Breeders and finishers ignoring commercial realities' Brussels blames the producers Mike Ingham Crisis in the pigmeat market is largely the producers' fault, according to a surprisingly critical report on the industry by the European Commission. While retailers in the UK and France suffer torrents of abuse from farmers accusing them of profiteering or unethical' purchasing tactics, Brussels officials reckon the fundamental problem is pig breeders and finishers ignoring commercial realities. The EC analysis notes a production uptrend behind the predictable cyclical output swings, now resulting in structural surplus rather than merely temporary over-supply. "Producers should expect a cyclical pattern to the market and should be prepared for falling prices," the report states. "While the Commission can make provision for private storage aid or for encouraging exports, it cannot protect the sector against the effects of a constant expansion of production well in excess of the growth of demand." Consumption in northern Europe appears to have reached saturation point. Further growth depends on demand increases in southern EU states, but Brussels is implicitly warning it will not help producers further if they insist on maintaining output expansion. This echoes the argument of some traders in the UK, who claim pig farmers should bear the price risk of misjudging demand for their output in the same way as any other businesses. And although British producers suffer cost penalties due to tougher animal welfare and food safety rules than elsewhere, the main cause of their present difficulties is the EU over-production to which they contribute. {{MEAT }}