Pig contracts torn up
Pig contracts torn up
GROWER finisher units may face increasing difficulty sourcing young pigs as weaner producers break contracts to help increase returns.
According to independent pig consultant Geoff Fielding weaner producers are in a highly vulnerable situation and are having to resort to breaking supply contracts to boost cashflow.
Those locked into agreements below spot prices – currently £23 a head – will aim to supply the market offering the highest price.
"In such a depressed market hardly anybody is going to agree to supply contracts," warns Mr Fielding. "Weaner producers are spot sellers, will take the highest prices and in such circumstances will show little loyalty.
"The future for the weaner producer is particularly vulnerable. Theyve either got to get into finishing to retain potential margin or get out of production altogether."
The same can be said for specialist finishers; many will not be prepared to throw arable profits to save their pig business."