UK pig sector 'on a precipice' as producers cut herds

Independent pig producers are being pushed towards the exit as low prices, lost processor contracts and rising costs deepen the latest crisis facing the UK pork sector.

The National Pig Association (NPA) has warned that the industry is once again “standing on a precipice”, with some farmers reducing breeding herds and others leaving the sector altogether.

Oversupply, weak European pig prices and what the association described as an unprecedented number of processor contract terminations this year have all contributed to the downturn.

Many producers are now heading into the autumn without certainty over where their pigs will be sold.

NPA chief executive Lizzie Wilson said: “Many independent pig producers are heading into the autumn with no clarity about where they will be able to sell the pigs they produce and are facing a potential financial and welfare crisis.”

Some farmers are also being forced to accept returns below the cost of production, with weekly losses running into thousands of pounds.

“Many are also being forced to accept pig prices far below the cost of production and are losing thousands of pounds a week,” Ms Wilson said.

The pressures have been compounded by this summer’s extreme heat, which has affected pig performance, as well as higher input costs linked to global conflicts.

Weak returns, uncertainty over contracts and rising costs are now fuelling fears of another contraction in the independent pig sector.

“The UK pig sector is, once again, standing on a precipice, facing a further contraction that threatens to compromise the UK’s ability to produce the high-quality British pork products that our consumers desire,” Ms Wilson said.

The concern comes only a few years after the industry’s previous major crisis, with producers once again facing difficult decisions over whether to reduce output or leave pig production entirely.

The impact of hot weather and rising costs is adding further strain.

“All of this is being compounded by the impact of the hot weather and rising costs. As a result, we are going to lose more of our valued independent pig producers at a time when we should be looking to produce more British pork products to satisfy public’s demand.”

The association is now seeking both immediate support and longer-term changes from government and across the supply chain.

Its proposals include financial assistance for the hardest-hit producers, improved market forecasting and stronger commitments to prioritise British pigmeat in public procurement.

An industry roundtable has also been requested to consider short- and longer-term solutions.

The NPA has raised concerns about contract compliance with the Agricultural Supply Chain Adjudicator and has urged processors, retailers and the foodservice sector to provide greater backing for British pork.

It has also lobbied MPs, with the problems facing pig producers raised during parliamentary debates.

“We are seeking support from government and across the supply chain to alleviate the short-term damage and find longer-term solutions,” Ms Wilson said.

She warned that continued deterioration could leave the UK with a weaker domestic production base.

“If the situation does not improve, we will end up with a smaller and weakened independent pig sector and a supply chain that is even more reliant on imported pork.”

The warning forms part of a broader concern across agriculture, with a coalition of farming organisations led by the NFU, and including the NPA, describing the financial pressures facing British farming as a “crisis point”.

The groups have linked the situation to what they described as the worst drought in 50 years, alongside historically low harvests, poor grass growth, crop failures and rising production costs.

They are calling for measures including a government-backed, interest-free “Keep Britain Growing Loan” linked to drought losses, aimed at providing working capital for farm businesses ahead of next year’s production.

A fallen stock scheme has also been proposed to help livestock farmers affected by bluetongue meet higher collection and disposal costs.

NFU president Tom Bradshaw said: “Action is needed now to secure the future of British farming and enable the next generation to keep producing the nation’s food.”

He added: “We will continue working with government to help farmers withstand this crisis and deliver on its commitment that food security is national security.”