NPA chief executive Lizzie Wilson set out the case for a pig industry support package in an interview with Radio 4’s Farming Today programme, as she highlighted the ‘unprecedented’ nature of the crisis facing pig producers.
The pig market is facing a significant supply-demand imbalance and many producers had been served notice on some or all of their pigs over the past 12 months, she explained.
“Ordinarily, you would go and find a contract with a different buyer, but what is unprecedented and very unusual at the moment is that every single processor has given notice to a proportion of their supply. They are slaughtering at full capacity and there is nowhere else for them to go,” she said.
“At the moment there, are producers out there who have, very unfortunately, been given notice on 100% of their pigs and there’s no alternative market for those pigs.”
Mrs Wilson pointed out that this is the second crisis to hit the pig sector within five years. “As resilient as we are – producers are very good at adapting to to different market conditions – there’s only so much financial impact that their business can take,” she added added.
You can listen to the full interview HERE (from approx 7 mins).
Proposed support package
The NPA recently submitted a proposal for a comprehensive support package, including:
- A top up payment for those producers that have had to sell on the open market at much reduced prices.
- A restructuring scheme for producers who have been given notice on 100% of their pigs and have got no other option you but to exit.
- Help in slaughtering the pigs that are going to be left on farm with no contract, for example a private storage aid scheme and support for processors.
- Help with market monitoring.
- An industry code of conduct.
- Improving transparency in food service, backed up by government buying standards.
- Core standards in trade.
“We believe this is a necessary and proportionate set of proposals that would help ensure a sustainable future for our sector – and we urge ministers to give it their full consideration,” Mrs Wilson said, when the proposals were submitted.
Defra response
A Defra spokesperson said: “We are taking action to strengthen farmers’ position in the supply chain, including through new rules to give British pig producers fairer contracts, greater certainty and protection.
“We are carefully considering the NPA’s proposals alongside the available evidence and industry engagement and will continue to work closely with the NPA and wider sector representatives as the situation develops.”