Pig Producers Losing Out - Farming | farming news | cattle prices | ifa

Pig Producers Losing Out

Written by Cian MacSweeny
Monday, 23 June 2008
Michael Maguire, IFA Pigs Chairman, has said that information gathered from the market shows that processors are getting 20% more for pigmeat products compared to January 08, yet they have only increased pig prices by 13%. He said: “We have looked at three sets of figures, the price increase for pigs since January 2008, compared to the consumer and wholesale prices for pigmeat products. This analysis has thrown up some very interesting facts." “Since January 2008, the price being paid to Irish farmers from pigmeat processors has increased by only 13%, which fails to recover the 25% increase in the cost of production in recent months. In the same period the wholesale price of pigmeat has increased by almost 20% across a range of products. Processors however have been using the excuse that supermarkets have been slow to pass back increases so as not to increase prices to their suppliers.” The IFA Pigs Chairman admitted that supermarkets have been very slow to increase their prices. Mr. Maguire said, “The CSO consumer price tracking service has shown that there had been little or no increase in the price of pigmeat to the consumer up until April. In fact a decrease has been recorded since January in the price of ham fillet and collar bacon.” The pigs Chairman continued saying “it will be interesting to see the May/June consumer prices, as according to the wholesale price it seems that supermarkets are paying processors more and this is not likely to be taken out of supermarket margins for too long.” According to the information available, cooked ham and pork sausages have seen a price increase of 10% but Mr. Maguire noted that “this is of little value to pig producers as the vast percentage of ham and sausages are not carrying the Bord Bia Quality Assurance logo. This means that these products that are increasing in price have no traceability attached to them and Maguire urged consumers to look for the logo.” He said “this is an unbelievable situation, supermarkets keeping prices down and losing margin only for pig processors to swallow up the extra. They have not been exposed to the massive increase in feed prices and this is despicable behaviour.” IFA Pigs Chairman Michael Maguire concluded saying that the pigmeat crisis is still ongoing and that processors must continue to seek higher prices and pass these profits back to the suppliers who need them badly.

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