How much of a threat do you see Brexit being to the Irish pork sector?

Overnight the Brexit result has reduced margins by about 15% due to the weakening currency. In a tight-margin business, this is not sustainable. The outcome of this can only be that the UK consumer will ultimately be paying more for a packet of rashers. I think the uncertainty Brexit has created needs to be resolved and negotiations need to commence immediately between the UK and EU.

Is Brexit a threat to the Irish pork industry in terms of losing market share in the UK?

No I do not believe Brexit will affect market share. In the sliced bacon category, over 80% of products in supermarkets are imported into the UK. This will still be the case post-Brexit.

How has your business managed the recent currency volatility?

The currency volatility has not been easy. No matter how far forward you are hedged, the situation is that previous pricing structures are unsustainable at £0.85. If the pound moves to £0.90 we will have to deal with it.

What is your outlook for pig prices?

Both pig prices and raw material pork prices have seen dramatic increases over recent months which is positive. The challenge will be to increase prices on the supermarket shelves in order to maintain the existing pig price through all levels of the supply chain.

How did the Russian trade embargo affect the pig sector?

The closure of the Russian market created a period of deflation. As a major purchaser of the fifth quarter in the pig carcase, the closure of Russia created a glut of fat, trim, and shoulder meat throughout Europe. Far-eastern markets have become more significant purchasers of the fifth quarter and the backlog in Europe is now cleared.

Do you see any changes in the shape of the Irish grocery retail sector?

The growth of Aldi and Lidl has been phenomenal and a market share of 25% combined is certainly achievable. The whole discount sector is booming and new players like Iceland have big plans to become significant players here. The loss of Superquinn left a gap at the premium end of the market and Dunnes is capitalising on this, particularly in Dublin.

What is the biggest risk to the domestic pork sector here in Ireland?

We are in a cheap commodity period in world trade and Ireland will be in a healthier place when balance is restored in pork, grain, milk and beef markets. While cheap grain has kept many pig farmers in business, it gives a dangerous advantage to pork producers in the Americas.

What is your outlook for the future of the sector?

Clearly we face major challenges in the UK post-Brexit. The industry here supports almost 10,000 jobs which make it a critical part of our economy. I believe that we must continue investing in technology and skills to retain our position in international markets.