Morrisons has served notice to several pig producers over “challenging economic climate”.
Suppliers feeding into the Morrisons-owned abattoir Woodheads, in Lincolnshire, and at least one “very large supplier”, have been served notice, while others have been told their numbers will be cut, the National Pig Association said.
Morrisons’ manufacturing arm Myton Food Group said it was “consolidating its processing volumes and as a result has made the difficult decision to reduce the number of pig producers in the supply chain”.
Pig prices have fallen since the autumn due to imbalances between supply and demand, and low pig prices in the European Union have compounded the pressure, according to the NPA.
“We understand the impact this news has on individual farming businesses, and our goal is to handle these exits with as much clarity and fairness as possible,” said the Myton Food Group spokesperson.
The NPA warned that as a result of excess supply, driven by a combination of additional sows being put down last year and good autumn breeding and growing performance, versus stagnant demand and factory stoppages, pig numbers were backing up on farms.
It comes after the new Fair Dealing Obligations (Pigs) Regulations became law in August. The legislation will require new pig purchase contracts from August 2026 to be in writing, signed, and include defined terms on pricing, duration, volumes, termination and dispute resolution.
“The onus is on processors to ensure they are compliant on all contracts by mid-August,” said NPA chief executive Lizzie Wilson. “Whilst we appreciate the very difficult market conditions currently, if this has not been discussed yet with your customers, we encourage you to start raising it now.”
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