As has been famously quoted on many occasions, “The only constant in life is change”. While many changes have occurred over the past decade – one thing that remains unchanged is the resilience of the people at the heart of the Irish pigmeat sector.

Challenges and risks have hit the sector in the form of fluctuating commodity prices, new EU welfare regulations (EU Directive 2008/120/EC regarding the loose housing of dry sows) and animal health issues. But the industry has overcome them all and is currently in a strong position with considerable optimism for the future.

Supporting over 7,000 jobs and ranking as the third most important sector in terms of gross agricultural output, the pigmeat sector is hugely important to the Irish economy.

Many positive developments have taken place within the industry since 2010, including the establishment of the world’s first DNA pigmeat traceability programme, the opening of a state-of-the-art research facility in Teagasc Moorepark and an industry collaboration on a joint programme to enhance overall performance of the industry.

Production

Price volatility is certainly not a new phenomenon for Irish pig producers, with market forces external to the farm gate responsible, in the main, for such fluctuations.

Since 2010, according to Teagasc pig herd performance reports, Irish pig producers have experienced only two years of profitability, where the average margin over feed exceeded 50c/kg. Profits were recorded in 2017 and 2019 at 58c/kg margin over feed in both years.

While the prices achieved over the past 12 months were record highs, it is long overdue to recoup the huge losses incurred in previous years.

With the 10-year average of 45c/kg margin over feed recorded, this has unfortunately forced some producers to exit the industry and has led to further consolidation, albeit with the national sow herd remaining stable at approximately 150,000 sows.

Since 2010, according to Teagasc pig herd performance reports, Irish pig producers have experienced only two years of profitability, where the average margin over feed exceeded 50c/kg

Great strides have been made to improve on-farm efficiencies over the past decade. Table 1 illustrates some of the improvements in key performance areas. Particular attention should be paid to the kilos of pork produced per sow per year, which increased by 438kg (+23%) between 2010 and 2019. This can be attributed to improved genetics, feed conversion and overall management on farms.

Export trends

Irish pigmeat is viewed both domestically and internationally as being of one of the highest standards in the world. Bord Bia has, and continues to run, a very successful marketing campaigns to ensure the Quality Assurance mark is trusted by consumers at home and abroad.

In 2010, the value of pigmeat exports was €317m, while the most recent Bord Bia Performance and Prospects Report states that pigmeat exports were valued at €941m in 2019. Heading towards the billion-euro mark, this can be mainly attributed to strengthening demand from international markets, predominately China, coupled with a tightening of EU pig supplies.

Animal health issues have also had a huge bearing on exports in recent years, in particular, the rapid spread of African swine fever (ASF) which hit China particularly hard since the disease broke in autumn 2018. This reduced its sow herd by approximately 50% and the pig herd by approximately 220m.

While the UK is still a key destination for Irish pigmeat, dependence on this market is decreasing. Exports to other international markets increased by 18% to 110,000t in 2019. Although the UK still accounted for 53% of total export value and 38% of volume in 2019, this is back 11% year on year. This could decline further as we await a new trading relationship being agreed with the UK post-Brexit.

Pigmeat consumption

Pigmeat is the most consumed meat globally, followed by poultry. Irish consumption of pigmeat products is high by EU standards and, as of 2019, was reported to be approximately 27.9kg per capita. While consumption trends vary significantly across the world, approximately two-thirds of the meat consumed in China are pigmeat products.

The outlook for meat consumption continues to be positive, with growth expected to increase, particularly in Asia. However, growth rates are generally expected to be lower than we have experienced over the past decade.

The main growth is occurring in the regions where incomes are rising and populations growing, particularly in Asia and Latin America, and where there are large middle classes.

World’s first DNA-certified programme

The Irish pigmeat industry, led by the IFA, launched the world’s first DNA-certified programme in 2011. This programme was established to scientifically assess the origin of pigmeat products at retail and foodservice levels by tracing the product back to a database of Irish boar DNA.

Any misleading labelling can scientifically be proven by this programme and it provides a scientific-backed guarantee for producers and consumers on the origin of the product.

This is a hugely important and valuable development, not just for producers but for industry and consumers alike.

IFA/Teagasc joint programme

2013 saw the launch of the IFA/Teagasc Joint Research and Advisory Programme for the pigmeat industry. This collaborative approach ensures that sufficient advisory, research and educational programmes are delivered by Teagasc to improve its services and offerings to aid in the advancement of the pig sector.

Moorepark research centre

A new 200-sow integrated research facility, a €3.5m investment, was established in 2017 to ensure that innovative, practical and applied research can be carried out on behalf of the sector and backed by science.

The research focuses on areas which can be applied at farm level including pig nutrition, sow productivity, animal health and welfare, genetics and the environment.

With producers so reliant on improving efficiencies and performance inside the farm gate, the opening of a new research centre in Teagasc, Moorepark, was welcomed by all in the industry.

Looking ahead

While prices have reduced in recent months, mainly due to uncertainties and trading difficulties directly linked to COVID-19, they are still in the best place they have been for the decade (Figure 1). and the outlook remains positive. However, a good outcome on Brexit and the demand from the Asian market will be a key determining factor.

In addition to prices, other areas of concern for pig farmers include animal health issues and especially our ability to remain free from ASF. Continued emphasis will be placed on ensuring optimum herd health by applying the most appropriate preventative measures and targeted treatment.

There will also be a sustained focus on improvements in efficiencies and feed conversion, while applying the highest animal welfare and environmental standards.

The industry, through collaborative programmes, is committed to ensuring that Irish pigmeat is produced and subsequently marketed to the highest possible standard for the domestic and international markets.

In the future, market diversification will be crucial to avoid over-reliance on certain individual markets. Overall, the short-term outlook is positive and the industry, through continued collaboration, will hope to thrive and grow in the decade ahead.

Key points

  • Like most other sectors, the Irish pig sector has seen considerable consolidation over the past decade.
  • Official figures indicate that average margins over feed costs were only positive in two out of the past 10 years.
  • There have been many initiatives that have helped the sector to survive.
  • Recent high prices point to a reasonable outlook into at least the early part of the next decade.