# Struggling British pig industry calls for Tesco to step-up
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-05-05
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: British Pig Industry Urges Tesco to Support Struggling
Meta Description: The National Pig Association warns Tesco to take action and pay a fair price to prevent the destruction of the UK pig sector amid soaring production costs.
URL: https://financedigest.com/struggling-british-pig-industry-calls-for-tesco-to-step-uphtml

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LONDON (Reuters) – The trade body for Britain’s pig industry on Thursday told Tesco, the country’s biggest supermarket group, it needs to do more to support struggling [producers](https://www.financedigest.com/british-pm-sunak-revives-talks-for-arms-london-ipo-ft-2.html) or risk losing its UK pork supply base. In an open letter to [Tesco](https://www.financedigest.com/tesco-wins-appeal-in-trademark-fight-with-lidl-in-uk-court.html) Chief Executive Ken Murphy, the chairman of the National Pig Association (NPA), Rob Mutimer, said the retailer, given its scale, was uniquely positioned to act to prevent the “destruction of the UK pig sector”. Mutimer said UK pork producers were currently facing unprecedented losses as costs of production soar due to record pig feed prices on the back of higher wheat prices caused by the war in Ukraine.

He noted it currently costs 203 pence to 216 pence per kg to produce a pig, but average pig prices remain below 170 pence a kg, meaning many producers are losing tens of [thousands of pounds each week](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News"). He said Tesco’s smaller rivals – Sainsbury’s, Asda, Morrisons, Aldi, the Co-op, Marks & Spencer and Waitrose – were [paying their suppliers more for British](https://www.financedigest.com/thousands-of-british-postal-workers-walk-out-over-pay.html "Thousands of British postal workers walk out over pay") pork. However, he said Tesco, which has a an over 27% [share of Britain’s grocery market](https://www.financedigest.com/power-generation-sector-to-remain-largest-end-user-of-industrial-engines-persistence-market-research.html "Double Acting Hydraulic Cylinders to Hold Close to 50% Market Share: Persistence Market Research"), was yet to respond. “Unless action is taken now and a fair price is paid, there will not be a domestic pig [industry left to service](https://www.financedigest.com/matching-digital-adoption-with-cybersecurity-in-the-financial-services-industry.html "Matching digital adoption with cybersecurity in the financial services industry") the demands of your shoppers,” Mutimer told Murphy.

In response, Tesco said it sourced significant levels of British pork, and had [increased its volumes by around](https://www.financedigest.com/polyimide-fibers-market-is-expected-to-increase-at-a-healthy-cagr-of-around-5-over-the-forecast-period-of-2021-2031.html "Polyimide Fibers Market is expected to increase at a healthy CAGR of around 5% over the forecast period of 2021-2031") a quarter in the last two years.

To further [support the British pork industry](https://www.financedigest.com/5-ways-the-fs-industry-can-support-the-recovery.html "5 ways the FS industry can support the recovery") during these challenging times, we have moved even more of our range from EU supply to British farmers and have run additional promotions,” said a Tesco spokesperson.

We are continually looking at ways we can source more [British](https://www.financedigest.com/uk-retail-sales-rise-by-0-8-in-october-ons.html) pork, along with working with our suppliers to respond to current [industry challenges.”](https://www.financedigest.com/cup-holder-market-emerging-industries-challenges-and-threats-faced-by-key-vendors-and-global-business-outlook-till-2031.html "Cup Holder Market Emerging industries, Challenges and Threats Faced by Key Vendors and Global Business Outlook till 2031")

Last month, Tesco reported a 36% jump in profit for 2021-22 but warned of a drop in [profits this financial year as surging inflation](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins") piles pressure on the supermarket group and its customers alike.

(Reporting by James Davey; Editing by Marguerita Choy)


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