There is alarm among pig farmers over factory prices. Prices weakened in December and in January they fell below the cost of production, which for most producers is about 150c/kg.

Prices fell further last month to average 140c/kg and remain stuck there.

Weakness in the first quarter of the year is nothing new for pigmeat. But EU pigmeat prices bottomed in early February and have risen by 10.5% since then, according to European Commission’s figures.

Ireland’s 300 pig farmers have watched European prices rise while wondering why their prices are still flatlining. They hoped for an increase in each of the past two weeks but it never came. The average EU price last week rose to 147.7c/kg.

The weather here has not helped. Export plants lost two days due to the snow. Next week is a short week. There’s no excess slaughter capacity and producers run out of space very quickly if slaughtering is held up.

The slowdown around year end was explained by higher output across the EU in the fourth quarter and dull demand in China, the world’s big importer. But pig numbers levelled off in the EU in recent weeks and demand has picked up.

IFA pigs chair Tom Hogan maintains this drop in numbers coming out of the major EU exporting countries has to have helped Irish processors to sell their pigmeat.

It’s on this basis that he has been looking for a price increase for farmers.

“German prices are up 20c on the start of the year, albeit from a low start,” he told the Irish Farmers Journal.

“Danish prices have risen in the past two weeks. Export demand has picked up in Asian markets and in the important Chinese market in particular. There’s steady demand for Irish product on the domestic market.”

On this basis, he called on all pig processors to increase prices paid to pig farmers to over €1.50c/kg as soon as possible.

If current low prices continue, there is risk of producers exiting, he warned.

There are now 300 pig producers in Ireland. All are highly efficient. Anyone not so is long gone from the sector.

Productivity gains are continuing due to a focus on top genetics and management.

Pigs sold per sow now stands at about 27, up from 22 five or six years ago. Average carcase weight is now over 82kg, up from about 76kg.

Exports of pigmeat from Ireland rose 14% in 2017 to €714m.

Producers now get 21% of retail price, processors get 28% and retailers 51%. Irish feed costs are about 10% higher than those of producers on the continent.

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