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Irish Pig Sector Resilient in Face of Rising Costs

by 5m Editor
27 January 2012, at 8:02am

IRELAND - In 2011 the Irish pig industry has suffered the worst economic conditions in over 20 years, primarily due to escalating feed costs.

In light of these conditions the size of the Irish sow herd has remained very resilient with only a small reduction in size taking place in 2011.

In 2012 feed prices are forecast to decline from their current high plateau, according to the Outlook 2012 report by Teagasc.

The composite pig feed cost of €296 per tonne in December 2011 is expected to fall by 10 per cent during the current year provided currency exchange rates remain relatively stable and harvested crops return average yields based on a five year average.

The pig price was higher in 2011 compared to 2010 but not sufficiently high to offset the negative impact of rising feed costs.

It is expected that the market conditions in 2012 will continue to return a high pig price primarily due to a reducing number of pig disposals in the main European pig producing countries and strong export conditions outside the EU.

The lower feed cost and strong pig price are expected to generate a healthy profit margin for pig producers in 2012.

This will be required to reduce previous accumulated losses and allow necessary infrastructure investment in sow welfare housing.

Further Reading

- You can view full report by clicking here.