Processors Undermining Pigmeat Sector with Unjustified Price Cuts
Chairman of the IFA Pigs Committee, Tom Hogan has called on pig processors to stop undermining the Irish pigmeat sector with unjustified price cuts.
His call followed a move by processors to reduce pig prices by another 4c/kg last Friday, following similar reductions the previous week.
Pig farmers selling pigs this week are receiving in the range of €1.65c/kg up to €1.70c/kg. The majority of pig farmers have taken a reduction of between 4c/kg and 8c/kg over the past two weeks, which is disappointing to say the least.
After trailing the European pig price for the past number of months, Irish pig processors have taken slight price reductions in Europe, from high price levels not achieved in Ireland, to increase their profit margins. Hogan said that all processors remained very anxious not to lose any pigs and to maintain their supply.
Ireland’s percentage of the EU price has improved and is currently 100% of the EU average price as reported to the EU Commission for the week commencing 24/07/2017.
Factory pig throughput in Republic of Ireland export plants for the week ending July 29th 2017 was 62,555 head which was 1,547 head less than the previous week and 1,586 more than in the corresponding week in 2016. Slaughtering’s in ROI export plants is -0.5% behind the same period in 2016.
Export Plants: Top prices on a flat rate basis </= 170cent/kg in Dawn and Karro and </= €1.65/kg to €1.68/kg in Staunton’s, Kepak and Rosderra.
Sows: 95 – 110c/kg DW.
Weekly Slaughterings: Week-ending 29/07/2017 Pigs: 62,555 Sows: 1,984
EU-27 Pigmeat reference price week commencing 24/7/17
Irish price €1.70kg
EU–27 average price €1.70kg
(Grade E pigs – 55% to 60% lean meat excluding VAT but including transport and bonuses).