Pork supply chain urged to work together towards ensuring fair distribution of profits

Pork supply chain urged to work together towards ensuring fair distribution of profits

The different partners within the pork supply chain have been urged by the farming sector to improve their working relationships in order to bring about a fair distribution of profits.

Speaking at the David Black Award breakfast in the House of Lords, the Chair of the Agriculture and Horticulture Development Board (AHDB) Pork, Meryl Ward, said that those involved in the pig farming industry had faced “a mixed year.”

She said that the industry has experienced an “unprecedented” increase in exports, which are due to achieve a record £400 million in 2016.

A rise in pig prices, however, coupled with the effects of food deflation, has caused problems for producers and created pressure right down the supply chain.

Mrs Ward stated: “Despite the value of exports and the £13 million additional sales contributed by the pulled pork campaign, producers have had a very difficult first half of the year, with many farm businesses facing negative margins.”

She said that partners in the supply chain should “work towards better supply chain relationships” and find “ways of working together to improve confidence at all levels to stimulate investment,” adding that because the pork supply chain is short, consisting of only producers, processors and retailers, one area should never be left unprofitable while another is experiencing success.

Mrs Ward also called on the Government to institute a new Health and Welfare Stewardship Scheme that is similar to the existing environmental stewardship scheme.

She said: “If we are to unlock the full potential to grow our markets further, we also need direction and policy from Government to help a new generation of producers invest in the pig farms of the future to renew our housing and systems of working to meet the latest environmental and welfare standards.”