Smaller herds mean that pigs' (prices) will fly

Bacon prices could be on the rise in the coming months as the soaring price of feed grain forces farmers to cut the size of their herds, retailers were warned today.

Feed costs, which make up about 60% of the overheads for pig rearers, have been rising since the summer as Russia stopped exporting to focus on its domestic needs. Barney Kay, general manager of the National Pig Association, said: "We are not getting anywhere near the price we need to cover this unprecendented rise in feed cost."

Denmark, a key exporter to the UK, has already cut its herd by 5% and many smaller producers have quit the market altogether. Improved animal welfare rules have also driven some farmers out of the industry.