Karro chief executive Steve Ellis has warned that a ‘flood’ of EU pork at lower prices is putting too much of a gap between domestic and continental produce.

In an interview with Pig World, Mr Ellis went on to warn that more British pork must be sold or domestic prices will have to drop. Karro has already dropped its contribution price by 5p, which puts the typical price paid by the big processors at between 175 and 190p, according to industry consultant Peter Crichton. Mr Ellis said the pig price has been supported ‘over and above the market level’ by processors and retailers for a number of months now.

However the German market remained firm this week, which combined with the weakening pound has pushed their price to £1.90/kg before transport costs, making imported pork less attractive to retailers. AHDB prices show 7kg weaners remain at last week’s £46-£48 average.

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Managing director of Scottish Pig Producers, Andy McGowan, said: "We are dismayed by this short-sighted move from Karro to reduce their price. After two years of heavy losses, the pig price hasn't even reached break-even yet so producer confidence remains extremely fragile.

"We agree that price rises need to be shared more equitably by retailers, but the UK pig herd has contracted by nearly 20% already and if processors don't want their factories half full next year, they need to continue to support farmers now. The devaluation of sterling has made Scottish and UK pigmeat significantly more competitive since Karro made this announcement and we hope that they will now be reconsidering their position."