Pig farmers urged to take part in long-awaited supply chain review

As the pig sector continues to face serious challenges, including the soaring cost of production and ongoing labour crisis, the government has launched its much-awaited pig review, which seeks stakeholders’ views on how to support the industry.

Everyone in the supply chain is encouraged to respond to the consultation, which runs until 7^th October.

The consultation comprises 47 questions, seeking views on issues including transparency, price reporting, clarity of contractual terms and conditions and market consolidation.

Retailers must be part of the review

The National Pig Association (NPA) says that while the consultation focuses on relations between producers and processors, it is “absolutely imperative” that retailers are part of the review.

“This is something that we fed back to Defra because the retailers set the environment in which the processors work. If that environment is bad, and it’s very competitive and cut-throat, we quite often will see the processors behaving a certain way towards their pig producers,” NPA chief executive Zoe Davies told the BBC Farming Today programme.

“So we need to ensure retailers are part of that discussion and that they are as responsible as the rest of the supply chain when it comes to transparency and fair play.”

However, NPA said there is an opportunity in the consultation to comment on ‘any other issues or suggestions regarding the pig supply chain’, which could include the role played by retailers.

Lack of fairness

In the consultation document, the government notes that stakeholders have suggested there is a lack of transparency between processors and producers, and that a more consistent approach across processors would be beneficial.

It also acknowledges that the disparity between pig producers – which tend to be small, individual businesses – and highly consolidated businesses further up the supply chain which command substantial shares of the market, can make producers ‘vulnerable to unfair trading practices’.

Farming minister Victoria Prentis is quoted by NPA as saying that the review could lead to new legislation governing the relationships between pork producers and processors, including contracts.

Action that benefits producers 

Zoe Davies said ultimately the review must lead to action that protects and benefits primary producers.

“For us, it’s all about protecting the primary producer. Recently, we have seen how the costs fall on primary producers, so we want better protections within the contracts that exist in the supply chain.

“We need to look at what are the basic things that producers need in there to protect them in terms of their supply. If, for example, the processors can’t take the pigs, what repercussions will there be? But it has to be a two-way thing, so that if the producer doesn’t supply the pigs that they’ve committed to supply what happens that way round?

“We need contracts to protect both parties that actually have a legal standing. But we’d also like to see a mandatory code of conduct to agree the terms of engagement, so both parties are protected.”

Victoria Prentis acknowledged that the legislative process would not be quick but stressed that the government was “extremely keen to step in to help producers of pigs where we can” and that this consultation “is very much going to lead to practical real outcomes”.

The National Pig Association (NPA) has said it will be contacting members soon to collate relevant information for its own response, but also encourages members to respond individually to the consultation.

Following the consultation a summary will be published outlining key findings and proposing actions. Access the consultation here.