Losing hope: Ireland’s pig farmers warn they can’t go on losing thousands a week

There is now a significant gap between the cost of production and what farmers are paid

A series of challenges have plagued the island’s pig industry over the last few months, including carbon dioxide shortages, Covid-related plant closures, staffing issues in the North because of Brexit, and surging electricity and gas prices.

Irish pig farmers losing tens of thousands of euros every week warn they are facing ruin unless urgent action is taken to provide a rescue package for the industry.

Farmers who spoke to the Irish Examiner said soaring input costs and disruption to supply chains caused by Covid and Brexit mean a 1,000-sow unit would lose almost €70,000 a month.

“If we don’t have something in place by the end of the week that we can take back to our millers [to pay them], we are going to have no pig industry in six weeks,” one said.

With almost 1.7m pigs in Ireland, according to the latest Central Statistics Office figures, pork accounts for almost 8% of Ireland’s agricultural output, worth around €543m to the economy annually.

However, the industry has come under pressure over the last year, as prices have fallen at a time when input prices are hitting new highs.

A series of challenges have plagued the island’s pig industry over the last few months, including carbon dioxide shortages, Covid-related plant closures, staffing issues in the North because of Brexit, and surging electricity and gas prices.

The result has been a significant gap between the cost of production and what farmers are paid.

Pig keepers estimate total costs of around €1.85/kg, made up of non-feed costs (such as staffing and insurance) of around 45c/kg and feed costs of €1.40/kg (up around 40% compared to last year).

However, farmers are being paid just €1.40/kg, meaning a loss of around €30 for every pig sold.

However, other inputs have also begun to soar, with one farmer saying his gas bill for heating his pig sheds had gone from €40,000 a year to an expected €110,000 this year. While at the same time, pork prices have continued to slide.

A pause on state levies, weekend shifts at processing plant, and more space for pork in Irish shops were among the ideas put forward at an emergency meeting for the pig sector hosted by the Irish Farmers’ Association held on Monday.

Frank Brady, incoming IFA Ulster/North Leinster chairman, who keeps around 550 sows on his farm in Co Cavan, explained that prices had fallen from €1.95/kg in January 2020 to €1.42/kg this month, while feed costs have also increased around €100 a tonne.

“It’s absolutely horrendous,” he said.

“There is a backlog of pigs which can’t be killed, the price of meal has gone up by one-third in the last eight months, and the price of pigs in the last two years has come down by over a third.

“There is a Brexit fund there, but it must be given out by the banks.

“That money is lying there and the government has to make sure that the banks are willing and able to talk to farmers about their pressing need — we are going to have welfare issues in the next four to five weeks if nothing happens.

“The mills haven’t many places to go either — they can’t continuously give out more credit to farmers, and animals are losing anything up to €30 per head at the moment.”

Mr Brady explained Brexit had been a major issue contributor to the situation in Ireland with Irish pork exports to Britain down by 14% since Brexit in 2020.

He called for government Covid and Brexit support loans to be made available to farmers to help them through the next few weeks.

“We’re not looking for money for nothing; we are looking for help,” he said.

It’s feared that a lack of action on the issue could force some Irish farmers out of the industry.

“I spoke to one farmer today who is within a fortnight or less of having no money whatsoever to buy feed for his pigs, unless there’s action then the current pig price crisis will develop into a serious animal welfare crisis,” Kerry pig farmer Shane McAuliffe explained.

Christopher Brady, a pig farmer from Monaghan with 650 sows, is one of those feeling the pressure.

“This week, the space between the rise in feed prices and drop in pig prices was worth €4,000 a week to me. The cost of meal went up €2,500 and I’m now losing another €1,000 out of my cash flow.

“This time last year, I was buying fattener for €288 per tonne, and this year that’s now is €378,” he said.

It’s no small consideration when the farm goes through 95 tonnes of meal a week.

“You know the saying, when it rains it pours — it really is pouring down now for pig farmers,” Mr Brady added.

As well as prices below the cost of production, it is even difficult for farmers to get processors to take their pigs at the moment.

“We are having to beg them to take them,” one farmer said.

“Over the last three weeks I sold 220 pigs a week, but I’ve also weaned 450 pigs.

“So there’s another 230 pigs on the unit that I should have sold to make space for these pigs.

“We desperately need government assistance to keep alive the third biggest farming enterprise in the country.

We need a bailout fund; an interest-free loan or something. Just something to keep us afloat for the next six to eight months. I think €200m would be needed — a payment of €1,000 per sow.”

“This has been a problem over the last 20 years, where pigs are very good, pigs are very bad, but this time this is very, very bad.

“I have been lucky that my miller has stood by me, but I don’t know for how much longer he can.

“If I could sell all the pigs just this week that are due to go the factory, I would be able to pay some of that down, but we are struggling to sell them.

“Every pig farm in the country is struggling.”

However, it’s a complicated issue, with a difficult market even outside of Ireland.

On Monday, it was announced a further £680,000 would be made available to support Scottish pig producers affected by the closure of a processing plant during Covid.

Poland has also announced a PLN 240m (€53m) aid package for pig farmers.

Closer to home, Brexit has also contributed to the situation. Factories in Northern Ireland were left with staffing problems after the UK left the EU.

As a result, processing capacity was reduced, with farmers in the Republic saying fewer of their pigs are now being accepted north of the border.

Prices were stronger in 2020 as China, which is home to almost half of the world’s pigs, culled millions of pigs in a bid to halt the spread of African Swine Fever.

However, numbers have since recovered.

At this time, one of Ireland’s biggest pork processing plants was delisted for Chinese exports after a cluster broke out at the factory, leaving producers locked out from reaping the full benefits.

One Cork pig farmer explained: “Our sales to the UK have dropped 14% [in 2020] after Brexit, and that was a relatively good market for us — getting prime cuts into the UK at good prices.

“The impact of Brexit on the pig industry was masked by China, but the China boat has now sailed.

“The tide has gone out on China and the bones of the Brexit situation have been left.”