PIG producers are continuing to lose £17 per pig slaughtered as the sector continues to see drastic increases in feed, energy and fuel prices.
Farmers continued to lose, on average, £17 per head in the fourth quarter of last year, the ninth successive quarter of negative margins – according to a survey carried out by industry levy body, AHDB.
The estimated full economic cost of production came down slightly from 227p per kg in Q3 to 224p per kg in Q4, as feed costs dropped back by 5p, with feed still accounting for an historically high 69% of total costs. However, energy costs, stemming from rising fuel and gas prices, reached yearly highs in Q4, impacting on transport, rearing and finishing costs.
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Meanwhile, increases in mortgages and other interest rates had increased costs relating to capital, buildings, and equipment.
These estimates use the latest performance figures for breeding and finishing herds for the 12 months ending December 31, 2022. It indicated that the full economic cost of production for 2022 Q4 was estimated at 224p per kg deadweight, with margins per slaughter pig estimated at a loss of £17 per head.
Pig prices stabilised to 205p per kg (APP), and 200p per kg (SPP) for Q4. However, these prices continue to fail to cover the full economic cost of production.
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