Pig producers in doldrums

Press, 11 October 1985, Page 27

Pig producers in doldrums

By

DAVID LUCAS

Pat and Bronwyn Molloy, of East Eyreton, describe themselves as “reasonably well established” pig farmers, but like all other pig producers they too are suffering from the effects of the cost-price squeeze which is throttling the industry.

“We are at the stage now where pig farming is virtually not worth it,” said Mr Molloy. But the Molloys are locked into the industry and can not move out of pig fanning without losing a lot of money. They are committed to large scale pig production and with the industry in the doldrums Mr Molloy doubts whether there would even be a buyer for their property. Not that the Molloys want to get out of the industry, Pat has ideas of building a computerised sow feeding station which enables individual sows to be automatically fed their necessary rations.

However, these plans are well into the future and will depend on how the industry fares in the next few months. In the meantime the Molloys intend continuing with their present production levels and are waiting for the industry to improve.

“We will wait and see what happens. Because we are reasonably well established we will probably be able to survive another 12 months,” said Mr Molloy. “But the low pigmeat prices and high debt servic-

ing rates are likely to force many good farmers out unless things improve quickly.” .

Mr Molloy, who is president of the Canterbury Pig Breeders’ Association, said morale was low among pig producers and many were living on hope that the industry would improve.

If schedule prices do not rise during October, when demand for pigmeat normally firms with the approach of Christmas, the industry would be in dire straits, said Mr Molloy. Buyer interest and prices tended to decline in the new year, resulting in low prices. “If we don’t get the normal pre-Christmas rush the industry will be in a sad position,” Typical of the flow-on effect of high interest rates through the farming community was the restrictions it would place on pig farmers buying barley feed. Mr Molloy uses about 700 tonnes of barley each year which he buys from local farmers just after harvest and stores in his own silos. But this season, because he could not afford to put money aside regularly in preparation to buy the coming season’s grain supplies, he will be faced with either borrowing money or buying grain on a monthly basis. The high interest rates will probably rule out the Molloys buying the grain in

one hit, so they will be left with the alternative of spreading their purchases throughout the year.

The Molloys run 218 sows and each year fatten about 4000 baconers for slaughter. Their farm is one of the 200 units responsible for producing 70 per cent of New Zealand’s pigmeat. They place emphasis on good feeding and breeding of their pigs and feel this has helped them become well established. They have entered pigs in the Elanco Porker and Baconer Competitions for several years and have rarely failed to finish in the top few placings.

The experience gained in these on-hoof and on-hook contests has taught Pat how to recognise pigs suitable for the market and therefore concentrate on producing these types of pigs. Mr Molloy is disappointed that the schedule does not provide incentive for farmers to produce top quality pigs. Producers are putting more meat on the back end of pigs, which results in top quality hams and are getting bigger eye muscles, but they don’t benefit financially. “Does the market really want these well-hammed ;pigs?” asked Mr Molloy who wants the industry to move towards payment on meat yield. Under the present

schedule, farmers were encouraged to produce pigs with little fat. But producing ultra lean animals was affecting the economics of the industry because they did not attract a worthwhile premium and lean pigs were not good breeders. Evidence was showing up in New Zealand herds that pigs with low bodyfat were difficult to breed from.

The Molloys aim at buying the best quality boars and sows possible to breed their own replacement stock, and attend every major pig sale in New Zealand. Each year they buy six to eight pedigree sows and up to 10 boars. Replacement Large White-Landrace cross sows, bred on the farm, are mated with terminal Duroc or Hampshire boars, also home bred, to produce fattening stock.

The Molloys have been using Duroc boars since they were introduced to New Zealand about five years ago and are happy with the results. Two Hampshire boars have been used for the last two years and while growth rates up to the porker stage compare favourably with those for Durocs the rate tends to slow down as the pigs get heavier.

The Molloys have built their unit up from a 60-sow farm which contained only a small, old farrowing shed and a hayshed when they purchased it 13 years ago. Before buying the property, Pat Molloy had been made redundant from his job as a foreman at the Wellington freezing works. All pigs in the first couple of years were fattened outside and Pat Molloy operated a garbage round six days a week collecting food scraps from hotels, restaurants and supermarkets in Christchurch. About four tonnes of scraps were collected daily. Pat was joined by a brother, Peter, after nine months and the partnership progressed steadily for the next five to six years as the pig industry experienced good times. They built a fattening shed which reduced fattening times from eight or nine months outside down to six months and less.

The industry went through a bad patch in the late 1970 s but the Molloys decided to continue expanding and were able to buy sows for prices as low as $5. They built numbers up to 220 sows, most of which were farrowed outside on lucerne, until a farrowing shed was built in 1980.