Depending on grading, average prices are €1.38/kg which is still well below the cost of Teagasc cost of production which is approximately €1.61/kg.
Tom Sherman is a pig farmer from Co Cork. Sherman said the 4c/kg increase in pig prices is welcome but the price needs to move further.
“Of course the rise is welcome, it has to be welcomed. Pig farmers are holding out to any bit of hope after the disastrous period we have been through,” Sherman told the Irish Farmers Journal.
“However, it’s just a stone in the ocean. Prices need to move another 12c/kg to 14c/kg in order to reach breakeven levels. There is a cautious optimism out there but we have a long way to go yet,” Sherman added.
Ration prices
Pig farmers have endured a torrent 12 to 18 months with the closure of the Russian market and contraction in the Chinese market. Sherman, however, the domestic feed market could help alleviate pressure on pig farmers.
“Ration needs to come down,” Sherman argued. “The raw material price has fallen dramatically and the last time the price of the raw materials was this low a tonne of fattening feed was €200, now it is €260. I think it’s fair to ask where has that €60/t gone?”
’Banks dragging their feet’
The pig sector is one of the most heavily borrowed farming sectors. Sherman said the banking sector also has a role to play in aiding the pig sector.
“In my opinion, banks have been dragging their feet. They need to work more progressively with pig farmers who are in financial difficulties at the minute. The debt levels we have as a sector means that we can’t walk away,” he added.