NFU Scotland has welcomed the Scottish Government's decision to provide a £2 million emergency financial support package for independent pig producers, but has warned that the package is unlikely to go far enough to address the financial pressures facing the sector.
The support, which will be backdated to March and run until the end of August, is based on the difference between the price producers have received and 85% of the Standard Pig Price (SPP).
Applications will open on 15 July and the Scottish Government has confirmed the scheme will be reviewed ahead of any extension beyond August.
NFU Scotland President Andrew Connon said:
"This announcement follows weeks of intensive lobbying by NFU Scotland. We first raised the issue directly with the Cabinet Secretary on 10 June and have worked relentlessly since then with Ministers and officials to make the case for urgent financial support for Scotland's independent pig producers. I'm pleased that the Scottish Government has listened and responded.
"However, our initial assessment is that this package is unlikely to reflect the scale of the challenge facing the sector. Since March, the cumulative impact of the persistent gap between prices paid and the SPP has exceeded £1 million per month, creating unprecedented strain for independent producers, so it is unlikely to make up for the losses many businesses have already suffered.
"We've been clear throughout that emergency financial support was needed to help businesses through this crisis. But it cannot be the end of the conversation. The real problem is the persistent gap between the prices Scottish producers receive and the true value of the pigs they produce. Until that imbalance is addressed, we're simply treating the symptoms rather than fixing the cause "
Mr Connon said the announcement reinforced the need for greater fairness and transparency throughout the supply chain.
"This cannot become a sticking plaster that allows others in the supply chain to avoid tackling the underlying issues. Scotland's pig producers need a profitable, sustainable market, not repeated emergency interventions.
“We'll now work through the detail of the scheme with members while continuing to press government, retailers and processors to tackle the root causes of this crisis. We've already written to retailers and processors because financial support can only ever provide short-term relief. The long-term solution is a fairer marketplace that delivers sustainable returns for Scottish pig producers."
NFU Scotland's Pigs Committee Chair, Jamie Wyllie, said:
"We've consistently called for financial support to help independent producers through this exceptionally difficult period, so this £2 million package is welcome, particularly for businesses facing immediate cashflow pressures, and we'll encourage eligible producers to apply once the scheme opens.
“But we remain concerned that the level of support won't reflect the true scale of the losses many independent producers have experienced. The Scottish Government has recognised the severity of the situation, with sow numbers already falling and producers leaving the industry. While this package will provide welcome relief, our early assessment is that it is unlikely to bridge the losses many businesses have been carrying for months.
"Financial support is important in the short term, but our members ultimately want to earn a fair return from the marketplace, not rely on government intervention. That's where the long-term focus has to remain."
NFU Scotland said securing emergency financial support for independent pig producers had been its immediate priority over recent weeks, following sustained engagement with the Scottish Government. The Union said it would now continue working with the Government as the scheme is implemented and reviewed, while intensifying discussions with retailers, processors and policymakers to secure a fairer, more resilient and profitable future for Scotland's pig sector.
ENDS
Notes to editors:
- A photograph of Andrew Connon is attached
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