The British Pig Executive is demanding meetings with retailers to ask where the past year's profits from increased pork prices have gone and why some supermarkets are now heavily discounting pork products.

Farmers claim that despite sharp rises in the price of pigmeat over the past year, little has filtered down to the farm gate.

The average retail price of pork had gone up 67p/kg since last July, according to Bpex, but the price paid to farmers had only risen by 8p/kg over the same period. This left them still losing more than £20 on every pig produced, it claimed.

Bpex chairman Stewart Houston said he intended to meet supermarket representatives to demand that farmers receive a greater percentage of income.

Asda and Tesco have also been accused of undermining attempts to maintain healthy pigmeat prices.

Last week Asda promoted a 454g pack of eight thick Smart Price sausages for just 20p, 27p less than the equivalent Tesco price, while Tesco has been promoting heavily discounted own-label bacon.

A Tesco spokeswoman said most of the recent price discounting was being absorbed by the retailer.

Michael Sloyan, chief executive of Bpex, said the low prices were "appalling". "What appears to be happening now is that retailers are starting a price war."

He said the approach was undermining the whole market by commoditising the products.

Retailers currently focus on price as their lead weapon for boosting profits, said Yorkshire pig farmer Richard Longthorp. "They must change their mindset . They need long-term agreements linked to the cost of production." He added that UK pigs were 40% outdoor-reared to the highest standards, therefore justifying higher prices.

However, he disputed figures in the Sunday Express last week that suggested UK bacon was four times more expensive than French or American, at £8.32/kg, with pork shoulder and sausage also more than 50% more expensive.

The Saturday Essay p20

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