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Lower Cereal Prices = Lower Pork Production Costs

by 5m Editor
20 June 2008, at 1:56pm

IRELAND - IFA National Pigs Committee Chairman Michael Maguire said that the Irish grain harvest is forecasted to show high yields due to record plantings and increased acreage. Worldwide; the wheat supply for the 2008 harvest is forecast to be 30 million tonnes over 2007.

This fact, the EU extension of the suspension of EU cereal duties and the carryover of barley in Irish stores should lead to a fall in Irish pig feed prices.


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"Merchants should not target producers in a bid to improve margins at this time. Although the pig price has shown some recovery, over 50% of pig producers in the country are still not breaking even. Millers should be in a better position currently to pass back some of the benefit of the drop in native cereals seen in recent weeks"
IFA National Pigs Committee Chairman Michael Maguire

The IFA Pigs Chairman advised that ‘pig producer home millers and grain farmers must consider taking the middleman out of the equation at this juncture. It is timely that both sets of farmers look at buying and selling forward’.

Maguire said “A recent exchange with pig producers in GB indicated that pig farmers across the water are currently in the process of taking cover on their feed supplies going forward at realistic market prices. 70% of the cost of pig production is in the cost of the feed and this forward buying approach has served our neighbouring farmers in the UK well over the past 12 months”.

“Merchants should not target producers in a bid to improve margins at this time. Although the pig price has shown some recovery, over 50% of pig producers in the country are still not breaking even. Millers should be in a better position currently to pass back some of the benefit of the drop in native cereals seen in recent weeks,” he continued.

Maguire made reference to the flooding in the US, ‘soya prices are rising rapidly and as the EU must import approximately 16million tonnes of soyabeans and 24million tonnes of soyameal each year the EU must throw out the zero tolerance policy in relation to GM material imports’.

“Every year the amount of non-GM maize and soya being produced by the US, Canada, and Brazil is reducing. EU countries are therefore being forced to pay more to ensure that consignments are GM free. This makes no sense when these GM products have been safety assessed by other countries” the IFA man continued.

“Recent comments from Dr. Patrick Wall in relation to the EU re-looking at meat and bone meat for pigs and poultry come as a welcome development. Pig producers are currently at or below breakeven pig prices, it is therefore vital that the all stakeholders play a responsible role in the survival of this industry. I wish to encourage pig producers to pick up the phone and make contact with local grain growers to engage in a process of negotiations”, concluded Mr. Maguire.

5m Editor