Teagasc has said that pig and poultry farmers are currently experiencing record financial losses in their sectors.
The national farm advisory service was among those who addressed the inaugural meeting of the National Fodder and Food Security Committee today (Friday, March 11).
The committee was unveiled this week in response to the Russian invasion of Ukraine. It is tasked with preparing an industry response to the emerging input crisis.
Teagasc said that feed costs for pig and poultry producers had increased by a third between January 2021 and March 2022. The situation has been exasperated by low prices and energy costs, which have risen by up to 100%.
Pig and poultry sectors
Teagasc explained that the country’s 300 pig producers stand to lose €160 million.
The committee was told that the average pig farm is currently losing €56,000 per month. 5% of the sow herd has been destocked by producers.
Teagasc outlined that between 20 and 30% of pig units are at risk of closure.
The situation is unlikely to improve in the short term as compound feed prices are being forecasted to increase by €95/t by April and May.
Producers are reporting that it is very difficult to access finance, the meeting heard.
Teagasc noted that there is currently concern among poultry farmers about restocking flocks, including layers and turkeys.
The meeting was told that the service is actively engaged with producers to explore the options available to them.
Among the suggestions offered to the committee by Teagasc staff was to seek alternative feed ingredients for the sectors.
They said that sustainable cashflow supports would be needed for producers who have an “unsustainable debt burden”.
Another suggestion made to the committee was structured de-stocking on welfare grounds.
The committee also heard that the potential of pig and poultry manure as an option to replace chemical fertiliser should be explored.