Other than the obvious supply and demand issues that cause cyclical pig prices what areas outside of that will have a fiscal influence over pig industry profitability as we move through Q3 into 2024 based on current industry trends.
1. Brexit Impact: By 2024, the UK will have been operating outside the European Union for a few years. The impact of Brexit on the pig industry could be clearer, with potential changes in trade agreements, tariffs, and regulations affecting both imports and exports. The industry will have to adjust to new trade relationships and market dynamics.
2. Disease Management: Disease outbreaks, such as African swine fever or other pig-related illnesses, can significantly impact the pig industry. By 2024, the UK will to have implemented robust disease management strategies to prevent and control such outbreaks, ensuring the health and safety of pig populations.
3. Sustainability and Animal Welfare: Consumer demand for sustainable and ethically produced food continues to grow. The UK pig industry should have made advancements in sustainable farming practices, including reducing environmental impact, improving animal welfare standards, and adopting more transparent supply chains.
4. Technology Adoption: The pig industry will have to embraced technological advancements to enhance productivity, efficiency, and animal health. This could include the use of precision farming techniques, data analytics, and automation to optimize pig rearing processes.
5. Market Demand and Price Stability: The demand for pork products will continue to be influenced by changing consumer preferences, dietary trends, and economic factors. By 2024, the UK pig industry will have to have adapted to these shifts to ensure a stable market and competitive price structure.
It’s important to note that these reflections are speculative and objective and subject to change based on various factors. However it is clear that supply and demand is not the only driver of profitability in the UK pig sector and investment in key areas will be crucial to the long term viability of the industry. Peregrine Asset Finance remain committed to funding the investment needed by UK pig farmers.