2020 STRATEGY – PIGMEAT SECTOR
April, 2010
2020 STRATEGY – Irish Pigmeat Sector
The Irish Association of Pigmeat Processors (IAPP) is the IBEC group that represents the primary pigmeat
processing sector in Ireland. Its members are principally involved in slaughtering, cutting and some
further processing and collectively, IAPP members account for approx. 85% of total pig slaughtering in
Ireland. In addition to supplying domestic demand, IAPP member companies have a major export focus
and serve markets throughout the EU and internationally.
Growth Potential in the Irish Pig Meat Sector
The IAPP fully endorses the growth potential set out in the Pig Industry Development Strategy and the
Interim Report of the Strategy Steering Group presented to the Minister for Agriculture in January, 2010.
This has already been brought to the attention of the 2020 Strategy Group and should, we believe, form
a central part of the 2020 Strategy for the Pig Meat Sector.
The Pig Industry Development Strategy – Interim Report – sets out a growth potential for the pig
industry of 50% by 2015, from an annual output of 3.2 million pigs to 4.8 million. This is achievable
through a combination of increased productivity (21.5 to 24 pigs/sow/annum) and an increase in the
National sow herd from 150,000 to 200,000 sows. This would grow the Pig Meat Sector to a €1.7 billion
business, generating significant additional export earnings and delivering in the region of 1,500
additional direct jobs to the economy.
The IAPP believes that with a National programme of continuous improvement in pig productivity,
underpinned by appropriate technical support and research, National output can continue to grow
beyond 2015 and reach 5.0 million pigs by 2020. A further growth in sow numbers by 10,000 sows by
2020 would bring National annual output to 5.2 million pigs. This represents a growth potential for the
Pig Sector of almost 65% by 2020.
The Irish Pigmeat Sector by 2020
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65% growth potential
National output to reach 5.2 million pigs
2,000 additional direct jobs
Pigmeat exports to grow by 150,000 tonnes
Submission by the Irish Association of Pigmeat Processors
2020 STRATEGY – PIGMEAT SECTOR
April, 2010
Key Enablers to Growth - Recommendations
In additional to the recommendations set out in the Interim Report of the Pig Industry Strategy Steering
Group (January, 2010), the IAPP would like to emphasise the following recommendations which it sees as
essential to the realisation of the growth potential of the Pig meat Sector.
Production Level:
1. The growth in herd productivity will require a revitalised approach to knowledge transfer and
technical support to producers. This requires an appropriately funded Teagasc programme for
the Pig Sector covering training, research, technical advice and benchmarking.
2. The growth in sow numbers will require the establishment of practical guidelines / planning
criteria for the development of pig production units. There is a need for coordination between
the various Government departments, Agencies and Local Authorities.
3. Ireland must achieve a ‘white list’ status on animal disease. This will have a four-fold benefit in
terms of improved herd productivity, enhanced food safety, better processing efficiency and
greater international market access.
4. To underpin our competitiveness, Ireland must adopt a favourable position on the use of GM
feed ingredients.
Processing Capabilities:
Currently, the primary processing sector is operating below capacity, at approx. 75% of capabilities.
Realisation of the growth potential in pig output will result in the full utilisation of existing capacity and a
need to expand at processing level. Currently, weekly slaughterings are on average 50,000 head. Based
on the growth potential outlined above, weekly slaughtering could increase to 80,000 head by 2015.
It is clear however, that without a significant realignment of our processing competitiveness, compared
to that of our nearest competitors, much of the increased output potential outlined above, will not be
transformed into value-added meat exports. Cost of processing in Ireland is dangerously out of line with
that of our competitors. This must be addressed if processing activity is to develop in Ireland.
5. A Capital Investment Programme will be required to assist the development of processing
infrastructure that will facilitate the growth in National pig output and pigmeat exports.
Capacity and efficiency growth are required.
6. Business costs must be reduced and brought back into line with those of our competitors. At
processing level the key targets are labour, energy and waste.
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In general, our processing costs are 40% greater than those of NI/GB and other EU
competitors.
Higher labour costs, followed by energy cost are the major factors undermining
competitiveness.
Submission by the Irish Association of Pigmeat Processors
2020 STRATEGY – PIGMEAT SECTOR
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April, 2010
Ireland has the fourth highest industrial electricity price of the EU-27 and is 35% more
expensive than the Euro zone average – National Competitiveness Council, October 2009.
7. Service contract/charter needs to be established between Competent Authorities and Processing
Industry and meat inspection service needs to be aligned to charter. A modernisation of the
meat inspection service is necessary.
8. Regulation must be evidence based and its introduction based on comprehensive regulatory
impact assessment. Enforcement of regulation must be based on consistent interpretation and
equivalent to that in competing member states. To formalise this and assess the efficiency of the
regulatory system, regulatory costs should be benchmarked against competitors.
Marketplace:
The output growth in the Pig Sector will largely be translated into export growth. While increased
production levels will allow the domestic Industry to replace current levels of loin (and leg manufacturing
meat) imports, export markets and in particular international markets, will be the principal focus for
growth in the Sector.
9. A significant additional investment is necessary in the marketing and promotion of Irish Pig meat,
particularly in the next 3-5 years, to ensure full market recovery following the pig meat recall,
and to facilitate the maintenance of market returns during the period of production increase.
10. The Market Access Group operated by DAFF should be given increased resources, to assist in the
more rapid resolution of outstanding issues hindering access to key international markets e.g.
China, in the first instance, but also moving rapidly on with other key target markets.
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Dedicated Veterinary and administrative personnel will need to be engaged to enable this
process to succeed, and put us on an equal footing with our international competitors
One crucial area of work will be reducing significantly the length of time taken for approval
of plants to supply newly opened and re-opened markets.
11. The Bord Bia Quality Assurance Mark should be promoted strongly on the Irish market, with a
view to increasing its presence on retailer shelves and increasing consumer loyalty. For the
integrity of the Q-mark, confusion associated with the use of the mark on products from ROI pigs
slaughtered outside the ROI, must be removed.
12. The Department of Agriculture, Fisheries and Food must take a more active role coordinating
work of the agencies with responsibility for food labelling in order to promote more effective
labelling regulations.
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Submission by the Irish Association of Pigmeat Processors
2020 STRATEGY – PIGMEAT SECTOR
April, 2010
Implementation:
Development of the Irish Pigmeat Sector, and the wider Food Industry, is dependent on a cohesive
approach (between Industry, the various relevant Government Departments and State Agencies) at
National level. Currently, there is insufficient coordination. This must be addressed.
The IAPP supports calls for a Clearing-House mechanism, led by the Department of An Taoiseach and
coordinating the activities of DAFF, DETI, Enterprise Ireland, Bord Bia, EPA, etc. to oversee the
implementation of the recommendations of the 2020 Strategy.
The 2020 Strategy must endorse an implementation mechanism and must set down measurement
criteria so that progress on delivery can be monitored.
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Submission by the Irish Association of Pigmeat Processors