BPEX Annual Pig Meat Industry Survey 2012 Report

The pig sector is more optimistic this year about its financial situation across all parts of the supply chain. Optimism though is still below peak levels seen in 2009, according to the BPEX Annual Pig Meat Industry Survey 2012 Report produced by Promar International.

22 March 2012

4 minute read

The Market

The confidence index, which is based upon expected investment in buildings and plant and machinery, has declined for producers in the sector this year, whereas non producers have seen an increase in confidence levels.

Capital expenditure on buildings, plant or machinery this year is set to be driven by the need for replacement, or to increase efficiency/productivity - the same reasons as in 2011. The factors most likely to limit capital expenditure over the next 12 months are the fear of an inadequate return on investment, followed by uncertainty of demand.

A larger percentage of the sector (90 per cent compared with 85 per cent in 2011) are operating at between 71 and 100 per cent capacity with just under 50 per cent operating at a capacity rate of above 91 per cent.

The sectors competitiveness with other UK businesses has remained the same over the last 12 months, while competitiveness against other EU businesses has fallen over the same period. The competitiveness against Non-EU businesses has increased since 2011. The competitive outlook for the next 12 months is more optimistic with an increase in respondents who felt their business would become more competitive in 2012.

Factors most likely to limit output over the next 12 months are plant/building capacity, orders or sales, and shortage of skilled labour.

Overall average selling prices are up on the same period 12 months ago although still not at the level seen in 2009.

BPEX Services

Satisfaction remains high across a range of different factors with satisfaction levels highest for BPEX’s friendliness and helpfulness. A large percentage of respondents are utilising BPEX services, albeit at the same rate as in 2011. Anticipated use of their services over the next 12 months is set to increase.

The most frequently used BPEX services are:

BPEX’s website
R&D and knowledge transfer
Health programmes

These key services are also set to be the most frequently used over the next 12 months.

BPEX having a lack of relevance to respondent’s business was again the main reason for respondents not using the organisation’s services. This was the primary reason across all levels of the supply chain. The second reason was that respondents were using alternative sources, although this percentage was lower than that shown in 2011.

The service with the highest awareness was BPEX’s Pig Farmer (the insert in Pig World).

Voluntary production, definitions code of labelling had the lowest awareness of the services, although this has improved since 2011.

The proportion of respondents aware that BPEX are part of the Agriculture and Horticulture Development Board (AHDB) has remained at the same level as in 2011, with awareness highest amongst the civil servant sector.