Pig farms being 'squeezed out' by pig price cuts

Pig farmers have hit out at factories following last Friday’s 4c/kg pig price cut as many farms now operate close to breakeven levels.

“They’re after taking 32c/kg off us since July and now another 4c/kg this week. There aren’t many more 4c/kg drops we can take,” pig farmer Tom Sherman told the Irish Farmers Journal.

The Mallow-based farmer expressed concern at the competitiveness of the sector, with so many smaller pig farms across the country being bought out by factories.

“I feel like the factories are trying to railroad the family farm out of business. They’re trying to break us with these price cuts.

“They’re buying all the smaller farmers out of it, that’s been there policy now for a while but I don’t think they know the damage that could do.

“They’re going to squeeze out the family farm and then there won’t be enough pigs to keep the factories afloat,” Sherman said.

Before Friday’s price cut, profitability for many pig farmers was as low as 6c/kg as cost of production crept closer to the price they were receiving. Margins are now even tighter.

Limerick-based pig farmer Tom Hogan said that recent price cuts are unwarranted and unjustified.

There are a lot of people receiving a pig price below €1.90c/kg at the minute which, Hogan said, isn’t enough given the cost of doing business.

“There was plenty of competition for pigs up until about June or July.

“They’re saying that the European price is back but when you look at the European average price at this stage we’re the ones falling well behind.

“We’re being squeezed by the factories but we’re being squeezed by the feed companies as well. Cereal prices are well back and I’m told you could fix a price for barley and wheat for the next two years.

“The compounders are taking more than they need in terms of a margin.

“Two farmers I spoke to in the last week said that if they are forced to operate in a loss making situation they’ll be gone from the sector in the next six or eight months.

“You get tired of working for nothing, there’s nothing more soul destroying,” Hogan said.

The IFA held a crisis pig meeting in the Killeshin Hotel in Portlaoise two weeks ago to address the erosion of confidence among pig farmers.

Over 100 farmers attending the meeting discuss their situation which is now beginning to spiral.