Pig producers have hailed Morrisons and urged other retailers to follow suit after it significantly increased the price it pays to its farmers.
Morrisons will increase the weekly contribution paid by its processor Woodheads by a massive 30p to 180p per kg.
Other processors were reportedly up 10-15p on Friday and this followed price hikes of 12-16p the previous week.
However, the contribution price is only one element of the contract – many are made up of several elements including part SPP, part tribune price and part contribution price.
The National Pig Association (NPA) had wrote to retailers urging an increase in pig prices to at least £2/pig "so producers can at least have a chance breaking even".
Most UK pig producers were facing costs of production over the £2/kg mark, the body said, as the post-Ukraine wheat price spike pushed feed costs even higher.
The sector has already faced more than a year of heavy financial losses due to falling pig prices and a crippling on-farm backlog.
NPA chief executive, Zoe Davies said the move by Morrisons was 'welcome and a good start'.
"We appreciate their comment about moving closer to paying the cost of production but this must happen as soon as possible," she added.
"That said, Morrisons are the first retailer to make such a move since we wrote to all of them just over a week ago, and we expect others to follow suit.
"This is crucial if they wish to secure British pork going forwards as pig farmers are taking decisions on their future in the sector right now, having made losses for the 5th consecutive quarter.”
