In recent years the UK pig industry had faced the classic dilemma — investment was needed to improve returns, but adequate returns were needed to afford investment, David Lee, senior partner of the Agribusiness Centre of Yorkshire Bank told a meeting of pig producers.
“If investment in lowering unit costs, improving health and increasing the efficiency of pig production cannot be justified now, then it would be hard to see when it could be warranted in the future,” according to Lee.
However, he said that with current low interest rates and a weak pound Sterling, the opportunity existed to make investments that were essential to compete with the best of foreign producers.
“Agriculture remains a safe sector in the eyes of banks at a time when there are concerns for some other sectors. Any business with a sound track record should now be looking hard at how and where it should be investing for the future,” he declared.
Farming, he said, had always had its own cycle of boom and recession — but there had been few boom years in recent times, especially for the pig sector.