Good news for pig farmers invested in foreign markets is that Irish exports of pig meat to the United Stated are up 25% on last year, according to Bord Bia. The bad news is that the pig price is still below average and pig supply for slaughtering is tight resulting in increased competition among processors.
IFA National Pig Committee Chairman Roy Gallie said that “pig supply for slaughtering is extremely tight and there is massive competition among processors for supply. A substantial price increase is justified immediately to help offset continuing increases in cost of production.”
The Irish pig price is currently at €2.02/kg to €2.06/kg, which remains below the average breakeven figure of €2.20/kg. The European Commission data as of 10 August, 2022, indicates an average US price of €2.74/kg. What’s more, EU slaughterings are down -4.2% in the four-month period from January to April 2022 and tonnes of pork produced fell -5%.
Experts predict a substantial decrease in production in China with reports indicating that the breeding herd has decreased by 20% (-8 million sows). Meanwhile, the Chinese pig price has almost doubled since March 2022 from €2.20/kg to €4.00/kg on 12 August, 2022.
“Farmers need to consider all options when selling pigs as competition is tight and price increases are more than justified,” said Gallie.