UFU: No Justification for Pig Price Cut

by 5m Editor
4 September 2008, at 10:12am

UK - Local pig producers have expressed their anger at a drop in farm gate pig prices imposed this week by local pig processing companies. Ulster Farmers’ Union Pork and Bacon Chairman Norman Robson said there was no justification for this weeks price cuts which averaged 4 pence per kilo.

Norman Robson said; “The decision by processors to drop prices is unacceptable to producers who are well aware that farm gate prices in many parts of Europe are continuing to rise. With sterling dropping to an all time low this week against the Euro, exchange rates are also in our favour, making imports more expensive; so we see no justification for Northern Ireland pork and bacon to be devalued in this way. After one of the most financially difficult years in the pig industries history it is important that the remaining producers are given the confidence to continue in production, but processors are sending out the wrong signals”.

The UFU says pig prices have fallen on both sides of the border. Norman Robson said; “After suffering heavy losses for the majority of the last 12 months it is important that processors send out positive signals so that Irelands pig population as a whole does not drop below the critical mass. The fact that processors in GB and Europe can offer higher prices is exposing the weak selling practices of our local processors. During August some local producers were receiving as little as 121pence per kilo, when the GB price was 137.38p. This is a disgraceful price differential”.

The UFU has urged pig producers to be stronger sellers and not settle for a price below the EU average price. The UFU says the latest recorded deadweight average producer price in Europe was 137.24 pence per kilo.

5m Editor