The range of prices paid for pigs has been widening for some time. It ranges from €1.60 to over €1.70 for the farmer ticking all the boxes or at least making the right noises. It appears that pig price increases are no longer being announced and anyone who doesn’t pick up the phone and make a few calls is not going to get paid an increase.

Farmers must communicate with each other, and with the factories, to ensure that they are getting the best return available.

Pigs are moving too, as demand tightens every week. This is not just here, with a surge evident in EU prices despite the Russian ban. Although the Russian market is important to EU sales, the current lack of product in the US due to the outbreak of Porcine Epidemic Diarrhoea (PED) is helping EU exporters in finding alternative markets for meat.

While Irish prices for the first quarter are behind last year’s figures (Q1 2013, €1.69/kg) by 13c/kg, the feed price per kilo deadweight is also down by 20c/kg.

The composite feed price for March is unchanged from January at €322/t. However, feed is still accounting for €1.20/kg of total production costs.

Disease, which in February was blamed for prices dropping across the EU following the ASF-driven closure of the Russian market, is now causing prices to rise. It is a different disease though.

The effect this virus is having in the US, decimating American supplies and driving prices to record highs, may be positively affecting EU prices and allowing meat produced for a now-closed market a much-needed outlet.

However, the thought of this virus arriving on Irish shores is terrifying for the sector.

The latest USDA ‘quarterly hogs and pigs’ report clearly reflects the impact of the virus with pig numbers (62.9 million) at their lowest level since 2007.

Despite this, the report suggests that farrowings will be up 2% year on year in the second and third quarters of this year.

At this point, it is well accepted that a strong export market is vital for Irish pig prices and Irish factories have made serious gains, with export volumes and values rising considerably over the last five years.

Needless to say, we also need EU exports to perform well to avoid any dumping of product in our own domestic market.

Irish exports in January were up 19% compared with the corresponding 2013 levels at 17,500t with the strongest growth evident in the Chinese, Russian (the ban only came into effect on 27 January) and Japanese markets.

Furthermore, strong double-digit growth to the UK was also evident with exports growing by 12% to 6,800t.

The UK continues to account for around 39% of overall exports, although the Chinese and Russian markets combined in 2013 to grew to 26% of the total.

EU exports in January were also up by 2%, with Japan and South Korea increasing their EU volumes imported by 36% and 91%, respectively.

Polish farmers access CAP co-funding

The first use by pig farmers of the new CAP market regulation support measures has been approved, with Polish farmers in restricted zones due to African Swine Fever successfully accessing co-funding compensation from the EU under article 220 of the CMO (‘‘market support measures related to animal diseases and loss of consumer confidence due to public, animal or plant health risks’’).

Although approved, the Polish authorities must now submit detailed plans to the EU Commission showing ‘‘serious market disturbances directly attributed to a loss of consumer confidence’’.