UK pig producers attack processor profits
While pig farmers cope with losses, retailers and processors enjoy profits
British pig producers are accusing the country’s retailers and processors of making “serious profits” from pork and pork products, while the country’s pig farmers are facing crippling and unsustainable losses.
The claim appears in a new report from the British Pig Executive called Profitability in the Pig Supply Chain.
It reveals that in the 12 weeks to January 23, 2011, British pig producers amassed losses of £35 million (US$57 million), while over the same period the processing sector’s profits were estimated at £100 million and retailers enjoyed combined profits of £192 million from pork and pork product sales.
“The report clearly illustrates that while pig farmers are operating at a loss, the rest of the supply chain is making huge profits,” said BPEX head of marketing, Chris Lamb. “The sustainability of the pig industry is under severe threat.
“The prospect of losing huge numbers of pig farmers who can no longer afford to produce pigs is very real. The supply chain needs to act – and act now.”