Profitability for many pig farmers is now as low as 6c/kg as recent price reductions by processors erode their ability to make a decent margin.

Pig farmers have endured price cuts totalling 32c/kg since July of this year. Over recent weeks, pig prices have fallen across Europe while Chinese tariffs of up to 62% on EU pigmeat, including 20% on Irish pigmeat exports, have added further pressure.

Teagasc pig specialist Michael McKeown told an IFA meeting on Monday afternoon that pig units which have ongoing investments in infrastructure are experiencing “very low margins”. Increased labour costs and manure disposal costs are also a factor, he said. However, this comes amid confidence that feed price is not going to increase, according to McKeown.

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There is “ample supply” of wheat, maize and soyabean globally which will help reduce feed costs for pig farmers.

Global stocks of maize are projected to rise, McKeown said adding that the US is confident of its best maize harvest ever while the Chinese are buying less soyabean due to a contracted pig herd.