Bank of Ireland: Predicts a recovery in pork prices later in 2022 as current market turmoil and high feed prices create difficult conditions
Bank of Ireland predicts a recovery in pork prices later in 2022 as current market turmoil and high feed prices create difficult conditions
The Bank of Ireland predicts a recovery in pork prices in the second half of 2022 as it has confirmed its support for Irish pig farmers as the industry struggles to tackle the current challenges posed by skyrocketing feed costs and production. The Bank, which has 40,000 agricultural clients and provides over 50% of new loans to the agricultural sector, has met with a number of key industry stakeholders and clients in recent weeks to better understand the challenges it faces. and describe the supports it provides. can offer.
Although many pig farmers have enjoyed strong profitability in recent years, the sector remains particularly exposed to global market conditions and price volatility. In the longer term, the pork industry is well positioned, being a very efficient and productive part of the agro-economy, but given the current cyclical challenges, financial supports will likely be needed in the short term.
The Bank of Ireland estimates it could be the second half of 2022 before pork prices rebound and feed costs return to more “normalized” levels, and now encourages pig farmers to speak to their advisor from the Bank of Ireland. Given existing constraints, many farmers may need additional working capital to ensure business continuity in 2022, with Bank of Ireland’s AgriFlex product also offering interest-only loans for a six-month period. .
Eoin Lowry, Head of Agriculture, Bank of Ireland, said: “While there is no doubt that market conditions are currently very difficult for pig farmers, it is also important to stress that the necessary supports are in place. Existing agreements like the Brexit Impact Loan Scheme, offering borrowing rates of 2.95% to provide working capital over 1 to 6 years, can provide pig farmers with the wiggle room they need to overcome challenges. current market turmoil.
Our view remains that while there are current challenges ahead, it is likely that the market will undertake some form of recovery in the second half of 2022. I think pig farmers should not shy away from s ” engage with us to protect their results. and ensure their businesses are well positioned when the recovery begins. ”
Bank of Ireland Group plc published this content on January 12, 2022 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on January 13, 2022 10:10:03 AM UTC.