Rosderra has written to suppliers informing them of the roll-out of a new grading system for pigs going to the factory from Monday 10 November.

Farmers will no longer be paid a flat rate for their pigs - different weight ranges and a lean meat percentage will influence the return they get.

The new system comes as international pigmeat markets become "more selective and quality conscious" in what Rosderra described as an "ever-competitive environment".

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Farmers were sent a table with different deadweight ranges and lean meat percentages.

Farmers with pigs that kill out at 80kg to 94.99kg will receive the base price, with no penalties applied.

However, a penalty of 80c/kg will be deducted from pigs over 130kg, while pigs under 70kg will be deducted 40c/kg.

The price for pigs over 75kg and under 99.9kg will receive the lowest penalty of 5c/kg.

In terms of lean meat percentage, there will be no penalty applied to pigs with 60% or more lean meat.

Deductions of 2.5c/kg will apply to pigs which have 59% or less lean meat.

In a letter to suppliers seen by the Irish Farmers Journal, Rosderra said that the grading of pigs will allow them to extract the "maximum value" for the pigs they purchase.

"In order to allow us to maintain and build on this competitive advantage and stay ahead of commodity product prices, we are now at the point where we need to reflect the different value we receive for different quality of pigs we slaughter," the Edenderry-headquartered processor said.

Grading is in place in all other leading pig-producing countries across Europe and internationally, according to Rosderra.

Pig pricing certs

On Monday 20 October, pig pricing certificates will reflect the new grading structure and Rosderra procurement staff will be engaging with farmers on the details of the structure.

"No doubt there will be different prices achieved based on your current pig supply and, more importantly, there will be opportunity for you to achieve your desired price based on the quality of your pigs.

"This change will require some changes regarding the way you select and sell your pigs, but we are confident it will deliver on your expectations for achieving the maximum return from a very competitive marketplace," Rosderra said.

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Pig producer Tom Hogan from Limerick described the changes as old fashioned and something that hasn't been in place in Ireland since the 1970s.

“There shouldn’t be any need in this point in time for grading pigs. The genetics are nearly all the same - they’re all 59% or 60% lean.

With this system, you never know if you are going to be 2c/kg up or 3c/kg down," Hogan said.

Mallow-based pig farmer Tom Sherman said: "It’s a list of penalties – that’s the best way to describe it.

"I thought we were going away from the grading side of it. When I look at this, I think it's designed to take money out of farmers' pockets rather than put it back into them."

This comes as a blow to farmers as another 4c/kg price cut was announced by processors on Friday morning. Pig price has dropped by 40c/kg since the end of July.