Falling prices and rising costs saw pig producers record average losses of nearly £4 per head in the first quarter of 2026, compared with a profit of £10/head in Q4 2025.
AHDB’s latest net margins estimates show the pig sector, on average, moved into the red for the first time since Q1 2023, following 11 quarters in the black.
The figures, based on erformance figures for breeding and finishing herds, estimate the full economic cost of production for Q1 to be 192p/kg deadweight, an increased of 2p from Q4 2025.
Feed costs increased by around 1p and currently make up 60% of costs, while finance costs increased by around 1p. There were minimal changes across other variable and labour costs.
The conflict in the Middle East drove increases in fuel and energy costs in March. This growing impact of the conflict will continue be affect the cost base moving into the second quarter of the year.
However Meanwhile, pig prices, as measured by the SPP, have decreased from 201p/kg in Q4 2025 to 188p/kg in Q1 2026. This is the main driver of falling margins, estimated at -£3.85 per slaughter pig and -4p/kg deadweight.
This compares with a profit of £10 a head in Q4, £13/head in Q2, £7 a head in Q1 2025. With costs rising and prices continuing to fall, the figures are likely to look worse in Q2.