Mattie McGrath warns of 'perfect storm' threatening pig industry
Mattie McGrath warned of a severe crisis in the pig industry, saying rising feed costs and falling bacon prices are creating a "perfect storm" that could wipe out producers. He urged immediate government action and asked the minister to deploy available supports to prevent farmer losses.
Crisis outlined by Mattie McGrath
Put simply, the price of meal stuff is going up by 30 cents and the price of bacon is down by 40 cents, McGrath said, noting this equates to roughly €38 per sow in losses. He warned that a combination of inflation, lack of workers due to work-permit issues, and inaction risks wiping out the sector.
Calls for targeted supports
McGrath said other countries - France, Poland, Denmark and Holland - have introduced schemes to help their pig industries and asked why similar measures cannot be introduced at home. He suggested Brexit funds, Covid payments and other supports could be used to help pig producers through the crisis.
Farmers' impact and testimony
McGrath recounted that many farmers were told they may have to leave pig farming and that some cried at a recent meeting, reflecting the sector's emotional and financial strain. He urged the minister to take action before the industry is irreversibly damaged.
Minister's response and engagement
The minister thanked McGrath for raising the issue and said he has been working on the crisis for weeks, meeting the AFA National Pig Committee and attending a national farmers' gathering at the Green Ale Hotel. The minister said he is working with officials to deliver a support mechanism and has met banks and the Strategic Banking Corporation of Ireland to explore financial supports.
Economic scale and next steps
The minister described the pig sector as the third largest in the agri-food sector with around 8,000 jobs and acknowledged the industry faces acute pressure from both input costs and falling prices. He said the government will work with colleagues and stakeholders to support farmers through the period.
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The Minister of Agriculture and Board of Education met with the pig producers of Ireland last week. Put it simply, the price of meal stuff is going up by 30 cents and the price of bacon is down by 40 cents. That means roughly €38 per sow of losses. There is a perfect storm here. They cannot get work permits. And why are countries like France, Poland, Denmark and Holland have introduced schemes to help their pig industries? Why can't we do it here? I had this reduced to you. Why do we have to wait till this industry is wiped out? It is a perfect storm being created by inflation and by lack of action by Minister McConnell and the department. Other countries can do it in the EU. There is Brexit funds, there is Covid payments. There are many ways of supporting them here in this crisis. Otherwise we won't have a pig industry. They were told quite openly, some of them cried at the meeting, that they are in pigs all their life in pig farming and they are going to have to give it up. It is just not viable. So will you please, please take action? And ask the Minister to take action. He knows the problems, try and help them out. Thank you Deputy McGrath for raising this issue for the first time with me here today. It is an issue I have been working on for a significant number of weeks now and indeed throughout the end of last year as this crisis has very much emerged in the pig industry. I have met both with the AFA National Pig Committee directly. Also last week I attended and met with the vast majority of pig farmers nationally at a centre just in the Green Ale Hotel here in Dublin. I committed to them and my commitment to work to actually deliver a support mechanism for them in terms of the financial pressure they are under at the moment. I am working with my officials in relation to that. And also I have met with all of the banks directly as well as the Strategic Banking Corporation of Ireland as well in terms of the support that is in place to actually work with them through this very difficult period. So I am very much aware of it. It is a very, very challenging industry. It is subject to cycles but this is a very acute moment where it is being pressed both from the input cost end and also from the price end. And I will certainly, as will all government, will work with the government colleagues, work with this really important sector. The third largest sector in our agri-food sector. 8,000 jobs. To support them, absolutely, to support them through this period. Thank you.
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