The outlook for pork, poultry and egg markets is positive, but producers need clear guidance from the market and the government if they are to have the confidence to invest. And farmers will hopefully gain some of that confidence at the British Pig & Poultry Fair in May, with speakers attending from throughout the supply chain.
Dr Charlotte Evans, account manager at ABN, is chairing the Pig Outlook forum, and predicts that the mood will be cautiously optimistic.
“People will be pleased with some of the commitments we’ve seen from retailers in terms of sourcing British pigmeat,” said Dr Evans. “But there are still a couple of things holding people back from investing.”
One example is changing animal welfare legislation – like potentially phased out farrowing crates, she notes. “Producers are going to be looking to really understand what consumers will pay for and what retailers are wanting from the supply chain before they can have the confidence to invest and grow their businesses.”
It’s a similar story in the poultry meat sector: Chicken remains immensely popular in the UK, but efforts to improve bird welfare and the environment are threatening the nation’s ability to meet consumer demand. Open discussions around the trade-offs between welfare, efficiencies and price – as well as planning policies – are therefore essential if producers are to have the confidence to invest.
“Welfare and sustainability are two areas that are always changing the market,” said Ralph Bishop, poultry nutrition and innovation manager at Premier Nutrition.
“And recent commitments to reduce stocking densities or move to slower growing breeds are causing great concern over our ability to meet demand and compete against imports.”
If farmers must reduce stocking rates, they therefore require more space if they are to produce the same amount of chicken – but planning and environmental restrictions mean this is hugely challenging, said Mr Bishop. “Preference for British chicken is very strong on retail shelves, but the industry is very nervous about imports increasing if we can’t meet demand ourselves.”
The same is true of the egg sector, and producers will be keen to hear the outcome of two recent government consultations, said Gary Ford, head of strategy and producer engagement at the British Free Range Egg Producers Association.
The first, over the proposed ban on colony cages from 2032, is opposed by the British egg sector on the grounds that consumers need an affordable, entry-level choice. “And if there is a ban then there needs to be a reciprocal ban on egg imports from cage systems,” says Mr Ford.
Free-range producers are particularly concerned about the impact on the egg market, he adds. “Free-range is a premium product – if we lose colony eggs, will they still command a premium?”
Clearly, if colony systems are phased out, while consumer demand for eggs continues to grow – at about 5% a year – then more free-range and barn units will be required – or imports will fill the space.
And that’s where the second consultation comes into play, looking at planning policy reform. Although it mostly focused on residential housing, there were questions in the consultation around agricultural development. It recognised the benefits of development for domestic food production, animal welfare and the environment, alongside an ambition to ‘strengthen support for various types of agricultural development and diversification’.
“That is hugely encouraging, and will be beneficial for all farm sectors, not just eggs,” says Mr Ford. “Anyone making planning applications can reference that direction of travel as a measure of support.”
The British Pig and Poultry Fair is free to attend and takes place on May 13-14 at the NEC, Birmingham. For more information and to register for your FREE ticket, click here.
