NPA welcomes big Morrisons price increase and urges other retailers to follow suit
21st Mar 2022 / By Alistair Driver
The NPA has welcomed the move by Morrisons to increase the weekly contribution paid by its processor Woodheads by a massive 30p to 180p/kg.
Other processors were reportedly up 10-15p on Friday and this followed price hikes of 12-16p the previous week.
The NPA has wrote to all the big retailers last week asking them to increase their pig price to at least £2/pig so producers can at least have a chance breaking even.
Most UK pig producers are facing costs of production in excess of the £2/kg mark, as the post-Ukraine wheat price spike pushes feed costs even higher.
NPA chief executive Zoe Davies said the move by Morrisons was 'welcome and a good start'.
"We appreciate their comment about moving closer to paying the cost of production but this must happen as soon as possible.
"The contribution price is only one element of the contract – many are made up of several elements including part SPP, part tribune price and part contribution price, so it isn’t clear yet what the impact will be on both the SPP or for producers supplying Morrisons.
"That said, Morrisons are the first retailer to make such a move since we wrote to all of them just over a week ago, and we expect others to follow suit.
"This is crucial if they wish to secure British pork going forwards as pig farmers are taking decisions on their future in the sector right now, having made losses for the 5th consecutive quarter and being unable to take any more input price rises without a supportive pig price.”