Pilgrim’s Europe has launched a 20-year contract model for pig farmers, aiming to deliver long-term financial security and support on-farm investment.
The new offer by the meat processor marks a major step in reshaping how farmers engage with the pork supply chain.
Designed for those looking to build new facilities or convert existing operations into pig units, the long-term contracts are set to reduce financial risk for new entrants and expanding producers alike.
Pilgrim’s says the offer comes at a pivotal time for British agriculture, with renewed optimism across the pork sector.
Fabio Brancher, agriculture director at the processor, said: “The UK pork industry is shaping up to experience a positive 2025, following previous years of uncertainty around feed prices and market volatility.
"The momentum it’s showing so far presents excellent opportunities for farmers looking to innovate or diversify their income.”
He described the 20-year contract offering as “a fundamental shift” in the company’s approach to farmer relationships.
“This isn't just about securing supply; it's about creating a sustainable, profitable future for British pig farming that benefits farmers, processors, and ultimately consumers who want quality, traceable British pork."
Pilgrim’s Europe, which processes over 2.2 million pigs annually across its supply chain, is using its scale and reach to address what it sees as long-standing issues in the sector.
One of the biggest problems, according to Mr Brancher, has been short-termism in a capital-intensive industry.
“Traditional contracts typically run for three to five years, but modern pig farming infrastructure requires 15–20-year payback periods.
"This mismatch has created chronic underinvestment and a lot of uncertainty,” he explained.
The company’s new model will see it provide up to £15 per pig per batch over the life of the contract, helping to support loan repayments and provide predictable income.
The arrangement includes management fees and performance bonuses, with a guarantee that farmers will turn a profit over the full 20-year term.
Mr Brancher said: “The new arrangement significantly reduces financial risk for existing pig farmers, or for those looking to diversify into pig production.
"Farmers get predictable income and loan support—something that’s rare in agriculture.
“The 20-year commitment allows them to plan long-term improvements and investment with confidence.”
For more information or to enquire about taking part in the scheme, interested farmers should contact Pilgrim’s Europe directly.
