Pig industry crisis talks to continue with Minister

Demonstrators during a farmers' protest in Dublin City Centre over the increased cost of feed and fuel and poor prices for pig meat. Gareth Chaney/ Collins Photos

Farm reps say further engagement is needed on proposals to secure the future of Ireland’s pig sector.

Pig farmers including Irish Farmers’ Association president Tim Cullinan and IFA pigs committee chairman Roy Gallie met with Agriculture Minister Charlie McConalogue and minister of state Martin Heydon late on Tuesday night.

Mr McConalaogue said he was committed to engaging intensively with farmers in the coming days and would “explore all avenues” to work towards a solution.

At the time of print, the IFA protest outside the department headquarters on Kildare St had been paused. IFA president Tim Cullinan said it was an “extremely urgent situation”.

“The sector’s entire future hangs in the balance and there has to be urgent Government action to support pig farmers,” he said.

IFA President Tim Cullinan and Roy Gallie, Chairman IFA National Pigs Committee speaking with Minister for Agriculture Charlie McConalogue and Minister of State Martin Heydon on the street as pig farmers protested outside Agriculture House on Kildare St. Picture: Finbarr O’Rourke

“We are staring into the abyss here. Our pig sector is an important part of agriculture in this country, contributing nearly €1bn in exports. However, the sector cannot survive a projected loss of €160m in 2022.”

Mr Gallie said the situation “could not be more stark”.

“We are caught in a devastating price/cost squeeze. Some farmers have already culled breeding sows and more are suspending production. They cannot produce with losses of over €50 per pig, and rising,” he said.

“If the Government wants a pig sector, it must act now. We are at the point where farmers are exiting. If more go, then the upstream and downstream businesses become unviable and then the sector will be gone. It is that serious,” he said.

The IFA is calling for a €100m emergency pig aid package they say is needed to save the sector, with the proposal that pig farmers could repay half through a levy once margins improve.

“Minister McConalogue needs to inject liquidity into the sector now if it is to survive,” Mr Gallie said.

“We acknowledge that the minister has allocated some funding to date, but unfortunately that has been swamped by continuing losses and further feed price increases.

“Teagasc has warned that 30% of producers could go to the wall if there isn’t further support. A combination of factors has led to large-scale losses on pig farms. Feed prices have been increasing relentlessly since mid-2021. However, the war in Ukraine has substantially exacerbated this issue. The pig sector is one of the most exposed to feed price increase as it constitutes of the cost base of an Irish pig farm,” he said.

Speaking following the meeting, Mr McConalogue said: “I am acutely aware of the challenges facing our pig sector and I am working to help support farm families and their businesses as much as possible. The industry is undoubtedly under pressure and I, as well as Minister Heydon and the rest of the Government, have acted to support pig farmers throughout this challenging period.

“Recently, I announced the Pig Exceptional Payment Scheme (PEPS), with a fund of up to €7m. The maximum payment under this scheme is €20,000. Payments have started issuing to applicants. I have also met with the banking sector regarding the current situation.

“I have also met with the Irish Strategic Investment Fund (ISIF) on the possibility of developing a suitable instrument to manage market volatility.

“I thank the IFA for engagingly so constructively throughout this very difficult period for pig farmers. I have received the joint proposal for emergency funding that the IFA, the meat industry and the feed companies have submitted and I have been examining it closely. I have committed to working with the sector to explore all avenues to offer support for this really important industry.”