The UK’s biggest retailer has been urged to pay a fair price or risk losing its supply base forever
The National Pig Association (NPA) has written to Tesco to sayit needs to do more to support struggling pig producers or risk losing its British pork supply base, as a survey shows four in every five producers will go out of business within a year unless their financial situation improves.
Today the NPA has appealed directly to the retail giant to pay a fair price for pork or risk losing its British pork supply base forever.
In an open letter to its chief executive Ken Murphy, NPA chairman Rob Mutimer stresses thatTesco, given its scale, is uniquely positioned to act to prevent the ‘destruction of the UK pig sector’.
UK pork producers are currently facing unprecedented losses as costs of production soar due to record pig feed prices. It currently costs an estimated 203-216p/kg to produce a pig, a figure forecast to rise even higher, as wheat prices continue to rise due to disruption caused by war in Ukraine. Yet average pig prices remain below 170p/kg, meaning many producers are losing tens of thousands pounds each week.
The Co-op, M&S, ALDI, Asda, Morrisons, Sainsbury’s and Waitrose are now paying more for British pork through their dedicated supply chains.
Profits
ButTesco, the UK’s biggest retailer, which has just announced a trebling of profits to more than 2bn, is yet to respond to the crisis hurting its pig suppliers.
In the letter, Mr Mutimer asks theTescoboss for support.
“The problems facing the sector have been building for some time and have arisen through no fault of the primary producers,” he said, going on to outline how an ‘unprecedented crisis’ over the last 18 months has hit pig sector producers.
NPA survey data suggests there are still 100,000 pigs stuck on farms that should have gone to slaughter and farmers are losing in excess of 50 per pig due to the enormous gap between their cost of production and the price the supply chain is paying for pork.
The pig industry has already lost an estimated 10 per cent of the breeding herd as producers have left the industry or cut down on production, while polling of British pig farmers by NPA shows 80 per cent will not be able to survive the next 12 months unless the gap between the cost of production and pig prices is significantly reduced.
He stressed Tescois in a unique position to help because of its UK market share and volume of pork sales.
“Unless action is taken now and a fair price is paid, there will not be a domestic pig industry left to service the demands of your shoppers and we know how much they value fresh British produce,” Mr Mutimer said.
“A relatively modest investment byTescowill not only prevent the destruction of the sector, but it will mean that British pork will still be available at a price affordable to your customers. Paying a little more today is likely to save you money in the long term.
“Unfortunately, we do not have the luxury of time and each week that passes puts pig farmers further into the red.
“I fully appreciate that every part of the supply chain is under strain from inflationary pressures and your customers are struggling with the cost of living.
“However, I am sure that shoppers and shareholders alike would want you to back British farmers and ensure that we can supply you with fantastic pork for decades to come.”
The NPA is also urging its members to write toTescodirectly to make a similar plea, whilst copying in their local MP.
“Tesco’s famous mantra is ‘Every Little Helps’ – well pig farmers need a lot of help and ifTescodoes not step up to the plate, it is going to struggle to source British pork in the future,” Mr Mutimer said.
