Pork supply chain urged to forge better working relationships to ensure fair distribution of profits

'There is an onus on all partners in the chain to work towards better supply chain relationships'
'There is an onus on all partners in the chain to work towards better supply chain relationships'

The farming sector has called on all partners in the pork supply chain to forge better working relationships to ensure a fairer distribution of profits.

Addressing the David Black Award breakfast in the House of Lords this week, AHDB Pork chair Meryl Ward has said pig producers had endured a mixed year.

The David Black Award is the highest award the pig industry has to give and is presented to somebody who has made a valuable and sustained contribution to the industry.

She highlighted the ‘major industry success’ of this year’s ‘unprecedented’ growth in exports, which are set to set hit a record of £400 million in 2016 - worth £35/pig.

AHDB Pork chair Meryl Ward has said pig producers had endured a mixed year
AHDB Pork chair Meryl Ward has said pig producers had endured a mixed year

However, the recent surge in pig prices, partly driven by this export growth, followed a 'torrid time' for producers as food deflation put pressure down the chain and despite, according to the industry's leading pig industry voice, the National Pig Association.

Mrs Ward said: “Despite the value of exports and the £13 million additional sales contributed by the pulled pork campaign, producers have had a very difficult first half of the year with many farm businesses facing negative margins.”

Mrs Ward said the 'enviable choice' for consumers of purchasing options based on different production systems provided the industry with ‘further clear differentiation from our competitors’.

“Our product in both health and welfare standards and value has never been so attractive against our European competitors. At only 40 per cent self-sufficiency on the domestic market, we have plenty of headroom for growth,” she said.

'Better supply chain relationships'

Mrs Ward said there is an onus on all partners in the chain to 'work towards better supply chain relationships' and 'ways of working together to improve confidence at all levels to stimulate investment.'

“We have a short chain of only retailers, processors and producers and leaving one part of that chain unprofitable when there is profit in the chain at any time serves no purpose.”

She also called for help from the government in the form of a new Health and Welfare Stewardship Scheme, similar to the environmental stewardship scheme.

Mrs Ward said: “If we are to unlock the full potential to grow our markets further we also need direction and policy from Government to help a new generation of producers invest in the pig farms of the future to renew our housing and systems of working to meet the latest environmental and welfare standards”

Mrs Ward praised the work of David Black award winner Susanna Williamson and her team at APHA helping maintain biosecurity standards within the UK herd and horizon scanning for potential new diseases.