Pay ‘fair price’ or risk losing supply base: Pig farmers to Tesco

Supermarket giant Tesco is under fire over its failure to support crisis-hit British pig farmers, after Waitrose extended a £16 million lifeline to help suppliers manage the jump in production costs caused by Russia’s war on Ukraine.

In an open letter to Tesco chief executive Ken Murphy, the National Pig Association (NPA) said the retailer risked losing its British supply base if it did not pay a “fair price” for its pork.

National Pig Association survey data suggests there are still 100,000 pigs stuck on farms that should have gone to slaughter and farmers are losing in excess of £50 per pig due to the enormous gap between their cost of production and the price the supply chain is paying for pork. 

The letter mentioned that 80 percent of pig farmers surveyed indicated that they will not survive the next 12 months if things don’t improve and by 2023 British pork will be in such short supply that most retailers will no longer be able to source it. 

“Tesco is in a unique position to help because of its UK market share and volume of pork sales.

Highlighting that Co-op, M&S, ALDI, ASDA, Morrisons, Sainsbury’s and Waitrose have already begun to support their suppliers with many paying more for British pork through their dedicated supply chains, NPA’s chair Rob Mutimer demanded for a “modest investment by Tesco”, which will not only prevent the destruction of the sector, it will mean that British pork will still be available at a price affordable to your customers. 

“Paying a little more today is likely to save you money in the long term,” said Mutimer in the letter. 

“A similar commitment from Tesco would make an enormous difference to the many farmers that supply you,” the letter said.

Mutimer’s letter came the day Waitrose announced a £16 million support package to help beleaguered British pig farmers, saying it will cover the full cost of rearing and producing pigs – including labour, feed and fuels – in a move it hopes will offer its farmer suppliers financial security.

Announcing the retailer’s support package, Waitrose executive director James Bailey said: “Farmers are the backbone of Britain, keeping food on our tables during our country’s hour of need through a pandemic. But now, they need our help.

“This investment is a direct response to some of the most challenging conditions the pig sector has ever faced.

NFU president Minette Batters welcomed the funding package by Waitrose saying that many farmers were leaving the sector because they can’t afford to keep their businesses afloat.

“We need all supermarkets to take similar action and create support packages that will genuinely come to the aid of British pig farmers in their hour of need – the rapid rise in farm costs need to be met or we risk supply into next year,” reports quoted Batters as saying.