National Pig Association appeals to Defra for fairer contracts to help stop continuing collapse of industry

Notably, it asks for introduction of legislation to underpin new pig contracts, which would allow producers, marketing groups and pork processers to negotiate terms that work for all parties, including ensuring a fair price for producers, a mechanism for dispute resolution and that penalties for out of specification pigs should not deliver a negative or zero value when contracted pig numbers have not been fulfilled.

The NPA is also calling for better forecasting to improve business planning, as part of a wider drive to increase transparency across the chain, and for pork buyers to make better use of the entire pig carcase, rather than just selective cuts.

The recommendations put forward to the consultation, which closed on October 7, comes against the backdrop of a turbulent18 months for the industry that has seen producers rack up losses, collectively, of more than £600m.

Many have been forced out of business, with official Government figures highlighting an 18 per cent decline in the pig breeding herd over the year to June 2022.

With average pig prices still well below average production costs, many more producers currently face an uncertain future.

NPA chairman Rob Mutimer, said: “We believe this process offers real hope for the British pig sector, which has taken an absolute battering over the past 18 months.

“It has become fairly obvious to all involved that the supply chain, as it stands, is broken. Contracts, where they exist, have proved to be not worth the paper they are written on for many, and those producers have been left powerless as their pigs have been rolled week after week.

“Allied with other factors such as Brexit-related labour shortages and soaring feed and energy costs, driven by the war in Ukraine, the situation has left the pig sector hugely damaged to the extent that our capacity to produce pork in this country is now under threat.

“We believe the measures that we and others who have responded are calling for will, if implemented, form the basis of a stronger, more coherent supply chain where all parts have the opportunity to thrive.

“But the Government must act decisively and quickly before it is too late for the pig sector – and in order to fulfil its stated aims of reinforcing the UK’s food security.”

In making its submission to Defra, the NPA team gathered extensive member feedback from focus groups, online surveys and direct conversations with producers, marketing groups, processors and allied members.

It response stressed that change is needed throughout the wider supply chain, including the retail sector, not just between producers and processors.