Pig World
  • News
      • Animal Health
      • Breeding
      • Business
      • Environment
      • EU
      • Food Safety
      • Housing
      • Marketing
      • NPA
      • National Pig Awards
      • New Products
      • Nutrition
      • People
      • Pig Fair
      • Politics
      • Training & Education
      • Welfare
  • Features
    • Animal Health
    • Breeding
    • Environment
    • Farm Visits
    • Herd Recording
    • Housing
    • Marketing
    • Nutrition
    • Products
    • Training
  • Comment
    • AHDB Pork
    • Chris Fogden
    • Dennis Bridgeford
    • Peter Crichton
    • Red Robin
    • Veterinary View
    • Zoe Davies, NPA
  • Numbers
  • Pig Prices
  • Magazines
    • Pig World – November 2023
    • National Pig Awards Supplement 2023
    • October 2023
    • September 2023
    • Health Supplement
    • August 2023
    • Pigs Tomorrow Supplement
    • July 2023
  • Suppliers
  • Jobs
    • Browse Jobs
    • Post a Job
    • Manage Jobs
  • Equipment
  • Events
    • Pigs Tomorrow
    • National Pig Awards
Subscribe Podcast
Pig WorldPig World
  • News
      • Animal Health
      • Breeding
      • Business
      • Environment
      • EU
      • Food Safety
      • Housing
      • Marketing
      • NPA
      • National Pig Awards
      • New Products
      • Nutrition
      • People
      • Pig Fair
      • Politics
      • Training & Education
      • Welfare
  • Features
    • Animal Health
    • Breeding
    • Environment
    • Farm Visits
    • Herd Recording
    • Housing
    • Marketing
    • Nutrition
    • Products
    • Training
  • Comment
    • AHDB Pork
    • Chris Fogden
    • Dennis Bridgeford
    • Peter Crichton
    • Red Robin
    • Veterinary View
    • Zoe Davies, NPA
  • Numbers
  • Pig Prices
  • Magazines
    1. Pig World – November 2023
    2. National Pig Awards Supplement 2023
    3. October 2023
    4. September 2023
    5. Health Supplement
    6. August 2023
    7. Pigs Tomorrow Supplement
    8. July 2023
    Featured

    National Pig Awards Supplement 2023

    October 31, 2023
    Recent

    National Pig Awards Supplement 2023

    October 31, 2023

    Pig World – November 2023

    October 31, 2023

    Pig World – October 2023

    October 4, 2023
  • Suppliers
  • Jobs
    • Browse Jobs
    • Post a Job
    • Manage Jobs
  • Equipment
  • Events
    • Pigs Tomorrow
    • National Pig Awards
LinkedIn X (Twitter)
Pig World
News

Producers losing up to £61/pig, as costs soar beyond £2/kg

Alistair DriverBy Alistair DriverApril 8, 20223 Mins Read
LinkedIn Twitter Facebook Email

Pig producers are currently losing, on average, between £46 and £61 per slaughter pig, with costs of production typically above the £2/kg mark, according to AHDB.

These staggering losses and costs of up to 216p/kg highlight yet again the urgent need for pig prices to rise beyond £2/kg so that producers can get back to break-even point.

The most recent AHDB quarterly cost of production estimation for 2021 Q4 after showed the full economic cost of production had risen to an estimated 193p/kg deadweight, with pig margins per slaughter pig estimated at -£39 per head. This followed average losses of around £25/pig in Q1 and Q2, and lower losses in Q3.

“Since then, energy and feed prices have continued to rise and pig prices have failed to keep pace with the situation, leading to greater loses,” AHDB analyst Carol Davies said.

“Continued (sometimes regionally related) backlogs of pigs on farm, low pig prices compared to cost of production, and increasing input prices, are resulting in very difficult decisions for many pig producers due to their need to continue managing their business risks and their business cashflow.

“Some producers have already decided to either significantly reduce stock or stop pig production. This will be driven by the individual farm situation and resources, including the significance of pig production at a total farm level and whether they have other enterprises or diversification. This could lead to short or long-term supply issues for UK-produced pork.”

According to the Office of National Statistics, between February 2021 and February 2022 energy prices have risen by 22% and fuels by 23%, with energy prices rising again from this month. Defra Agricultural Price Indices indicate that feed straights increased by 16% in 2021 compared to 2020 and compounds increased by 14% over the same period.

Feed usually represents around 60% of the total cost of producing a kg of pork, but the results of the last quarter, 2021 Q4, indicate that it represented 70%.

“Compound feed prices are directly related to the cost of ingredients which come from various sources, some in the UK and some imported,” Ms Davis added.

“Global tight supply, further impacted by the situation in the Ukraine, has resulted in continued upward pressure on feed prices and there is little indication that there will be any respite soon, until at least the current UK crop harvest is known, and the global situation changes for the better.”

“Given indications from various sources on the impact on feed prices, the changes in energy and fuel costs, and assuming technical performance within the pork industry continues to reflect 2021; we estimate that the current cost of production is in the region of 203p/kg to 216p/kg.

“Given the current pig prices, SPP at 150.55p/kg and APP at 153.79p/kg, and assuming a carcase weight of 94kg; this equates to losses of between £46 and £61 per slaughter pig.”

Share. LinkedIn Facebook Twitter Email
Previous ArticleClimb Every Mountain
Next Article African Swine Fever deteced in Malaysia
Alistair Driver

Group editor - Pig World and Agronomist and Arable Farmer. Also National Pig Association webmaster. Former political editor at Farmers Guardian. Enjoys a bit of media punditry. Brought up on a Leicestershire farm. Works from a shed in his Oxfordshire garden. Under-9 football coach and big fan of Leicester City and Leicester Tigers. Occasional cricketer.

Read Similar Stories

AHDB joins forces with ITN Business to launch Farming a Greener Future

November 23, 2023

GB pig prices for week ending November 18, 2023 – SPP fractionally down again, as estimated slaughterings rise

November 22, 2023

AHDB appoints Arla executive as new CEO

November 22, 2023
Latest News

AHDB joins forces with ITN Business to launch Farming a Greener Future

November 23, 2023

GB pig prices for week ending November 18, 2023 – SPP fractionally down again, as estimated slaughterings rise

November 22, 2023

AHDB appoints Arla executive as new CEO

November 22, 2023
Sponsored Content

Porcine Circovirus: Is Clinical Disease Just the Tip of the Iceberg?

November 1, 2023
Current Pig Industry jobs
  • Entry-Level Pig Stockperson – Ref 1469 Suffolk

    • Suffolk
    • Roadhogs Recruitment Ltd.
    • Full Time
  • Pig Stockperson – Ref 1468 Dorset

    • Dorset
    • Roadhogs Recruitment Ltd.
    • Full Time
  • Pig Stockperson – Ref 1467 Somerset

    • Somerset
    • Roadhogs Recruitment Ltd.
    • Full Time
GETTING IN TOUCH
  • Advertise
  • Contact Us
  • Meet The Editors
  • About Us
  • Email Newsletters
OUR SOCIAL CHANNELS
  • Twitter
  • LinkedIn
PARTNER EVENTS
RELATED SITES
  • Farmers Weekly
  • Agronomist & Arable Farmer
  • Farm Contractor
  • National Pig Awards
  • Pigs Tomorrow
  • Poultry News
  • Privacy Policy
  • Cookie Policy
  • Terms and Conditions
© 2023 Lewis Business Media. All Rights Reserved | Lewis Business Media, Suite A, Arun House, Office Village, River Way, Uckfield, TN22 1SL

Type above and press Enter to search. Press Esc to cancel.