Confidence builds for UK pig sector as global demand grows

Lower on-farm feed costs and stable profit margins have left British pig producers in a much better position than during the pig backlog crisis of 2021-2022.

There was a sense of optimism at the Pigs Tomorrow conference in Leicestershire on 12 May, with analysts discussing growing opportunities for pork products both in the UK and in new global markets.

The wider industry has forecast global meat consumption to rise by 1.2%, with this increase driven predominantly by greater demand from emerging economies.

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Rupert Claxton, meat and livestock director at Gira, said: “The UK pig industry is really well placed within the European market.

“I’m far more positive about it than I’ve been for probably a decade.”

He said the global pork industry had benefited from lower costs and tight supply, and added that China remained an important market, despite reducing pork import volumes since rebuilding its domestic pig herd.

Mark Haighton, pig buyer at Sofina Foods, deemed the industry to be in a very good position compared to where it was a couple of years ago.

He said: “Retailers now appear to be aligning behind British production and getting behind longer term supply chain arrangements.”

Retail sales of pork, which accounts for roughly 78% of total sales, declined marginally in 2024 due to a higher price point, however food service sector sales were up by 5.5% last year.

Europe

EU prices have lifted by 17% in the past three months with the weekly grade E pig reference price at the equivalent to 174.7p/kg deadweight in mid-May.

Mr Claxton suggested European prices were high due to tight supplies, leading to slaughterhouses bidding up pig prices, though he said this was not sustainable long term as processors also needed to be profitable.

Pork production in Europe remains in decline, despite profitability within the sector, which has raised some concerns around underutilised storage and processing capacity with several abattoirs closing within the past two years.

Mr Claxton explained that European producers had been cutting back due to a combination of environmental, animal welfare, and planning constraints, and that trend of lower production was set to continue.

EU pig throughputs have fallen by roughly 25m slaughter pigs between 2021-2025, and a further decline of 12m head of pigs is forecast between 2025-2029.

Costs

Energy, fuel, and animal feed costs were all relatively low, according to Mr Claxton, which had helped to keep costs down overall on farm.

He added the US trade deal, which will allow greater access for US biofuels into the UK, could make feed prices in the North East come down further again, with less demand for cereals expected from UK bioethanol plants.

UK pig numbers

UK pigmeat production was up by almost 4% in 2024 with both pig throughputs and carcass weights up on the year, according to Freya Shuttleworth, senior livestock analyst at the AHDB.

The AHDB forecast production to increase by a further 3% in 2025.

Ms Shuttleworth said much of this increase was being driven by increases in the English breeding herd, which accounts for roughly 75% of the UK’s pig breeding stock.