Pig farmers say £2 million government support isn't enough

A support package of £2 million has been announced to help Scotland’s pig sector after prices plummeted.

The Scottish Government said the money will help farmers stem their losses.

But the sector warns it’s far from what the industry requires.

Prices have dropped because there’s too much pork in the market and not enough demand.

The National Farmers Union estimates the sector is currently losing £1 million a month.

Scotland’s pig sector contributes around £300 million to the economy every year and employs more than 2,000 people.

The Scottish Government support, which will be backdated to March and run until the end of August, is based on the difference between the price producers have received and 85% of the Standard Pig Price (SPP).

NFU Scotland president Andrew Connon said: “This announcement follows weeks of intensive lobbying by NFU Scotland. We first raised the issue directly with the Cabinet Secretary on June 10 and have worked relentlessly since then with Ministers and officials to make the case for urgent financial support for Scotland’s independent pig producers. I’m pleased that the Scottish Government has listened and responded.

“However, our initial assessment is that this package is unlikely to reflect the scale of the challenge facing the sector. Since March, the cumulative impact of the persistent gap between prices paid and the SPP has exceeded £1 million per month, creating unprecedented strain for independent producers, so it is unlikely to make up for the losses many businesses have already suffered.

“We’ve been clear throughout that emergency financial support was needed to help businesses through this crisis. But it cannot be the end of the conversation. The real problem is the persistent gap between the prices Scottish producers receive and the true value of the pigs they produce. Until that imbalance is addressed, we’re simply treating the symptoms rather than fixing the cause.”

Scotland has lost an estimated 15% of sows in the independent sector since the start of the year and four producers have already exited the market.

Rural affairs secretary Gillian Martin said: “The pig sector is going through an incredibly difficult time, and I want to do all we can to help the most vulnerable farms.

“The price shock is being felt across the UK, which is why I am taking action – in a challenging financial context – to provide an additional £2 million of direct support to independent Scottish pig producers who have been hit hardest.

“This vital funding, which is only available in Scotland, will help protect local jobs, sustain Scotland’s pork supply chain, safeguard the Prime Scottish Pork brand, and protect the production of high-quality, high welfare, locally produced food.

“I have also written to the UK Government calling for urgent action to support the pig industry, including following our example and increasing resources and investment to improve biosecurity at our borders to prevent diseases such as African Swine Fever entering the country. Outbreaks of the disease in Europe have exacerbated the price issues facing the sector.”