Pilgrim’s launch 20-year pig contracts for producers

Major meat processor Pilgrim’s Europe has unveiled a new 20-year contract for its pig farmers in a bid to provide long-term financial security, encourage investment on farm and ensure producers make a profit.

The processor has committed to supporting farm businesses through improved cash flows, providing up to £15 an animal for each batch over the 20-year period.

Fabio Brancher, agriculture director at Pilgrim’s Europe, said:

“Crucially, we guarantee farmers will make a profit throughout the contract period, alongside providing farmers with their usual management fees and performance bonuses.”

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Pig contracts typically run for three to five years, which can lead to underinvestment in facilities.

Pilgrims hopes that by offering a 20-year commitment, it will provide the confidence needed for producers to invest on farm.

“The new arrangement significantly reduces financial risk for existing pig farmers, or for those looking to diversify into pig production,” said Mr Brancher.

“Instead of worrying about market fluctuations or struggling to secure financing for new facilities, farmers get predictable income and loan support.”

Pilgrim’s Europe processes roughly 2.2m pigs a year through its integrated supply chain.

Outdoor investment

As consumer demand increases for higher welfare and more sustainable pork, Pilgrims is encouraging producers to invest in outdoor breeding systems to support its premium product lines.

Mr Brancher said: “These investments in higher welfare systems require significant capital – exactly the type of long-term investment our 20-year contracts enable.

“Farmers can invest in modern housing, environmental controls, and monitoring systems knowing they have guaranteed offtake and profitable returns.”

UK market

Finished pig prices have remained relatively stable and within a tight price range throughout the past year.

The EU-spec standard pig price recently edged up above the 207p/kg mark for the first time in 2025.

Strengthening prices on the continent are helping to support the domestic trade, with retailers also reportedly keen to get hold of supplies.

Mr Brancher added: “The UK pork industry is shaping up to experience a positive 2025 following previous years of uncertainty around feed prices and market volatility.”