Still no profits despite lowest costs for five years

GB pig producers continued to make a loss in the second quarter of this year, despite production costs for the three months being at their lowest for five years, according to AHDB Pork.

Although Q2, 2015 average costs are estimated to have been just 139p/kg, this was still over 2p more that the average pig price (EU-spec APP), all of which means producers lost money for the second quarter in a row.

While this latest six-month loss follows around 18 months of profitability for GB producers, AHDB Pork points out that the industry has spent more time in a loss-making state over the last decade than in profit.

“Compared with a year earlier, costs had fallen 15p/kg,” said AHDB Pork, adding that pig prices in the same time had declined by 28p, moving producers from profit to loss.

There is some evidence, however, that the last quarter was slightly less poor for producers than Q1, 2015. This was due to costs moving 8p/kg lower during April, May and June, while prices fell by about half this amount.

See full AHDB Pork report

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