Latest figures from Teagasc’s pig development department indicate that with the current Irish pig price at €2.10/kg, the average sized Irish pig farm is continuing to lose €13,000/month.
Teagasc figures indicate that the current break-even price is €2.20/kg and with prices remaining 10c/kg below that level, pig farmers continue to operate at a loss of €9/pig or €13,000/month for the average sized farm.
Commenting on the figures, Cavan pig farmer and Ulster/North Leinster regional chairperson Frank Brady said: “There is the perception out there among the industry and financial lenders that pig farmers are back making money, however, Teagasc figures indicate this is not the case and the average pig farmer continues to operate at a substantial loss.”
Brady reiterated that the price for pigs is still below the break-even figure and outlined that further price increases will be needed if pig farms are to remain economically viable.
€400,000 loss this year
Speaking at the Teagasc pig conference, which took place last month (Tuesday, October 18) at the Hotel Kilmore in Cavan, and at Horse and Jockey, Co. Tipperary (Wednesday, October 19), the IFA Pigs Committee chairperson, Roy Gallie, warned that if current pig prices and costs of production persist to the new year, the accumulated losses on the average pig farm will have reached “well over €400,000”.
Gallie also added that this figure is after payments under the Pig Exceptional Payment Scheme (PEPS) of €120,000 have been made to farmers.
The IFA Pigs Committee chairperson explained that farmers are currently making a loss of between 10-20c/kg of pigmeat produced, or a loss of €10-20/pig.
Gallie told pig farmers attending the conference that the IFA is currently meeting with processors and retailers and said “the news I have so far is not great, for the short term at least”.
“Unlike the egg, for which we held a successful protest a few weeks ago for a price increase, the pig has to battle with imports from continental Europe,” he said.
“Just like the fact imported grain sets the price for grain here, so too does the pigmeat,” he added.