COVID-19 cannot be used as an excuse to burden pig farmers with an increase in compound feed costs, IFA pig chair Tom Hogan has said.
He has called on the industry to reverse recent price increases imposed from 1 May, adding that pig compound feed prices have moved out of line with ingredient costs.
“Compound feed mills supplying feed to the pig sector implemented increases of between €8/t and €12/t for finisher ration last week and the price of weanling and link rations have also increased by €15/t to €20/t,” he said.
Spot prices for cereal have not increased much above €200/t and barley is trading as low as €175/t, according to the IFA.
“While there was a logistics issue with availability of soya bean meal in Ireland for a short period in April, it’s now trading at €330/t, which is on a par with where all compounders would have hedged their forward supply," it said.
Hogan said pig farmers that are home milling have not experienced any increase in raw material prices and this is also true for the compounder feed sector.
All businesses are faced with the challenges posed by COVID-19 and this cannot be used as an excuse to burden pig farmers with an increase in compound feed cost, he said.
The IFA has said the pig sector has taken a big financial hit in terms of price since the global pandemic took hold, with the Irish pig price dropping from €1.96/kg to €1.74/kg.
Hogan said he will be contacting all compounders and making it very clear that there must be an immediate price correction.
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