Pressure mounts on Tesco to pay more for pigmeat
© Tim Scrivener Britain’s biggest retailer is under increasing pressure to pay more for pigmeat.
The National Pig Association (NPA) has written an open letter to Tesco chief executive Ken Murphy in a bid to get the retailer to support the sector.
The appeal to Tesco has been made following a survey that shows 80% of producers will go out of business within 12 months unless their financial situation improves.
See also: Sainsbury’s offers £2.8m to counter pig production cost rise
A backlog of 100,000 pigs is still stuck on farm according to the survey, and rising costs of production, especially feed costs, are causing losses of more than £50 a pig for many producers.
Sainsbury’s, Morrisons, Waitrose, Asda, M&S, Aldi, and the Co-op have reportedly all increased prices paid to producers.
Tesco is in a strong position as the UK’s largest retailer to support the sector due to its volume of pork sales and UK market share, according to the NPA.
Farmers Weekly has contacted Tesco for comment on how it is supporting the pig industry during the current crisis.
A spokesperson said: “We fully recognise the seriousness of the situation UK pig farmers are facing and have been working closely with our suppliers to understand what more we can do to support the sector.
“Through the buying models we already have in place, our suppliers have increased payments to farmers by £3.4m since March 2022.
“However, we would like to do more and are actively working with our suppliers on a further enhanced payment plan to support farmers in the short term.”
AHDB estimated costs of production at about 203-216p/kg in April, with 70% of this accounted for by feed costs.
This compared with the latest EU-spec standard pig price of 166.83p/kg for the week ending 30 April.
Waitrose offers £16m support package for pork sector
Waitrose has announced it will offer up to £16m in support to its pig producers to help cover rising costs of production.
The supermarket chain, supplied by about 250 producers, is also calling on other retailers to follow suit to protect British farmers and their standards.
A combination of factors including rising on-farm costs, reduced exports, labour shortages and a backlog of pigs are all putting pressure on the sector and pushing some farm businesses to exit.
National Pig Association chief executive Zoe Davies said the UK pork sector has already lost more than 40,000 sows – the equivalent of 10% of the national sow herd.
The move means the full cost of rearing and producing pigs will be covered by the retailer.
A Waitrose spokesperson said: “Based on our current projections of the cost of production, our estimates are that this investment will be around the £16m mark.
“Our hope is that the situation will improve, but, equally, if costs continue to rise then we’re prepared that this number could grow to reflect this.”
James Bailey, Waitrose’s executive director, said the investment is a direct response to some of the most challenging conditions the pig sector has ever faced and will ensure farmers continue to pay a fair price while maintaining our quality and high welfare standards.
“My hope is that this will enable us to keep working with them for decades to come, but we can’t do it alone. This issue is industry-wide and we need the entire food industry and the British public to get behind us.
“If we don’t stand united in supporting UK pork farmers and act soon, many businesses will be lost,” said Mr Bailey.
NFU president Minette Batters said: “Every day we’re seeing farmers leaving the sector because they simply can’t afford to keep their businesses afloat. Waitrose has acted thoughtfully and the move will inject much needed confidence for their farmers.
“We need all supermarkets to take similar action and create support packages that will genuinely come to the aid of British pig farmers in their hour of need – the rapid rise in farm costs need to be met or we risk supply into next year.
“I hope this move will inspire others to stand by the country’s farmers, we owe them our support.”