pigmeat

Bacon and ham production down 17% since 1998 Tonnage decline raises questions about demand Bacon and ham production in Great Britain is down 17% since 1998 and the decline would have been steeper in the past year but for increased use of imported pork. This dramatic reduction in tonnage is not completely surprising, given the chaotic retrenchment in the pig industry and the processing sector after the over-expansion prompted partly by BSE. However, recent low output tonnages of bacon and ham pose questions about consumer demand. Although prices for bacon rashers have been good and most of the available data show retail purchases and spending strong, tight supply could mask demand softness elsewhere in the category (as is true of fresh pork). Imported raw material has not made as large a contribution as believed by some in the industry, notably the farmers. The increase in the latest year was only 12%, despite FMD, and DEFRA estimates the factories used almost as much back in 1998. Product imports have also probably not increased as strongly as believed by the multiples' critics in the British pig farming community. January-October landings of bacon and ham totalled just over 230,000t, 6% more than in the previous corresponding period, according to Customs. The rise was due to much heavier shipments from Denmark, more than offsetting the effect of FMD on deliveries from the Dutch industry. At first sight there is now a risk of bigger increases in shipments from Continental bacon and ham suppliers provoking renewed protests against supermarkets. EU pigmeat production is thought to be rising, and prices likely to fall, while the British industry shows little evidence of rebuilding capacity. Yet the MLC reckons neither imports nor home production of bacon and ham will change markedly this year, predicting instead any pressure will be on the pork market. {{MEAT }}