Good News in the pig trade

[bitwrx]

But if they are integrated right up to the retail outlet, they can take all the profit from that end, while keeping the farm gate price at rock bottom to squeeze out the competition.

It's called monopoly.

Probably more oligopoly, but the difference is only academic.

Worth noting there's a consultation running at the mo, on contract structures in the pig trade.

Contractual Practice in the UK Pig Sector - Defra - Citizen Space

This site contains consultations that are run by Defra.

consult.defra.gov.uk

 

[spin cycle]

mutimers advertising for pig finishing in our local paper today....same outfit as pig chairman?

what's going on?....thought job fecked?

 

[Suffolk Serf]

mutimers advertising for pig finishing in our local paper today....same outfit as pig chairman?

what's going on?....thought job fecked?

They are in a very good supply chain involving Waitrose and are doing okay.

 

[Suffolk Serf]

This is my last (probably ever) load going. 63 years of pig production at this farm coming to an end.
I've done pretty well out of it over the years, weathered the usual ups and downs in the trade. But what I'm seeing now is very different to the normal supply and demand hiccups. I fail to see when and how the trade will recover the 40/50p/kg that we need to cover costs and leave some over for reinvestment.
I (with misgivings) stopped serving at Christmas thinking that after a depop clean down we'd be starting again about now as trade recovered.
The really sad part was breaking up a good team.

Very sad. I'm joining your ranks, last weaning to be at Christmas, last finishers gone next summer. I had a period of thinking that I won't want to see another pig again to hitting the stark reality that I can't do much else! So i'm looking into contract breeding for one of the better corporates.

 

[delilah]

Worth noting there's a consultation running at the mo, on contract structures in the pig trade.

Contractual Practice in the UK Pig Sector - Defra - Citizen Space

This site contains consultations that are run by Defra.

consult.defra.gov.uk

The Agriculture Act 2020 introduced the ‘Fair Dealings Powers’ which are designed to address any unfair practices, enabling Government to introduce regulations to oversee the relationship between producers and buyers where necessary.

Thanks for that, I needed a laugh. Anyone able to share evidence of it being used ? Thought not. What a crock of pig sh!t.

 

[delilah]

But if they are integrated right up to the retail outlet, they can take all the profit from that end, while keeping the farm gate price at rock bottom to squeeze out the competition.

It's called monopoly.

Question then. How many more years will this go on for before a national representative body calls for action ?
No, scrub that. Before a national representative body actually understands the issue ?

 

[SRRC]

Very sad. I'm joining your ranks, last weaning to be at Christmas, last finishers gone next summer. I had a period of thinking that I won't want to see another pig again to hitting the stark reality that I can't do much else! So i'm looking into contract breeding for one of the better corporates.

I'm relieved to be out , for the moment anyway. No doubt I'll start to get restless when the price gets to £3.00, but I dare say I'll get over it!
New electric tariffs started on Oct 1st following expiry of my previous fix, that's taken it from 14p unit to 75p unit, that adds up to another 130k a year.
I also am out of my soya forward buy, that's about £550/t now.
Those two on their own would strangle me financially.
I hope all of those who are toughing it out come out the other side ok.

 

[JP1]

 

[midlandslad]

There still seems strong appetite for b and b pig units, can’t see the current figures stacking up with interest rates where they are though.

 

[Pan mixer]

There still seems strong appetite for b and b pig units, can’t see the current figures stacking up with interest rates where they are though.

I agree, I looked at this a while ago and even at a 3% loan they didn't look brilliant. Now building materials have gone sky high, no chance.

 

[Batty]

See cranswicks interim figures are in pig world online, profit slightly down but sow numbers up to 45,000 and 40% self sufficient!

 

[Suffolk Serf]

See cranswicks interim figures are in pig world online, profit slightly down but sow numbers up to 45,000 and 40% self sufficient!

I bet there is nothing in their report about the growth of their "dirty tricks" department.

 

[Batty]

I bet there is nothing in their report about the growth of their "dirty tricks" department.

Growth! It’s been massive for years dad told stories about them in the early eighties.

 

[Pan mixer]

See cranswicks interim figures are in pig world online, profit slightly down but sow numbers up to 45,000 and 40% self sufficient!

I am not entirely sure that this fact is entirely within the ethos of this thread.

 

[delilah]

Update on our 'Good News' as posted up thread.
Our pig manager left us in September to take up her place at Plumpton. She was only allowed to go if she recruited her replacement which she duly did, a keen but totally green 14 year old just as Aoife had been. Megan was straight in at the deep end with the hardest job of all; dealing with the public taking orders. Sold all 8 pigs in 10 kilo pork packs. She is fetching the boar this weekend so will have her first taste of seeing the whole process through.

 

[Fake it ‘til you make it]

United we stand divided we fall.

Once we lose the ability of the marketing groups to switch a portion of the supply from one processor to another where is the pressure for a rise in the spp going to come from?
If we all individually supply a processor on contract with the last 20% of their kill, the other 80% being supplied by their own pigs at a price they can manipulate, we lose what little control over the market that we have. There is no point them bidding more for pigs because they are all contracted elsewhere.
There is only one reason that the processors want to see the marketing groups gone, and its not for our benefit.
The other option is longer term cost of production contracts, like the milk job, but ultimately they will only offer those until they can supply the same from their own units, and then you will be cut loose.

Exactly what has happened to the US fat cattle trade. 85% of the cattle are bought on a grid based on the cash price paid for only 15%. (Not worth mentioning US pig trade, that was sewn up decades ago)

 

[Farmerpickle]

..........they're clean animals!

 

[midlandslad]

Have there been many pig farms sold in recent years?

 

[Batty]

Have there been many pig farms sold in recent years?

One of the xxxxxxxxx subsidiaries bought two or three units off a producer giving up about three years ago. Spent big money modernising and expanding them I believe. Think rental deals are more common.

 

[midlandslad]

Do you think there would be much demand for a breeding unit at the moment?