Pork’s cost of production rises again

With May’s increasing feed, energy and fuel prices, AHDB estimate that the cost of production will have reached 240p/kg deadweight by the end of the month. 

AHDB’s farm economics lead analyst, Carol Davis, said that if the same technical performance for the 12 months ending March 31 2022 is applied to the month of May 2022, then ‘the full economic cost of production is currently estimated to have reached 240p/kg deadweight’.

With these estimations, the deadweight cost of production has therefore risen 10p within a month – from 230p/kg in April, as was approximated by Ms Davis at the close of the month.

However, Ms Davis also suggests that we may have reached a feed price peak, as forward prices, feed ingredients and future grain prices all appear to indicate, regardless of the further increases in May’s compound feed prices.

 

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