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BPEX cost of production figures revised upwards

PW ReportersBy PW ReportersJune 26, 20132 Mins Read
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The latest cost of production figures from BPEX have been revised upwards following receipt of updated performance data. The new figures add up to a cumulative loss to the industry of about £90 million during the past 18 months.

The provisional data for the first quarter of this year showed January’s cost of production at 169.2p/kg, with February at 165.3 and March 164.3. The revised figures, however, are 173.0, 168.8 and 167.7 respectively.

AHDB senior analyst Stephen Howarth explained estimates for recent months had been revised upwards following receipt of updated physical performance data.

“This shows the impact that the adverse weather earlier in the year had on herd productivity,” he said. “However, overall costs have declined significantly since the start of the year as global cereal and oilseed prices have eased back as prospects for the 2013/14 season have improved.

“Nevertheless, costs will need to remain low relative to prices for a sustained period if producers are to recover the losses made in recent years.”

The latest provisional AHDB figures show pig producers are back in the black for the first time in nearly three years.

Average costs in June were estimated to be about 3p/kg lower than revised estimates for the month before, standing at just over 164p/kg.

With the DAPP passing this level at the end of May, and heading higher still in June, producers stand to make a significant positive margin for the first time since the autumn of 2010. Nevertheless, costs are still more than 6p/kg higher than they were in June 2012.

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