The pork market has been struggling in recent months, but when things start to look up, producers will need clear guidance from the market and government if they are to have the confidence to invest.
Farmers will, hopefully, gain some of that confidence at the British Pig & Poultry Fair in May, with speakers appearing from throughout the supply chain.
Pig Outlook
Dr Charlotte Evans, account manager at ABN, is chairing the Pig Outlook forum, which brings together Fábio Brancher, agriculture director at Pilgrim’s Europe, and Ellie Wotherspoon, McDonald’s agriculture and sustainable sourcing manager.
“The mood as we go into the Pig & Poultry Fair will be cautiously optimistic,” Dr Evans predicted. “People will be pleased with some of the commitments we have seen from retailers in terms of sourcing British pigmeat. But there are still plenty of things holding people back from investing.”
Global uncertainties, like the effect of the war in the Middle East, will be on people’s minds, as will the threat of African swine fever (ASF) and associated biosecurity measures.
“It’s hard to know where best to spend money for maximum resilience and return on investment,” Dr Evans said. “And there are still some question marks over animal welfare legislation and what might be coming down the track.
“Producers will be looking to really understand what consumers will pay for and what retailers want from the supply chain before they can have the confidence to invest and grow their businesses.”
Pilgrim’s Europe has made some strong commitments to the British pig industry over the past couple of years, including 20-year supply agreements with farmers and the acquisition of Hermitage AI to secure its pig genetics. It has also partnered with Waitrose on its 100% British free-range pork commitment.
McDonald’s has recently introduced a new sausage sandwich using RSPCA-assured British pork, and Ms Wotherspoon will be discussing its outlook for the market.
The audience will no doubt have plenty of questions they would like to ask.
ASF and farrowing crates
Other forums will consider the practical implications of ASF and lessons learned from both the Spanish outbreak and experience with avian influenza.
Key questions covered will include how prepared the UK industry is, what the key risks are, what will happen to prices if ASF hits and how resilient the supply chain is.
The issues around farrowing crates will also be in the spotlight. There has been a huge amount of work looking at the feasibility of lower-confinement options – but the investment required will be massive.
“Many people are saying don’t wait for legislation – do it anyway,” Dr Evans said. “But without knowing the space required and what’s acceptable, it is very difficult for some to justify.”
Given improved profitability over the past couple of years, there could also be scope to look at more value creation in the pigmeat sector, she noted.
“A key question I’d like to ask speakers is: If you were building a pig farm today that is fit for the future, what would it look like? And what information do you need to tackle the biggest risks and investment opportunities?”
Show information
- The British Pig and Poultry Fair is free to attend and takes place on May 13-14 at the NEC, Birmingham
- For more information and to register for your free ticket, visit pigandpoultry.org.uk
Unlocking value
Fergus Howie, who farms and has a butchery at Wicks Manor, Tolleshunt Major, Essex, will be taking part in a forum on adding value and carcase balance in the context of global demand and exports.
His farm has 220 sows, producing 100 pigs a week. Running a high-welfare, straw-based indoor system with outside access, Wicks Manor also sources additional Red Tractor pork to supply its own processing requirements for retail, food-service and export customers.
“We have been exporting pork for over a decade to customers in the Far East,” said Mr Howie. “We started out by attending trade shows with AHDB, and I will be going to Singapore in April to create more export trade.”
Most months see pork exports to either Hong Kong, Singapore, Taiwan, Malaysia, Brunei or Dubai, selling traditional British bacon, ham and sausages into these premium markets.
“Customers are looking for high-quality products they can trust – and they can trust British pork,” he explained. “They want our high-welfare and fully traceable pork products, which are respected around the globe. We can’t compete on price with the likes of Brazil, but the premium markets are there.”
Adding value to create premium, award-winning products means there is less need to compete on price, said Mr Howie. And exporting this helps the entire UK market, creating extra demand and thereby supporting prices.
“The more we export, the better it is for all of us,” he said.