Irish Pig Meat Prices Must Rise To Save Market

Written by Cian MacSweeny
Wednesday, 26 March 2008
Michael Maguire, IFA Pigs Committee Chairman said producers don't accept the claims of the processors that they have seen little benefit from the strong uplift across the EU in the pig meat market over the past two months. He said “They have heard all the excuses at this stage and in reality what is happening is that the processors are pocketing high profit margins at the expense of producers. Weekly increments are vital to the sector. EU pig prices have been increasing now for a number of weeks leaving the Irish average trailing behind the EU average at 94%”. Michael Maguire noted that the new Rosderra wouldn't be around for much longer if they keep paying this low price to pig farmers. He made it clear that supply of pig meat won't be around for long especially with farmers' increased frustration at Rosderra's refusal to even pay what their market competitors are paying. Mr. Maguire said "Irish processors must be mortified when claiming to producers that they are unable to get the most out of a buoyant marketplace. Processors may be content to lose suppliers who are being forced to quit production as they cannot continue to lose money, however they should consider what this will mean to the supply base going forward." Market leaders are needed in the Irish pig industry to pay a better price to farmers and lift it from its current gloom. It does not seem that any company is willing or able to take that responsibility on. “Wholesale prices have increased, retail prices have increased, yet the low price being paid to the producer means that he is still losing over €25/pig" Mr. Maguire said. It is costing Irish pig farmers millions of Euro each year to remain in the Irish market where the prices are the slowest in Europe to increase when the market moves. The IFA Pigs Committee Chairman said “Not one Irish processor increased prices this week despite markets across the EU strengthening and tightening pig numbers in the major pig producing countries. Irish processors are fully aware that in the next few weeks, supplies will tighten further and prices will rise, this cannot happen quickly enough for the producers.”

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