An 8c/kg rise in prices for heavily borrowed pig farmers has been welcomed by the Irish Farmers' Association (IFA), which said that the increase followed an intense period on engagement between the association and pig processors.
Its pig chair Roy Gallie warned that prices need to move even further upwards to bring farmers back to break even and eventually profitability.
Large debts remain on farms after a year and a half of unprecedented levels of losses.
The latest price pull was announced in January when farmers were hit with an unexpected 4c/kg cut.
Loss-making
“After over 18 months of loss-making and anticipation that pig production would eventually return to profitability, the 8c rise today is a positive step towards achieving this objective,” he said.
“The increase in pig price can be attributed to a tightening of supplies and market demand. This is good news for farmers, as it is a signal that the market is beginning to stabilise after a prolonged period of oversupply and cost challenges for farmers in 2022,” commented Gallie.
“However, it is important to note that this increase alone is not sufficient to recoup the significant losses that have been endured by pig farmers over the past year and a half.
“It still only leaves pig farmers 4c better off than prices at the start of this year.”
Supplies tightening
Factories should respond to tight pigmeat supplies across the EU by pushing prices further, Gallie continued.
“The increase in price is a positive sign, but it is imperative that this trend continues so that pig farmers can begin to return to some sort of stable financial footing,” he said.
“European pig prices are forging ahead and Irish prices must do likewise.”
The pig chair stated that farmers will need a spell in the green before any attempts can be made to cut into the debt built up over the past 18 months.
“Pig farming needs a sustained period of profitability to recoup the accumulated losses and invest in their farms to comply with new EU requirements.
“Today marks the first positive move for Irish family pig farms, but this is only the beginning of what is required at farm level,” he concluded.
Read more
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EU-wide pig price bounce yet to be seen in Ireland
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An 8c/kg rise in prices for heavily borrowed pig farmers has been welcomed by the Irish Farmers' Association (IFA), which said that the increase followed an intense period on engagement between the association and pig processors.
Its pig chair Roy Gallie warned that prices need to move even further upwards to bring farmers back to break even and eventually profitability.
Large debts remain on farms after a year and a half of unprecedented levels of losses.
The latest price pull was announced in January when farmers were hit with an unexpected 4c/kg cut.
Loss-making
“After over 18 months of loss-making and anticipation that pig production would eventually return to profitability, the 8c rise today is a positive step towards achieving this objective,” he said.
“The increase in pig price can be attributed to a tightening of supplies and market demand. This is good news for farmers, as it is a signal that the market is beginning to stabilise after a prolonged period of oversupply and cost challenges for farmers in 2022,” commented Gallie.
“However, it is important to note that this increase alone is not sufficient to recoup the significant losses that have been endured by pig farmers over the past year and a half.
“It still only leaves pig farmers 4c better off than prices at the start of this year.”
Supplies tightening
Factories should respond to tight pigmeat supplies across the EU by pushing prices further, Gallie continued.
“The increase in price is a positive sign, but it is imperative that this trend continues so that pig farmers can begin to return to some sort of stable financial footing,” he said.
“European pig prices are forging ahead and Irish prices must do likewise.”
The pig chair stated that farmers will need a spell in the green before any attempts can be made to cut into the debt built up over the past 18 months.
“Pig farming needs a sustained period of profitability to recoup the accumulated losses and invest in their farms to comply with new EU requirements.
“Today marks the first positive move for Irish family pig farms, but this is only the beginning of what is required at farm level,” he concluded.
Read more
End to pig farm income ‘horrors’ in 2023 – Teagasc
EU-wide pig price bounce yet to be seen in Ireland
High debt overshadows brighter pig price outlook for 2023
Transparency delays with agri-food regulator
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