Reacting to the news that pig factories have taken the decision to drop the pig price by 4c/kg, IFA Pigs Chairman Tom Hogan said the processing industry is undermining producers who have endured severe price volatility over the past numbers of years.
“For pig factories to pull the price when the rest of Europe is heading in the opposite direction on price, above €2/kg, sends the completely wrong message to all stakeholders. There is no justification at this stage to drop price.”
“What is particularly frustrating is that processors have recently agreed an increase with retailers. To impose cuts on pig producers at the same time is a kick in the teeth,” he said.
Tom Hogan called on all pig factories to reverse the price cuts. Irish pig farmers were left trailing the European pig price in March and April last year and the IFA had to organise crisis meetings and tackle individual pig factories in order to get the pig price moving upwards.
The Irish price slowly followed the upward trend, and no one can deny that pig processors pocketed increasing returns before delaying the price increase due to farmers throughout 2019.
While Tom Hogan recognised the Irish pig processors held pig prices stable since mid-December until last week, now it not the time to over-react to the ongoing coronavirus and trade disruptions to China.