Morrisons’ Woodheads abattoir to slash pig supplier numbers amid harsh economic climate
The cuts affect several long-term suppliers to the retailer’s Woodheads abattoir in Lincolnshire, including at least one major large-scale producer. Alongside completely removing certain farmers from its supply chain, industry reports indicate that Morrisons is also notifying remaining producers that weekly intake volumes will be heavily reduced.
A spokesperson for the Myton Food Group (the manufacturing arm of Morrisons) confirmed the restructuring:
"Due to the challenging economic climate, Woodheads is consolidating its processing volumes and as a result has made the difficult decision to reduce the number of pig producers in its supply chain. We understand the impact this news has on individual farming businesses, and our goal is to handle these exits with as much clarity and fairness as possible."
The drastic move by Morrisons comes as the UK pig sector endures exceptionally brutal market conditions. Pig prices have been on a steady decline since last autumn, driven by a widening imbalance between supply and demand. This domestic pressure has been further compounded by low pig prices across the European Union, making cheaper imports highly competitive.
The current domestic oversupply stems from a combination of factors: additional sows were introduced to herds last year, followed by exceptionally strong autumn breeding and growing performance. Conversely, retail demand has remained stagnant, a situation worsened by recent processing factory stoppages. Consequently, processors have been repeatedly "rolling" pigs week after week, leading to severe backlogs of livestock on British farms.
This supply chain disruption coincides with a looming regulatory milestone for the industry. Farmers and processors are rapidly approaching the mid-August deadline for all existing supply agreements to comply with the government's new Fair Dealing Obligations (Pigs) Regulations (FDO).
The FDO regulations officially became law in August 2025, mandating that all new pig-purchase contracts must be written, signed, and include transparent terms regarding:
A strict one-year transition window means that all active contracts, regardless of their original signing date, must legally comply with the new framework by August 13, 2026.
National Pig Association (NPA) Chief Executive Lizzie Wilson urged producers to act quickly despite the turbulent market conditions:
“The onus is on processors to ensure they are compliant on all contracts by mid-August. Whilst we appreciate the very difficult market conditions currently, if this has not been discussed yet with your customers, we encourage you to start raising it now.”
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