Blog
Pig Breeders in Crisis
23rd February 2008
Dire warnings today that the economic viability of the UK pig breeding industry is under severe threat from the staggering rise in world grain prices. It is a good example of the inter-related nature of markets, in this case how a rise in feed costs has led to a doubling of the rate of pig slaughter because many farmers simply cannot afford to feed them. As our chart shows domestic pork production has collapsed in recent years and the vast majority of pork products are now imported from overseas and that trend will accelerate if there is a net loss of pig supply from the UK as farmers decide that they can no longer make normal profits and justify supplying to the market,
A report in the Telegraph says that
‘According to the National Pig Association (NPA), the number of breeding sows being slaughtered each week is currently 7,000. This is double the usual figure of 3,500 sows, which are culled because they have reached the end of their productive life.’
A representative of the National Farmers Union is quoted as saying
“If beer prices go up, people will still spend £4 on a pint. But if bacon goes up, people say ‘I’m not paying that. The supermarkets need to pay farmers more. Because they have such a stranglehold, they can say ‘If you don’t like it, shove off’.”
The full article can be read here
Having read through the article do you think that there is sufficient economic justification for the government providing a further subsidy to pig breeders? After all, the rise in wheat prices has been global? Do the UK supermarkets have a responsibility to help?