The National Pig Association has welcomed a move by Morrisons to increase the price it pays for its pork, but warned more needs to be done across the retail sector to tackle the ongoing pig crisis.
Morrisons subsidiary Woodhead Bros announced this week it would increase its weekly contribution price by 30p/kg to 180p/kg. It followed warnings – reported by The Grocer last week – that at least 40 beleaguered pig farmers had left the sector due to the impact of soaring on-farm costs and the ongoing backlog of pigs on farms.
The move by Morrisons followed a call by the NPA for more support from retailers earlier this month, with farmers needing more than £2/kg to break even, some 70p/kg above the current price many were being paid for their pigs.
The Grocer understands the sector’s leading processors approached major retailers for at least a 60p/kg increase earlier this week.
Neither Sainsbury’s nor Asda responded to a request for comment at the time of publication, while Tesco said it was “in discussions” with suppliers and other stakeholders on how best to respond to the cost of production crisis.
AHDB’s EU spec standard pig price stood at 141.71p/kg on 19 March, a 3.20p/kg increase on the previous week.
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The NPA reported this week that other processors had also increased their contribution price by between 10-15p/kg last Friday, which followed a 12-16p/kg increase the previous week.
Such increases were a “good move”, said NPA CEO Zoe Davies.
“But our overarching message is that we need more, and we need it now. We can’t wait for the SPP to trickle upwards,” she added.
The contribution price represented only one element of pig supply contracts, she added. Therefore, it wasn’t clear yet what impact Woodhead Bros’ move and those of other processors would have on both the SPP or on the income of producers.
It was now “crucial” for other retailers to increase their prices closer to the cost of production in order to safeguard the future of British pork, she added.
“Pig farmers are taking decisions on their future in the sector right now, having made losses for the fifth consecutive quarter and being unable to take any more input price rises without a supportive pig price.”
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