Pig market: 23/07/2018

Prices reported to IFA

Comment: From bad to worse. The Irish pig sector has struggled over the past seven months to keep going, with the pig price being below the cost of production. The pig farmer is no stranger to volatility and is completely exposed to the pig cycle of high prices followed by increased production and low prices. The hope was that, at €1.42c/kg, the price was at the bottom of the cycle and could only rise, but, alas, no. Ireland’s largest pig processor, Rosderra, lowered this week’s quotes by 4c/kg and was joined by Kepak. Both Dawn Pork & Bacon and Staunton’s in west Cork informed suppliers that they would hold prices, but strongly indicated that a cut was in the pipeline. With many pigs receiving €1.38 base price today, it is no exaggeration to state that Ireland’s third-largest agri sector is in a financial crisis and the outlook is bleak for the foreseeable months ahead. IFA pigs chair Tom Hogan said that pig farmers were both shocked and despondent after news broke last Friday of a pig price cut.