Pig producers have warned that severe disruption across the UK pork market is forcing farms to cut herd sizes and could push more businesses out of the sector altogether.

Eight independent producers raised their concerns directly with Agricultural Supply Chain Adjudicator Richard Thompson at a National Pig Association roundtable attended by Defra officials last week.

All eight had been given notice on at least part of their pig contracts by processors, with one producer already deciding to leave the industry and others reducing herd numbers in response.

The NPA estimates that when many of the contract terminations begin taking effect from October, an additional 10,000 to 15,000 pigs a week could enter the market without a contracted buyer.

Producers also told the meeting that some were already receiving prices significantly below the headline industry averages, leaving them facing substantial financial losses.

The latest warnings follow a wave of contract notices issued by some of Britain’s biggest pork processors over the summer.

An earlier NPA survey found that almost half of respondents had received notice on contracts covering anywhere from 15 per cent to 100 per cent of their herds.

The survey identified Cranswick, Pilgrim’s Europe, Sofina Foods and Morrisons manufacturing arm Myton Food Group among the processors that had served notices to producers.

Most of the contract reductions are expected to take effect during October and November, raising concerns over a surge in pigs seeking buyers during the autumn and winter.

The NPA warned the disruption could accelerate a further contraction in Britain’s independent pig farming sector only a few years after the industry’s previous downturn.

Its survey found 14 per cent of respondents were considering leaving pig production altogether, while 20 per cent were considering or had already reduced the number of pigs they keep.

Around 12 per cent expected to turn to the spot market after losing contracted outlets.

Concerns have also been raised about the implementation of the new Fair Dealing Obligations for pigs, which came fully into force on 13 August.

The regulations require pig contracts to be in writing and are designed to introduce greater transparency and fairness into relationships between producers and buyers.

However, producers at the roundtable raised concerns over lengthy negotiations, poor communication and what they described as complex and unattractive new contracts.

Some said they felt they had little choice but to accept the terms being offered because of the lack of alternative buyers in the current market.

Before the rules took effect, only six per cent of respondents to the NPA’s July survey said they already had a contract that complied with the new requirements.

Nearly two-thirds said they knew about the regulations but did not yet have a compliant agreement in place.

NPA chief executive Lizzie Wilson said the meeting had demonstrated the seriousness of the pressures facing independent producers and allowed farmers to raise their concerns directly with the adjudicator.

The organisation is calling for support for the sector as producers contend with the loss of contracted outlets and uncertainty over future demand.

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