Government backing is being sought for a new rescue package for the pig sector, which could cost between €90m and €180m to finance depending on the duration of the scheme.

The plan is being drawn up by Meat Industry Ireland (MII), the IFA and representatives of compound feed suppliers to pig farmers.

While the exact details of the proposed scheme are yet to be finalised, the Irish Farmers Journal understands that the plan involves an emergency support payment of 60c/kg on all pigs killed over the next six to 12 months.

The aid payment would be worth around €50/head on a finished pig. Given that Ireland kills around 300,000 pigs a month, the overall cost of the aid package would be close to €15m per month.

The sharp rise in compound feed costs, combined with poor prices, has left pig farmers facing losses of close to €50 per pig

This means that a six-month scheme would require Exchequer funding of around €90m, with €180m needed for a 12-month aid package.

It is envisaged that these funds would be repaid in the form of a levy on each pig killed over the next 10 to 15 years. The value of the levy has not been set but a charge in excess of €1.50/head has been suggested.

The sharp rise in compound feed costs, combined with poor prices, has left pig farmers facing losses of close to €50 per pig. Given that the average Irish unit finishes around 300 pigs per week, losses are running at €45,000 to €50,000 per month.