IFA Pig Committee Chairman Tom Hogan has strongly condemned today’s announcement by pig factories of another 4c/kg price cut.
“While there is price pressure across Europe, other market factors that don’t apply to the Irish market are being used as an excuse to lower the price,” he said.
Tom Hogan said all Irish export plants are benefitting from full access to important Asian import markets, particularly China and demand for pigmeat remains high. The deficit of pork in China has seen pork exports rise by 6% in 2020 and it is now the number one destination for Irish pigmeat exports, according to Bord Bia.
The domestic trade for pork and bacon has shown great resilience in 2020 and the Irish pig industry has benefited from the reduced volume of imports this year, which are down 23% according to the latest Bord Bia information. Retail sales of pork, bacon and ham have soared in 2020, on the back of foodservice restrictions, with double digit growth in pigmeat retail sales.
“While pork is a worldwide traded commodity, our local market advantages and access to premium export markets, have placed the Irish pig processing industry on a solid footing. This move to drop the pig price again only increases the factories’ margins on the back of pig farmers,” he said.
Tom Hogan accused pig processors of being opportunistic. “They should recognise that farmers need a justifiable and sustainable price, above €1.60c/kg,” he said.