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FOSTERING NEW TALENT Award-winning trainees profiled, in focus on labour issuesP34-37 ANTIBIOTIC SUCCESS CONTINUES! Industry usage of antibiotics continues to fall P22 INDUSTRY OUTLOOK Reasons for optimism and caution as industry looks to recoverP16-18 UK Annual Subscription £35 I I European Annual Subscription £95 I I RoW Annual Subscription £137 JULY 2023 ISSN 0966 3592 BehavePro® 48hr HIGHLY COMMENDED A fast-acting solution which ‘calms’ pigs within 24-48 hours at the Pig & Poultry Fair 2022 Tail lesions reduced by 60% Sow mortality reduced by 50% - offering a ROI of 4:1 rtality re Cargill Animal Nutrition Provimi Limited Dalton Airfield Industrial Estate Thirsk, North Yorkshire, YO7 3HE Telephone: (01845) 578125 Email: customerservices_dalton@cargill.com www.provimi.eu/uk-behavepro
JUNE 2023 PIGWORLD COMMENT & CONTENTS EDITOR’SCOMMENT If the Government is genuinely interested in food security, this report deserves a robust response L ALISTAIR DRIVER is Pig World editor. Born and brought up on a farm in Leicestershire, he has more than 20 years’ industry experience. To contact him call: 07787 240832 or email alistair@lewisbusinessmedia.co.uk on his team’s independent review into labour shortages in the food chain is therefore a hugely welcome addition to the debate. Based on experiences of numerous people and businesses at the sharp end, it is fair in its assessment of why we are where we are, suggesting it is down to a mix of Government policy, including Brexit, bigger global/Europe-wise issues and the industry’s own approach towards providing and selling attractive opportunities for domestic workers. The recommendations are similarly balanced. The Government must now act, for example, on the recommendation to update and expand its definitions of skilled workers, including butchers, to make it easier for some sectors to bring in much- needed migrant labour. But equally important is the call for a concerted, co-ordinated industry campaign to improve the image of the sector and sell it as a genuine career opportunity. If the Government is genuinely interested in food security, this report deserves a robust response all round. Starting in this issue with features on our fabulous National Pig Award trainee of the year winner and runner-up, and on Bishop Burton college’s exciting plans for a new breeding unit to help inspire young people into pursuing pig industry careers, we will be running a series of articles addressing how we can foster new talent in this important industry. It will, as the Shropshire review concludes, require a concerted Government-industry efort to succeed. abour shortages were, of course, the main driver for the pig backlog that had such a profound efect on producers, and was then followed by the harshest financial crisis in the industry’s history. Things are now, thankfully, looking up on the production side, with prices rising steadily since the start of the year, and, underpinned by tight supplies, steady demand and a strong EU market, there could be more to come. Meanwhile, costs are lower than they were and there’s a reasonable outlook on that front, albeit with uncertainty as to how geo-political events or weather could intervene. For now, at least, producers can feel the relief of some much-needed profitability on pig production. Life is tougher in the processing sector, as the costs of raw materials rise, while retailers apply the squeeze and lower throughputs hamper eficiency. One major pork plant, Pilgrim’s Ashton site, is already set to go and others are operating on four-day weeks – hardly surprising with pig throughputs down an estimated 17% over Q2. As we look to where the pig sector goes from here, one common strand will be labour availability. Processors have now made some progress in working through the Home Ofice’s red tape to recruit staf from beyond Europe, including the Philippines. But across the pig sector, including very much on farms, and the wider food industry, recruiting and retaining labour is becoming a massive challenge and a serious constraint on any growth and expansion plans. The report published at the end of June by John Shropshire CONTENTS CONTENTS 24NPA PIGGY POINTS Call to give your thoughts on pig contracts, and two informative and fun days in Suffolk with Young NPA 26 INTERNATIONAL OUTLOOK The Danish pig industry is navigating troubled waters, but there is optimism on the horizon 27COMMENT Coping with the mental scars of the pig crisis, advice on gastric ulcers, and how Pig World almost landed a columnist in the Tower on London 34FOSTERING YOUNG TALENT Helen Brothwell speaks to National Pig Awards Trainee of the Year Max Campbell and highly commended runner-up Emma Claxton 38BISHOP BURTON COLLEGE Simon King discovers how Bishop Burton College is aiming to help plug the pig sector skills gap NEWS Independent review calls for changes to encourage skilled workers and boost food industry image 12 NEWS QMS launches new five-year Scottish meat strategy 15 NATIONAL PIG AWARDS Meet the judging panel for this year’s awards, plus tickets are now on sale 16 NEWS ANALYSIS The short-term outlook is positive as the pig industry starts to recover, but how can that be sustained? 20NEWS ANALYSIS With inflation on everyone’s mind, Alistair Driver takes a look at how it is affecting the pork market 22 NEWS ANALYSIS Antibitoic usage has fallen by a fifth, but warnings remain over the zinc oxide challenge ahead 4 40NPA INTERVIEW Lizzie Wilson tells Alistair Driver how the NPA will continue to deliver ‘tremendous value for money’ 43THE AHDB LEVY AHDB Pork Sector Council chair Mike Sheldon explains why the body is discussing a levy increase 47INSIDE THE INDUSTRY Epic combine ride for mental health charity, pork given coronation boost and the latest industry moves 48CLASSIFIED Jobs and products, plus services for sale 50MARKET MOVES El Niño is back, while tight supply continues to drive prices 51PRICES Weekly clean kill figures; GB spot price v European mainland price; straw costs; wheat, soya futures 02 |XXXXXXXXX 2018| PIGWORLD PIGWORLD| JULY 2023 |03
NEWS PIGWORLD Independent review calls for changes to encourage skilled workers and boost food industry image An independent review of labour shortages in the food chain has called on the Government to expand the migrant skilled worker route, a move the industry hopes will make it easier to recruit butchers from abroad. The review, led by businessman John Shropshire, has also recommended that the Government and industry develop a strategy to enhance the sector’s image and highlight the opportunities available across the food sector. Labour shortages have hampered the food supply chain for a number of years and were the prime cause of the horrific pig backlog in 2021 and 2022. Many businesses in the pig chain, including farms, are still struggling to fill vacancies. The report, commissioned by then Defra Secretary George Eustice in August 2022 as a recommendation of the Government’s Food Strategy and published on June 30, links the labour challenges within the food chain to broader macroeconomic changes, including record-low UK strategy to enhance sector attractiveness and promote opportunities in the food supply chain, led by the Food and Drink Sector Council, with a communications campaign aimed at demonstrating the sector is vital to the economy and national food security. Replacing the Seasonal Worker visa scheme pilot by the end of 2023 with a scheme that ensures the industry has enough workers to maintain domestic food production levels. The Government should expand the eligibility criteria for the Skilled Worker visa route to include roles currently considered lower-skilled. The review supports industry and Defra submissions to the Migration Advisory Committee (MAC) under the Shortage Occupation List review, which includes adding butchers to the list. Businesses should provide clear training and career development plans for their UK-domiciled staff on the understanding it is an investment, not a cost. The Government should completely overhaul the Apprenticeship Levy to provide a highly skilled workforce, including making it more flexible. Farming Minister Mark Spencer welcomed the report. He said the Government had announced that more seasonal visas would be available next year and agreed with the need to ‘develop more attractive opportunities for UK domestic workers and make greater use of apprenticeships’. “We will look closely at the findings of the review and will set out our response in the autumn,” he said. NFU deputy president Tom Bradshaw said: “We are pleased to see the independent panel recognises that action is needed to improve British farmers’ access to a skilled and motivated workforce.” NPA chief executive Lizzie Wilson said the NPA agreed with the report’s key findings and urged the Government to act on this critical issue for the future of our food industry. Tony Goodger, of the Association of Independent Meat Suppliers (AIMS), said another AIMS member was due to close its doors the day the report was published due to labour shortages and urged the Government to implement its findings to prevent many more following suit. unemployment and Brexit. “This shortage of labour is not only due to competition from other sectors but also because of the impact of the UK leaving the EU, which has reduced the number of available EU workers,” it said. In 2016, 20% of agriculture’s permanent workforce were EU nationals, and 95% of seasonal workers were from Bulgaria and Romania, while 40% of the food manufacturing workforce were EU nationals in 2014. There has been a steady decline in EU workers since 2016, although the report stresses that shortages are an issue in other EU countries, too. “The reliance on migrant labour and uncertainty around immigration policy has created significant challenges for the industry,” it said. The report said the evidence gathered showed that the labour challenges also include ‘negative perceptions of the sector, unappealing working conditions such as physical demands, unusual working hours, undesirable environments, and repetitive tasks’. It made 10 recommendations to industry and Government, including: Implementing a comprehensive 04 |JULY 2023| PIGWORLD
JULY 2023 PIGWORLD NEWS Former NPA chief executive awarded OBE Former NPA chief executive Dr Zoe Leach said she has just done her best to support the sector, after receiving an OBE in the first King’s Honours list in recognition of her services to the pig industry. Zoe, better known to many in the pig industry by her maiden name of Davies, was a hugely influential figure across the sector and beyond during her 14 years at the NPA, including eight as chief executive. “This is a massive honour and I’m still slightly in shock! For me, this really reflects on the fantastic work of the NPA over all my years there and well before that,” said Zoe, who joined the NFU as its Eastern regional director last summer. “I couldn’t have achieved anything without the amazing team at the NPA, along with all the producer and allied representatives, and especially the chairmen who served alongside me. “The pig industry is unique – it’s full of wonderful people who have come through some incredibly tough challenges. “I have just tried to do my best to support them.” Current NPA chief executive Lizzie Wilson said: “We are all absolutely thrilled with this news and want to offer our heartfelt congratulations to Zoe. “She has given blood, sweat and tears for the industry over the years and this is a thoroughly deserved honour.” NPA chairman Rob Mutimer added” “I can safely say the industry is in a much better position to continue producing great British pork than it would have been without Zoe. This honour is just reward for that.” ARLA’S ASH AMIRAHMADI APPOINTED CEO OF KARRO PARENT COMPANY NPA to raise fees, while AHDB opens discussion on levy increase One of the dairy industry’s biggest names, Ash Amirahmadi, has been appointed as chief executive officer of Sofina Foods Europe, pork processor Karro’s parent company. Mr Amirahmadi, who has been managing director of Arla UK, the UK’s biggest dairy cooperative, since 2018, will take up the role on August 8. He is currently chair of Dairy UK and the IGD. Sofina Foods Europe, a subsidiary of Sofina Foods Inc, describes itself as one of Europe’s leading manufacturers of primary and further processed protein products for retail and foodservice. Operating across the UK, Ireland, France and Germany, its subsidiaries include Karro, Young’s Seafood and Greenland Seafood. Mr Amirahmadi takes over from Michael Latifi, who will remain as chairman and CEO of Sofina Foods Inc. The NPA has announced a 15% increase in membership fees from 2024, in response to falling membership and rising costs, with fees subsequently increasing by annual inflation each year. NPA chief executive Lizzie Wilson said: “We know our members have just been through an incredibly tough period financially. But we haven’t raised our subs for a long time, and, over the past year we have lost a significant amount of subscription income, and, like many other businesses, we are also facing increased costs.” She said the NPA would continue to deliver ‘outstanding value for money’. At the same time, AHDB has announced it will begin discussions with levy payers and industry stakeholders about increasing levy rates from April 2024 across its four remaining sectors. The pork levy has remained unchanged for 20 years, meaning the spending power of levy funds has been reduced by up to 40% due to inflation and changes to AHDB’s tax status, AHDB said. Pork sector chair Mike Sheldon said: “This quite genuinely is going to be a conversation. We need to get levy payers, producers and processors thinking about what they really want for the levy in the long term.” • To find out more, Lizzie Wilson (p40-41) and Mike Sheldon (p43-44) are interviewed in this issue. Ash Amirahmadi Industry records another big drop in antibiotic usage The UK pig sector recorded a further 20% reduction in antibiotic usage in 2022, taking average usage to 70mg/PCU, an incredible 75% reduction on the 2015 figure of 278mg/ PCU. The industry has now already surpassed its target its main antibiotic target for 2024, but industry experts have warned that the removal of zinc oxide potentially jeopardises this progress. See p22 for full analysis. Do you have a story for Pig World? Email news@pig-world.co.uk PIGWORLD| JULY 2023 |05
Do you have a story for Pig World? Email news@pig-world.co.uk Retail support for British pork holds up, despite lower pig numbers The shortage of British pigs is not translating into a reduction in British pork on retail shelves, according to the latest AHDB Porkwatch survey. The British pig kill is forecast to be 17% down over the second quarter of this year, but equally short supplies and high prices in EU pig producing countries have prevented the gap being filled by pork imports, which, overall, were 14.5% down over the first four months of the year. The May Porkwatch survey duly showed British fresh pork facings were at 88% across the 10 retailers surveyed, up from 86% in March, and from 83% in May 2022, although the figures for British bacon and sausage were down. recorded 100% British fresh pork, with Waitrose continuing its gradual decline in this category, at 94%, compared with 100% in July 2022. The big mover was Asda, which recorded 72% British, up from 66% in March and 59% in May 2022. Tesco recorded 78% in May, 22 percentage points up on a year ago. Iceland recorded just 1% British, down from 5% in March. way, on 34%, down from 61% in May 2022, and Lidl was on just 37%. a year ago, with Lidl on 19%, compared with 43% a year ago. BACON British bacon facings in May were similar to March at 55%, but down on the May 2022 figure of 59% and the recent September 2022 high of 63%. Co-op and M&S were the only retailers to record 100%, with Waitrose (95%) and Sainsbury’s (85%) also displaying a high proportion of British bacon. At the other end of the scale, Asda’s 24% was down from 41% HAM The overall proportion of British ham on display dropped to 65%, compared with 67% in March, but unchanged on May 2022. No retailers recorded 100% British, with M&S (98%), Co- op (96%), Waitrose (94%) and Sainsbury’s leading the way. Asda recorded 44%, well up from 27% a year ago, while Morrisons moved the other SAUSAGES The overall figure for sausage of 79% was up from 76% in March, but significantly down on the May 2022 figure of 89%. Only M&S recorded 100%, with Waitrose, on 95%, Aldi on 94%, albeit down on a year ago, and Lidl, 89%, slightly up on a year ago, also scoring highly. FRESH PORK Aldi, Co-op, Lidl, M&S, Morrisons and Sainsbury’s all UK food businesses urged to build on export growth Pig supplies tighten further as processors cut back UK food businesses have been urged to build on the UK’s export success, as the global appetite for meat and dairy products grows. UK red meat exports hit record levels in 2022 and were worth £1.7 billion, with the dairy sector achieving a similar level. Global meat consumption is expected to grow by 1.8% and fresh dairy product consumption by 2.53% in 2024, compared with this year. Speaking at the AHDB Export Conference at Butchers’ Hall, in London in June, AHDB chair Nicholas Saphir congratulated UK food exporters and Government colleagues for their success in driving export growth. “It is, however, imperative to maintain the momentum and build on this success. With the anticipated growth in global meat and dairy consumption, now is a pivotal moment for more UK exporters to seize on the export opportunities presented,” he said. AHDB unveiled its Beyond Borders strategy at the event, aimed at delivering enhanced services to exporters. It sets out plans to encourage more businesses to develop their export potential with the help of enhanced AHDB services, UK pig slaughterings in May were 14% down on a year ago, following April’s 19% reduction, Defra figures show. The decline continued in June, with AHDB’s estimated GB slaughterings at 150,000 to 156,000 about 19,000 a week below 2022 levels, driving the pig price higher. AHDB is forecasting a 17% reduction in slaughterings in Q2 and processors are being forced to adapt. With Pilgrim’s planning to close its Ashton plant, other major UK pig plants are operating on a four-day week, according to industry reports.. including bespoke training and advice and marketing support. This will include providing tools, information and advice and practical assistance on exporting, connecting UK businesses to overseas buyers and growing the reputation of our levy payer products, Mr Saphir, pictured, explained. 06| JULY 2023 |PIGWORLD
Do you have a story for Pig World? Email news@pig-world.co.uk ASF vaccines tested in Vietnam close to approval for global use US-developed vaccines against African swine fever (ASF) that have been successfully trialled in Vietnam are reportedly close to being used by other countries battling the virus. Two vaccines co-developed by US scientists have been tested in large pilot schemes by Vietnamese companies. Both have received approval in Vietnam for pilot commercial use, which has been completed, paving the way for nationwide authorisation of the first ever ASF vaccine, and sales overseas, according to veterinary officials, Reuters reports. Both the Philippines and the Dominican Republic are reportedly actively looking at using the vaccine. US Department of Agriculture (USDA) researchers have reviewed the results of one of the vaccines, NAVET-ASFVAC, which they co-developed with Vietnamese company NAVETCO (VET.HNO), a USDA spokesperson said. After it showed a high level of efficacy and no safety risks in trials, 600,000 doses were approved for initial sales to pig farmers in Vietnam, which still has a major ASF problem, with the first 40,000 ‘delivered without any safety problems’, the department said. The second vaccine tested in Vietnam, AVAC ASF LIVE, discovered by US researchers and commercialised by Vietnamese firm AVAC, has been delivered to more pigs, but USDA said it had not yet reviewed the data. After decades of failed attempts due to the complexity of the virus, these vaccines are now showing ‘very promising’ results, according to Gregorio Torres, head of the World Organisation for Animal Health’s science department. “We have never been so close to getting a vaccine that may work,” he told Reuters. News outlet Vietnamnet Global reported that Vietnam’s Ministry of Agriculture and Rural Development has approved use of a Vietnamese-made ASF vaccine in the Philippines and the Dominican Republic, both of which are battling the virus. Philippines has also evaluated the vaccine and plans to use it. Arlene Vytiaco, assistant director at the country’s Bureau of Animal Industry (BAI), said that, after a 21-day field trial on six farms, ‘100% of the pigs vaccinated produced antibodies against ASF, which means they will be protected from the disease’. She said the vaccine would be a ‘big help in controlling ASF’ and BAI planned to import 600,000 doses this year, once the Food and Drug Administration (FDA) has certified its use. A Vietnamese working delegation has also been to the Dominican Republic to discuss use of the vaccine there, with ‘positive initial results’ from the trip. US agriculture secretary Thomas Vilsack said there was likely to be interest in ‘precautionary purchases’ in the US. Bosnia and Croatia record first cases of ASF ASF was confirmed for the first time in two Balkans countries, Bosnia-Herzegovina and neighbouring Croatia, in late-June. Bosnia-Herzegovina recorded its first case on June 22 in one pig on a farm near Bijeljina in the north-east of the country, very close to the border with Serbia. There were no other pigs on the farm. Four days later, Croatia’s agriculture ministry revealed outbreaks had been confirmed on two outdoor pig farms just a few miles away across the border, with 48 pigs between them, near Posavski Podgajac in Vukovar-Srijem County, in the east of the country. The Croatian outbreaks were initially discovered just a day after confirmation of the virus in Bosnia. Further suspected cases at other nearby area locations were being investigated, as the Croatian veterinary institute ordered various measures to control the outbreak, including restrictions on pigs movement, culling of pigs on farms and assessing potential further spread. Serbia recorded 107 ASF outbreaks in domestic pigs last year, and 28 outbreaks in domestic pigs between mid-April and mid-May this year. Defra Minister Lord Benyon addressed the meeting, which was chaired by NFU deputy president Tom Bradshaw (right). Poultry farmer, Liz Warner is also pictured NPA highlights ASF plans concern The NPA has raised concerns in Parliament over the UK’s lack of preparedness for the impact of an ASF outbreak on the vital pork export market. The All-Party Parliamentary Group (APPG) for Eggs, Pigs and Poultry held an event in on disease preparedness and food security’ in June, at which Defra Minister Lord Benyon delivered the opening speech, reaffirming the Government’s commitment to preventing biosecurity disasters. NPA senior policy adviser Charlie Dewhirst said the UK should, in anticipation of a possible outbreak, be following the example of countries like Spain in starting to discuss the practicalities of an outbreak with trading partners, such as a potential regionalised approach to exports, as recently agreed by Germany in re-opening its pork exports to South Korea. “We shouldn’t be waiting until the horse has bolted,” he said. 08| JULY 2023 |PIGWORLD
Do you have a story for Pig World? Email news@pig-world.co.uk ‘New and improved’ Sustainable Farming Incentive applications to open in August The ‘new and improved’ the Sustainable Farming Incentive (SFI) will offer additional actions and more flexibility for farmers to choose the options they want to get paid for, according to Defra. The SFI will start accepting applications in a controlled rollout from August. The 23 actions cover existing themes, including soil health and moorland, plus new actions on hedgerows, integrated pest management, nutrient management, farmland wildlife, buffer strips, and low input grassland, ensuring ‘attractive and workable’ offers for all farm types, the Department said. In reality, there is little in there specifically for specialist pig farmers, however. Under the available actions, farmers could be paid, for example, from £10 per 100m for managing one side of a hedgerow, plus a further £10/100m to maintain or establish hedgerow trees; £129 per hectare for multi-species cover crops; or £589 for a nutrient management review. There is also a management payment of £20/hectare for the first 50 hectares, which will be applied to all land- based SFI actions, including moorland. For tenant farmers, there are shorter agreement lengths that do not require landlord consent. SFI has come in for criticism in its development, including its accessibility for some farms Buffer strips are one action that could benefit from SFI funding NFU Vice President David Exwood said it was ‘encouraging that the SFI for 2023 appears to be an improved, broader and more flexible offer’ Defra has published a new SFI Handbook, providing full details, including sector-specific guides. See also: https://www. gov.uk/government/collections/ sustainable-farming-incentive- guidance and its complexity. But Farming Minister Mark Spencer said: “After listening to extensive feedback from farmers, we’ve done a huge amount to streamline and improve the SFI, making it as simple and flexible as possible for farmers to engage with, apply for and embrace.” SFI 2022 has now closed for applications to enable a smooth transition. Authorisation withdrawn for use of two rodenticides EFRA launches inquiry into fairness in the food supply chain The Environment, Food and Rural Affairs (EFRA) Committee has launched an inquiry into fairness the UK food supply chain. The cross-party committee of MPs will investigate how profitability and risks are shared through the food supply chain and the existing government system of monitoring and regulation of this. The impact of external factors on the supply chain, such as imported food and global commodity prices, will also be examined. The deadline to respond is July 26. Read more at: https://committees.parliament. uk/call-for-evidence/3130/ Legal authorisation is being withdrawn for open area and waste dump use for the only two second generation anticoagulant rodenticides (SGARs) currently permitted for use that way. This change, affecting bromadiolone and difenacoum, will take effect in July next year. The move has been instigated by the Campaign for Responsible Rodenticide Use (CRRU) UK to help meet rodenticide stewardship’s environmental targets Sales of products containing bromadiolone and difenacoum for use in open areas and at waste dumps will cease on July 4, 2024. Products purchased on or before that date will be authorised for use in open areas and waste dumps until December 31, 2024. CRRU chairman Dr Alan Buckle said the move was a response to the ‘stubbornly static incidence of rodenticide residues in around 80% of barn owls’. “This change will enable a single clear message about SGAR use: None of these products can be applied away from buildings,” he said. Defra seeks views on next round of Productivity and Slurry grant list of items for the next round and a survey will be open until midday, July 12: grants of between £1,000 and £25,000 were available towards the cost of items from a prescribed list, which is aiming to improve agricultural sustainability and productivity, including helping farmers use less inputs, reduce emissions and cut waste. Defra is seeking views to help it shape the Farmers are being urged to make their views known on the items that should be included in the next round of under the Productivity and Slurry theme of the Farming Equipment and Technology Fund (FETF). Under the first round of the scheme, See: https://www.gov.uk/government/ publications/farming-equipment-and- technology-fund-fetf-2023/annex-3-fetf- 2023-productivity-and-slurry-eligible-items 10| JULY 2023 |PIGWORLD
Do you have a story for Pig World? Email news@pig-world.co.uk QMS launches new five-year strategy to drive Scottish meat sales USDA to purchase over $50m of pork loin products in help package Quality Meat Scotland (QMS) has launched a new five-year strategy to ‘make Scotland the choice for premium red meat across the world’. The strategy, launched at QMS’s annual industry breakfast briefing at June’s Royal Highland Show, aims to drive demand from consumers who recognise the Scottish pork brands as a mark of ‘integrity, provenance and with sustainability at its core’. Built around three strategic pillars – Provenance; Productivity and Profitability; Planet and Place – QMS said the five- year plan will lead the development of Scotland’s red meat sector by launching ‘game-changing’ projects, enabling the Scotch and Specially Selected Pork brands to compete in both the home and global markets. The three projects include advancing work on genomics, boosting brand integrity with world-leading assurance and securing funding for a verification system for The US Department of Agriculture (USDA) has announced plans to purchase $50.1m of pork loin for domestic food distribution programmes and to support struggling pig producers. The move is intended to encourage continued domestic consumption of the pork products, diverting them away from the normal trade routes, in order to reduce agricultural surplus, promote food consumption and provide food for low income populations. The National Pork Producers Council (NPPC) said the funds will ‘support the pork market during challenging times and provide affordable proteins to consumers hit with elevated food costs’. The combination of increased supply, weaker demand and rising costs has reportedly resulted in industry losses of over $1.4 billion from November 2022 to March 2023. the eating quality of Scottish red meat proteins. QMS’s latest Red Meat Industry Profile report showed turnover from red meat processing rose for a third consecutive year in 2022 – generating an estimated £926m of output for the Scottish economy. In the pig sector, the report highlighted how the sharp contraction in breeding pig numbers on the back of the ‘severe challenges’ during the first half of 2022, fed through to supplies, providing further support to market prices. A tightening of EU supplies also pushed up import prices, supporting the competitiveness of home-produced pork. ChatGPT owner invests in cultivated meat company creating lab-grown pork single animal cell. The Cambridge-based company, Higher Steaks, has raised $30m in investment, including from Mr Altman, and changed its name to Uncommon. It said the technology The owner of artificial intelligence tool ChatGPT, Sam Altman, has invested in a UK cultivated meat company that creates bacon and pork belly from a means antibiotics and animal products could become redundant, the Telegraph reports. Singapore is currently the only market in the world where cultured meat is available for sale. TOPTWEETS MOST-READ STORIES AT www.pig-world.co.uk TOP 3 1 ARLA’S ASH AMIRAHMADI APPOINTED AS CEO OF KARRO PARENT COMPANY One of the dairy industry’s biggest names, Ash Amirahmadi, is joining Karro’s parent company, Sofina Foods Europe, as CEO 2 APP-SPP GAP DISAPPEARS AS UNDER- PRESSURE CONSUMERS SHIFT BUYING HABITS One of the most notable pig price trends in recent weeks has been the erosion, and now complete reversal, of the differential between the All Pig Price (APP) and the Standard Pig Price (SPP). 3 CHINA PORK IMPORTS RISE, BUT REMAIN WELL BELOW PEAK LEVELS AS PRODUCTION RECOVERS Chinese pork imports, including offal, were 20% up year-on-year, at 663,200 tonnes, during the first four months of 2023. LATEST NEWS: www.pig-world.co.uk/ JOIN THE CONVERSATION – FOLLOW US ON TWITTER @pigworldmag 12| JULY 2023 |PIGWORLD
N A T I O N A L PIG AWARDS 2 0 2 3 Stewart Houston Lizzie Wilson Charlotte Evans MEET THE JUDGES The entries are now in, and we have had another great response from the British pig industry. Now, it is over to our illustrious panel of judges to pick their finalists and winners John Lewis Sian Southwell Dan Tucker CHAIR OF JUDGES STEWART HOUSTON Stewart will be chairing our illustrious panel of judges once again. He is chair of Red Tractor’s pig sector board and of the Pig Pathway Project Group, developing new health and welfare schemes for the pig sector. One of the industry’s best-known figures, he is a former chair of NPA and BPEX, among various other industry roles. LIZZIE WILSON The NPA’s chief executive, Lizzie has worked in the UK pig industry for 20 years. She took on the top role at the NPA last August, tasked with leading her team to try and navigate the industry towards a more stable SIAN SOUTHWELL Sian is a retail account manager for ForFarmers, covering pigs and poultry. She joined the animal nutrition company in January 2020, after completing of a placement year from Harper Adams University. She looks after a variety of customers, from rare breed pigs to big commercial units all over the UK, ensuring they are getting the best out of their business. JOHN LEWIS John is the founder and chairman of Lewis Business Media, owner of Pig World magazine. Over the course of a business publishing career lasting 40 years, he has organised and judged many awards schemes in several different markets. In addition to footing, while addressing the various policy streams coming the pig sector’s way. As a farmer’s daughter and a former employee of BQP and Elanco, she has a thorough grounding in practical farming. CHARLOTTE EVANS Charlotte was appointed as AHDB’s first ever head of engagement for pork last November. She is responsible for the development of levy payer and stakeholder engagement measures for the pork knowledge exchange team, and acting as a media spokesperson and platform speaker for the sector. This is her second stint for AHDB, having worked for ForFarmers and DSM Nutritional Solutions in between. being a judge of The National Pig Awards, John has also chaired the judging panel of the National SQP awards for the last four years. DAN TUCKER Professor Tucker specialises in veterinary microbiology and zoonoses and clinical management of pig health and disease at the University of Cambridge’s Department of Veterinary Medicine. His research interests lie in the control of infectious diseases, primarily of pigs, that threaten food chain security. He is a junior vice-president at the Pig Veterinary Society. • The pedigree category is judged by the British Pig Association. NATIONAL PIG AWARDS Tickets: Individual – £210 +VAT. Table – £1,890 +VAT For general enquiries or to book your place at the event in London in November, contact Meghan Taylor at meghan@ lewisbusinessmedia.co.uk or for sponsorship details Martin Goult: martin@ lewisbusinessmedia.co.uk #PIGAwards FOR MORE INFORMATION ON THE AWARDS, PLEASE SCAN THE QR CODE NPA SEEKING NOMINATIONS FOR ALLIED INDUSTRY MEMBER OF THE YEAR The NPA is also seeking nominations from producer members for the NPA Allied Industry Member of the Year. The companies must be NPA Allied Industry members, who are making a significant and positive contribution to the industry. Members need to send nominations to NPA@npanet.org.uk by Wednesday, July 26. A shortlist will be announced in Pig World, and online voting for the winner will then begin on the Pig World website. NOMINATE DAVID BLACK AND CHRIS BRANT AWARD WINNERS You can nominate now for both the 2023 David Black and Chris Brant Awards. AHDB’s David Black Award, won last year by former NPA chief executive Zoe Davies, recognises those who have made a ‘game-changing contribution’ the pig sector over the course of their careers in the industry (see p29). You can nominate here: https://ahdb.org.uk/david- black-award The Chris Brant Award, won last year by Yorkshire producer and industry campaigner, Anna Longthorp, recognises those who have ‘gone the extra mile’ for their industry, whether they are a well-known figure, an unsung hero or even an organisation. To nominate, email NPA@npanet.org.uk with a few words explaining why you think they deserve the award. The winners of both awards will again be announced at the National Pig Awards in London in November. SUPPORTED BY ORGANISED BY IN ASSOCIATION WITH PRINCIPAL SPONSOR SPONSORED BY We add performance to your business PIGWORLD| JUNE 2023 |15 14| JULY 2022 |PIGWORLD
NEWS ANALYSIS 2023 half-term update: Is the UK pig sector on the road to recovery? As we move into the second half of 2023 and the pig sector looks to continue its recovery, the short-term signs are looking good. But, as ALISTAIR DRIVER reports, there is a lot more to do to restore long-term confidence and a long way to go to restore pig herd numbers gradual. In Q1, UK pigmeat production was down 11% year-on-year and EU production was 8% lower, which has underpinned the significant pig price rises seen in the UK and Europe this year. Following the % decline recorded in the UK breeding herd last year, the first four months of 2023 saw 3.3 million head of clean pigs slaughtered, 10% below 2022 numbers. Defra figures for May, at 862,000 clean pigs, showed a 14% drop on a year ago, following the massive 19% reduction recorded in April. There was no sign of any easing of the situation in June – AHDB’s estimated GB slaughterings for the four weeks to June 24, which are subject to alteration, averaged just over 152,000 week, albeit with a higher figure of 156,000 in the final week, around 19,000 a year below the 2022 average and 21,000 below 2021 levels. AHDB forecasts, in line with other industry pundits, that the shortages will peak in Q2, with the clean pig kill down 17% on 2022, as this quarter has seen the full impact of fertility issues brought on by last summer’s heatwave, on top of the herd reduction (see graph). This was reinforced by producers across regions on NPA’s PIG. “Everyone is down in numbers from where they have been historically. We are still feeling the impacts of the terrible summer and autumn infertility we had last year,” the North representative said. In a market update in late- June, Thames Valley Cambac (TVC) said tighter supplies were very evident in the market, ‘bringing forward’ several buyers who have been left short as their buying strategies ‘indicate they have been less than consistent over recent times’. “It’s at times like this everyone needs to take a measured and balanced view as the new future continues to evolve and pigs remain tight,” TVC said. 2 “Everyone is down in numbers from where they have been historically” 023 was always meant to be the year of recovery for the British pig sector and so far, and cost trends to be rapidly reversed and also lingering concerns over the behaviour of some in the chain, particularly when and if the market fundamentals turn again. During the latest meeting of the NPA’s Pig Industry Group, producer representatives revealed they were feeling more positive than for a long time – but remained cautious about the long-term. “In general, there is a lot more positivity within the independent producers left in the area around here,” the North region representative said The Midlands representative highlighted how tighter supplies were translating into higher prices as processors chased fewer pigs. The Eastern region representative also spoke of ‘more positivity’ and ‘happier’ producers in the region ‘for the short-term’. “But there is maybe a little bit of less positivity for in financial terms at least, it has been that. Pig prices have risen, supply remains incredibly tight, demand has held up, the EU market has remained strong and costs have fallen. While producers, on average, fell just short of break even in Q1, the industry is expected to be comfortably back in the black in Q2. But despite all that, quite understandably given the scale of the financial battering the industry has just taken, this has yet to be translated into any significant recovery of the national pig herd or a return of any real long-term confidence among pig producers. Too many uncertainties remain, including the potential for current favourable price the medium to longer term with the future direction of the pig industry still unknown,” he said. The South-Central representative pointed out that many pig producers ‘have still got their balance sheets to repair from the last couple of years’, while there was also uncertainty over how the review of the pork supply chain would pan out. UPDATED OUTLOOK AHDB has updated its 2023 Pork Outlook document and it continues to forecast a 15% reduction in pigmeat production, compared with 2022. A recovery is still expected in the breeding herd, but in contrast to the rapid decline, it is projected to be very 16| JULY 2023 |PIGWORLD
JULY 2023 PIGWORLD NEWS ANALYSIS the feed wheat price stood at around £180/tonne for July and £200/t for November, considerably down on the highs of 2022. One guide to the sector’s current financial state is AHDB’s pig feed to wheat price ratio. A stable figure, typically, is 10, when SPP in pennies matches the feed wheat price in pounds. For three months in the spring of 2022, the ratio stood at a between 19 and a high of 21, as wheat prices around £300/t dwarfed the SPP before it started its relentless rise. Since late-May, the ratio has hovered at around a much healthier 8, confirming the better times for the pig sector. Mr Sloyan expects AHDB’s net margin figure for Q2 to be around +£25/head. During the PIG meeting, regional representatives welcomed the relief on wheat prices, but pointed out that not everyone is getting the benefit. “There is quite a wide range of feed prices going into people’s cost of production at the moment, due to raw material prices coming down more quickly than people were expecting, with some people locked into higher wheat and barley prices, in particular,” the Eastern representative saisd. The Midlands representative added that there was a lot of last year’s grain about unsold, which is weighing down on the local prices of wheat. ACTUAL AND FORECAST UK CLEAN PIG THROUGHPUTS CONFIDENCE But this better short-term picture isn’t necessarily translating into longer-term confidence and there is no sign of a rapid restocking. AHDB noted that, although there has been some easing on inflationary pressure on input costs, prices for key commodities remain historically high. “There are still plenty of challenges on the path ahead that will need to be overcome before industry confidence returns to what it once was,” it said. “In the short term the cost-of-living crisis continues to dampen demand while the ongoing risk of a disease WILL PIG NUMBERS RECOVER? The big question, given the vastly improved economic situation, is the extent to which pig numbers will recover over the remainder of the year. AHDB’s outlook is cautious, gauging that there has only been marginal growth in the female breeding herd since June 2022 – an extra 7,000 head to June 2023, taking it to 350,000. It then forecasts steady growth to around 370,000 sows by December 2024 (see graph). In terms of pig production, which, of course, lags well behind shifts in breeding numbers, AHDB is forecasting 14% year-on-year dips in both Q3 and Q4, resulting in a full year kill of 9.6 million head, 14% lower than 2022. As a result, pigmeat production will decline by 15% in 2023, ending the year at around 890,000t, with average carcase weights sitting at 89kg. These tight supplies are mirrored in the EU, reflecting breeding herd contraction and pig disease. Pig slaughtering has been down by over 10% in Germany and 16% in Denmark, while Spain, after years of rapid growth, is forecasting a 6% drop in production this year due to its ‘substantial and wide-ranging’ PRRS outbreak, independent analyst Mick Sloyan said. With EU slaughter pig prices edging towards €2.50/kg, and the UK maintaining a price advantage of about 10p/kg, this has taken a lot of import pressure off the British market, he added, while demand for pork and pork products is holding up reasonably well. Higher prices have coincided with falling costs and, as reported last month, AHDB’s latest net margin figures showed – after nine successive quarters of losses, adding up to in excess of £700m – on average, pig producers were fractionally short of break- even in Q1, and will now be comfortably back in the black. At the of end June, the EU- spec SPP stood at nearly 223p/ kg, after 23 consecutive weeks of upward movement, while UK SOW HERD (AHDB ESTIMATES) • CHEALE MEATS LTD • PREMIUM TRANSPARENT FINISHED PIG CONTRACTS AVAILABLE WITH FAST PAYMENT 01277 811631 07711 719001 CULL SOWS AND BOARS Freedom Farm Food assured FREEPHONE 08085 300303 SUE PIGWORLD| JULY 2023 |17
PIGWORLD JULY 2023 NEWS ANALYSIS outbreak remains ever present. “In the longer term, volatile input prices remain a key watch point, while domestic processing capacity stays in the industry’s focus, given recent announcements regarding abattoirs at risk of closure.” TVC pointed that higher pig prices can work both ways when it comes to on-farm decisions. “It’s a fine balance across the industry for buyers and sellers alike currently, with sow prices around £1kg higher than 12 “Some may see that risk has a reward, many will view stability as good for the bank balance and the soul” “Producers in the UK and the EU have had the added challenge of accumulated losses over more than two years.. “Even if producers were prepared to take the risk, the cost of borrowing has increased significantly and businesses are also conscious that the war in Ukraine could escalate, reversing feed prices and other input costs such as energy. “While some may see that risk could have its reward, many will view stability as good for the bank balance and the soul.” The NPA’s Pig Industry Group met online in June ACTUAL AND FORECAST TRENDS IN UK PIG MEAT SUPPLIES TRADE The biggest change in AHDB’s mid-year outlook is that both imports and exports are now projected to decline year on year, as available supplies domestically and abroad tighten and price competitiveness narrows. Total export volumes of pigmeat from the UK, at 103,500t, fell by 22% year on year in the first four months of 2023 as a direct result of reduced availability of exportable supplies, although the shipments were worth £7m (3.5%) more. AHDB expects this overall trend of decline to continue for the rest of the year, with no substantial uplift in production and is now forecasting that UK pork exports will be 17% down in 2023. Volumes for all product categories are expected to decline, with the biggest losses likely to be seen in higher end products. China is always a key player, and its overall import volumes have increased by 20% over months ago. “Higher stock valuations continue to provoke discussions around whether to continue within a number of farm businesses looking at future investments, which are currently elevated with discussions over interest rate rises and ongoing staffing challenges,” it said. Writing in the Weekly Tribune, Mr Sloyan said the key market drivers were pointing towards maintaining profitability in the coming months, with supply set to remain ‘very tight’. “But the main thing that will restrict any immediate recovery in production is uncertainty,” he added. “We have already seen this in the US, where producer prices had a strong run in 2021 and 2022, but market volatility and uncertainty stifled any recovery in production. “Processing capacity is currently facing an economic challenge rather than one of the first four months of the year, on the back of the lifting of its Covid zero policy, but the bounce back has not been to the extent some had expected, or to anything like the 2021 peak. Imports of pigmeat to the UK, at 245,000t, fell by 14.5% year on year from January to April on the back of declining EU production and higher prices, in contrast to AHDB’s original forecast of import volume growth to cover the gap left by reduced domestic supplies. “Challenging market conditions on the continent has meant we have not yet seen this materialise. We expect this to begin to change as we move towards the UK’s seasonal demand peak,” AHDB said. AHDB noted that boneless products continue to dominate imports – in April, 60% of fresh and frozen imports were boneless – as importers continue to make use of butchery capacity abroad, a trend which began in early 2020 as a result of the first Covid-19 lockdown and Brexit- fuelled labour shortages. After Pilgrim’s recently announced the planned capacity” closure of its major Ashton slaughter plant, part of a wider restructuring in the processing sector, AHDB analyst Freya Shuttleworth said: “With UK pigmeat production forecast to end the year down 15%, domestic processing capacity is currently facing an economic challenge rather than one of capacity; the restructuring we’re witnessing within the processing sector regrettably evidences this.” With EU production levels forecast to continue decline – expected to end 2023 5.6% down on 2022, which was, in turn, 5% down on 2021 – EU export forecasts are down 3% year on year, while strong prices have reduced EU competitiveness in the UK. Assuming that domestic consumer demand declines by 3% and that pig prices remain stable, AHDB anticipates that UK pigmeat import volumes will end the year down 4%. 18| JULY 2023 |PIGWORLD
PIGWORLD JULY 2023 NEWS ANALYSIS How is inflation affecting pork sales? Inflation is currently on everybody’s mind. But how is it affecting sales of pork products and farm inputs? Inflation is proving to be a massive headache for most of the UK population, including Prime Minister Rishi Sunak, who has staked a lot on bringing it down. The UK inflation rate remained stubborn at 8.7% in May, still a long way short of Mr Sunak’s target of 5% by the end of the year, prompting the Bank of England to raise interest rates to a 15-year high of 5%, with further hikes predicted. Higher interest rates, on top of existing inflation, will heap further pressure on consumers and, of course, farmers, depending on their current and future borrowing arrangements. Food inflation has been a big factor in overall inflation, but there are signs, finally, that it may be past its peak, according to the Food and Drink Federation (FDF). Food and non-alcoholic drink annual inflation ‘eased’ to 18.4% in May, from 19.1% in April, the second consecutive month of decline, but still an eye- wateringly high. FDF’s breakdown by category shows consumer pork inflation in the year to May at a staggering 26.5%, putting it ahead of bread and beef (both 15.3%), fish (21.4%) and potatoes (22.4%), but still behind milk (28.5%), eggs (28.8%), cheese and curd (33.4%) and sugar (49.8%). Kantar data shows primary pork and bacon sales falling, but cheaper sausage and mince sales up and lamb 9.4% down. “While we expect pork to be in a good position, it is cheap and versatile cuts, such as mince and sausages, which will benefit at the expense of steaks and roasting joints. If we see another hot summer, there are potential boosts for BBQs and sausages,” AHDB said. “Cheap and versatile cuts, such as mince and sausages, which will benefit at the expense of steaks and roasting joints” The latest Kantar data published by AHDB shows, in the 12 weeks to June 11, total retail volume sales of all pork products were down by just 1.2%, while spend was up by 12%, at £1.5bn, driven by prices 14% above year earlier levels. In the 12 months to that date, volume sales were down by 2.6%, but spend was up £8.5% to £6.3bn on the back of an 11.3% rise in the average price. Primary pork volumes were nearly 9% down year on year in the 12-week period, but still 8% up in value. Mince (+16%) and pork ribs (+4%) were up in volume, but all other primary cuts were down, notably roasting products and chops. Overall, processed pork sales were up 0.7% in volume and 13% in value, with sausages (+3.6%) and gammon (+1%) making gains, but bacon and sliced meats in decline AHDB is predicting a 3% reduction in overall pork sales volumes this year compared with 2022, after the 3% drop seen in 2022, as consumer spending remains under pressure. In retail, AHDB said pork is likely to continue to benefit from consumers switching from more expensive proteins and moving some of their out of home (OOH) spend in home. Indeed, beef volumes were down 4% in the year to June 11 TRADING DOWN Kantar data confirms the trend towards shoppers trading down. In the meat, fish and poultry (MFP) own label category, in the 12 weeks to May 14, value is the only tier to see volume growth year-on-year at +36.7%, compared premium at -6.0% and standard at -3.0%. Meanwhile, nearly three in five consumers whose household finances have worsened claim they are going to spend less on eating out, the AHDB/YouGov Tracker for May 23 showed. PORK PURCHASES However, demand for pork and pork products is holding up reasonably well in the circumstances. 20| JULY 2023 |PIGWORLD
JULY 2023 PIGWORLD Agflation coming down, but farm input costs remain historically high WHAT IS THE FEED INGREDIENT OUTLOOK? The global grain market remains volatile, but the overall sentiment for global grain markets over the longer term is bearish, with production of maize and wheat globally growing as we enter the next marketing year, according to AHDB. This is obviously subject change in the event of a major weather event in the coming months, while short-term, volatility is expected to continue as markets react to rising tensions in the Black Sea region. At the time of writing, the Black Sea Grain Initiative is set to expire July 17, and, as there has been ever since it was first agreed, there appears to be a risk it will not be extended. The EU market is forecast for the new season to be near balanced for barley and maize, but a heavy balance is forecast for wheat, with grain prices having the potential to ease to reduce large stockpiles. Domestically, the UK looks to be well supplied with grains going into the new season, particularly for wheat, with the UK crop generally faring well due to favourable conditions, although more rain is needed. Despite the continuing high cost of retail food prices, ‘Agflation’, the cost of agricultural inputs is very much on the downward curve. After peaking in July 2022 at 28.4%, Agflation has been in free- fall during the first half of 2023 and has become deflationary, according to farm consultancy Andersons. The latest estimates suggest that agricultural input prices in May 2023 are 3% lower than in May 2022. Agricultural output prices have broadly mirrored the trend for agricultural inputs and have also become deflationary, currently standing at -2.3%, in sharp contrast, Andersons noted, to the 18.4% annual hike in food prices recorded in May. It pointed out that there is a lag between how agricultural price movements are reflected in retail prices. For example, when agricultural output price inflation peaked in May 2017, the CPI Food index did not peak until the following November, a lag of about six months. “Agricultural raw materials are one of several inputs that go into supplying food to consumers. Other inputs such as labour, energy, and packaging are also significant, and traditionally are much less volatile than agricultural prices,” Andersons said. “That said, the combined effects of Brexit, Covid and the Russia-Ukraine conflict have exerted multiple pressures on both agricultural commodities, labour and energy inputs meaning that recent CPI Food inflation has almost reached 20%.” Andersons also stressed that the current downward trend in agflation should not disguise the reality that agricultural input prices are still 24% higher than they were two years ago, while agricultural outputs are up 15% and food prices up 29% in that time. “All the while, farmers, too, are contending with their costs being significantly higher than two years’ ago. “In such times, it is more important than ever for farmers and those that transact with them to be aware of the costs that farmers face,” it said. VOLATILE ENERGY PRICES The Food and Drink Federation (FDF) noted that global food prices have seen another fall in May, and are now 22% below their March 2022 peak, but still 25% above their February 2020 level. But gas prices, while down from December 2022 peaks are still double 2019 levels, with volatility in energy markets remaining ‘elevated’. FDF said food and drink manufacturers saw their costs rise at a slower pace for a third consecutive month in May, with inflation of UK-sourced ingredients slowing to 5.8%, down from 7.8% in April, while inflation of goods leaving manufacturers’ facilities fell to 11.5%, down from 13.6% in April. “The seeming discrepancy between decreases in global commodity prices and rises in manufacturers’ ingredient costs stems from the use of fixed-term contracts with suppliers (forward buying) and the use of futures contracts traded on commodity exchanges (hedging),” it said. Meanwhile, persistent labour shortages have driven up pay, with most businesses reporting pay rises of 4-6% over the year to March 2023, and similar increases projected for the next year, while shortages continue to hold back growth. “All of this paints still a sombre picture for the industry. Cost pressures are easing and the industry is seeing some return to stability for the short term. But medium and longer-term volatility persists,” FDF said. PRICES AHDB’s Q1 net margin figures showed the average cost of pig feed fell back 15p/kg to 139p/kg. Since then, feed wheat prices have continued to fall, albeit rallying a little over the first three weeks of June and then falling back towards the end of the month, when new season November wheat was quoted at £196/tonne, with July prices at £176/t. PROTEIN MARKETS The overall sentiment for the protein market over the next six months is also bearish with downward price pressure expected to continue There has been a lot of downward pressure on protein prices from the record Brazilian soyabean crop coming to the global market, which is outweighing tight Argentinian and US supply. There has also been further price pressure on the oilseed and meal market from heavy fund selling and fundamental factors such as favourable crop prospects and plantings in the US and Canada. Grain markets remain volatile, albeit with a longer term bearish outlook PIGWORLD| JULY 2023 |21
PIGWORLD JULY 2023 NEWS ANALYSIS NEWS ANALYSIS News of a further significant drop in pig sector antibiotic usage has been warmly welcomed as a symbol of the collaborative efforts of farmers, vets and others. But tougher challenges lie ahead. ALISTAIR DRIVER reports Antibiotic usage drops by a further 20%, but warning issued over zinc challenge ahead Total antibiotic usage in pigs recorded in eMB Average usage of antibiotics in the UK pig sector has fallen to less than a quarter of the figure recorded just seven years ago, following a further 20% reduction in 2022. While the latest figures have been hailed as a significant achievement and mean the sector has already surpassed its next target for 2024, warnings have been issued over the impact on usage over the next few years as supplies of zinc oxide are exhausted. Antibiotic usage in 2022 stood at 70mg/PCU, a further improvement on the 2021 figure of 87mg/PCU, according to data collected by AHDB using the electronic Medicine Book (eMB), representing more than 96% of pigs slaughtered in the UK. The latest drop brings the total reduction since 2015 to 75% from a baseline of 278mg/PCU, highlighting, AHDB said, the collaborative efforts of farmers, vets and other stakeholders in minimising antibiotic use while promoting the health and welfare of pigs. It also means the UK pig industry has now exceeded its current target of a 30% reduction in total antibiotic usage between 2020 and 2024 set by the RUMA Targets Task Force (TTF). The data showed that Tetracyclines make up the biggest category by class, at 35%, with usage falling across all antibiotic classes except lincosamides and spectinomycin. Significantly, the use of highest priority, critically important antibiotics – colistin, third and fourth generation cephalosporins and fluoroquinolones, as defined by the European Medicines Agency - remains at a very low level, falling from 0.033mg/PCU in 2021 to just 0.01mg/PCU in 2022. No colistin use was reported in pigs in 2022. This compares with a 2015 “Each and every unit has to find what works for them and there is no one stock solution” has already been exceeded.” NPA chief policy adviser Rebecca Veale stressed, however, that the targets were put together with the expectation that zinc oxide would be lost in 2022. With it still being available – albeit in limited quantities – ‘we haven’t seen the full effect of this yet and therefore we’re only part way through this journey’, she said. “None of us know exactly how the loss of zinc oxide will play out,” she said. “Each and every unit has to find what works for them and there is no one stock solution. We have always talked about the reduction in the use of antibiotics in terms of being responsible and that will not change.” AHDB Head of Animal Health & Welfare, Dr Mandy Nevel, said: “Farmers and vets should be extremely proud of the work they have done to demonstrate a responsible approach to antibiotic use. “The extensive data set collated over the last eight years has provided robust evidence of progress and has helped vets and farmers work collaboratively to make changes on farm and monitor that progress.” HP-CIA figure of 1mg/PCU, with colistin use at 0.9mg/PCU. SIGNIFICANT REDUCTION Grace Webster, vet and chair of the Pig Health & Welfare Council Antimicrobial Use Subgroup, praised the sector for surpassing its next TTF2 target two years ahead of schedule. However, she said this, in part, reflected the extended use in piglet diets of zinc oxide manufactured before the withdrawal of its marketing authorisation, in June 2022, which the Veterinary Medicines Directorate surprisingly authorised up to the end of the shelf life of that product last year. According to industry projections, remaining stocks are likely to run out soon. “This has avoided an anticipated rise in antibiotic use to treat post-weaning diarrhoea in 2022 but, as supplies run out in the coming months, this may still be an issue that vets and pig producers are yet to face,” she said. NPA chair and AHDB pork sector council member Robert Mutimer added: “Given all the well-known and difficult issues facing farmers, it is quite astounding that the 2024 goal Highest priority critically important antibiotic usage in pigs recorded in eMB, by class 22| JULY 2023 |PIGWORLD
PIGGYPOINTS We have one shot at getting this right - let us know your thoughts on pig contracts COMMENT The commitment the Government has made to change contractual practice for the pig sector is potentially one of the industry’s biggest policy transformations in a very long time. It is important that we look ahead to what producer members need to avoid a repeat of the issues experienced over the last two years, and to provide an environment in which businesses can flourish. It is the evidence that we, and you as producers, provided that has enacted this change. Thank you once again for being willing to share your experiences and ideas – it really did detail, but we’ve been considering all that members shared with us during the consultation process last year. We’ve also started to consider unintended consequences and unusual scenarios that could arise. This needs to work for you, so we’d really welcome your thoughts on these topics, or any others you’d like to discuss. Please, either email or pick up the phone and share your ideas and experiences – they will be treated confidentially and will be very helpful to inform our discussions with Defra. Contact the team by emailing npa@npanet.org.uk or call us on 02476 858780. make the difference in this case. Defra has also committed to using the data powers within the Agriculture Bill, which we hope will have an impact on transparency issues around price reporting. What is very apparent to us as a team is that we have one shot at this, so we need to get it right. Defra is taking this policy seriously and has prioritised the work accordingly, even committing to bringing in extra resource to help deliver it. But what are we, as NPA, doing in the meantime? We have been looking at what should and shouldn’t be included within contracts. It is not NPA’s place to stipulate the terms in Rebecca Veale is NPA chief policy adviser. For more information visit: www.npa-uk.org.uk “Your experiences and ideas made a difference” COMMENT COMMENT A memorable two days with YNPA in Suffolk On June 20, a group of Young NPA members headed to Suffolk for two days of interesting and informative visits. The trip started at Dingley Dell Pork, where we were greeted by Mark Hayward with a charcuterie board of his products, which tasted delicious! He explained how he and his brother developed the business following the challenges the sector faced in the late 90s, and how it has diversified and built over the years, working closely with a meat business and a meat scientist to develop the taste of their pork whilst keeping production commercial and continually looking at how to get more from a pig. Mark is as passionate about pigs and how pork should be eaten and cooked as anyone I’ve ever met! Next, we travelled to Quality Equipment, where the group were hosted by Jamie Baker and myself. It was an opportunity to show to people within the pig industry what we do and how we work with our customers to produce the product they require. Day two began with a visit to EJ Barker and Sons, an AHDB Strategic Farm: a mind-blowing visit where we saw how working with the environment whilst running a successful arable enterprise can be done hand-in-hand. They have created a green area on non-productive arable land through the middle of the farm, which creates an environment for hundreds of wildlife species to grow and prosper. We finished with a tour of Claas, where we were shown all the facilities of the Manns and Claas UK operations. We saw the facilities for their apprentices, warehousing and training - even an impressive green screen room, which allows them to train their team far and wide. EJ Barker and Sons shared environmental know-how Lee Thompson Young NPA vice-chair Behind the scenes at Quality Equipment “Those who joined us have shared how insightful it was” We had fabulous hospitality from all our hosts, which we are very thankful for, and those who joined us have shared how insightful it was and how much they took from meeting up with other passionate people from our sector. YNPA brings together young people (up to age 40) from across the industry to socialise, network, travel and extend their knowledge of the industry. If you are interested, go to the ‘How to Join’ page of the NPA website. First up was a trip to Dingley Dell Pork 24| JULY 2023 |PIGWORLD
PIGWORLD JULY 2023 INTERNATIONAL THIS MONTH’S COMMENT COMES FROM DENMARK OUTLOOK COMMENT Denmark: Troubled waters but optimism on the horizon In 1990 almost 3,000 Danish farmers kept pigs. By 2020, this number had been reduced to just over 2,500. For many other industries this would have been a nightmare, but for the Danish pig producers, this is a story of great success. The number of producers has been significantly reduced, but at the same time, the number of pigs has more than doubled and the export value of Danish pork has increased by 19 billion DKR (£2.2 billion) in current prices. As with other European producers, Danish pig producers are currently navigating through troubled waters, and some are asking themselves if pork production has seen the best of its times in the past. This is reflected in the market. The number of pregnant sows in Denmark was down by 10.2% from January 2022 to January 2023, with the number of pigs for slaughter down by 16.6 %. These are dramatic numbers and a reflection of the sector’s troubles. The war in Ukraine has had major direct implications on the cost of production feed and energy, and, on top of this, comes indirect implications, such as general consumer insecurity, inflation and increasing financial costs, which are adding to producers’ troubles. Additionally, demand on the global market is weak and prices for Danish pork exports have fallen. Alongside dramatic developments in the market, the Danish pig sector is again, along with other European producers, experiencing increasing political demands on sustainability and animal welfare in pig production. The Danish government has committed to reducing CO2 equivalent (CO2e) emissions by 70% by 2030, compared with 1990, and the Food and Agriculture sector is expected to reduce CO2e emissions by 55% by 2030. One tool being used to achieve these reductions is introducing a CO2e-tax, which presents a major challenge and will further challenge Danish pig producers’ competitiveness at European and global level. In a flexible sector like the pig industry, dramatic developments in the market will have rapid and far-reaching consequences, as we are currently witnessing in Denmark. However, Danish pig producers stand on a strong foundation and if we manage wisely through the current troubled waters, I am confident we will see optimism in the horizon. Danish pigs show impressive efficiency. Finishing pigs, from 31- 115kg, achieved a daily gain of 1,026 grams in 2020. By 2030, we expect a daily gain of 1,139 grams. In 2020, our finishers used 2.65 feed units/kg gain (FCR). In 2030, we expect to reduce this to 2.43 feed units/kg. Our sows also continue to improve. In 2020, we weaned 33.9 piglets per sow per year. In 2030, we expect to increase performance to 37.2 piglets/ sow/year. Increased efficiency is key to increased sustainability. Additionally, in 2022 the united sector for production of pig and pork in Denmark launched its vision for the future of Danish production. Through it, the pig sector has committed to reducing CO2e- emissions by 50%, from 2023, while new barns will only be built for loose housing in the farrowing pen, and from 2025, the sector will aim to double the number of pigs with long tails each year for three years. By 2050, the sector has committed to climate-neutral production, with all Danish pigs kept in loose housing in all sections of the barn, and to having the highest level of health and welfare in the world, compared with other large exporting nations. The sector has high ambitions and a strong commitment for the future because we believe that sustainable, innovative pig production is a core competence in Denmark. As the world demands more animal protein in the future, we will have an important role to play in meeting that demand. Christian Fink Hansen is the director of the Danish Pig Research Centre (DPRC) at the Danish Agriculture and Food Coun- cil. Before joining the DPRC, he was professor in pig production and head of the MSc Animals Science education at the University of Copenhagen “The sector has high ambitions and a strong commitment for the future because we believe that sustainable, innovative pig production is a core competence in Denmark” PRODUCTION Tony Skinner 020 7216 6405 tony.skinner@ccmediagroup.co.uk ART EDITOR Sarah Crowhurst sarah@lewisbusinessmedia.co.uk DESIGNERS Chrishna Othendee, Rachel Wood EDITOR Alistair Driver07787 240832 alistair@lewisbusinessmedia.co.uk PRODUCTION EDITOR Allan Norbury 01825 725296 allan@lewisbusinessmedia.co.uk SUB EDITOR Sally Rush 01825 701243 sally@lewisbusinessmedia.co.uk GROUP SALES DIRECTOR Martin Goult M.Inst.M 01825 983124 martin@lewisbusinessmedia.co.uk SUBSCRIPTIONS Nic Wood 01580 883844 nic.wood@lewisbusinessmedia.co.uk Because of the sensitive nature of all intensive livestock production, Pig World is available only to those who are directly involved in pig production, or directly connected to it (allied trades, food chain, government, research, etc). News and views in Pig World do not necessarily reflect the oficial position of the NPA, except where stated. We strive for accuracy – if you have cause for concern please call. Printed by Stephens & George Print Group, Goat Mill Road, Dowlais, Merthyr Tydfil, CF48 3TD Lewis Business Media, Suite A, Arun House, Ofice Village, River Way, Uckfield, East Sussex TN22 1SL, UK T 01825 983105 F 01825 983108 E info@lewisbusinessmedia.co.uk W www.pig-world.co.uk Price per annual subscription: UK £37 European £95 Rest of the world £137 NPA members receive Pig World as part of their membership package. GROUP MANAGING DIRECTOR AND PUBLISHER Simon Lewis 01825 983119 simon@lewisbusinessmedia.co.uk 26| JULY 2023 |PIGWORLD
JULY 2023 PIGWORLD COMMENT My ingenious 15-minute, $5 cost-saving solution to replacing our many worn out valves After untold sleepless nights over how to replace the wet feeding in the farrowing and dry sow shed, the die is now cast. Mat has ordered a new computer to replace the old one, now 25 years old. Every option was examined, from dry-fed individual drops, to one feeder per pen, to a totally new wet feed system. Combine all that with trying to keep the pigs fed while any new system is installed. For instance, Mat took just a day and a half to replace three feed valves in between getting eaten by pigs and salvaging his tools from the pigs playing with them to see how many ‘bites’ it takes to destroy them. So just how long will it take to replace 150 valves in the dry sow and farrowing houses? Mat, the eternal optimist, came up with many and varied schemes to install a complete new feed line besides the old line, then wave his magic wand and change it all over within a day! Yeah, bullshit. Impossible. Just how long can we actually hand feed the pigs and change over valves? The reason for changing the valves is that they are all totally worn out. Already, Mat has a cubic metre container with old worn-out valves. The current cost of new valves is around $200 each without fittings or pipe. That makes a quick $30,000 just for valves. The real problem is time and labour to put any replacements in. There are no longer people in Australia with the expertise or will to work in a ‘stinking’ piggery. Our current staff are fully occupied doing pig work, which cannot be compromised. At best, we may get assistance for one day a week between them all, not allowing for all the other disasters that have to be attended to and fixed. The problem with the old valves is the wear in the seats. New valves have a clearance of half an inch. Some old, replaced valves have a worn clearance of three-quarters of an inch. Hence, the leakages and blockages – the terror of wet feed systems. Some time back, I built up the seats with epoxy putty. Brilliant and worked like new – for about a month, until the epoxy wore away. As they say, desperation is the ‘mother of invention’, so I took some old valves back to the workshop and began some serious thinking. The result is a stainless-steel seat stamped out in a ‘c’ shape and the exact curve of an original seat. It is fitted by grinding the old plastic seat away, where it obstructs the fitting of the new seat. Once again, the gap underneath the new seat is filled in with epoxy putty and the S/S seat is held in with 1 or 2 countersunk S/S screws. Time taken: 15 minutes, and can easily be done in situ. Epoxy hardens in five hours, so can be reused for the next day feed. Cost – $5. Neil Unger advises a 500-sow farrow-to-finish pig unit in Australia, alongside an arable unit cropping 3,400ha annually “The current cost of new valves is around $200 each without fittings or pipe. That makes a quick $30,000 just for valves” COMMENT The Resilient Farmer – coping with the mental scars of the past two years Well, I am really very pleased to see that, yet again, a certain very large PLC pig processor has had a very significant increase in profits. Not only that, they have massively increased their own pig herd. He who has the most pigs, wins. They have won. It is very nice, indeed, to know that those of us whose businesses have been directly destroyed by them have not sacrificed our livelihoods and our life’s work in vain. I hope they are extremely happy with their success. After all, making massive amounts of money is mainly what they exist for. They certainly aren’t there to keep independent producers in businesses. Now we know. I was quite pleased with myself as to how I was coping with the traumas of the last couple of years. That was until the milestones that mark the passage of the year click by and, looking back at those, it appears I was in a complete daze, going through the motions, working in survival mode. I really can’t remember much beyond making some really important decisions and getting through the day-to-day existence. A few years ago, I read a book by New Zealand sheep farmer Doug Avery, The Resilient Farmer, describing how he eventually fought off mental torture from his farming problems by latching on to something to focus on that would reverse the disaster that his farm and life was facing. It was only looking back that he could see how poorly he was coping. He did reverse the fortunes of his farm, and many have benefited from hearing and reading of his experiences. There was one point when I could see that, if things went as they could easily have done, I might have slipped over the precipice and I prepared myself for that by writing down my story for farming mental health charity YANA (You Are Not Alone), sending it to them and telling them to be ready in case I really was in need of help. Fortunately, for once, good prevailed and I didn’t need their aid, but it was great knowing they were there and nice to talk to one of their volunteers, who could see I had been serially, badly let down. As well as trying to relive as the Resilient Farmer, there are a couple of maxims that I have rather latched on to. Firstly: ‘Whatever can’t kill you, makes you stronger’. I’m not sure who to attribute that to, but it appears to be true. More recently, browsing 2023 Oxford Farming Conference videos, a well-known West Country dairy farmer said: “Never waste the opportunity of a good crisis”. That one is very apt, not just for myself but for the wider pig industry. Chris Fogden is a first-generation farmer and Nufield Scholar, who is currently re- organising his pig business on 40ha of rented land within the rotation of a large Norfolk arable estate “There was one point when I could see that I might have slipped over the precipice” PIGWORLD| JULY 2023 |27
JULY 2023 PIGWORLD COMMENT COMMENT Time to nominate your game-changing David Black Award 2023 candidates The Black family, after whom the prestigious annual David Black award is named, have been pioneering and innovative farmers and pig producers for generations, and it is their foresight that realised the importance of recognising others who had made a fantastic contribution to the UK’s pork sector. AHDB and its predecessors have been pleased to pick up the mantle and support the David Black Award for many years. The award is there to recognise an individual, or sometimes an organisation, who or which has made a substantial contribution to the pork sector over the course of their career. A look back over past winners reveals a huge range of talent, from Maurice Bichard, remembered by many at PIC and elsewhere as one of the most influential geneticists who drove the leap forward in modern British pig breeding, to Stan Done, an absolute legend amongst government veterinary officials, who did so much, so selflessly, to protect the UK pig herd from unwanted disease. For readers with fewer grey hairs than I, perhaps Marcus Bates (pictured) stands out amongst recent winners, for his unflagging work on two fronts: easing the path of exports of British breeding stock to all corners of the world, and preserving the precious diversity of rare British pig breeds. I offer my apologies to those past winners whom I have not named – their achievements are equally amazing, but I think even they would agree that I have highlighted three superlative winners. So, the time has come to nominate candidates for the 2023 award, to be presented at the National Pig Awards in November this year, and I would ask you to take the time to consider who, amongst your network, has made such a game-changing contribution to our sector, that their name should be added to this illustrious rollcall. They can be from any discipline, scientific or otherwise, any organisation, public or private, or they can simply be an exceptional individual in your eyes. The only criterion to emphasise is that they should have made their contribution over a long period, and because of their chosen career. You can find the nomination form on the AHDB website: https://ahdb. org.uk/david-black-award Mike Sheldon AHDB pork sector chair Mike Sheldon presented the 2020 David Black Award to Marcus Bates COMMENT How to prevent or reduce incidence of gastric ulcers on pig farms One of the findings I commonly see on farms is very pale growing pigs, which can be associated with gastric ulcers. In the early stages, the effects of the ulceration are completely unnoticeable to the farmer, but as the abnormality progresses, slower weight gain and deaths occur. The animals are more lethargic, have abdominal pain, pale skin and mucous membranes, very dark faeces due to internal bleeding and eventually we see sudden death of pigs in good body condition in acute cases. A gastric ulcer is defined as a gastric mucosal defect where the entire epithelium (lining of the stomach) has been lost. They appear as a bordered cavity often coated with exudate. Ultimately, a deep ulcer erodes blood vessels, and the pig dies of an acute bleed, or it leads to a chronic condition. The cause of gastric ulcers in pigs is multifactorial, but the primary cause of it is unknown. Contributing factors are related to feed (structure, ingredients, type) and environment (microclimate, housing, diseases). Feed structure or particle size is important to the prevalence and severity of gastric lesions. In particular, fine feed structure has been shown to increase the prevalence of gastric lesions. Pelleting of the feed may also increase the prevalence of gastric ulcers. From the technological point of view, the pelleting process significantly decreases bulk density of feed, which reduces costs of repeated handling and storage and is why pelleted feed is the most commonly used in pig farms. There are several diseases linked with the higher occurrence of gastric ulcers, including PRRS, PCV2, Salmonellosis and ileitis. Researchers shows those diseases mainly cause stress and disrupt normal feed intake followed by the initiation of the ulceration process. Ulcers can also develop due to stomach colonisation by Helicobacter sp. Characteristic findings during the PM examination are ulcers in oesophageal part of the stomach. If the cause of death was a haemorrhage, the carcase will be pale and blood clots or fresh blood will be present in the stomach and intestines or very dark faeces in intestines. In chronic cases, we can also find thickening of the stomach mucosa, and erosion. Preventing or reducing the incidence of gastric ulcers should focus on maintaining good feed intake, including management steps such as ensuring feeders do not run out of feed, keeping sufficient feeder space available and minimising mixing of pigs. Vaccination and other steps to minimise other diseases are also important. Dawid Karpiesiuk joined Garth Pig practice in July 2022, having worked for five years in a pig practice in Poland. His main areas of interest are herd health management and farm biosecurity. VETERINARY VIEW PIGWORLD| JULY 2023 |29
PIGWORLD JULY 2023 COMMENT COMMENT COMMENT How Rosie showed the great British public there is no such thing as ‘pig proof’ How the editor of Pig World nearly got me sent to the Tower of London Part of the ethos behind opening our farm shop is education (we’ve never been very good at the profit thing!). We want to engage with people and explain how their food is produced and, as part of that, we try to ensure there is a range of farm animals to see in the paddocks by the shop and that it isn’t just a pets corner. Over the winter, we have holidaying beach donkeys – obviously not really farm animals, but very popular with customers and there is a long family history of keeping donkeys. The farm cats are hugely popular with some customers, although they reduce a few to tears when they work the tables I don’t know how you celebrated the Coronation, but thanks to a potentially scurrilous headline (perpetrated by the editor of Pig World), I nearly spent the weekend after it in the Tower of London. Rewind to May 12 when I had a polite but firm request from the head of the Crown Rural Estate asking to see a copy of my Pig World article as the Crown PR machine had flagged up a potentially libellous headline – he wanted to read the whole article himself. Given that it had been one of my most bland and upbeat articles for many a day, I was slightly surprised until I opened my magazine and the headline ‘Pig Industry’s Royal Snub’ jumped off the page above a picture of yours truly. With a sigh of despair, I realised that in a desperate bid to stoke controversy or boost media interest, the editor had put his own slant on my article (I guess he was just feeling a bit bitter at Leicester City dropping into the basement with Bristol City next season!) (That is true – ed). It was all quite ironic, given that over the years I have made a few pointed comments about the landlords, but right now we have a much better working relationship with them than for many, many years – they have proved extremely supportive during the difficult period the industry has recently staggered through. In fact, we have recently been offered slightly more security on a pig unit we have been renting, which they had been hoping to build on; and, more importantly, fresh land for the outdoor unit, which I had been casting covetous eyes on for 30 years, mainly so we would no longer cause deep embarrassment driving over the neighbour’s field to access the outdoor pigs when the snow cuts off the road! The major dilemma, however, is that if we take the land, we will have to keep on keeping pigs!! Currently, it is probably not a bad thing, but if I’m ever going to get out of this industry in one piece, now is the time to leave (dis)gracefully when cull sows and fat pigs both have a value, which would let me clear my debts and become a ‘kept man’, or at least settle down to a quiet life as ‘pot wash’ in the shop. Sadly, my pension plan of selling all my equipment is unlikely to be happening now as the country is awash with second-hand equipment after the recent mass exodus, so, on balance, I’ll have to keep going a bit longer. A massive move and clean-up of various pig hut graveyards is therefore in order. The good news is scrap is worth a lot more than it was. Thankfully, upon reading the whole article, the head man was able to ascertain that my principal role in life is to be the token village idiot/pig farmer and annoyer-in-chief of Muriel – it just goes to show you shouldn’t believe anything you read in the gutter press! Muriel Naughton, with her husband Cameron, rents 800 acres from the Crown Estate in Wiltshire. They have 500 outdoor sows on a three-week batch production system. Weaners are liquid- fed to bacon weight in straw yards and then sold through Thames Valley Cambac Cameron Naughton in packs, hunting down any stray sausage rolls or stealing ice cream from the frail or easily intimidated. The two friendliest cats are elderly, moth-eaten, proper big farm cats who still believe in the ‘rat a day keeps the vet away’ saying, and the best place to eat a fresh rat is obviously amongst the picnic tables by the farm shop! I digress! Our shop is called ‘The Piggery’ and so naturally people ask whether they can see pigs – a field full of engaging lambs does not suffice (and interestingly, almost certainly depresses lamb sales!). We try to explain that our sows and piglets live outdoors on the chalk downland and that, if we put pigs in the paddocks on the clay soils, we would soon have an attractive quagmire to look at. Some nod sagely, others are more insistent, and a small minority get in their cars and drive off! However, when Rosie, a particularly friendly sow was due to give birth a few weeks ago, the bottle lambs were evicted from the stable yard next to the shop and she was duly installed. Alan rebuilt the gate so it was secure, but also with a viewing window. Anything not fixed down was removed and we congratulated ourselves on a job well done, especially when she popped out 14 good piglets the next day. Soon people started to enjoy coming to see the piglets. One day, a couple of families were cooing over the gate as Rosie roamed her yard. Squeals of excitement – ‘oh look, she’s doing a wee’ – and that sort of thing. Cameron was there answering questions. Then Rosie managed to dislodge the concrete ramp from one of the stable boxes and, being a large and destructive pig, she flipped the concrete up and on to one of her piglets. Fearing the worst and amid questions like ‘Mummy, why can’t that piglet walk’, Cameron rushed into the yard and extracted the piglet and removed the concrete. Unbelievably, the piglet was unharmed and it demonstrated that ‘pig-proof’ is not really a thing! The piglets are now weaned but still rampaging round the yard. We now have to decide how long they stay there or whether we risk another sow and litter, unless, of course, we find it reduces sales of pork – but, hey, profit is over-rated! “If I’m ever going to get out of this industry in one piece, now is the time to leave (dis)gracefully when cull sows and fat pigs both have a value, which would let me clear my debts” 30| JULY 2023 |PIGWORLD
PIGWORLD JULY 2023 FEATURE 2022 NATIONAL PIG AWARDS WINNER The judges were hugely impressed with the standard of entries for the 2022 Trainee of the Year category, selecting four finalists, and then choosing a highly commended runner-up, Emma Claxton, alongside winner Max Campbell. As part of a new Pig World series looking at ‘Fostering New Talent’, they are profiled by HELEN BROTHWELL over the next four pages, highlighting how both are focused on their own ambitions and development, but also the people they work with, aiming to ensure a positive and rewarding working life, and progression for those looking for it Award-winning young producer driven to learn, improve and try new things Max Campbell and the new insulated Aardvark farrowing huts T Working regularly on the farm throughout his school years, his great energy and ambition for pig production only grew. He decided not to go to college, preferring to go straight into full-time employment in 2019 as a general farm worker, alongside his uncle and three other team members in the family business, Bunkers Hill Pigs, in Norfolk. “I felt I could learn everything I needed to on the job, and I gradually worked my way up,” Max said. Now assistant manager, he has taken every opportunity to participate in relevant training, alongside growing his practical experience, ranging from pig moving and handling training to an AHDB management course. “The chance to talk and learn from others on training courses has also been valuable. You hear about things they’ve tried and what works well and what doesn’t,” he said. Max and is open-minded, eager to keep learning and driven to improve. “If there’s something new to the industry and I think it’s going to work, I want us to be one of the first to do it – to give the business an edge and do the best we can,” he said. “For, example, we were on a four-week weaning system when I joined full time, and I pushed for us to shift to five-week weaning. I thought: ‘Why not do it now?’ “If there’s something new to the industry and I think it’s going to work, I want us to be one of the first to do it” Max with his tractor and feeder - sow feed is carefully regulated rainee of the Year Max Campbell knew from a young age that he wanted to work in the family pig business. Start early and learn’ – as I knew we would need to change to five-week weaning at some stage.” Two years in, he and the whole team would never go back to the previous system. Physically and mentally, when farrowing or serving 150 to 160 sows, it can be hard going, he pointed out. “Whereas now it’s groups of 90 sows, we can spend time putting in extra attention to detail, such as cleaning out water troughs and refreshing the water more often,” he said. “The satisfaction from having the chance to do an even better job and fit a wider variety of tasks in a day makes it more enjoyable. Another benefit is that, although pigs always had plenty of straw in the farrowing huts before, we now have time to check and provide even more.” Wheat straw doesn’t soak up moisture as much as barley straw, so they now put wheat at the bottom, then barley on top, providing a softer, finer bed and helping the team ensure the beds are nice and level when the sow goes in for farrowing. IMPROVED PERFORMANCE Performance has improved since the move to five-week weaning, with a number of factors contributing, including the repopulation, new genetics and that extra time. Over the last three months, conception rates averaged 95.8%, with 12.25 pigs weaned per litter and 29.3 pigs weaned per sow per year. Piglet weights now average 9.5 to 9.8kg at weaning. “They are creep fed in the last two weeks before weaning,” Max explained. “I was sceptical at first but it has definitely paid off. There’s a benefit for the next stage on the finishing units and it takes the pressure off the sow too.” Sow rations are increased daily by 0.5 to 1kg between farrowing and weaning, until they reach the maximum they will eat. The amount each sow requires each day is marked on her feeder, with the aim of 34 |JULY 2023| PIGWORLD
JULY 2023 PIGWORLD Max, left, and team, Max with Graham (farm manager) and Tom (farm worker) One of the two service radials on Bunkers Hill Pigs’ Norfolk unit “The other big thing about working in a team is that you can have a laugh, otherwise work can get monotonous” maintaining condition without letting her become too fat. “Being able to tell what sows need is something you learn over time and everyone has their own way of doing things,” Max said. Sow fertility has been a key area of focus, with the main factors being health and hygiene and getting lactation nutrition right to make sure sows are in the best condition when served. “We’ve also made sure we push gilts hard enough – but not too hard – in the first litter,” he added. Insulated Aardvark plastic farrowing huts have improved the environment for the sow and reduced piglet mortality, with fewer laid on. They are round and more spacious than their previous huts so piglets cannot get stuck in a corner and can move away from the sow. “You can never know everything, and you may try things that won’t work but you don’t know until you try, so if you think you can improve something, why not try?” Max said. Performance figures are kept routinely and related back to management changes, which they also keep notes on. Replacement rates have been increased, which provides more scope to cull out any lower performing sows, with none now older than parity five. also helps us get things right to improve performance; if you are in a positive environment, somewhere you want to be, you’ll do good work.” If he takes time off, he will discuss the jobs that need doing and highlight the priorities, giving them the autonomy to go about their work as they think best, as long as the most important jobs are done. Through the management course, he also started to consider ways to delegate and help individuals develop new skills where appropriate. “When you’re working with people, you become aware of what people enjoy and what they’re able to do,” he said. “If there are two people with the skills to do a task and one of them who really wants to do it, that’s the person I’ll ask.” He has made a chart to map out who was most skilled at which jobs and different types of training people would benefit from. In May, Max appeared on the ‘Young Guns’ panel at the Pigs Tomorrow conference to discuss how to encourage fresh talent into the pig industry. “Recruitment could be a challenge for us in future,” he continued. “We are very fortunate with a settled and experienced team currently but they will be retiring soon and in quick succession. I’m open to us recruiting anyone with the right attitude and willingness.” “If we can keep bringing in new stock that will perform better, 90% of the time it pays off,” he said. FOCUS ON PEOPLE Max found the AHDB management course particularly interesting and it helped him find his way in managing a pig unit and its employees, as he aims for an approach that earns people’s respect. Staying receptive to ideas and regular discussion among team members is important. “It’s a good way to open up different options and it might not always be a decision to do it one way over another – sometimes we’ll do a combination of both,” he said. “One person might be the manager but someone else might have a better idea. I might say ‘how about we try this?’ or ‘what do you think?’. Success so far has been a team effort. “The other big thing about working in a team is that you can have a laugh – otherwise work can get monotonous. It FUTURE AMBITIONS Max’s continual learning and experience will help him in future management roles, including if the family business is expanded again. “I’m young and ambitious,” he said. “I don’t want to look back when I’m old and feel I didn’t take the opportunity. You shouldn’t be afraid to try something and it not work out. If an opportunity for another unit came up, we would look into it. It’s something I feel I can work towards.” He admits he rarely switches off from his job but that is because he enjoys it so much and would simply rather be on the farm. Max received his Trainee of the Year award from Nick Lawson, general manager at Rattlerow Farms, right, and host Matt Dawson PIGWORLD| JULY 2023 |35
PIGWORLD JULY 2023 FEATURE 2022 NATIONAL PIG AWARDS Leap of faith and commitment to learn leads to rewarding new career in pigs Emma Claxton has made huge progress in pig farming in a very short time, thanks to her training and a willingness to learn, adapt and try new things L new career in pig farming in Norfolk, with no previous experience. Enthusiastic about the challenge and finding, to her relief, how much she enjoyed it, she threw herself into the practical tasks and signed up to a number of training courses to support her steep learning curve. A year later, she was awarded Highly Commended Trainee of the Year at the 2022 National Pig Awards. With Emma already ejoying pig production, the couple decided to pool all their resources and take on ownership of an outdoor pig breeding business, renting 150 acres of land per year and producing for BQP. Emma left her previous career in hospitality management and she and Matt started working self-employed for the previous farm owner in May 2021, until the farm purchase completed in November 2021. “I was aware I had only six months to build up my own pig experience before I would be employing and managing other people. I booked myself on AHDB’s Stockperson Development Scheme. It was really good as it helped me understand the reasons why we do what we do on the farm,” she said. She has also completed the key mandatory training courses, ranging from the online pig handling certificate, health and safety, veterinary training, including euthanasia, learning how to use the WinPig recording system and also SAGE, for general finance, payroll and business management. “I was previously a department manager at a holiday park so already have experience of people management. There’s now also a greater responsibility for the ess than two years ago, Emma Claxton decided to join husband Matt on a farm he was working on and start a Emma Claxton has made huge progress in a short time finances as a business owner,” Emma added. The Claxtons currently employ five full time employees and one weekend employee, plus themselves, looking after a breeding herd of 1,200 outdoor sows in Norfolk. They began the transition to a five-week weaning system when they took on the unit. “The system is less stressful for the sows, with more of a break between farrowings and the piglets themselves are stronger at weaning and used to solid food as they are creep fed,” she said. Emma Claxton and Max Campbell were part of the Pigs Tomorrow Young Guns panel, alongside Flavian Obiero, left, and Fred Allen, second right, pictured below CONCEPTION RATES Understanding the science and sow biology through training has been key to helping improve pig performance. “When I’m doing the AI, I know why it is important to serve at the right time and we’ve increased conception rates from 89.55 to 97.95%,” Emma explained. “The conversion to five- week weaning knocked it a bit, but it’s going back up now.” Similarly, when selecting gilts, she now knows exactly what to look for and the importance of different traits to ensure the best possible future herd. “The age of the herd was high when we took over and we’re now aiming for a younger herd, no older than parity 5 or 6, to help improve productivity. Older sows have knock-on effects for piglets/sow/year. We’re currently weaning an average of 22.04 pigs/sow/year and aiming for 24, which we should achieve soon,” she said. 36 |JULY 2023| PIGWORLD
JULY 2023 PIGWORLD “There is career progression and will always be a role for good people” on the Stockman Development Scheme that Emma enjoyed the benefits of. “All training goes to help us achieve our pig production aims. I also found it useful to meet other people from other farms on the AHDB course. I was the only farm owner there and I got an insight into what our staff were maybe thinking or feeling. Plus we were able to share similar struggles and ideas on what works on other farms,” she said. RECRUITING Emma appeared alongside Trainee of the Year award winner Max Campbell on the Pigs Tomorrow Young Guns panel – and she also sees recruitment within her own business and across the wider industry as a major challenge. However, a recent job advertisement saw the Claxtons inundated with applications, with a variety of different experience, which Emma saw as very positive. “Up until now, I’ve looked for people with pig experience as I was still learning myself,” she explained. “However, I’ve just employed someone for the role without any previous pig experience. It can help bring in new entrants.” Longer term, after paying off the current loan, they would like to take on another breeding unit and possibly a finisher unit, too, to see the process through to the end. There has been a lot of risk but hopefully they have got a lot of time to reap the rewards over the course of their careers. Emma believes that if you’re committed, determined and put in maximum effort you can achieve your goals in the pig sector and be recognised. “I didn’t originally see myself doing this but have progressed rapidly! There is career progression and will always be a role for good people. There are always going to be farmers,” she said. “It’s not always about pay, people are motivated by other The Claxtons’ performance figures from the last three months (on the five-week weaning system) show a current farrowing rate of 86.82%, 12.71 piglets liveborn per litter and 11.08 piglets weaned per litter. “I’m proud of what we’ve achieved as a team so far and, now we have completed the conversion from four- to five-week weaning, we are more focused than ever to improve on these current figures,” Emma said. The Claxtons regularly challenge themselves and changes the couple have made also include setting up radial paddock systems for service, in-pig sows and replacement gilts. This enables them to walk sows easily from the service radial to the in-pig radial, instead of using a trailer to transport them as before. They are converting gradually to insulated Aardvark farrowing igloos, which she says provide a better environment for the sow and reduce the risk of laid on piglets as there are no corners, investing in 40 at a time when cash flow allows. factors, too” to work for,” she continued. “It’s not always about pay – people are motivated by other factors, too. Maintaining a strong team, where we can build skills and experience, helps everything run more smoothly. I’ve got to know individuals’ strong suits and will pair up new people with more experienced people for tasks like serving.” They currently have quite a young team who appreciate changes and improvements, while also being happy to question new things. The five-week system means they are serving one week, weaning one week and farrowing all the time. The Claxtons have changed the normal one-in-two weekends working pattern to one in three weekends for everyone, giving them a better work-life balance, and have found that this has improved the quality and quantity of work completed at the weekends. Matt explained that they want to progress and improve together, so training is important for the whole team. “Everyone needs to develop and be the best they can be, which will also help us achieve more overall,” he said. The team is kept up to date with euthanasia and handling training, with refreshers where needed and the plan is now for more members of the team to go TEAM MOTIVATION Improving the working environment for staff is also a major focus. “We’ve provided a dinner hut with a proper kitchen area and try to reward the team as and when we can,” Emma said. “That might be going home early one day, taking them for a drink on a Friday evening or a bit extra in their wages. “We try to be the bosses we would want PIGWORLD| JULY 2023 |37
PIGWORLD JULY 2023 FEATUE BISHOP BURTON PIG UNIT James Richardson one batch in the autumn of 2021 during the pig crisis. Pigs were too big and here for too long. We weren’t making money from it and the students weren’t getting a benefit. “We were probably doing the pig industry a disservice in just getting students mucking pigs out – how we were keeping them isn’t how you find it in the modern industry.” “We’re re-establishing Bishop Burton College as the place in the UK to come and learn about pig production” NEW PIG UNIT Plans were under way to build a new farrowing unit before James joined, and the project was given the green light to start building the day before the Covid lockdown was announced in March 2020. “The original plan was for 750 sows, and it was utilising the old buildings as dry sow accommodation. I wasn’t entirely happy with reusing these old sheds – I had memories as a student of spending hours forking the same sheds out and we hadn’t moved on!” Not long after he joined, he assumed the roles of farm manager and farm director, which meant taking on this project. “I went back to the drawing board and the economics of the project had changed hugely – I think we saw a 33% rise in the overall cost,” James said. “Instead of having an 750-sow unit, we decided to have a smaller unit and do a better job.” The college decided to refit one of the one of the porphyrin buildings into dry James Richardson, farm manager at Bishop Burton College in Beverley, East Yorkshire, is masterminding a new £1 million pig unit, aiming to help plug the skills shortage in pig farming when it opens this autumn. SIMON KING paid him a visit B to take up new careers in the sector with a major £1 million investment in a pig unit for its students. The development is being masterminded by James Richardson, a former student of the Yorkshire college from 2008 to 2010. After moving home to work on his family’s beef and sheep hill farm in Derbyshire and then working for Dyson Farming as a herdsperson in 2019, he returned to Bishop Burton as farm manager in 2021, overseeing the commercial farm, while working with students and academics to ensure they are learning from the facilities on campus. His passion lies in regenerative farming and achieving zero net carbon, while retaining very high standards of day-to-day operations and animal welfare. “It’s fair to say, we’d gone through a period of decline on the farm,” he said. “We’ve got great infrastructure and some fantastic people and I’m pleased ishop Burton College, which has long been synonymous with the pig industry, is doing its bit to inspire young people to say we’ve turned things around. We’re rebuilding, and part of this is the new pig unit.” When James joined the college, it operated a bed and breakfast pig service for White Rose Farms. “We had 1,500 bacon pigs in four sheds, which were built in the mid 1980s and not in great condition. It was very labour- and straw-intensive and a costly way of doing B&B pigs,” he said. “It just wasn’t working for anyone. I did 38 |JULY 2023| PIGWORLD
JULY 2023 PIGWORLD The new unit, currently under construction, represents a huge £1 million investment James Richardson is hoping the unit will inspire students to look at pig production as a career option go in, from a safety point of view, we can pin the sow to the side of the pen.” A viewing passage has been included and a public access path will be open 24 hours a day, where guests and the public can view the pigs, through double glazed windows, without compromising biosecurity. “Managing biosecurity on an educational pig unit was always going to be a challenge,” James said. “Any staff or visitors will have to go through the shower in, shower off, process, whereas the students coming on, hopefully weekly, will have a slightly different protocol. “They will come into the changing room. We’ll have a dividing bench through the middle of the changing room, and have a clean side and a dirty side. Students will also have to be at least 48 hours pig free before they can come back to the farm.” When up and running, the unit will run a five-week batch farrowing system. “Serving and weaning are going to be our busiest times and, with the batch system and having that rigidity of knowing what’s happening when helps plan the academic year for students,” James explained. In terms of nutrition, they have gone with Gestal electronic sow feeders, two per pen, allowing each sow’s nutrition to be individually managed. “If we want to run any trials, the unit will give us the data. We use a lot of cloud-based apps and we record everything,” he added. sow accommodation, which then dictated how many sows the site could carry, and the size of the farrowing unit – 72 places across two rooms. “I’m proud that what we’re doing is industry leading. We will be at the cutting edge of indoor pig production, which, as a college, is where we need to be,” James said. The college was previously home to the National Pig Training Centre. “It has had such an impact on the pig industry. We’re re-establishing Bishop Burton College as the place in the UK to come and learn about pig production,” James said. The unit will be farrowing only, with piglets leaving the site at weaning to go to a White Rose Farms rearing unit. The project wouldn’t be happening without the support of White Rose, particularly Rick Buckle, another former student, he added. “White Rose Farms will provide the pigs, the veterinary medicines and feed, and we will provide the fixed costs, the labour, the buildings, and everything else that comes with it,” he added. “This will help us manage the commercial risk and being within the White Rose and wider Cranswick system gives us industry links that are so key for further education colleges. We’ve also got to be engaging with the employers that we’re producing students for.” it’s actually high tech and highly skilled – and it’s an incredibly rewarding career. “The shortage of labour has certainly made me sit back and think about what we what we offer as an industry. If we want the best talent to work in agriculture, we need to be competing with the rest of the economy. When you’ve got people doing flexi time and packages that value work/life balance better than we do, we’re going to lose people.” THE PROJECT The unit is close to a £1 million investment and one of the biggest challenges faced at the beginning of 2022 was price inflation and securing the materials. AM Warkup successfully won a retendering process and the unit is using its Freedom Farrowing design. “It’s very similar to the design at Leeds University, with a few tweaks, but we’ve gone for a slightly bigger pen size, without knowing what the minimum pen size is going to be.” They have gone for a 6.5sqm pen in recognition partly of a focus on ‘having the highest standards of welfare’. “We want to give ourselves plenty of room to futureproof it, because in 10 years’ time, we don’t want it to be smaller than the standard,” James said. “AM Warkup’s freedom farrowing pens give us the ability to enclose the sow for however long we need to and, if we need to LOOKING AHEAD The aim is for the first pigs to arrive on November 6. “We will be fully stocked within a matter of weeks, with the support from White Rose Farms,” James said. “Our first farrowing should be in the first week in December.” Once construction is complete, there will be an area available for future development. “I haven’t got funding for that but that’s my hope,” he said. Future options include expanding farrowing capacity, or weaner shed and bacon sheds, to bring the whole process back on-site. “But that’s at least 10 years away,” James added. PLUGGING THE SKILLS SHORTAGE The college has a large number of students, aged 16 to 19, with an interest in working with animals. “The pig unit will be here to help students consider a career in pig farming, which a lot of them wouldn’t have until they come to us,” James said. “I’ve been recruiting staff for my team, and it’s been a real challenge. I think we’ve got to rebrand ourselves, or at least convey what an exciting career farming is and that it isn’t this negative stereotype of working 14-hour days and knee deep in muck, but The college’s new pig unit will be using Warkup flexible farrowing crates, like this one PIGWORLD| JULY 2023 |39
has inevitably led to further discussions about whether there is still a role for NPA as a standalone organisation, or whether it should formally return to becoming part of the NFU. “There is absolutely no question about the future of the NPA,” Lizzie said. “There are people who would like us to return to the NFU, but there’s no appetite for that whatsoever. We currently have the best of both worlds. We retain independence and our credibility, and we have the ability to move swiftly and be quite punchy without worrying about how it impacts other livestock sectors. “We also, currently, have probably the best relationship we’ve ever had with NFU – president Minette Batters and deputy president Tom Bradshaw, in particular, have been hugely supportive of the pig sector.” Lizzie highlighted Defra’s review of contractual relations in the pig sector, which will result in new legislation to underpin pig contracts and deliver more transparency across the supply chain, as an example of what NPA can achieve. “While there is a long way to go yet, this process will, we hope, help bring about a fairer and more sustainable pork supply chain. We have put a huge amount of work into it, much of it unseen behind the scenes, and there is no better example of how we have successfully used our reputation and influence to get a result,” she added. “This has come from the relationship that NPA has with Defra, where we can work with them on certain issues where it is beneficial, like the contractual review and the current escalation of animal rights activity, but also be very critical of the Government where necessary, for example on its African swine fever policy, labour shortages and, recently, animal welfare labelling. “The NPA has kicked up a massive stink behind the scenes and then in public over Defra’s damaging plans for welfare labelling. The consultation was due out in the spring and, while its not gone away, we can certainly say Defra has been forced to think about it very hard.” Another topic where the NPA is treading a fine line is reform of farrowing systems, a process that is already in train in Europe. “We will continue to oppose anything proposed by this Government or the next one that will damage our sector. But we “We are increasing our subs – but we will continue to deliver outstanding value-for-money” Lizzie Wilson As the NPA increases is its subs for the first time in many years, chief executive Lizzie Wilson tells ALISTAIR DRIVER that the association will be working harder than ever to deliver for members membership data and getting a better picture of just who we represent, and also with NPA meetings, gathering and cascading information and, if necessary, dealing with incursions and disease outbreaks,” Lizzie said. “We know there’s never a right time to increase subs and that our members have just been through an incredibly tough period financially. “But we haven’t raised our fees for a very long time, and, over the past year we have lost a significant amount of subscription income due to producers exiting the sector and also sows being absorbed elsewhere, where we don’t recuperate the same fee. “And, like many other businesses, we are also facing increased costs. So, we need to increase our subscriptions in order to maintain the same service to members.” T the first time in many years. But the association will, according to chief executive Lizzie Wilson, continue to ‘deliver tremendous value-for-money’ for all its members as its tight-knit team grapples with the big issues of the day. The NPA board has agreed to a 15% increase in subs for 2024 with the fee subsequently increasing by annual inflation each year. NPA subs are based on breeding and finishing pig numbers, with NFU members receiving a 50% discount. This will continue, but with one significant change – from 2025, agisters or contracted finishers will need to become members in their own right if the owner is a member, too. The primary producer will need to register their contracted sites for a nominal specified fee per site. “This will enable us to have direct contact with the primary producer, which will really help when it comes to integrating he NPA has responded to rising costs and the loss of membership subscription income by raising its subs for FUTURE OF NPA Lizzie took up the chief executive role in August, replacing Zoe Davies, having already worked for the association for 12 years. As the industry looks to recover from its deepest crisis, the Government continues to roll out its post-Brexit farm policies and the sustainability and animal welfare agendas gather pace, the association has continued to operate on numerous fronts since she took over. But the contraction of the pig sector 40 |JULY 2023| PIGWORLD
JULY 2022 PIGWORLD FEATURE NPA INTERVIEW Lizzie highlighted the pig sector’s priorities during the Downing Street Farm to Fork summit in May position on that front. We’ve got a really good story to tell – we just need to back it up with the data, so we can tell it publicly,” she added, stressing that the costs and benefits of any solutions, for example sourcing sustainable soya, must be fairly shared across the supply chain. This was among the points she made at the Downing Street Farm to Fork summit in May. “It was fantastic to be invited to that event and have the opportunity to raise some of the pig sector’s concerns on that platform,” she added. among some members about the NPA’s relationship with the big processors, which are members. “I totally understand why some members are unhappy about it,” Lizzie said. “But the reality is having them as members is both necessary and, I believe, ultimately beneficial. “They’re the biggest pig keepers in this country and the NPA would simply not be viable in subscription terms if they weren’t members. They have to be part of the solution, as well as the problem. “We challenge them strongly when necessary – they will vouch for that. We can also work with them to ensure we move towards a more functional and fairer supply chain in future. It is a fine line to tread, but I think we manage it well and I would 110% push back on any suggestion that we are in their pockets.” have to accept that legislative changes are coming at some point and, as an industry, we need to be ahead of the curve,” Lizzie said. “It is better for us to set our position, rather than have it dictated by NGOs and Government, which is why our Pig Industry Group (PIG) is taking a close look at what is and isn’t acceptable in this area.” Then there is the sustainability agenda. “The pig industry is in a pretty good INDUSTRY OUTLOOK In terms of the current outlook, while it is much more positive, Lizzie stressed that some producers are still ‘really suffering out there’ and predicted there could be further exits, as cull sow prices remain attractive. For those that remain, there is now the chance to make some profits and hopefully undertake some much-needed reinvestment, but, longer-term, the industry needs to move away from the damaging boom-bust cycle. “This will require a change of mindset among producers, as well as processors and retailers,” she said. There is understandably still lingering resentment over the actions of certain players in the supply chain during the crisis, which has fed through to unhappiness NPA CHANGES NPA PIG elections are coming up early next year, with nominations opening in the autumn. “We’ve got a more compact PIG now, which is working well, and we will be reducing numbers further to make it more workable. Bur more than ever, we need people to come forward to support the association,” Lizzie added. She praised the NPA’s small team – Rebecca Veale, Charlie Dewhirst and Andrea Tranter – for their ‘incredibly hard work on behalf of the sector’. The association is currently recruiting for a senior policy adviser to replace Rebecca, who is leaving in August. “There is going to be a lot more coming down the line, especially as the political parties gear up for the next General Election. I can give my absolute assurance to members that the team, backed by PIG, will step up and continue to deliver outstanding value-for-money,” Lizzie said. NPA chairman Rob Mutimer WE NEED THE RESOURCE TO DEAL WITH THE CHALLENGES AHEAD - NPA CHAIR lost a lot of members. “We try to run the association as fleet- footedly as possible, but there comes to a time where we have to invest or the association won’t be able to do the work we do. “There are more NPA chairman Rob Mutimer explained that the board decided to increase subs because wages and other costs have gone up since the last increase, while the big decline in the sow herd means the NPA has challenges coming down the road from all Government departments on top of the really important work we are doing on the contractual practice review, and we need the resource in place to deal with it,” he said. PIGWORLD| JULY 2023 |41
JULY 2023 PIGWORLD FEATURE AHDB LEVY AHDB Pork Sector Council chair Mike Sheldon “We need a significant levy increase to deliver our services in full – but we will listen to levy payers” AHDB is also considering increasing its levy rate to enable it to continue delivering its services in the face of rising costs. Pork Sector Council chair Mike Sheldon tells ALISTAIR DRIVER AHDB will listen to the views of levy payers and others before making its final decision The domestic marketing budget for pork could be under pressure if the levy is not increased, Mr Sheldon said T here will always be a place for a pork levy body in as long as it continues to adapt to a changing world and delivers value for money, according to AHDB pork sector chair Mike Sheldon. AHDB’s four remaining sector bodies - Pork, Beef & Lamb, Cereals & Oilseeds and Dairy – have begun discussions with levy payers and industry stakeholders about increasing levy rates from April 2024, subject to approval by Ministers. The planned rise comes after Pork and Dairy levies have remained unchanged for 20 years and Beef & Lamb and Cereals & Oilseeds rates for 10 years. As a result, the spending power of levy funds over the past decade has been reduced by up to 40% due to inflation and changes to AHDB’s tax status, meaning it can no longer reclaim VAT. Although significant savings have been made, including exceeding a two-year target of reducing costs by £700,000, AHDB said rising costs are continuing to add pressure on sector budgets. AHDB’s divisional director of engagement Will Jackson said a ‘significant step’ needs to be taken to close the 40% gap. “There is never a right time to be recommending a levy increase, but we believe the current economic climate makes the case more urgent with clear, tangible benefits,” he said. AHDB is not yet proposing specific rate increases for the different sectors and Mr Sheldon stressed that the figures ultimately put before Ministers will be determined after discussion with industry. However, in order to deliver the services AHDB wants to provide, he estimates that the pig producer levy would need to rise by 20-30p, which would mean moving from the total levy of 105p, where it has been for the last 20 years, to around 125-135p. “Because the levies haven’t gone up, in effect AHDB and its predecessors have been shrinking for the last 20-25 years,” said Mr Sheldon, who was recently appointed for a further year in his role. “A lot of the money used to go on what the Americans would call ‘extension service’, people giving free consultancy advice to producers. We just don’t need that anymore. The market provides that with independent consultants and there’s data available online and people have got their vets, nutritionists, genetics suppliers and building suppliers. “We also spend a lot less on advertising than we used to and on the in-store type stuff. In some ways, I’m proud of the fact that we’ve remodelled and concentrated our priorities over time without having to raise the levy, but there comes a point where you are in danger of becoming ineffective if we are not careful.” PIGWORLD| JULY 2023 |43
PIGWORLD JULY 2023 FEATURE AHDB LEVY SHAPING THE FUTURE In November, following the Shape the Future Review, AHDB published plans for each of its existing sectors. For pork, these were based around three over-arching priorities – exports, domestic marketing and industry reputation. With a significant decline in levy-funding anticipated due to industry contraction, it was also announced that certain services were to be discontinued, including the Pig Health Scheme and Real Welfare Programme. “We need to deliver the services we set out last year,” Mr Sheldon said. “In terms of scale of levy increase, the 20-30p is what we feel is appropriate, rather than telling levy payers what is going to happen. But in my view, a smaller increase, say 5p, is not going to do it. “But this quite genuinely is going to be a conversation. We need to get levy payers, producers and processors thinking about what they really want for the levy in the long term. It could go in a number of different directions. “Look, it’s not a given that AHDB needs more money. You might argue that, as the industry consolidates, the need for a lot of the stuff we do diminishes. “If the consensus was that people want to see AHDB diminishing in size and only concentrating on a few things, for example export market development or data, that’s what we’ll do and we are quite genuine about that. “Our own view is that AHDB has got a lot to offer and therefore needs to be properly funded. But we have to keep changing as the industry consolidates, which means asking what the industry will look like tomorrow and what we need to do to keep pace with the changing structures. It is imperative that we don’t we don’t just defend the status quo. “When you’re running a budget, some things are easier to cut than others, and spending on domestic marketing is the one that always comes under immediate pressure because that is something you can just switch up or down. But if you keep switching it down, in the end, you pay the price. If we don’t get a significant levy “If the consensus was that people want to see AHDB diminishing in size and only concentrating on a few things, that’s what we’ll do” have been ‘impossible’ to suggest a rise during the two years of the pig crisis. “We are conscious that producers are only just returning to profitability. But in effect, we are asking for a rise in a just under a year’s time. Market conditions are such that, hopefully by then, most producers will have gone quite a long way to repairing their cash balances, making it an appropriate time.” He acknowledged that there is ‘always a bit of grumbling’ about AHDB, something true of all its sectors. It wasn’t long ago that potato and horticulture levy payers voted to end their levies, and the pig levy and the services it delivers continue to come under scrutiny. Asked whether he feared a big levy hike could generate further dissent, Mr Sheldon said: “The reality is you will always have a range of views and a range of volume at which people express those views. “Essentially, we are confident we can demonstrate value for money and show the levy is not a cost, but an investment and that it does generate value for all levy players. Our international market development pays for the levy easily by itself and I could look anybody in the eye who says they can’t afford the levy and say we demonstrate value for money.” He also highlighted the benefits of a compulsory levy compared with a voluntary one that could, in theory, replace it. “The levy is guaranteed and everybody pays, so there are no free loaders, which makes it fair, provided we deliver value for everybody. “We also have access to government resources. The disadvantage, sometimes, is the hoops we have to jump through to make decisions and use funds how we would like to. That can be a pain, but, on balance, I think a universally-funded levy body is great value, if it is well run. He said the Netherlands was ‘bitterly regretting’ shutting their levy body down. “A levy body has its place, provided it keeps asking questions about what it is doing and keeps adapting to a changing industry. I think we are doing a good job.” Mike Sheldon said AHDB’s work in developing pork export markets pays for the levy by itself increase, that could suffer first. “I was really pleased with how the Shape the Future vote worked because we got some genuine feedback about levy payers’ priorities. But the bit I think was under-represented was the challenge of sustainability and demonstrating the pig sector’s credentials. “We know we have some pretty decent credentials, but being able to produce the data to demonstrate that is harder and I think AHDB has a role there. It is not straightforward to work out exactly what that is, but it will require resource.” PROBING QUESTIONS AHDB will present a proposal to go to ministers once it has garnered industry feedback. “It’s all going to take time,” Mr Sheldon said. “We know ministers will make it quite hard and will ask what support we have from levy payers for this and where’s the value?” When Mr Sheldon discussed the potential levy rise at the NPA’s June Pig Industry Group (PIG) meeting, where the NPA’s plans for a rise in its own fees were also discussed, there was general acceptance of the reasons behind the AHDB plan, but a number of probing questions were asked. One PIG member asked why it was being done now, after the new sector plans were unveiled last autumn that included cuts to some popular services. Another asked what extra services levy payers would benefit from as a result of a higher levy and there have been suggestions, inside and outside of PIG, that AHDB is likely to meet plenty of resistance from levy payers, especially if a big hike is proposed. On the timing, Mr Sheldon said it would 44 |JULY 2023| PIGWORLD
INSIDE THE INDUSTRY MOVERS Lee Thompson joins QE’s sales team Lee Thompson has joined pig building and equipment supplier Quality Equipment’s (QE) sales team. Based mainly at QE’s HQ at Woolpit, in Sufolk, he will also be field based. “At QE, it’s all about what we can do for the customer and working together to produce the products they require. This is a fantastic opportunity to work with pig producers on the future of our industry,” said Lee, who is vice-chair of Young NPA and has joined from pig feed business Harbro. A new key account manager for Zoetis Kelly Stamp has joined Zoetis as a new key account manager for Epic combine ride raises awareness of mental health issues in farming A group of four farmers raised more than £70,000 and, more importantly, lots of awareness around mental health issues in farming during an epic combine harvester trek from John Groats to Land’s End in June The drivers, Olly Harrison, John Branson, James Baldini and Martin Williams have all suffered the loss of close friends to suicide and were keen to spread the message that these tragic losses could have been avoided by talking and communication. They navigated the 875- mile trip in a Claas combine harvester, powered by Certas Energy HVO (hydrotreated vegetable oil) fossil-free fuel, carefully avoiding motorways and narrow roads on the way. The trip had raised £73,000 at the time of writing for the Mind mental health charity and Children with Cancer UK, but, speaking at the Cereals 2023 event in Nottinghamshire on an ‘influencers’ stage, Mr Harrison stressed that the priority was to raise awareness that there is no need to suffer in silence. “There is always someone you can speak to and there are excellent farming charities out there to help, if you need it,” he said, urging people within the industry to look out for signs colleagues might be suffering. Lee Thompson Flavian Obiero on stage at Cereals, interviewed by Pig World editor Alistair Driver Obiero and young Welsh sheep farmer Erin McNaught, an NFU Student & Young Farmer Ambassador, who discussed how farming can inspire more young people into the industry from a range of backgrounds. They highlighted the importance of presenting a positive image of agriculture to the wider world, alongside ensuring farming employers provide an attractive working environment and good conditions on farm. the pig business covering the north. Kelly, who joined the pharmaceutical company in June, graduated from Harper AHDB seeks new Pork Sector Council members Kelly Stamp Adams University in 2017 with a First-class Honours in Animal Science, having developed an interest and passion for pigs in her placement year. She then worked as a pig account manager for a national feed compounder for nearly six years. Roadhogs recruits a new general manager Roadhogs Recruitment, the UK’s only specialist pig recruitment company, has appointed Simon Withers as its general manager. His role will be to develop new strategies, champion pig farming and continue to build on the business’s reputation, as it enters a new phase in farming recruitment. Simon’s career includes working for dairy businesses Kingshay and Arla Foods. Liz Barker and Clive Searson continue to be actively involved with Roadhogs. AHDB is seeking new members for its four Sector Councils, including Pork, as well as Beef and Lamb, Cereals and Oilseeds and Dairy Sector Councils. Sector Council Members play a key role in deciding what work should be commissioned for their sector and ensuring effective engagement between levy payers and AHDB Appointments will be for three-year terms from October 2023. The role requires a commitment of up to two days per month per year, including attendance at sector council meetings. Applications close July 14 See: https://careers. ahdb.org.uk/vacancy/ sector-council-members- pork-526141.html He was joined on the platform by Hampshire pig farmer Flavian Olly Harrison and Erin McNaught in front of the combine Pork takes the crown at Coronation celebration events Celebrations for the King’s coronation saw pork products take centre stage, with an increase in sales across all categories. Sales of scotch eggs and sausage rolls increased by 31% and 22% respectively, compared with the average two-week period, while pork pies and cooked sausages were up by 20% and 16%, according to Kantar. Simon Withers PIGWORLD| JULY 2023 |47
MARKET MOVES Tight supplies, decent demand and strong EU market continue to drive pig price MICK’S MARKET UPDATE Pig prices continue to move upwards, supported by tight supplies, reasonable consumer demand and a strong EU market. The SPP continued to edge up during June and should finish the month above 223p/kg, an increase of 20% or 37p/kg compared with a year ago. The APP has been slower to react and in the latest week available, it was slightly below the SPP, which contrasts with a year ago when the APP was around 6p/kg higher. The APP includes non-standard pigs such as outdoor bred, which normally trade at a premium. The shift could reflect more pressure on premium products as consumer spending is under severe pressure. It could also reflect the greater use of cost of production-linked contracts in the outdoor sector, which are being affected by falling spot feed ingredient prices. UK supply continues to be very tight, with slaughtering running at about 150-155k head/week in June, compared with 175-180k head/ week last year. Average carcase weights are also lower, which is restricting supply further. Demand in the UK remains robust, despite the squeeze on consumer incomes. Kantar data published by AHDB shows that in the three months to mid-June, total spending on pork and processed pork products increased by 12%, compared with the same period last year. Total volume sales fell by less than 2%. There is some evidence of trading down, with sausage and mince sales volume increasing, while steaks and roasting joint sales volume fell. The EU market continued to strengthen on the back of very tight supplies. By the end of June, the EU average (Grade E) will be approaching 215p/kg, which will only be about 7p/kg lower than in the UK. Further rises in the EU average price can be expected in the coming weeks. The influential VEZG weekly price in Germany jumped by €7 cents/kg at the end of June to hit the historic level of €2.50/ kg. The MPB auction price in France increased by its maximum permitted level of €5 cents in the same week. This leaves room for further increases in UK prices. Independent analyst Mick Sloyan looks at how recent EU and global trends could shape the UK pork market El Niño is back and could have a profound impact on the global feed ingredient market PHIL’S FEED TRENDS from the three years of drought conditions they had experienced as a result of ‘La Niña’, which is El Niño’s colder counterpart. El Niño can also have wider reaching impacts all over the world – for example thousands of miles away in northern Europe it tends to create colder and drier winter weather, but like uncertainty principles, this doesn’t happen every time. I shall be watching and commenting on the development of El Niño over the coming months and reporting on the impact on global arable production. Should we see a moderate El Niño develop as we head towards the back end of the year, the prospects for bumper South American crops increase and the aspirations for Brazil to produce in excess of 160Mt of soya become more realistic, which should put downward pressure on protein prices. Global weather conditions are very much in the frame for market volatility as we enter the northern hemisphere harvest. The Ukraine situation also continues to have a bearing with the potential/probable withdrawal of Russia from the Grain Corridor deal, which comes to an end on July 17. We have reports from the US National Oceanic and Atmospheric Administration (NOAA), which confirmed that El Niño has officially emerged for the first time in more than four years. This natural phenomenon has wide-ranging impacts on global weather conditions for around nine to 12 months. The statisticians suggest there is a 56% chance of it being strong, and 84% chance of it being at least a moderate event. El Niño occurs when the sea surface temperature in the mid-equatorial Pacific Ocean is warmer than average – sometimes by as much as 2oC – and it appears every two to seven years. It can spark cyclones in the Pacific Ocean, as well as drought conditions in south-east Asia and Australia, and rainfall in the normally arid deserts of the south-western United States. Above average rainfall is also expected in Brazil and Argentina, with the latter pinning hopes on improving soil moisture to recover Phil Baynes, of Baynes Nutrition, sums up the latest from the feed ingredient markets 50| JULY 2023 |PIGWORLD
PRICES JULY 2023 PIGWORLD PRICES AHDB commentary for Weekly Clean Kill AHDB’s estimated GB slaughtering figure for the week ended June 24, at 156,143, was around 5,000 up on the previous three weeks, although it remained more than 18,500 down on last year and more than 13,000 down on 2021. 2022/23 Clean kill 2021/22 Clean kill Carcase weights are slowly coming down. The average fell back slightly to 88.45kg in the SPP sample in the week ended June 24, the fifth weekly decline in a row, and was just 89g below year earlier levels, but more than 2kg above the 2021 average for the week. Straw costs Weekly tribune GB spot bacon vs European mainland Every week, the Weekly Tribune newsletter gathers prices from marketing groups and buyers across Great Britain to record an average spot bacon price. This graph records the average monthly bacon spot price for the past 12 months versus Tribune’s European mainland average. For more information, visit: www.weeklytribune.co.uk BIG SQUARE BALE STRAW Merchants’ ex-farm buying-in prices for the week ending July 2, 2023 Area North-east East Yorks N Midlands E Midlands C Midlands E Counties South-east South South-west South Wales Scotland Barley (£/t) 50 (=) 53 (=) 50 (=) 48 (=) 50 (=) 40 (=) 45 (-5) 50 (=) 52 (=) 55 (=) 50 (-4) Wheat(£/t) 45 (=) 44 (=) 40 (=) 45 (=) 40 (=) 35 (=) 40 (+2) 43 (=) 47 (=) 45 (=) 50 (-4) GB SPOT BACON EUROPEAN MAIN Source: British Hay & Straw Merchants’ Association Futures prices and GB pig feed production WHEAT AND SOYBEAN FUTURES Month LIFFE wheat (£/t) CBOT soybean (£/t) Nov 2023 196.75 Jan 2024 199.55 Mar 2024 202.30 May 2024 205.00 July 2024 208.60 Nov 2024 202.50 Jan 2025 205.50 Mar 2025 208.50 May 2025 211.50 Source: AHDB (June 29, 2023) Market pointer The latest retail figures from Kantar for the 12 weeks to June 11, 2023, showed pigmeat volume down 1.8% but spending up 12% year-on-year. RETAIL PRODUCTION OF PIG FEED IN GB Feed Pig starters & creep feed Link/early grower feed Pig growing feed Pig finishing feed Pig breeding feed Protein concentrates April 2023 (t) 3,100 (-800) 7,000 (-2,400) 20,400 (-3,900) 77,200 (-18,800) 30,600 (-9,000) 200 (-100) 367.34 369.80 368.57 368.21 368.64 350.00 350.79 348.62 346.08 -8.8% +11.9% -1.4% +13.7% +3.6% +18.1% Fresh pork (volume) Fresh pork (value) Bacon (volume) Bacon (value) Sausage (volume) Sausage (value) Source: AHDB Pig feed production was down by 15% for pigs in April 2023 compared with April 2022 TO SPONSOR THE PRICES PAGE call Martin Goult now: 01825 983124 PIGWORLD| JULY 2023 |51