The Irish pigmeat industry has evolved significantly over the past 50 years since Ireland entered the European Union.
Pigs were traditionally held on dairy holdings to utilise the byproducts created such as whey to reduce costs of production.
As the Irish dairy industry developed, these byproducts were diverted into manufacturing whey protein and sport nutrition products.
Nowadays, Irish pig units are high investment standalone farm enterprises that are among some of the largest pig units in Europe.
In more recent times, EU producers have also been exposed to animal disease events
This change in dynamic leaves Irish pig producers more exposed to commodity supercycles where geopolitics and weather events impact on feed prices and markets.
In more recent times, EU producers have also been exposed to animal disease events that impact on international trade market access which has caused significant oversupply issues.
Irish production
As the Irish pig industry consolidated over the past 20 years, the Irish pig breeding herd has declined by over 19% to 152,000 head in the June 2021 CSO livestock census.
However, despite this fall in breeding numbers, total Irish pig production (including live exports) reached record levels of just over four million head during 2021 reflecting on-farm productivity and genetic improvements.
This increase in Irish pig production coincides with record EU pigmeat production during 2021, where output reached around 23.5m tonnes.
EU production forecasts
The European Commission published its latest short-term outlook during autumn 2021, which forecasts a 0.6% increase in pigmeat output for 2022. However, higher input costs and lower producer prices in recent months are more likely to push output downwards during 2022.
The only other member state, Denmark, where latest census information is available, shows its breeding herd is 2% lower in October 2021 at 1.26m head
In the December 2021 livestock census, the German breeding herd fell by 7% to 1.59m head reflecting the fallout from restricted international market access following the detection of African swine fever (ASF).
The only other member state, Denmark, where latest census information is available, shows its breeding herd is 2% lower in October 2021 at 1.26m head.
Elsewhere, the UK is forecasting that output will fall by around 3% to one million tonnes, with last December’s livestock census indicating that the breeding herd had fallen by 6%, reflecting low producer prices and some difficulty marketing pigs.
Irish exports
Irish primary pigmeat exports (excluding value-added pigmeat) were estimated to have fallen by 3% during 2021 to €541m compared to 2020.
The value of exports was impacted by lower producer prices despite volumes increasing by 3% due to strong on-farm productivity gains.
The slowdown in producer prices reflected lower demand from Chinese importers as the year progressed, record EU supplies and more competition from key global suppliers such as Brazil and the US.
The share of overall Irish primary pig meat exported to international markets moved from 58% during 2020 to around 71% during 2021.
China is the number one partner market for Irish pigmeat suppliers. Underlining the strategic importance of this market, China was responsible for importing 38% of total global pigmeat imports last year.
For 2021, Irish pigmeat exports to China were largely unchanged at 97,000 tonnes. However, there were some differences around the pattern of supply to the Chinese market. Typically, Chinese demand strengthens after the first quarter and peaks during the summer period. However, last year, Chinese demand peaked during the first quarter but fell away as the year progressed.
As illustrated in Figure 1, monthly pigmeat exports, which were running at between 10,000t and 12,000t during the first quarter, then fell back to around half this as the year went on.
EU pigmeat shipments were largely unchanged during 2021 at an estimated 5.45m tonnes compared to 2020. However, strong demand in markets such as South Korea, Philippines, US, Vietnam and Australia in particular offset lower exports to the Chinese market which fell by 20% to an estimated 2.67m tonnes. Nevertheless, China still accounted for 50% of EU pigmeat shipments compared to 62% during the previous year.
The problems that Irish and EU producers faced in 2021 increased further in 2022, with rising feed and energy meaning the costs of production are not being met from weak sales prices.
In Europe, the fallout of ASF across western Europe into Germany, and Italy more recently, will continue to restrict the export potential from the EU region.
Chinese pigmeat production is expected to rise by 1% to 49.5m tonnes
However, EU pigmeat supplies are likely to fall by low to medium single digits as poor producer prices combined with high production costs impact on farm viability across the region.
According to the USDA, Chinese pigmeat production is expected to rise by 1% to 49.5m tonnes as the sector continues to be incentivised to expand.
However, it should be noted that the latest live Chinese pig prices are making 14.35 CNY/kg. This is also well below the costs of production, which is projected at 18 CNY/kg.
The current Chinese price has been running at these levels since the start of the second half of 2021. This would suggest that further recovery in Chinese pigmeat output may be overstated for 2022.
The threat of ASF spreading across Europe and Asia remains in place. Already, during the start of 2022, we have seen new measures introduced by South Korean authorities to reduce wild boar populations near pig-dense regions.
More ASF outbreaks have been confirmed in Malaysia where the disease was only confirmed during February 2021, and the latest confirmed case was reported in Thailand during January 2022.
Opportunities to develop high potential markets such as Mexico, the third largest global importer, were boosted by the news recently that the tariff-free quota for approximately 10,000t was extended until the start of the second half of 2022.
Irish market - Bord Bia Quality Mark
The home market is particularly important given that it consumes around 50% of total Irish pigmeat production. That makes promotion essential and to encourage consumers to purchase pigmeat products that carry the Quality Mark, Bord Bia Quality Mark pigmeat campaigns are currently taking place across TV, print, and social media.
In April, a new radio campaign for pigmeat will be launched.
Bord Bia is also at advanced stages of discussion with food service operators promoting Irish verified pigmeat. This pilot food service programme promotion is scheduled to launch during early March.
Export markets
and EU campaigns
Two EU campaigns promoting Irish pigmeat are currently running across five markets.
Since 2019, Bord Bia has been running a campaign, promoting EU and Irish pork and beef across South Korea, the Philippines and Vietnam
These are campaigns for which the EU provides between 50% and 80% of the funding and which allow Ireland to leverage the reputation of the EU while simultaneously building the awareness and reputation of Irish food production systems.
Since 2019, Bord Bia has been running a campaign, promoting EU and Irish pork and beef across South Korea, the Philippines and Vietnam. Upcoming activities include an online masterclass for culinary students in the Philippines, featuring a local chef demonstrating two recipes using Irish pork and beef, on 23 February.
Bord Bia will also use St Patrick’s Day when there is a global focus on Ireland to deliver a masterclass for professional chefs.
This in-person and online event will feature a well-known local chef demonstrating two recipes using Irish pork and beef to 35 food service buyers and chefs, and media.
Upcoming campaign activity includes a collaboration with a high-profile Chinese restaurant for a menu promotion from 1 to 14 March and a special chef’s table event on 1 March
In 2020, Bord Bia commenced a €3.8m information and promotion campaign in Mexico and China for EU pork and poultry. Upcoming campaign activity includes a collaboration with a high-profile Chinese restaurant for a menu promotion from 1 to 14 March and a special chef’s table event on 1 March.
Also in China, in March Bord Bia will host two trade seminars targeting 80 local meat buyers, taking place in Changsha on 9 March and a second in the city of Xiamen on 29 March.
Of course, these campaigns don’t solve the immediate crisis facing Irish pig producers caused by the combination of rising feed and energy prices combined with collapsed market returns.
What they do achieve is keep Irish pigmeat in the minds of Irish consumers and internationally in front of buyers, essential for the long-term marketing of Irish pigmeat but unfortunately don’t provide an instant solution for the current crisis.
Producer audits
With the relaxation of COVID-19 measures, Bord Bia is currently developing a blended audit approach for pig producers under the Pig Quality Assurance Scheme.
Currently, PQAS audits are being conducted either fully remotely or fully on-site, until such time as the blended audit system is operational.
Blended audits will be performed in two parts: first, the producer uploads supporting evidence of conformance to the standard through a secure portal to be audited remotely. This information is reviewed by the auditor and is then followed up with an on-farm audit.
The blended audit will use the same portal developed for the fully remote audit, which most members will be familiar with. Any interaction between the producer and the auditor during the on-farm audit will be kept to a minimum, and will maintain social distancing and hygiene protocols.
The focus of the blended audit farm walk will be to observe conformance with the standard requirements relating mainly to facilities, animal husbandry and animal health and welfare.
The Irish pigmeat industry has evolved significantly over the past 50 years since Ireland entered the European Union.
Pigs were traditionally held on dairy holdings to utilise the byproducts created such as whey to reduce costs of production.
As the Irish dairy industry developed, these byproducts were diverted into manufacturing whey protein and sport nutrition products.
Nowadays, Irish pig units are high investment standalone farm enterprises that are among some of the largest pig units in Europe.
In more recent times, EU producers have also been exposed to animal disease events
This change in dynamic leaves Irish pig producers more exposed to commodity supercycles where geopolitics and weather events impact on feed prices and markets.
In more recent times, EU producers have also been exposed to animal disease events that impact on international trade market access which has caused significant oversupply issues.
Irish production
As the Irish pig industry consolidated over the past 20 years, the Irish pig breeding herd has declined by over 19% to 152,000 head in the June 2021 CSO livestock census.
However, despite this fall in breeding numbers, total Irish pig production (including live exports) reached record levels of just over four million head during 2021 reflecting on-farm productivity and genetic improvements.
This increase in Irish pig production coincides with record EU pigmeat production during 2021, where output reached around 23.5m tonnes.
EU production forecasts
The European Commission published its latest short-term outlook during autumn 2021, which forecasts a 0.6% increase in pigmeat output for 2022. However, higher input costs and lower producer prices in recent months are more likely to push output downwards during 2022.
The only other member state, Denmark, where latest census information is available, shows its breeding herd is 2% lower in October 2021 at 1.26m head
In the December 2021 livestock census, the German breeding herd fell by 7% to 1.59m head reflecting the fallout from restricted international market access following the detection of African swine fever (ASF).
The only other member state, Denmark, where latest census information is available, shows its breeding herd is 2% lower in October 2021 at 1.26m head.
Elsewhere, the UK is forecasting that output will fall by around 3% to one million tonnes, with last December’s livestock census indicating that the breeding herd had fallen by 6%, reflecting low producer prices and some difficulty marketing pigs.
Irish exports
Irish primary pigmeat exports (excluding value-added pigmeat) were estimated to have fallen by 3% during 2021 to €541m compared to 2020.
The value of exports was impacted by lower producer prices despite volumes increasing by 3% due to strong on-farm productivity gains.
The slowdown in producer prices reflected lower demand from Chinese importers as the year progressed, record EU supplies and more competition from key global suppliers such as Brazil and the US.
The share of overall Irish primary pig meat exported to international markets moved from 58% during 2020 to around 71% during 2021.
China is the number one partner market for Irish pigmeat suppliers. Underlining the strategic importance of this market, China was responsible for importing 38% of total global pigmeat imports last year.
For 2021, Irish pigmeat exports to China were largely unchanged at 97,000 tonnes. However, there were some differences around the pattern of supply to the Chinese market. Typically, Chinese demand strengthens after the first quarter and peaks during the summer period. However, last year, Chinese demand peaked during the first quarter but fell away as the year progressed.
As illustrated in Figure 1, monthly pigmeat exports, which were running at between 10,000t and 12,000t during the first quarter, then fell back to around half this as the year went on.
EU pigmeat shipments were largely unchanged during 2021 at an estimated 5.45m tonnes compared to 2020. However, strong demand in markets such as South Korea, Philippines, US, Vietnam and Australia in particular offset lower exports to the Chinese market which fell by 20% to an estimated 2.67m tonnes. Nevertheless, China still accounted for 50% of EU pigmeat shipments compared to 62% during the previous year.
The problems that Irish and EU producers faced in 2021 increased further in 2022, with rising feed and energy meaning the costs of production are not being met from weak sales prices.
In Europe, the fallout of ASF across western Europe into Germany, and Italy more recently, will continue to restrict the export potential from the EU region.
Chinese pigmeat production is expected to rise by 1% to 49.5m tonnes
However, EU pigmeat supplies are likely to fall by low to medium single digits as poor producer prices combined with high production costs impact on farm viability across the region.
According to the USDA, Chinese pigmeat production is expected to rise by 1% to 49.5m tonnes as the sector continues to be incentivised to expand.
However, it should be noted that the latest live Chinese pig prices are making 14.35 CNY/kg. This is also well below the costs of production, which is projected at 18 CNY/kg.
The current Chinese price has been running at these levels since the start of the second half of 2021. This would suggest that further recovery in Chinese pigmeat output may be overstated for 2022.
The threat of ASF spreading across Europe and Asia remains in place. Already, during the start of 2022, we have seen new measures introduced by South Korean authorities to reduce wild boar populations near pig-dense regions.
More ASF outbreaks have been confirmed in Malaysia where the disease was only confirmed during February 2021, and the latest confirmed case was reported in Thailand during January 2022.
Opportunities to develop high potential markets such as Mexico, the third largest global importer, were boosted by the news recently that the tariff-free quota for approximately 10,000t was extended until the start of the second half of 2022.
Irish market - Bord Bia Quality Mark
The home market is particularly important given that it consumes around 50% of total Irish pigmeat production. That makes promotion essential and to encourage consumers to purchase pigmeat products that carry the Quality Mark, Bord Bia Quality Mark pigmeat campaigns are currently taking place across TV, print, and social media.
In April, a new radio campaign for pigmeat will be launched.
Bord Bia is also at advanced stages of discussion with food service operators promoting Irish verified pigmeat. This pilot food service programme promotion is scheduled to launch during early March.
Export markets
and EU campaigns
Two EU campaigns promoting Irish pigmeat are currently running across five markets.
Since 2019, Bord Bia has been running a campaign, promoting EU and Irish pork and beef across South Korea, the Philippines and Vietnam
These are campaigns for which the EU provides between 50% and 80% of the funding and which allow Ireland to leverage the reputation of the EU while simultaneously building the awareness and reputation of Irish food production systems.
Since 2019, Bord Bia has been running a campaign, promoting EU and Irish pork and beef across South Korea, the Philippines and Vietnam. Upcoming activities include an online masterclass for culinary students in the Philippines, featuring a local chef demonstrating two recipes using Irish pork and beef, on 23 February.
Bord Bia will also use St Patrick’s Day when there is a global focus on Ireland to deliver a masterclass for professional chefs.
This in-person and online event will feature a well-known local chef demonstrating two recipes using Irish pork and beef to 35 food service buyers and chefs, and media.
Upcoming campaign activity includes a collaboration with a high-profile Chinese restaurant for a menu promotion from 1 to 14 March and a special chef’s table event on 1 March
In 2020, Bord Bia commenced a €3.8m information and promotion campaign in Mexico and China for EU pork and poultry. Upcoming campaign activity includes a collaboration with a high-profile Chinese restaurant for a menu promotion from 1 to 14 March and a special chef’s table event on 1 March.
Also in China, in March Bord Bia will host two trade seminars targeting 80 local meat buyers, taking place in Changsha on 9 March and a second in the city of Xiamen on 29 March.
Of course, these campaigns don’t solve the immediate crisis facing Irish pig producers caused by the combination of rising feed and energy prices combined with collapsed market returns.
What they do achieve is keep Irish pigmeat in the minds of Irish consumers and internationally in front of buyers, essential for the long-term marketing of Irish pigmeat but unfortunately don’t provide an instant solution for the current crisis.
Producer audits
With the relaxation of COVID-19 measures, Bord Bia is currently developing a blended audit approach for pig producers under the Pig Quality Assurance Scheme.
Currently, PQAS audits are being conducted either fully remotely or fully on-site, until such time as the blended audit system is operational.
Blended audits will be performed in two parts: first, the producer uploads supporting evidence of conformance to the standard through a secure portal to be audited remotely. This information is reviewed by the auditor and is then followed up with an on-farm audit.
The blended audit will use the same portal developed for the fully remote audit, which most members will be familiar with. Any interaction between the producer and the auditor during the on-farm audit will be kept to a minimum, and will maintain social distancing and hygiene protocols.
The focus of the blended audit farm walk will be to observe conformance with the standard requirements relating mainly to facilities, animal husbandry and animal health and welfare.
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