Processors blamed lacklustre retail demand for British pork for poor uptake of pigs last week, according to Thames Valley Cambac. 

TVC described the 19% year-on-year increase in pork import volumes, as highlighted in the last issue of Pig World, as ‘disappointing’, but noted that this level of imports matches pre Covid levels, while the same reporting period shows exports have increased.

“Supplies continue to tighten as producers leave the industry, but slaughter weights are creeping back up, as processors keep number allocations tight,” TVC said in its latest market update.

Price contributions stood on, and the SPP improved 0.36p to 200.37p, but pig returns are still way below cost of production and, unfortunately, industry exits continue.

Prices in Europe eased again with the Netherlands down 7 eurocents – a realignment following Germany’s fall last week. The Euro ended the week down 0.92p at 87.38p.

There was little weaner demand outside regular contract commitments, as raw materials remain volatile and uncertainty in the finished market leaves fatteners with little confidence. There was insufficient data for the AHDB to formulate any prices.

 

Alistair Driver / Pig World

British lamb has now been exported to the United States for the first time in over 20 years, in a deal estimated to be worth £37m in the first five years of trade.

The first consignment since the deal was struck last year was flown to the US this week, containing lamb produced by processors Dunbia from its site in Carmarthenshire.

A ban on British lamb exports to the US had been in place since 1989 due to concerns around BSE, commonly known as ‘mad cow disease’.

The small ruminant rule that banned the product was rescinded by the US government in January of this year.

The industry estimates that the US market will be worth £37m in the first five years of trade, opening up access for farmers to a market of over 300m consumers.

Andrew Smyth, commercial director at Dunbia said: “As the largest processor of lamb in the UK, it is imperative we continue to have access to new and emerging international markets, and we welcome the small ruminant rule amendment.

“We continue to work closely with AHDB to identify and develop new market opportunities for our quality British produce.”

 

Farming UK

Farming Minister Mark Spencer has said he will push for small abattoirs to be able to benefit from earned recognition in order to reduce veterinary presence.

His comments came shortly after John Mettrick, owner of the multi-award winning Glossop-based butchers J W Mettrick, closed his abattoir because the staff walked out on account of the ‘constant scrutiny’ they faced.

The workers left after trading figures meant the business moved from requiring part-time to full on-site official veterinarians (OVs).

Mr Spencer told attendees of the NFU fringe event at Conservative Party conference in Birmingham: “I have already met with the Food Standards Agency. I think what we need is a risk-based approach.

“In my retail business, the environmental health officer inspects every two years. As long as when they do inspect, they find a premises which is clean, tidy, well-documented and abiding by all the rules, they come back on a less regular basis.

“If I have made a mistake, they will come back more often. I think we need to apply a risk-based system to our abattoirs so it does not require a veterinary surgeon to be there 24-7.”

 

by Abi Kay / Farmers Guardian

The UK beef sector needs to chase better eating quality rather than yield, because consumer satisfaction is everything.

According to influential US Stabiliser breeder Lee Leachman: “You should be worried you are not producing lovely steaks. As a beef consumer I would say that would be my concern in the UK. I am not saying it tongue and cheek. The UK should put a quality grid in place.”

 

By John Sleigh /  The Scottish Farmer 

Growing concerns over the survival of small abattoirs and farm supply companies have prompted the National Sheep Association (NSA) to appeal to government for “meaningful” support.

The NSA points to the increasing dominance of large companies in agricultural markets which it says is leading to the end of small seed or livestock processing businesses, such as the recent closure of a 100-year-old abattoir in the north of England.

NSA chief executive Phil Stocker said: “Although newly announced energy support packages will have come as welcome relief for many, the government must realise the ongoing severity of the situation, especially within the small abattoir sector.

“During the period between 2019-2021, the sector has seen the closure of 14 abattoirs and already this year we have seen more added to that list.” Mr Stocker said the largest 24 meat processing plants control 85% of the throughput.

“As an industry, there is a desperate need to support small and medium-sized businesses to ensure that there is capacity and a service for rural locations at a time when interest in localising supply chains is growing.”

 

 

The Press and Journal

The EU-spec SPP has passed the £2 per kg mark, but the rate of increase is slowing and prices are still well below costs of production.

The SPP averaged 200.22p/kg in the week ending 16 September, up 0.3p from the previous week – the smallest increase since early March.

However, pig prices still fall short of the estimated cost of production, calculated at 223p per kg for August.

The sector is seeing surging energy and grain costs, as well as challenging post-Brexit staffing issues.

While the National Pig Association (NPA) welcomed the latest increase, it warned that the rate of progress was slowing.

“The SPP has finally hit £2/kg, rising by 0.3p to 200.22p/kg last week,” the body said.

“While the landmark is welcome, the pace of upward movement is slowing markedly.

“On average, prices remain below cost of production, estimated by AHDB at 221p/kg for August.”

 

 

by FarmingUK 

 

Agricultural levy board AHDB is considering quitting its Stoneleigh Park base in favour of smaller premises, it has been revealed.

The organisation, which has been based in a £5m, 5,000 sq ft building on the farming and agricultural centre just outside Coventry in Warwickshire since 2014, said a number of factors had led it to reassess the location.

AHDB’s divisional director of engagement Will Jackson said: “We are currently looking at our options to move our headquarters from Stoneleigh to a more suitable-sized building to reflect our current needs and ensure the funds we receive from levy payers are invested as effectively as possible.

“This is part of what we are doing to reflect levy payer feedback through the ‘Shape the Future’ process.”

Former chair of the AHDB Cereals and Oilseeds sector board Paul Temple said following changes at the institution, it made sense for it to consider the usefulness of its location.

 

 

By Jane Thynne / Farmers Guardian

Consumers and retailers must back British as the long-running pig sector crisis continues to take its toll on farms across the country, the National Pig Association (NPA) has said.

The body today (13 September) warned that there could be a reduced choice of favourite British pork products over the Christmas festive period ‘unless things change rapidly’.

Recent figures from AHDB showed pig producers lost, on average, an unsustainable £52/pig in the second quarter of this year, following losses of £59/pig in Q1.

After seven successive quarters of negative margins, producers have lost, collectively, £600 million since the autumn of 2020, AHDB estimates.

The financial woes are continuing through this quarter, the NPA warned, as rising pig prices have failed to keep pace with soaring feed and energy costs.

Meanwhile, Defra’s June Agricultural census showed a massive 17% reduction in the English pig breeding herd, which industry data suggests is mirrored on a UK-wide basis.

The situation has also been exacerbated by Russia’s invasion of Ukraine, leading to increased input costs, including feed, fuel, energy, and fertiliser.

 

Responding to the threats, NPA chief executive Lizzie Wilson said shortages of pork products at Christmas would leave the supply chain more reliant on EU imports.

 

“Pork is still very competitively priced and so provides excellent value for money when budgets are increasingly being squeezed.”

by Farming UK

Weak demand on the domestic market continues to apply a brake to the UK pork market, although rising EU prices are providing a glimmer of hope. 

“Trade seems to be reflective between last week and this coming week with signs of little change regarding demand being still less than brisk, Thames Valley Cambac said in its latest market update.

“Perhaps as the week unfolds ahead of a short week to mark the funeral of our Queen, any additional demand might encourage buyers to stock up on and support British at a time of great reflection across the country. We certainly need to see demand for available products improve in Q4.”

Prices continue a ‘slow but forward trajectory’, with the SPP lifting 1.13p, the biggest weekly jump in just over a month, and after sticking for one week the German market stepped up another 5 cents to €2.10/kg. In the UK, most Q prices are over the £2.00/kg mark, which is very welcoming.

Shoppers looking for British pigs in blankets and locally reared gammon to serve this Christmas may be forced to buy EU meat instead, the industry has warned.

Supermarkets will be stocking less British meat this winter, after higher feed prices forced farmers to rear fewer animals.

The shortfall will show up over Christmas, which is traditionally the busiest period for pork demand, as people stock up on gammons, pigs in blankets and stuffing for the festive period.

Official estimates suggest there has been a significant drop-off in Britain’s breeding pig herd, down by almost 20pc on last year by June. The numbers are expected to have fallen even further since, as farmers face spiralling costs in energy and animal feed.

Lizzie Wilson, chief executive of the National Pig Association, warned that this meant there was “a hole in supply coming”, meaning shoppers were likely to see less choice for British cuts on supermarket shelves.

“Up until this point, retailers have been really good at buying British pork,” she said. “However, they can’t ignore the fact that EU imported pig meat is significantly cheaper than British.”

The UK is already importing more pig meat from Spain and Belgium as the cost of domestic supply climbs, Ms Wilson warned.

With fewer pigs coming through the system and the sow herd at the smallest it has been in 20 years, “we are definitely going to see less British pork available”, Ms Wilson added.

 

By Hannah Boland / The Telegraph