AN emergency support package of £2 million for Scotland’s independent pig producers has been welcomed by farming leaders, although concerns remain that the funding will not be enough to cover the scale of losses facing the sector.
The Scottish Government has announced financial support for independent producers who have been affected by a sustained gap between the prices they receive for pigs and prevailing market prices.
The scheme will be backdated to March and run until the end of August, with payments calculated using the difference between the price received by producers and 85 per cent of the Standard Pig Price (SPP).
Applications will open on July 15, with the Scottish Government confirming the scheme will be reviewed before any decision is taken on extending support beyond August.
NFU Scotland welcomed the announcement following weeks of lobbying ministers and officials but warned the £2 million package was unlikely to reflect the full scale of the financial pressures facing producers.
The union estimates that, since March, the cumulative impact of the gap between prices paid to independent Scottish producers and the SPP has exceeded £1 million every month.
NFU Scotland president Andrew Connon said: “This announcement follows weeks of intensive lobbying by NFU Scotland.
“We first raised the issue directly with the Cabinet Secretary on June 10 and have worked relentlessly since then with ministers and officials to make the case for urgent financial support for Scotland’s independent pig producers.
“I’m pleased that the Scottish Government has listened and responded.
“However, our initial assessment is that this package is unlikely to reflect the scale of the challenge facing the sector.
“Since March, the cumulative impact of the persistent gap between prices paid and the SPP has exceeded £1 million per month, creating unprecedented strain for independent producers, so it is unlikely to make up for the losses many businesses have already suffered.”
Mr Connon warned that government intervention alone would not solve what NFU Scotland believes are fundamental problems within the pig supply chain.
He said: “The real problem is the persistent gap between the prices Scottish producers receive and the true value of the pigs they produce.
“Until that imbalance is addressed, we’re simply treating the symptoms rather than fixing the cause.”
NFU Scotland said the emergency funding must not become a sticking plaster which allows retailers, processors and others within the supply chain to avoid addressing the underlying issues facing producers.
Mr Connon added: “Scotland’s pig producers need a profitable, sustainable market, not repeated emergency interventions.
“We’ll now work through the detail of the scheme with members while continuing to press government, retailers and processors to tackle the root causes of this crisis.
“The long-term solution is a fairer marketplace that delivers sustainable returns for Scottish pig producers.”
NFU Scotland Pigs Committee chairman Jamie Wyllie also welcomed the funding, particularly for producers experiencing immediate cashflow difficulties.
He said: “We’ve consistently called for financial support to help independent producers through this exceptionally difficult period, so this £2 million package is welcome, particularly for businesses facing immediate cashflow pressures, and we’ll encourage eligible producers to apply once the scheme opens.
“But we remain concerned that the level of support won’t reflect the true scale of the losses many independent producers have experienced.”
Mr Wyllie said sow numbers were already falling and producers were leaving the industry as financial pressures continued.
He added: “While this package will provide welcome relief, our early assessment is that it is unlikely to bridge the losses many businesses have been carrying for months.
“Financial support is important in the short term, but our members ultimately want to earn a fair return from the marketplace, not rely on government intervention.
“That’s where the long-term focus has to remain.”
NFU Scotland said it would continue working with the Scottish Government as the scheme is implemented and reviewed, while stepping up discussions with retailers, processors and policymakers in an effort to secure a fairer and more sustainable future for Scotland’s pig sector.
