In this file:

·         Weary pig farmers eager for spring shoots of hope in markets

… Analysts have tentatively predicted a more positive third and fourth quarter for 2022, although they warn that some pig farmers will not stay in business to see it… 

 

·         Government looking into regulation to ensure fairness in pig supply chain – Eustice

 “A crucial thing if we’re going to move away from subsidy payments to farmers, is that we have got to make sure so they get a fair share of the value of the food that they are producing and that has not always been the case in the past” ...

 

 

Weary pig farmers eager for spring shoots of hope in markets

 

Michael Priestley, Farmers Weekly (UK) 

06 January 2022

 

There may be light at the end of the tunnel for pig farmers after a demoralising year in which pigs were give away, rendered and lost £30 a head.

 

Analysts have tentatively predicted a more positive third and fourth quarter for 2022, although they warn that some pig farmers will not stay in business to see it.

 

They say spring could bring tighter supplies, which would start lifting pig prices towards break-even levels. But this would require the backlog of pigs created by the Brexit butcher shortage to have been either processed or rendered.

 

Low supply to cure low prices

 

Pig consultant and valuer Peter Crichton said that with an SPP of 141p/kg, any major price movements in the second quarter of 2022 would hopefully be upwards.

 

He said some farms had already started cutting numbers by not buying in-pig gilts. This will help tighten supply and lift prices later in the year.

 

But he stressed that EU prices, which have massively undercut the UK market at 107p/kg, must lift to put a higher floor in the market.

 

With a haulage cost of about 8p/kg, processors could get EU pork into the UK for less than 120p/kg, Mr Crichton said.

 

“To get in the black, UK farmers need prices on the continent to go up,” he said. “Alternatively, we could take a stricter stance on EU imports because of African swine fever (ASF) being in mid-Germany and spreading west.

 

“If we had ASF and the EU didn’t, I think we know what would happen to UK pork imports.”

 

He added that, at this stage, there was little evidence of suitably qualified butchers returning to the UK.

 

Tighter global picture ...

 

more

https://www.fwi.co.uk/livestock/taking-stock/weary-pig-farmers-eager-for-spring-shoots-of-hope-in-markets

 

 

Government looking into regulation to ensure fairness in pig supply chain – Eustice

 

By Alistair Driver, Pig World (UK)

January 6, 2022

 

Defra Secretary George Eustice has indicated that the Government is planning to introduce legislation to ensure fairness in the pork supply chain.

 

During a question and answer session at the virtual Oxford Farming Conference (OFC), he described fairness in the supply chain as an important issue, which he said was why the Government took provision in the Agriculture Act to introduce regulations for fair contracting in the supply chain.

 

“This is not just with supermarkets where the Grocery Code Adjudicator (GCA) has achieved some progress in that area but, more importantly, the relationship between farmers and processors in the supply chain,” he said.

 

He said this was ‘particularly important’ in some sectors, such as dairy where, there’s a danger that farmers end up being priced takers and in the past, have been ‘bound to supply one processor’, but without any understanding of how the prices they are paid are calculated.

 

“I think that’s wrong – you should have transparency and fairness in supply chain, and that’s why we’ve taken powers to introduce regulations to deliver just that,” Mr Eustice said.

 

With the Government now introducing regulation in the dairy sector, he added: “We are also looking at other sectors, including pigs and wider meat processing sectors as well, to ensure that we’ve got that transparency and that fairness.

 

“A crucial thing if we’re going to move away from subsidy payments to farmers, is that we have got to make sure so they get a fair share of the value of the food that they are producing and that has not always been the case in the past” ...

 

Abattoir support? ...

 

more, including links

https://www.pig-world.co.uk/news/government-looking-into-regulation-to-ensure-fairness-in-pig-supply-chain-eustice.html