Tesco gives £6.6m to pig farmers amid ‘unprecedented costs of production’

Tesco will increase payments to pig farmers by £6.6m, as the industry faces price hikes for wheat and soya.
Pig farmers have said their costs are soaring by unprecedented levels.
// Tesco gives £6.6m to pig producers, following a pleas from the National Pig Association
// The NPA warned four out of five pig producers could go out of business within a year unless Tesco paid more

Tesco will increase payments to pig farmers by £6.6m, as the industry faces price hikes for wheat and soya.

Tesco said its support between March and August would amount to £10m, as the farming sector faces surging inflation.

Feed prices have shot up since Russia’s invasion of Ukraine earlier this year, while the pandemic and a Brexit-triggered labour crunch have also wounded the pig sector.


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Tesco, whose headquarters is in Welwyn Garden City in Hertfordshire, said it had already given the industry £3.4m since March.

It follows a National Pig Association (NPA) letter to Tesco urging it to “do the right thing” and pay more or risk losing its British pork supply base.

The NPA’s chairman, Norfolk farmer Rob Mutimer, said the organisation was “very, very pleased” with the supermarket giant’s offer.

The body also warned that four out of five pig producers could go out of business within a year unless Tesco paid more.

“We fully recognise the seriousness of the situation UK pig farmers are facing and have been working closely with our suppliers to understand what more we can do to support the sector,” Tesco Fresh commercial director, Dominic Morrey said:

He added: “We know there is more to do, and we will be working with suppliers, farmers and the wider industry to drive more transparency and sustainability across our supply chains and support the future of the British pig industry.”

Mutimer said he was pleased with the announcement of “some much-needed extra financial support for the pig industry,” The Guardian reported.

Farmers were facing “unprecedented costs of production” given the macroeconomic environment, the NPA chair added.

He added: “We look forward to seeing the pig price rising very soon as a result of this action and hopefully we can begin to stem the flow of producers exiting the industry.”

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