Morrisons supplier cuts spark fresh fears for struggling pig sector

Pig farmers supplying Morrisons’ Woodheads abattoir are facing growing uncertainty after the supermarket moved to cut suppliers amid deepening turmoil in the UK pork sector.

Pig World reported that Morrisons had blamed a “challenging economic climate” for its decision to reduce the number of producers supplying the Lincolnshire-based processor, with some longstanding farming businesses understood to be among those affected.

Industry sources told the website that at least one major producer supplying large weekly volumes of pigs had been given notice, while other farmers have reportedly been told the numbers taken each week will be reduced.

The move is the clearest sign yet of the pressure gripping the UK pig industry, where falling prices, oversupply and weak demand are squeezing producers and processors alike.

Morrisons remains the only UK supermarket to own its own abattoirs.

A spokesperson for Myton Food Group, which owns Woodheads, said the business was “consolidating its processing volumes” because of worsening economic conditions.

“As a result [it] has made the difficult decision to reduce the number of pig producers in its supply chain,” the spokesperson said.

“We understand the impact this news has on individual farming businesses, and our goal is to handle these exits with as much clarity and fairness as possible.”

Pig prices have been falling steadily since autumn as supply has continued to outpace demand.

The downturn has been compounded by lower European pig prices, while factory stoppages have further disrupted the market and slowed throughput.

Processors have increasingly been forced to “roll” pigs from week to week, leaving animals backed up on farms as abattoirs struggle to manage numbers.

One industry figure involved in pig marketing told Pig World that finding alternative buyers for affected producers was becoming increasingly difficult, with processors across the sector already attempting to limit supply.

With production costs continuing to rise, the source described the situation as “toxic” and warned some farmers were close to “calling it a day” if conditions fail to improve.

Another trade source said there were still “a lot of pigs on farm”, adding that recent bank holidays had worsened the backlog.

“There is some more consolidation coming from abattoirs, which may force some more independent farmers out of the industry,” the source added.

The worsening market comes as producers and processors prepare for a major regulatory deadline this summer.

The Fair Dealing Obligations (Pigs) Regulations, introduced in August 2025, require all pig purchase contracts to be written, signed and include clear terms covering pricing, duration, supply volumes, termination arrangements and dispute resolution.

A one-year transition period means all existing contracts must comply with the rules by 13 August 2026.

For many producers already battling falling prices and oversupply, the looming reforms now add another layer of uncertainty to an already fragile sector.