Producers cut back sow numbers amid pig industry crisis
© Tim Scrivener Some pig producers have stopped serving sows and cut back sow numbers to mitigate losses.
Estimated sow slaughterings for Great Britain totalled 20,184 head for the four weeks ending 31 July, nearly 2,000 more than the same period in 2020, according to AHDB data.
Suffolk-based consultant Peter Crichton said producers are finding it unsustainable to produce pigs that could be losing £10 to £20 a head.
This is due mainly to high feed costs and falling pig meat prices driven by cheap imports from the EU.
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“Good producers are finding themselves in negative equity, the cull sow price is very low and if producers decide to cull some of their herd, they will find it difficult to get back in the black,” Mr Crichton said.
Liveweight cull sow prices averaged 37.95p/kg for the week ending 24 August, up by 5.35p/kg on the previous week, but still very low.
Supply chain backlog
Restricted throughputs at abattoirs are creating a build-up of pigs on farm. Lizzie Wilson, policy services officer at the National Pig Association (NPA) estimates the industry has a backlog of 45,000 head, with numbers continuing to grow.
The British Meat Processors Association (BMPA) warned that staff and skills shortages meant many businesses were up to six weeks behind their Christmas production schedules.
The organisation said the production delays meant inevitable shortages of some of the more complicated Christmas lines, such as pigs in blankets.
Staff shortages in the supply chain are estimated to be reaching 15% of the total workforce, with drivers reportedly being poached by retailers who are offering sign-on bonuses of between £2,000 and £5,000, according to the BMPA.
This is exacerbating the issue and suppliers are then being penalised for failure to deliver goods on time to retailers.
Pig prices
Pig prices have fallen for a third consecutive week, with labour shortages at abattoirs and processing plants leading to a backlog of pigs on farm.
For the week ending 21 August, the EU-spec standard pig price dropped by 0.97p/kg on week-earlier levels to 159.25p/kg, according to the AHDB. This now puts pig prices 3.47p/kg lower than this time last year.
In the week ending 22 August, UK pig prices were 36.85p/kg higher than those in the EU-27. This significant difference is making pork imports more competitive.
Bethan Wilkins, senior analyst at AHDB, said: “Relatively low prices on the Continent, as well as reports of difficulties processing pigs through the supply chain, will have contributed to this change.”
AHDB estimated slaughterings at 160,000 head for the week, a fall of 30,000 compared with the same week last year.
The NPA continues to lobby the government for support for businesses in the pig sector that have been affected by staff shortages.
This is despite Defra rejecting a previous NPA plea in July for a compensation support package worth £3.2m for the English pig sector.
The NPA is also encouraging its members to email their MPs to make them aware of how their businesses have been affected.
NPA senior policy adviser Charlie Dewhirst said: “The more noise we can raise politically on this issue, the more likely we are to get our voice heard and see some action.”