7 February 2022: Declaration under the Agriculture Act 2020 extending the effect of the 11 November 2021 declaration relating to exceptional market conditions in the pigmeat sector
Updated 7 February 2022
Applies to England
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I consider that there continue to be exceptional market conditions in the pigmeat sector which justify extending the availability of the powers referred to in section 21 of the Agriculture Act 2020.
Exceptional market conditions exist as there is a severe disturbance in the market for pigmeat which has had, and continues to have, a significant adverse effect on producers in England in terms of the prices achievable for pigmeat. The grounds for considering that there is a severe disturbance in the market for pigmeat continue to be evidenced by a large backlog of pigs on farms due to reduced processing capacity.
This has been a result of the COVID-19 pandemic (which has also led to the loss of the Chinese market to several processing plants), interruption of CO2 supplies and a shortage of labour, specifically skilled butchers. Pig prices have continued to fall and without intervention could fall further.
Furthermore, an increase in COVID-19 and winter flu outbreaks have reduced overall capacity and limited the ability of processors to reduce the backlog even where more butchers have started to arrive under the Temporary Visa Scheme.
I consider that this disturbance, which I do not consider, in this instance, is related to any structural issues in the domestic pig producer sector requiring a market correction, justifies the continued availability of the powers referred to in section 21 of the Agriculture Act 2020.
The grounds for considering this are the scale of the expected drop in prices, which could fall substantially further and the continued impact of COVID-19, both of which are likely to continue to have significant adverse effects for pig producers.
This further declaration extends the effect of the declaration made on 11 November 2021 under section 20 of the Agriculture Act 2020. The powers under section 21 of the Agriculture Act 2020 will be available for use for 3 months beginning with the day on which this declaration is published unless this declaration is revoked sooner.
Minister Victoria Prentis (on behalf of Secretary of State for Environment, Food and Rural Affairs, George Eustice)