NPA renews compensation push to prevent pig sector crisis

The National Pig Association (NPA) has renewed its call for compensation for businesses most affected by labour shortfalls and trade issues as backlogs of pigs again build up on farms.

Staffing shortages at abattoirs have led to pigs being rolled from week to week, leading to welfare concerns and higher costs for producers.

This has resulted in heavier pigs and penalties for animals being out of specification.

See also: 5 options to help minimise pig feed costs

Industry reports suggest some abattoirs are having to reduce throughputs at their sites by as much as 25% and in severe instances reducing the number of killing days a week.

The meat processing sector was already suffering from labour shortages due to the loss of many migrant workers before Covid-19 struck. This has been exacerbated further by the number of workers having to self-isolate.

Parts of the food processing industry will benefit from the recently announced critical worker relief scheme, although this does not cover all areas.

Labour shortages

NPA chief executive Zoe Davies said: “In some plants it is reaching critical stage, with production being cut by a quarter and pigs being ‘rolled’ into the following week, meaning backlogs are starting to build on farms.

“We are hearing that this is not just a short-term issue resulting from Covid self-isolation. EU staff have gone home and are not coming back or have gone to find alternative employment. A compensation package from Defra is needed for those in the industry most heavily affected by this on-going crisis, similar to what has already been delivered by other devolved administrations.”

The NPA is calling for:

• Processing and pig farm staff who have been double vaccinated to be allowed to take a daily test and avoid self-isolation as long as the test proves negative.
• Access to EU seasonal workers from the EU as allowed in horticulture, fruit and poultry sectors. A temporary relaxation of visa rules for specific roles to allow more foreign labour into the UK would help this.
• The Home Office to add meat processing workers and butchers to the shortage occupation list.
• Analysis by the treasury to determine which of the approximately 1.5 million furloughed workers may be suitable for employment in the food sector, and then helping them get back to work as soon as possible.
• A compensation package from Defra.

Cost of production

During the first quarter of 2021, costs of production for GB pigs were estimated at 174p/kg, according to AHDB data. Based on this figure, the average finished pig producer was losing £26 a head at the start of the year.

Official estimates for cost of production during the second quarter of 2021 are due to be released by AHDB in mid-August.

Feed prices have remained high throughout the second quarter, it is anticipated that overall costs of production will also remain high. Feed costs traditionally account for about 60- 70% of the total costs of pig production in the UK.