August’s production costs move a little lower

The latest estimates from AHDB/BPEX suggest the cost of pig production for August will be a little lower than July at 157.1p/kg. This about 1p/kg down on the month.

The decrease is thanks to a further easing of spot feed prices during the month, and menas that the COP is now running at about 13p/kg less than the same month last year.

With pig prices currently around 168p/kg, this means that there are positive margins again this month, with a cash profit of over £8/pig estimated for August.

However, while the latest cost of production estimate reflects current feed prices, pigs entering the supply chain now were fed on the expensive feed bought by producers when prices were higher. As a result, the likelihood is that many farmers are not yet breaking even on the pigs that they are selling this month.

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