This isn't looking good
EU faces bacon shortage as herds fall
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September 20, 2012 10:10 pm
A global shortage of bacon beckons as European farmers continue to cull their pig herds in the face of higher feed prices, an industry association is warning.
Data showing the EU pig herd is declining “at a significant rate” in a trend mirrored around the world means a world shortage of pork and bacon “is now unavoidable”, according to Britain’s National Pig Association.
In the 12 months to June, sow herds have fallen by between 1 and 10 per cent. Poland has seen the steepest drop, down 9.6 per cent, followed by Sweden and Ireland. In the UK the NPA reckons output could fall by as much as 20 per cent, based on surveys of farmers.
The economics of pig farming turned ugly when US droughts caused the price of grain including corn and soya to soar. Retailers have mostly balked at covering the additional costs, leaving many farmers losing money with every pig they sell.
Underlining the reticence of retailers, many of whom are themselves struggling to keep cash-strapped shoppers spending at their tills, just three turned up at a meeting called by George Lyon, Liberal Democrat MEP for Scotland, to discuss sourcing policies in Brussels this week.
Adding to the pressures on the industry is a ban on sow stalls that comes into effect on January 1. The UK alone banned the stalls in 1999, a move the NPA’s general manager Zoe Davies says had a “devastating” impact on the industry as it increased production costs prompting retailers to replace British pork with the cheaper European product.
Ms Davies said it is down to retailers and other users of pork – right down to processors who crumble the meat over pizzas – to ensure they are sourcing compliant pig meat.
“The British Pig Executive has predicted that there could be a 10 per cent fall in pig production across Europe and a price hike for consumers,” Mr Lyon said.
Pig politics and a looming shortage of bacon are also rife in the US, where the livestock and poultry industry has urged federal regulators to suspend a government mandate for ethanol use for the first time as a result of higher feed prices.
A coalition of beef, pork, chicken and dairy producers said the US Renewable Fuel Standard, which requires billions of gallons of corn-based ethanol to be blended with motor fuel, should be waived “in whole or in substantial part” for 12 months.
Mike Sloyan of the British Pig Executive warned at the European summit that a fall of 2 per cent in the number slaughtered next year will cause prices to rise by 10 per cent. The NPA reckons slaughterings could fall by as much as 10 per cent in the second half of next year, implying a doubling in the price of European bacon rashers.