According to the Swedish Farmers Federation (LRF), more than one-fifth of Swedish pig production will have disappeared before the end of the year.

"Pig farmers are losing several hundred dollars on each pig. The situation is untenable," said LRF Federal Chairman Lars-Göran Pettersson.

The federation said that while the curve has changed for other farming operations and farmers are seeing an upward trend for the first time since the start of the financial crisis, pig farmers are in free fall.

Between 3 January and 9 February, 100 out of the 1,200 pig farms connected to the Swedish Animal Health Service have gone.

"Swedish animal welfare rules, which are the highest in the EU, are leading to increased production costs. If we are to compete with low-priced imported pork sold without country of origin labels, the government must introduce an animal welfare payment to compensate farmers for their welfare commitments," said Mr Pettersson.

The decommissioning of the Swedish pork industry may affect the slaughterhouse structure and might also become a crucial issue for beef production, the farmers' federation said.

If slaughterhouses close down, it might mean that beef producers in some places will have no butcher to supply.