Pig producers in price plea

While some retailers continue to report strong Christmas sales stories, desperate pig producers are considering action after a miserable last quarter. And with problems on the Continent following the German dioxin scare, concerns are rising.

According to figures from Bpex, producers are losing an average of £14 per pig, despite the fact sales have increased and retail prices have spiked up 10% in the last quarter. Producers find themselves squeezed by soaring feed costs and a drop in the Daily Average Pig Price (DAPP), and Bpex warns that conditions show little sign of improving.

Stewart Houston, chairman of Bpex, said: "We're all convinced that we're in a worse position than we were in 2007 in terms of cost, and that led to a fall in production of 7%. This is the first time I'm sensing real fear from producers."

Industry watchers said producers were becoming increasingly agitated at what they see as retailers and processors making profits while they suffer mounting losses, and are now planning to intensify their campaign for a better deal under the banner of 'Pigs Are Still Worth It'.

As a result, the campaign will now be ramped up nationwide to bring the matter to the attention of consumers. Houston said it was not about massive increases in retail prices: "There is evidence that there's money in the chain, no-one else is losing money. We're just looking for fairer distribution rather than huge increases at the retail end."

The campaign will kick off next month, with banners erected in farmers' fields adjacent to major transport routes to provide high visibility for the action. Farmers are also thought to be organising support activity in central London and at key regional locations across England.

Bpex will be calling on retailers to increase the amount paid per pig to producers, to support English high-welfare pig meat production and adopt total supply chain co-operation.

Meanwhile, as MTJ went to press, UK producers were keeping a concerned eye on developments in the EU, following the German dioxin scare (see below). Industry insiders said that British producers would be appealing to UK retailers to maintain their commitment to UK supplies, and not take advantage of the available supply of cheap pigmeat on the Continent, due to the export disruption.

Work is likely to be stepped up on Porkwatch, the regular monitor of country-of-origin on pork and pork products, and isotope sampling, which determines country of origin, using scientific methods.

Houston added: "We're seriously concerned that the situation on the Continent will have massive repercussions, particularly on price, at a time when UK producers are losing significant sums of money."

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