Struggling pig producers could see a one-month pork levy holiday to help them reduce the growing backlog of pigs on farm, AHDB has proposed.
The proposal, which has to be ratified by government ministers, was announced by the organisation at the Pigs Tomorrow conference in Leicestershire on Tuesday (21 September).
The pig sector has repeatedly called for collective supply chain action, backed by government support, to help alleviate the worsening pig backlog crisis.
The backlogs are coming at a time of sustained record costs of production, underpinned by high cereal and protein prices, and falling pig prices due to the issues processors are facing, as well as plummeting EU prices, making imports more competitive.
Industry bodies had warned that very serious animal welfare consequences were likely in the coming days and weeks unless the supply chain and government acted.
The National Pig Association (NPA) said that the crisis was the worst the sector had seen since the 'dark days' of the late 1990s and early 2000s.
Producers had been losing, on average, around £25 on every pig they produce this year, according to the trade body.
According to Pig World, AHDB Pork chairman Mike Sheldon said at the Pigs Tomorrow conference that the pork levy holiday would be worth around £800,000 to the industry.
He said this would encourage producers to take up the lower price and would help avert the animal welfare issues.
Mr Sheldon read a statement from the AHDB board at the event: “The AHDB Board today considered the multiple, exceptional difficulties being encountered by the pig sector.
“On behalf of the pork sector board, Mike made a proposal to the AHDB board that to support the industry in making these difficult decisions, we should demonstrate support for pig producers by agreeing to set the pork levy at zero for one month.
“After extensive discussions, the majority of the board agreed to support the proposal and, subject to confirmation of the legality of the move and subject to getting an indication of support from Defra Ministers, that is what we will do."
However, Mr Sheldon stressed this was an 'exceptional move', and it was only made possible because the costs could be met from pork levy reserves.
"There cannot be a situation where this kind of use of levy money is assumed to be possible whenever the market turns against producers, whether in the pork sector or any other sector," he added.
“AHDB also recognised the concerns about animal welfare but also for all our people as we face up to the potential for over-crowding and killing pigs on farm because there is nowhere else for them to go.”
