Last month, we highlighted the spiralling income crisis in the pig sector, which the government has allowed to reach a catastrophic crisis point. The pig sector requires an immediate €30 million financial state-aid package to combat the explosive production cost increases and falling revenues, according to the Rural Independent Group.
Speaking from Leinster House today (Thursday 10th February), the Leader of the Rural Independents, Deputy Mattie Mc Grath, said:
“Since the new year, my colleagues and I of the Rural Independent Group have been emphasising the significant gap between the cost of pig production and what farmers are being paid. Soaring input costs and supply chain disruptions, caused by Covid, Brexit and the government’s Carbon taxes, mean a 500-sow unit is now losing more than €36,000 a month.”
“Pig farmers are in the midst of a perfect storm, with pig prices in Ireland down 40 cent per kg, from a peak of 1.85 per kg to 1.45 per kg deadweight, coupled with rising feed costs of €35 per tonne, meaning every pig produced on Irish farms is now losing over €38.”
“For example, one farmer, who is sending 3,000 pigs to the factory each week, has explained to us how he is now experiencing losses of around €120,000 every-single-week.”
“Today, all pig farmers across the country are under extreme financial pressures, and all contingencies have been exhausted. While other issues persist within the pig sector, including African swine fever, the current dire economic situation is critically urgent, which can no longer survive without government support or intervention.”
“Yesterday, I reiterated this crisis with the Minister for Agriculture on the floor of the Dail. While the Minister acknowledged the problem, unfortunately, he offered no solutions, despite agriculture Ministers in France, Poland, Germany, Belgium, Denmark, Holland and Scotland establishing multi-million-euro aid packages to assist their respective sectors.”
“Over 8,000 jobs depend on this sector, and I am now pleading with the Minister and the government to urgently respond to this crisis, taking a multi-dimensional urgent approach to support these farmers.”
“Our previous call for the establishment of an emergency financial hardship scheme, in the form of direct grants, must be established. The scheme must be accessible to all pig farmers. Furthermore, a zero or low interest loan scheme should also be available to help farms with severe liquidity problems.”
“For instance, the French Ministry of Agriculture is providing a €270 million government package for their sector. This would translate into an equivalent figure of about €30 million for the Irish sector.”
“We are, therefore, again calling on the government to step up and to establish a package of measures for the crisis-ridden pig meat sector. Pig farmers in Ireland are facing an existential threat and are now overdue financial aid.”
“We are pleading with the Agriculture Minister to fully grasp the direness of this situation and to respond with haste,” concluded Deputy Mc Grath.
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