Past 18 months 'the most difficult period the pig sector has ever endured'

Farmers have seen extreme increases in the costs of their inputs.

The past 18 months have been "the most difficult period the pig sector has ever endured", according to the Irish Farmers' Association.

In its latest pig market update, the IFA said that there was no change in Irish pig price last Friday, with farmers receiving quotes ranging from €2.06 per kg up to €2.16 per kg from processing plants.

The average price is €2.10 per kg. 

The total weekly throughput for the week ending October 9 was 69,540.

'Most difficult period endured'

The past 18 months have been the "most difficult period the pig sector has ever endured", according to the market update.

"The average composite feed price in December 2019 was €300 per tonne and is currently €476 per tonne - an increase of 60% in the cost of feed which constitutes 70% to 75% of the cost of production," the IFA said.

"Given this, producers' feed credit has increased and therefore those who received financial aid from the Government utilised it largely for feed costs.

"Energy prices are further hampering the financial pressure on farms with increases evident in the region of 300% following the restrictions of gas exports to the EU by Russia. 

"Farmers who were in contracts for electricity are now receiving quotes of 60c-70c per kWh."

IFA pigs chairman Roy Gallie told the Irish Examiner recently that the average pig farmer's debt is "up close on €380,000". 

"Farmer's bank accounts are increasing in the red every day. We want, at the very least, to get to a stage where we’re not actually losing money," Mr Gallie said during a recent IFA protest at retailers in Co Cavan. 

"I never thought I’d see the day come that our costs spiralled like this. We just haven’t been able to meet our debts."

Message to the multiples

Minister for Agriculture Charlie McConalogue said that farmers should be “adequately rewarded” for the work they put into ensuring that Irish food “has an assurance of quality, safety and taste”.

Fianna Fáil TD Brendan Smith recently asked the minister if he would “ensure that a clear message goes from Government to the multiples” that a sufficient price needs to be paid “without delay” to pig and poultry producers.

Responding, Mr McConalogue said that “in general, retail multiples do not purchase pig meat or poultry meat directly from farmer suppliers, but from meat processing companies”.

“Prices paid to farmers or charged to consumers are not controlled by Government and are, obviously, subject to market demands,” he said.

“It is critically important that operators along the supply chain recognise their mutual dependency.

“Farmers are small businesses and are vulnerable to price volatility. They need to make a reasonable economic return for their output if the supply of high-quality pig meat and poultry is to be maintained.

“It is critically important that farm families and food producers are treated fairly.” 

He added that establishing the Office for Fairness and Transparency in the Agri-Food Supply Chain “is one of my priorities as minister, and I am confident it will be an advocate and provide a voice for farmers”.