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Losses average £3 a pig despite costs staying close to five-year low

PW ReportersBy PW ReportersNovember 30, 20151 Min Read
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Pig producers are estimated to be losing around £3 a pig on average, according to the latest figures from AHDB Pork covering July to September this year.

This is despite production costs staying “close to their lowest point in five years” and more than 4p/kg down on the same period in 2014.

“The average cost of production between July and September was estimated to be 139.5p/kg, around a penny higher than a quarter before,” said AHDB Pork, noting that this was largely due to slightly higher feed costs.

“Pig prices were also little changed in the third quarter, however, with the EU-spec APP averaging 136.3p/kg. This meant that producers were estimated to be losing, on average, around £3 per pig sold during the quarter.

“This is the third consecutive quarter when producers have been losing money, following 18 months of profitability.”

AHDB Pork also said that, with pig prices having fallen again more recently, while feed prices have been fairly stable, producer margins are “likely to have worsened further” in recent weeks.

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