The rise in cereal prices is threatening 25% of the pig farms in Catalonia

Girona (CNA) .- The increase in the price of cereals in 2010 is endangering the viability of 25% of the pig farms in Catalonia. The agricultural union JARC denounces the fact that since the beginning of the year the increase in forage has meant that farmers have lost between 13 and 15 euros for every pig sent to the slaughterhouse. The union stressed that the situation was already bad, as in the past four years the sector has recorded a global loss of 312 million euros. Currently, in Catalonia there are more than 6,400 pig farms. 70 per cent of them are involved in the fattening of animals destined for slaughtering.

According to the latest census, in the Girona Province, there are 1,114 pig farms in the surrounding areas of which 745 are used for fattening. The agricultural union JARC has warned that this situation may change within the next four years if economic problems continue to face the sector. 

The rising price of cereals was recorded as the biggest concern of farmers in 2010. For example, the price of a ton of barley has risen by 76% and now costs €240. Other cereals like oats and corn have followed this trend with increases ranging from 45 to 60%.

The rise in cereal prices, which is linked also to the increased cost of diesel, means that farmers can have no impact on the costs of production of the selling price of meat. In fact, the industry closed 2010 with no profits whatsoever and began 2011 with losses.

"Since early January, for every pig we slaughter, we are losing between 13 and 15 euros," explains the head of the pork sector of JARC in Girona, Adrià Boada. The spokesman for the union warns that this situation may last for at least a half a year, seriously compromising the viability of farms, especially family farms.

'We estimate that if the situation does not improve over the next four years, 25 percent of pig farms in Catalonia will be unable to deal with losses and will have to close", says Boada. To illustrate the situation, the union has put numbers on the table. According to their calculations, in the last four years, the sector has recorded a global loss of 312 million euros in Catalonia. “For some time, producers can survive on bank loans”, says Adrian Boada, “but if the situation continues to lose profit, many farmers will not be able to survive.

Raise the price of pork

The spokesman for JARC has said there is only one solution to improve the situation- raise the pork price set at Mercolleida, the reference market for pork meat in Catalonia. However, Boada already explained that this is complicated because the slaughterhouses are in control of the market and they are not interested in raising prices.

“The biggest problem we face is that we cannot have any impact on the production costs of selling prices”, said the spokesman for the pig sector of JARC. The union exemplifies the current situation by referring to historical prices at the market. In 1966, the price of a kilo of pork was 0.42 euros, but almost 50 years later, it fluctuates around 1.03 euros.