Ulster pig industry has ‘contracted radically’, claims PMB chief (1981)

Pointing out that the pig industry had suffered from unfair subsidised competition which had restricted market price while, at the input end, costs had been artificially inflated, Mr Dilworth suggested a number of remedial actions.

He said: “There is a need for freight assistance, both inwards and outwards, to offset remoteness. The industry needs access to cheaper Third Country sources of feed, or, alternatively, compensation for using dearer community supplies.

“There are social grounds for supporting the industry as well as grounds of equity; without support there will be further contraction and loss of employment which Northern Ireland cannot afford.

“I wonder if either the United Kingdom government or the EEC Commission and Council have given serious thought to the economic and social effects on the future of this province. These effects will be only too evident in 1981 if aid is not forthcoming on the fines suggested.”

Mr Dilworth pointed out that the pig industry in Northern Ireland had “contracted radically” since the entry of the United Kingdom into the EEC.

Previously, pig production had expanded using imported North American grain, the bulk of bacon production being exported to Great Britain.

He explained: “EEC entry, bringing with it Accessional and Monetary Compensatory Amounts, the ending of the Fatstock Guarantee Scheme and the Bacon Market Sharing Understanding and high feeding stuffs costs, had seriously-affected both producer and processor confidence.

“The industry, however, has taken steps to adapt to changed circumstances. There have been rationalisation of farms with fewer, more efficient units. Producers have installed home-mixing equipment to reduce feed costs, have improved quality and have marketed by contract to ensure more regular supply of pigs to factories.”

Mr Dilworth continued: “There had been rationalisation of processing from nine to six slaughtering factories. Factories have invested in the equipment necessary to diversify production and to meet export standards.

“The board is playing a significant part through provision of funds to aid diversification and through market research and direct marketing (eg to Japan) on a centralised basis.”

But nevertheless, the pig industry industry in Northern Ireland was faced with two major difficulties declared Mr Dilworth – depressed market conditions and high feed costs.

He said: “British bacon market requirements have reduced from 650,000 tons in 1971 to less than 500,000 tonnes today. Even now the market is over-supplied with consumer resistance to increased prices consequent upon EEC entry and, more recently, due to general economic recession.

“All indications are that the level of imports to Great Britain, now 59 per cent of the market as against 55 per cent a few years ago and overproduction by other Member States for already well supplied markets will continue.

“Home production (Great Britain and Northern Ireland) has fallen more than imports over the years and census figures show that the fall is continuing and likely to continue in today’s difficult economic condition.”

Mr Dilworth said that all this had left Northern Ireland curers in a precarious situation. A poor market over a period of years; largely due to the effects of MCAs, had meant insufficient profits for re-investment and, in spite of the investments which had taken place, too many factories were below export standard.

Mr Dilworth also highlighted ongoing frustrations at transport costs, he remarked: “In addition, Northern Ireland processors have had to face ever-rising transport costs on product shipped to Great Britain.

“Attempts to develop alternative export markets, hindered by MCAs in the past, are frustrated by virtual dumping by other member states where production is excessive and, indeed, by Third Countries where supplementary levies are applied too often after the damage has been done.

“While the board and local processors have undertaken significant promotional activity to increase pigmeat consumption in Northern Ireland (the lowest per capita consumption in the EEC) and while these efforts have been reasonably successful, they can only nibble at the overall marketing difficulties.”