The unprecedented uncertainty facing many independent pig producers over where their pigs are going in a few months’ time dominated the NPA’s latest Pig Industry Group (PIG) meeting.
There could be as many as 10,000 pigs per week with nowhere to go in the autumn, following the wave of cuts made by the major processors in recent months.
“It’s a nightmare,” said one PIG producer member. “This is as bad a situation as I’ve never known.
“Producers are so upset and traumatised because they basically don’t know if they can sell their pigs in three or four months’ time – and that has never, ever been the case before. In the past, even if we had contracts torn up or contract numbers not taken, the pigs have always been taken at another price.
“So, we are in kind of uncharted waters, and independent producers are rightly angry and emotional.
“If processors are making cuts of 10% across the board, producers can understand and work with that. It’s when it’s 100% or half your contract, and you don’t know what you’re going to do with the pigs. Everybody knows, you can’t just turn the tap off. That is unprecedented and quite frankly, morally wrong, in my opinion.”
It is impossible to gauge exactly how it will play out collectively once the cuts come into effect, starting in the autumn. But, as things stand, the consensus is that a figure of around 10,000 pigs without an outlet to be sold into each week is realistic. The NPA is about to launch a survey of members to get a fuller picture of the situation.
PIG discussed how producers need assurances about whether there will be markets for pigs in six or 12 months’ time – but at the moment, there is no-one who can give them that. As a result, it is clear that a number of independent producers are, once again, considering their futures in the pig sector.
12-month contracts
NPA chief executive Lizzie Wilson said the NPA is seeking a meeting with the Minister for Food Security and Rural Affairs, now Stephen Morgan, and invited PIG members to discuss the industry’s priorities that should be presented to him, if it takes place. PIG also discussed measures that could form part of a medium-to longer-term strategy to ensure more sustainable supply chain arrangements.
One recurring theme was the insufficient nature of six-month contracts, with agreement that the NPA’s guidance on the Fair Dealing Obligations (Pigs) Regulations 2025 should be amended to specify a minimum 12 month notice period. This would cover the lifecycle of the pig and give producers time to make decisions on breeding when supply arrangements have changed.
Another big bone of contention was how some processors are using the ‘shout price’ – part of the formula for pig pricing along with, for example, SPP and cost of production elements – as an adjustment keep the price paid to producers low. This is leading to a wide range of prices paid by the major pig buyers.
The NPA is exploring what could be done to address this, possibly within the FDOP regulations. It will also look into the possibility of a separate code of practice for the pig supply chain.
The lack of effective forecasting of pig supply and demand, something that was meant to be addressed in the FDOP regulations, was also covered at length.
Mark Haighton, AHDB’s pork sector director, said AHDB is currently seeking industry views on this. This includes what additional information is obtainable, what producers need and would benefit from, and what data the supply chain could use to better manage supply and demand, similar to the poultry sector.
The need to support producers’ mental health at times like this was also highlighted. The NPA will be raising the dire situation for many producers with charities like the Farming Community Network and ensuring members know where to access the help they need.