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[27 Sep 07]


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Click on any of the news stories above for further information

Pork producers across the world, including the British Pig Executive (BPEX), have joined forces to tackle the threat to the industry posed by rocketing feed prices. Representatives of major national pork bodies met at the 4th International Meat Secretariat (IMS) World Pork Conference in Nanjing, China, which finished last week.

Wheat prices, one of the main constituents of pig feed, have doubled over the last 12 months and pig producers need a rise in what they are paid or the industry will go into meltdown. At present they are losing anything up to GB£26 (US$52) for every pig they send to slaughter.

BPEX Chief Executive Mick Sloyan, who is also vice-chairman of the IMS Pork Committee, was in the group which drew up a joint statement on the crisis. The statement reads: "Immediate lifts in wholesale and retail prices, and producer returns, are required for industry survival. The most significant issue is that of feed costs, which for most producers represent more than 70% of pork production costs.

"The worldwide grain price explosion is a result of poor harvests associated with difficult climatic conditions, but the most significant impact has been caused by the massive growth in demand for grain to produce biofuels, aggravated by many countries subsidising this production.

"Producer delegates spanning four continents said they are currently carrying substantial losses on every pig produced, a large number of producers are leaving the industry and more will follow. Producers are looking at all options to increase efficiency but in the short term those efficiency gains will fall far short of what is required to stop the significant losses occurring. "Producers see two possible scenarios unfolding. Firstly, a significant drop in production worldwide due to cutbacks, followed by a dramatic increase in wholesale and retail prices, well above current levels as has been observed in China over the last year.

"The second scenario is to work with consumers, the food service sector, and retailers to increase prices paid to producers now. Increasing producer prices now, would allow production to be maintained and would mean that wholesale and retail prices would not need to increase so greatly in the medium term. "This scenario appears to be the best for all parties. Consumers will still have pork available at reasonable prices, the food service sector and retailers will be able to satisfy their customers with adequate supplies and farmers will be able to continue in business."

Producers are calling on consumers, these sectors to provide that support immediately and will be talking to retailers in their respective countries to explore how this can be done."

The organisations involved are: Canadian Pork Council, British Pig Executive, South African Pork Producers Organisation, New Zealand Pork Industry Board, Australian Pork Ltd, Nederlandse Vakbond Varkenshouders (Dutch Union of Pig farmers), the LTO, the Dutch Federation of Agriculture and Horticulture and the French Porcine National Federation, FNP.

Mick Sloyan said: "It is a problem of worldwide concern which must be tackled on a global basis. "We have already seen a start to pig meat price rises in some shops and supermarkets in Britain but it is vital those rises get back down the supply chain to the producer as fast as possible."

[27 Sept 07]