The Brtish pig industry lobbying body BPEX has reported that producers in the country are losing confidence about the future. According to the results of the group’s annual Confidence Survey, producers are anxious over continued profitability and price volatility, which BPEX said is deterring them from making investments in their businesses.  

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The survey was sent out across the supply chain, covering 630 producers, processors, vets, retailers and civil servants. It is used to develop a picture of industry confidence, based on attitudes towards capital investment and perceptions of relative competitiveness with EU businesses from respondents.

Producers have expressed uncertainty over volatility in the past year and this is preventing them from making investments beyond merely making replacements or increasing efficiency. However, more respondents said they felt their business would become more competitive in 2012.

Responding to the survey’s findings, BPEX Head of Communications Andrew Knowles said, "The industry has been going through a difficult time, producers are continuing to tread water waiting for evidence from supply chain partners of stability and direction which will give them the confidence to invest for the future and grow their businesses.

"It is good to see the overall view is the competitive outlook is more optimistic which is probably tied in to the forthcoming EU partial ban on stalls which will go some way towards creating a more level playing field for the UK and its major European competitors."

Nevertheless, figures released by the European Union last month forecast a 1.1 per cent fall in meat production in the block, with further contraction next year. The Commission’s statistics body said that the fall would be in response to reduced consumption of all meats save for poultry.

The report said the pig sector would be hit especially hard as falling profitability and rising input costs may make continued production untenable for some producers in the bloc.

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