Pig Breeding Herd

Pig Slaughterings

Output Per Sow

The number of pigs produced per sow per year in herds participating in the Teagasc Pigsys recording system averaged 21.7 over the 4 year period 2000 – 2003 (Table 10).

Total pig disposals for the Republic consist of slaughterings and live exports. In this 4 year period pig disposals averaged 3.386m per year (Table 11).

The average number of pigs sold per sow per year works out at 20.68 – considerably below the average of 21.7 found in recorded herds. Sow output in Pigsys recorded herds appears to be 1.5 pigs per sow per year higher than in herds not using the system.

Pig disposals of 61,222 per week for the first 9 months of 2004 represent 20.63 pigs per sow per year on a herd of 154,300 sows at June 2003.

The available data indicates that sow output on Irish pig units is less than previously reported. This has serious implications for the competitiveness of the Irish pig industry.

Pig Feed Costs

Pig feed prices increased steadily from October 2003. The average composite meal price rose from €214.90 in Sept. 2003 to a peak of €243.80 in July 2004. This increase was due to the perceived world-wide shortage of the main feed ingredients, cereals and soyabean meal, after the 2003 harvest. As a result, the Feed Cost per kg Deadweight increased from 82c to 89c.

The average composite feed price for Jan. – Oct. 2004 was €228.70 per tonne.

Feed prices for October 2004 have fallen to €215.30 per tonne following the 2004 harvest. Feed cost per kg is currently estimated to be about 82c.

Pig Prices

The average price per kg deadweight in 2004 is likely to be 137c. This is a substantial 11c increase on the 2003 average of 126c.

The average pig price in Ireland in 2004 has been 97% of the EU average.

The high price in the UK (155.1c per kg) is reflected in a higher price reported for Northern Ireland (138.2c per kg) compared to the Republic (132.5c).

Danish prices in 2004 have been particularly low at 118.7c per kg or 87% of EU average. This price does not include the end of year bonus of about 7.5c per kg.

Pig Supply Prospects

Sow numbers in the Republic of Ireland are likely to decline further. The factors likely to contribute to this decline include,

1. The legal requirement that sow tethers no longer be used after December 2005. Pig producers who can convert tether systems to stalls with minimum cost and disruption will have done or will do so. Where this is not feasible and extra housing is required producers could well reduce herd size if there are major difficulties in obtaining planning permission for new buildings. The recently announced grant scheme is expected to be of assistance
2. The Nitrates Action Plan will place extra costs and an administration burden on producers in obtaining suitable land for spreading pig manure. The Organic Nitrogen output is 67 kg per sow and progeny per year
3. The introduction of Integrated Pollution Prevention and Control (IPPC) licensing will lower the thresholds above which a licence will be required. The thresholds are,

• 285 places for sows on integrated units
• 750 places for sows on breeding units
• 2000 places for production pigs over 30 kg.
• The cost of preparing a licence application to the Environmental Protection Agency will encourage some producers to reduce their herd to below these thresholds.

1. Ongoing uncertainty in relation to the requirements attached to IPC/IPPC licences
2. Insufficient numbers of young people entering the sector as owners, managers or stockpersons at present resulting in an older age profile
3. concerns in relation to pig slaughtering capacity and access to pig slaughtering facilities on the island. The closure of the Galtee plant in Mitchelstown has reduced capacity by at least 9,000 and up to 12,000 pigs per week. This has been offset by increased throughput at other plants on the island.

The anticipated decline in sow numbers is likely to be partially offset by an increase in pig slaughter weights. However, there may be limited scope to do this in view of concerns about the possible presence of boar taint in at least some carcasses from male pigs over 80 – 85 kg deadweight.

Pigmeat Consumption

Per capita consumption of pigmeat was 38.3kg in 2002. This was a decline of 1 kg on 2001. Total pigmeat consumption is about 147,000 tonnes cwe per year.

Pigmeat consumption per capita was 41% of total meat consumption in 2002.

Non-Feed Costs

The average non-feed cost per kg deadweight on Pigsys recorded herds in 2003 was 42c. This includes interest on borrowings and building depreciation. This is an increase of 9% on 2002. Labour/management and manure costs were the main contributors to this increase.

At current feed prices and a feed cost of 82c per kg well-run efficient units need at least 124c per kg to cover production costs i.e. before there is any return on investment.

Non-feed costs are likely to increase ahead of inflation. Specifically increased costs will include,

• labour/management: due to on-going shortage of skilled personnel
• manure: due to restrictions on manure spreading and the proposed Nitrates Action Plan
• environment: as more units become liable for licensing, application and compliance costs will increase
• heat, power and light: energy costs have been increasing significantly
• repairs: with better returns expenditure on maintenance will tend to increase to upgrade facilities
• interest: capital expenditure to have units comply with welfare legislation.

Summary

Pig production in 2004 has been quite profitable despite high feed prices until September. Sow numbers are declining throughout the EU and in Ireland. Pig supplies are likely to be reduced in 2005 which should ensure reasonable pig prices. Feed costs for 2005 are likely to be well below 2004 levels. However, non-feed costs are likely to increase significantly.

There are significant challenges facing the pig industry if the decline in sow numbers is to be arrested. The pig sector is still a very important part of the overall agricultural economy.