There is still no joy for pig farmers. Prices are in the €1.34/kg to €1.36c/kg range, with 65,000 pigs processed in the week ending 4 March, 6% more than the same week in 2015.
So far this year supplies are running 9% ahead of 2015 levels and this picture is repeated across Europe, the US and Canada. This supplied market and weak demand is creating a nightmare for Irish pig producers.
In Britain, 5,000 more pigs came on to a sluggish market at an average of the equivalent of €1.41/kg. This is the closest British prices have come to Irish prices for a long time. However, it is a case of the UK prices falling rather than Irish prices rising to close the gap.
As well as the market not recovering from the loss of Russia in 2014, consumption of pigmeat is down significantly in the UK, according to the latest Kantar data. With more supply available and reduced markets, we have had the perfect storm in the pig industry. Such is the weakness in the market that the huge intake into APS in January was hardly missed, with no increase in prices.
The Irish sow herd is back 5% on a year ago, which creates some hope that supplies will tighten in the latter part of 2016. However, the pigmeat that went into APS in January will be coming back on to the market from the middle of the year on, so any real supply scarcity is unlikely.
Prices in Germany jumped by 5c/kg on Friday, giving rise to hopes that prices here could see similar increases in the coming days.
Pig farmers in Ireland have equated the current market price of €1.34/kg to a milk price of 14c/litre.
Pressure is being put on retailers here to increase a packet of Bord Bia-approved rashers by 40c, which would deliver a 5c/kg return to pig farmers.
IFA committee walkout
Last week, there was a walkout of nine or 10 members at a meeting of the IFA pig committee. The walkout came after half the committee delivered a letter of no confidence in chair Pat O’Flaherty.
Speaking to the Irish Farmers Journal, O’Flaherty has called for unity at a “time of crisis”.
“We’re at a most serious time in the future of the pig sector here. It’s time of crisis for many, many pig farmers here and we need to pull together,” said O’Flaherty.
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