Scotland-Drop in pig herd numbers.
SCTLAND-DROP IN PIG NUMBERS.
DECADE ago Scotland had a herd of just over 60,000 breeding pigs. The comparable figure is now down to 33,400 with every indication that number will decline further.
Producers have been making decent profits in recent months, but the risk is that the industry is slipping below "critical mass".
Vion, the Dutch company that last year acquired the Grampian Country Food Group, has the capacity to process up to 14,000 pigs a week at its plant at Broxburn, West Lothian, but is now working on a four-day week.
Sources close to the company have indicated that unless pig supplies in Scotland are stepped up, the future of the plant and further investments will be directed towards the north of England.
John Scott MSP, the Tory spokesman for rural affairs, raised this issue yesterday at Holyrood. Scott said: "It is vital that the government uses all the levers at its disposal to restore profitability and critical mass.
"With current sow numbers below 35,000 head – and that is 10,000 less than the figure regarded by the Scottish Agricultural Organisation Society study to be crucial and the fulcrum point below which the industry would spiral into decline – evidence suggests the next six to nine months represents the final throw of the dice.
EUROPEAN UNION- PIG HERD DROPS.
European Union Pig Inventory, December 2008
Last week, Eurostat officials released a comprehensive inventory of the European Union’s sows and market hogs. The good news for all of Europe and North America’s hog producers is the huge drop in inventories of the EU’s 27 countries.
The European Union 27 country sow inventory has dropped about one million sows in the last year and 1.6 million in the last two years – a huge liquidation (10.3 per cent). This decrease of sows is greater than Canada’s entire sow inventory.
EU’s total pig inventory is down approximately 7 million pigs from December 2007 to December 2008. That would be about 280,000 less market hogs a week on average year over year. It’s a lot and will help push market prices higher. Last week for example, Poland’s slaughter price was 66 cents US per lb.
EU-27 hog supplies means less pork tonnage for EU exports, whether it be Japan Korea, Russia, etc. Also, Europe market prices of approximately 66 cents US per lb will give US, Canada and Brazil huge price competitiveness in export markets.
The EU-27 country inventory was counted in December. Our sources in Europe indicate there has been continued liquidation since then. Higher global feed prices over the last 2 years and financial losses have devastated livestock inventories in Europe and the rest of the world. Total meat availability is decreasing. Fewer hogs in Europe helps everyone’s hog prices.
