover this year, which will slightly lessen demand for exporters later this year.

South Korea could also be a larger market for Irish pigmeat as the country grapples with a foot-and-mouth disease crisis, driving up the price of domestic pigmeat.

Brexit uncertainty

However, any growth in Irish production in 2017 is expected to be modest, with Hogan adding that he expected production to be back slightly over the next few weeks.

Bord Bia has said for the year ahead “a prolonged period of uncertainty around Brexit will continue to determine the competitiveness of Irish pigmeat product in the UK, in particular for secondary processing companies.

“Some increase is expected in trade to international markets due to higher demand from southeast Asian markets.

“Domestically, consumption has benefited from some improvement in the economy as consumers are purchasing within the category more frequently.”

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Listen: focus on China for access to new markets in 2017