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Ireland: Annual Review & Outlook for Agriculture, Fisheries & Food 2007/2008

by 5m Editor
11 July 2008, at 12:00am

This report is an extract taken from the Annual Review & Outlook for Agriculture, Fisheries & Food 2007/2008, examining the pig market situation in Ireland. It was published by the Irish Department or Agriculture Fisheries and Food.

General Market Situation 2007

2007 proved to be a very challenging year for the Irish pigmeat sector. Although production for the year was comparable to the previous year, profitability was very poor for producers due to the very high cost of feedstuffs especially in the second half of the year.

Annual Review and Outlook for Agriculture, Fisheries & Food 2007/2008

Low margins were also experienced throughout the EU. This coupled with reduced exports to international markets due to the weak dollar led to the introduction of an APS scheme at the end of October (Ireland’s uptake was 241 tonnes) and the introduction of export refunds on fresh and frozen pork going to all non-EU countries. Irish consumption of pigmeat increased by 3% in 2007 aided by promotional campaigns on the home market.

EU-27 output increased by 4% to 22.3 million tonnes while the average EU producer price was down almost 7% to €135/100kgs.

Output in Ireland

In 2007, the output value of the pig sector decreased by 9.7%, with decreases in the volume of live exports and export slaughterings.

Prices

According to DAFF data, prices in 2007 were 5.5% lower than those in 2006 (see Figure 3.9). The average producer price for 2007 was €132.5/100 kgs. The Irish price averaged 98% of the EU average and was higher than the EU average in the final quarter.

Slaughterings

Slaughterings at DAFF export approved plants at 2.6m were slightly lower (1.5%) than 2006 levels. Sow slaughterings were down 2.8%. The export of live pigs to Northern Ireland remained strong at 0.5m pigs

Exports

The value of pigmeat exports decreased by 5% to €212 million. The UK market accounted for 59% of exports and continental markets for 21%. Exports to international markets decreased due to the weak dollar and consequent availability of cheaper American pork on the Asian markets.

Outlook 2008

A 3% fall in export slaughterings is predicted over the course of 2008. The feed situation should be somewhat alleviated next year due to the increased production of cereals including increased production following the modification of set-aside rules and the abolition of certain import duties.
EU-27 output in 2008 is forecast to slightly increase over the course of the year, however the full effects of this year’s feed issue are as yet unknown. Prices in the first half of the year are expected to remain at low levels but an improvement is then expected.

Further Reading

- You can view the full report by clicking here.

July 2008