National Co-Operative Pig Producers Society

Contact: Mr John Ryan

Introduction

The National Co-operative Pig Producers Society Ltd represents the interest of the pig fattening and production co-operatives which account for approximately 10% of the national output.

Its members include the following:

• Dairygold Co-operative Society Ltd
• Glanbia Co-operative Society Ltd
• Glen of Aherlow Pig Producers Co-Operative Society Ltd
• Kerry Co-operative Creameries Ltd
• Lisavaird Co-operative Creamery Ltd
• Maine Valley Pig Co-operative Society Ltd
• Roughty Valley Co-operative Society Ltd

The principle issues which NCPP would like to highlight to the committee are as follows:

Feed Costs

• Irish pigmeat competitiveness is especially affected by the cost of feed due to the fact that the country is less than self sufficient in feed grain and protein and because it is an island which adds to the cost of importation. These facts imply that Irish feed costs are higher than most EU competitors. It is estimated that the cost difference is equivalent to between £15 and £25 per tonne, up to 5p/kg of carcass weight.
• There is a concern that the Agenda 2000 Agreement, which reduces the profitability of Irish cereal production, will reduce the level of feed self-sufficiency thereby increasing the dependence on higher cost imports.

Recommendation: The NCPP recommends that the EU cereal regime should be managed in a manner which takes full recognition of these facts, so that the situation is alleviated. This should include:

• The release of intervention grain stocks in Ireland when appropriate.
• The setting of the set-aside rate and other criteria to ensure an adequate supply of feed grain in Ireland at prices comparable to the rest of the EU.
• The examination of other possible solutions to the feed cost problem.
• NCPP also recommends that increased state funded research in feed and pig production systems should be carried out at a specialist pig production centre.

Environmental and Other Costs.

While the NCPP fully supports the need for adequate environmental standards and controls, it is strongly of the view that these standards should be set taking full account of the cost of meeting them and in particular the comparable standards that the pigmeat sector in other EU Countries must satisfy.

Recommendation: NCPP recommends that there should be significant investment in research to design the optimum system to cater for these more demanding environmental needs.

Skilled Labour Requirements

Pigmeat production requires a pool of qualified labour. Due to expansion in the sector and the turnover of existing staff due to age and retirement, the sector is encountering difficulties in satisfying its labour requirements. These difficulties are also affected by the increased job opportunities elsewhere in the economy.

Recommendation: NCPP recommends that:

• The specialist pig husbandry course in Athenry should be reviewed and promoted to increase the number of participants.
• The source and costs of labour utilised by competitors in the EU should be examined to establish if alternative sources could be made available in Ireland.

Food Safety, Animal Health and Animal Welfare

Consumer needs and demands concerning food safety and animal health and welfare have increased significantly over the past decade. Ireland’s pig health status is at a high level compared with international standards, however, there will be an ongoing need to improve the status in new areas such as salmonella, etc. In addition, new requirements will require investments in animal welfare conditions and integrated food safety systems, such as HACCP plans at farm level.

Recommendation: NCPP recommends that significant funding should be provided in the following areas;

• Research and development of improved animal health and animal welfare systems.
• Development of integrated food safety systems at farm level.
• Development and implementation of marketing programmes to facilitate the marketing of high quality food products.

WTO Agreements

The pigmeat sector operates in the EU with limited levels of support, except for export refunds and the occasional utilisation of aids for private storage. However the last WTO Agreement has increased the level of potential competition from imports.

Recommendation: NCPP recommends that the sectors’ level of border protection should be strongly defended in the next WTO negotiations.

Capital Acquisition Tax

Property prices generally including land, buildings and house values, have increased much more quickly than the general inflation level over the past decades. This development reflects the strength of the economy in general and the low levels of inflation that have pertained in the recent past. As a result the level of allowances provided to family members and relations when inheriting farms and property is insufficient and accordingly the CAT burden is endangering the viability of these family farms and pig production enterprises.

Recommendation: The NCPP recommends that the levels of allowances to be provided against CAT should be increased substantially to remove this threat to the viability of these farms and enterprises.

Conclusion

The weaknesses in the pigmeat market over the past two years have increased the challenges facing the sector. However, the pig production sector in Ireland has developed strongly over the last decade through the implementation of strategic developments in the production, processing and marketing sectors. The sector needs to continue to strengthen its competitive position especially in view of the new challenges it will face in the competitive environment. Accordingly, NCPP recommends that the Agri-Food Strategy for the sector to 2010 should focus it attention on the above areas.

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