The average-sized pig farmer with 600 sows is set to lose almost €450,000 between September 2021 and September 2022, according to Teagasc’s calculations.
The income crisis will see a total combined loss of €128m levied across the country’s approximately 290 pig farmers over the same period, Teagasc pig development officer Michael McKeon told farmers on a webinar addressing the cash-flow challenges facing those in the sector. “It is a loss of nearly €450,000 for an average-sized unit in the country which is unprecedented – it’s absolutely massive,” he said.
“It is a total loss of €128m there for a sector,” stated McKeon.
This pressure has placed 25% to 45% of pig farmers at “serious risk” of being forced to exit the sector, he said.
Teagasc is predicting a further increase in feed prices to hit farm margins in April of this year. McKeon said that a 600-sow unit could see €12,000 added to feed costs over April alone.
This predicted feed price hike of approximately €30/t will see the cost of feed increase by over 33% in total over 15 months.
“And while there might be a slight improvement in the pig price by April which we are hoping for, the deficit for April alone is nearly €64,000,” he explained.
Feed prices may see some reprieve by the time of the grain harvest.
However, the expected drop of €40/t will still leave prices ahead of where they currently sit, McKeon’s figures show.
McKeon also stated that some 28,000 finished pigs have been backed up on farms supplying Northern Ireland, as the plant there has experienced issues maintaining processing capacity.
SHARING OPTIONS: