IFA CALLS ON PROCESSORS AND MILLERS TO TAKE STOCK OF PIG FARMERS’ PLIGHT

IFA National Pigs and Pigmeat Committee Chairman Tim Cullinan said that there has been a strong, increasing price trend since Christmas on the continent.  All the positive elements supporting producer prices such as strong exports and dwindling supplies are still present and while EU producers are benefitting, Irish farmers are not.

The cost of producing a kilo of pigmeat over the course 2011 was 112c/kg for feed alone and with 50c/kg for non feed costs (depending on farmers individual situations), giving a breakeven price of over €160 per kilo.  Prices paid to producers last year did not cover this cost and although it is forecast that input prices should fall in 2012, feed compounders need to be acutely aware of market situation and pass any savings onto their customers immediately.   Up to this point they have failed to pass on any benefits and appear to be ignoring the plight of producers.

At the end of 2011, pig producers had produced almost 10% more pigs than in 2010 solely due to increased farm efficiency.  This has given more scope to processors to increase their plant efficiencies.  Due to the increased volume, they are better positioned to supply more export markets.  Irish farmers have ensured that the retailers support the industry and despite all of these positive elements, farmers are still struggling to survive on today’s prices.

2012 is the crunch year for producers; they are facing an investment of up to €40m to comply with welfare legislation which comes into force on the 1st January 2013.   If farmers are to achieve this goal by the end of this year, they need a price increase of 20c/kg immediately.

IFA National Pigs and Pigmeat Committee Chairman Tim Cullinan said that there has been a strong, increasing price trend since Christmas on the continent.  All the positive elements supporting producer prices such as strong exports and dwindling supplies are still present and while EU producers are benefitting, Irish farmers are not.

The cost of producing a kilo of pigmeat over the course 2011 was 112c/kg for feed alone and with 50c/kg for non feed costs (depending on farmers individual situations), giving a breakeven price of over €160 per kilo.  Prices paid to producers last year did not cover this cost and although it is forecast that input prices should fall in 2012, feed compounders need to be acutely aware of market situation and pass any savings onto their customers immediately.   Up to this point they have failed to pass on any benefits and appear to be ignoring the plight of producers.

At the end of 2011, pig producers had produced almost 10% more pigs than in 2010 solely due to increased farm efficiency.  This has given more scope to processors to increase their plant efficiencies.  Due to the increased volume, they are better positioned to supply more export markets.  Irish farmers have ensured that the retailers support the industry and despite all of these positive elements, farmers are still struggling to survive on today’s prices.

2012 is the crunch year for producers; they are facing an investment of up to €40m to comply with welfare legislation which comes into force on the 1st January 2013.   If farmers are to achieve this goal by the end of this year, they need a price increase of 20c/kg immediately.