DEAR SIR: The pig sector as we know is very cyclical. For pig farmers, 2018 was the worst year in 20 years and while farms returned to profit in 2019, for many it simply meant paying off the debts of the previous year.
The sector is now on the verge of collapse
For example, Teagasc estimates that for an average 600-sow unit, the losses of 2018 and 2021 (€384k) are greater than the profits of 2019 and 2020 (€369k).
The sector is now on the verge of collapse. The skyrocketing price of feed has now put the cost of production at €1.85/kg, while pig prices lag at the €1.40-1.44/kg mark.
That is a loss of €37 on every pig that leaves the farm.
Brexit has had two knock-on effects – one is that Irish pigmeat exports to the UK have plummeted to just 15% of the total market, compared to being our number one market a few years ago.
The other impact of Brexit has caused a shortage of labour in UK pigmeat processing facilities
China has become our most important market, although the country’s rapid ongoing recovery from the devastation of African swine fever means that monthly exports at the end of 2021 were half of what they were in the spring.
The other impact of Brexit has caused a shortage of labour in UK pigmeat processing facilities, where an estimated 35,000 pigs have been euthanized on-farm.
The same issue in Northern Ireland plants has resulted in severe disruption to the Irish supply chain, with pigs heavily backed up on all farms.
The largest pigmeat processor in Ireland needs at least 150 skilled butchers to alleviate this backlog, however work permits for these essential staff are still being held up.
Ireland does not have the slaughter capacity it so desperately needs.
Farmers who want to close their farm gates now are trapped in a downward spiral
With farmers facing cancelled loads each week, they cannot even sell extra pigs to get access to much needed cash to buy feed.
Farmers who want to close their farm gates now are trapped in a downward spiral – if they stop serving their sows, they will be left with devastating feed bills in nine months’ time, when all the pigs are gone. With no repayment capacity, they cannot turn to financial institutions.
Pig farmers do not receive a Single Farm Payment. Now is the time that emergency funds must be accessed in order to survive.
No Government wants a catastrophic animal welfare crisis on their hands, especially when they have the power to prevent it.