BMPA urges Defra to account for pork supply chain complexities

Launched on 15th July, Defra’s pork supply chain consultation is a response to the increasing challenges farmers have been facing in the pig sector. Rising production costs continue to force more producers out of the industry and many are considering leaving the sector despite rising meat prices.

Recent years have also seen an oversupply of pigs arise on farms due to rapidly declining export demand by China. The Covid-19 pandemic and a lack of skilled butchers in processing plants also contributed to the substantial backlog on pig farms.

The consultation aims to improve fairness and transparency within the pork supply chain by gathering information about supply arrangements and exploring the relationships between the various parties in the sector. All stakeholders, including farmers, abattoirs, meat processors, and retailers across the UK are encouraged to share their views on various issues of the pig supply chain.

In a letter to the new Defra secretary Ranil Jayawardena, National Pig Association (NPA) chairman Rob Mutimer said the review is a “once in a generation opportunity” to restore the British pig industry to its former glory. Former farming minister Victoria Prentis previously said the review could eventually lead to new legislation governing relations in the supply chain.

“Unique perspective”

While the BMPA welcomed Defra’s initiative to improve conditions within the pig sector, it said the consultation will leave Defra with insufficient information on which to base legislation changes. The association is concerned that by not looking at the full picture, well-intended changes to the system could make the situation worse for farmers.

Since most meat sold in the UK passes through one of their plants, BMPA members are at the centre of the British meat processing industry.

Nick Allen, CEO of the BMPA, argued members have a unique perspective on the commercial forces that make up the pork supply chain and can speak with some authority on how the market operates.

“We think this warrants a more comprehensive treatment than the current consultation allows for, so we are asking Defra to consult with us separately and in more detail so we can help build the complete picture that will allow them to make fully informed decisions,” he said.

Key concerns

The BMPA has outlined its concerns in a recently published report that also highlights the complexities of the pork industry. It explains that pork producers sell to both UK and overseas markets, which, combined with the fact that 60% of meat consumed nationally is imported, creates a system that is complicated and difficult to trace.

Since the consultation’s 47 questions don’t cover this complexity, the BMPA feels Defra should look more widely in its investigation. Most of the questions focus mainly on the relations between producers and processors, except for question 23 that asks for ‘views on any other issues or suggestions regarding the pig supply chain’.

The BMPA report also highlights three factors that heavily influence the dynamics of the pig market at present: the pig life cycle, labour shortage, and the Chinese market. Moreover, it draws attention to how changes made in one area of the supply chain can have a major impact on another.

Responding to the BMPA’s report, a Defra spokesperson said: “Our UK-wide review of supply chain fairness in the pig sector covers a range of issues that were identified as of concern to the industry, with the main focus on supply arrangements between farmers and their customers.

“We encourage anyone involved in the wider pig supply chain to respond to the consultation. We are open to engaging further with any external partners, including the British Meat Processors Association, to discuss feedback in further detail.”

Defra explained that the reason the consultation focuses mainly on supply arrangements is that the effects of the recent crisis on farmers were exacerbated by a lack of contractual protection. However, Defra said it is open to further discussions about the review with any stakeholders.

Defra’s review of the pork supply chain is open to respondents until 7^th October. A government summary of responses outlining the findings of the consultation will be published in early 2023.

Farmers and stakeholders with an interest in the pig sector can respond to the review here: https://consult.defra.gov.uk/supply-chain-fairness/contractual-practice-in-the-uk-pig-sector/