IFA urges meat factories to match increases across EU markets

Irish meat factories are lagging behind the pigmeat prices being offered across Europe in recent weeks, said IFA pigs chairman Tom Hogan.

The IFA is urging Irish meat processors to follow Germany’s jump from a low of €1.36c/kg in January to this week’s pigmeat price of €1.73ckg.

The Spanish pig market which is noted for its seasonality volatility has seen unprecedented increases from €1.25c/kg up to last week’s farmer pig price of €1.60c/kg.

IFA held a crisis pig meeting of all farmers recently following the failure of the pig factories to adequately reflect the rising markets by returning much-improved pig prices.

Tom Hogan said: “Following this meeting, the IFA organised delegations of suppliers to meet their processors last week and demand a fully justified 10c/kg increase in the Irish pig price up to €1.60c/kg.

Factories responded with a 4c/kg increase, which is not enough given the market conditions and export demand coming from buyers serving the Chinese market.

Across the EU there have been dramatic price increases since January. Countries with a similar producing and export profile to Ireland have experienced price increases of 25-30%.

Demand from Chinese buyers has been strong in recent weeks, due to a shortage of domestic pork production,” he said.

The IFA has urged the factories to do the right thing and pass this on to farmers, who have been haemorrhaging money over the past number of months.

The IFA has also highlighted price rises in the key pig producing EU members states of the Netherlands and Denmark.