Meat: The price of pigs
There's been plenty of publicity recently about the impact that rising grain costs are likely to have on the price pubs pay for meat.
On behalf of pig farmers, the British Pig Executive (BPEX) has called for pubs to pay more for pork, arguing that the industry is unsustainable on the prices currently being paid for pork products.
In a survey carried out by YouGov on behalf of BPEX, 78 per cent of people polled who buy pig and/or poultry products said that they would be prepared to pay a few pence extra to cover rising production costs and support British farmers.
Restaurateur Antony Worrall Thompson, who lent his support to the campaign, said: "Consumers happy to pay more? It sounds unbelievable but it's true. People really do care about the food they eat and the people who produce it. They want farmers to be paid a fair price and are prepared to contribute a few pence more to protect the future of British agriculture."
Stewart Houston, chairman of both BPEX and the National Pig Association said: "We're asking for modest increases of a few pence on pork, bacon, ham and sausages. The survey results show that many, many consumers will be happy to pay this. If passed on to farmers this will help to safeguard the British pig industry."
Pubs will understandably be a little sceptical about customers' willingness to pay more when push comes to shove, but it might help to have the facts at hand when asked, which this BPEX Q&A aims to provide.
What impact does the cost of grain have on pork prices?
Feed represents the biggest single cost that pig producers face. On average it accounts for half of total costs. In Great Britain and the rest of the EU, feed consists mainly of wheat and some barley, and soya for protein. Some producers use alternative feed sources such as bread and biscuits, the prices of which are closely linked to the feed grain and protein markets.
Why have grain prices risen?
In the past year, the price of wheat has doubled as a result of a combination of relatively poor harvests, increasing import demand from fast-developing countries, and the global rush towards biofuels. The price of soya has also increased for many of the same reasons.
How much have they risen?
By the end of August 2007 the delivered price of feed wheat had reached £166 a tonne, 106 per cent higher than a year earlier. Feed barley prices were up by 77 per cent to £144 a tonne.
What is the impact on farmers?
The impact on the profitability of pig production will depend on the prices received for finished pigs. In 2006 British pig farmers averaged about break-even with market prices at 105.3p a kilogram. In August 2007 the average pig price was 109.5p a kilogram. If the pig price remains at this level and feed costs rise as predicted, the average loss to a British pig farmer would be about 34p a kilogram, or £26.25 per pig.
Can farmers be more efficient?
While there are a number of things that farmers can and will do to try to improve efficiency further, little can be done to reduce overall costs in the face of such a massive rise in feed costs.
A website and online petition at www.britishpigsareworthit.com were launched last week by the National Pig Association to encourage consumers to register their support
