The pig industry has called for continued support from the supply chain and consumers as forecasts show a further rise in income for the current financial year.
Defra is forecasting a modest rise in average incomes on pig farms in England in 2017/18, despite the steady drop in pig prices since the summer.
National Pig Association (NPA) Chairman Richard Lister said there has been a "welcome return" to profitability over the past 18 months or so.
However, he said for many businesses this has only been filling the hole left by the previous sustained period of "desperately low prices".
The Defra forecasts also show that average Farm Business Income is forecast to increase on specialist pig farms by 5% from £57,800 in 2016/17 to £61,000. This represents a 3% rise in real terms, taking into account inflation.
The latest figure is, however, almost three times the level of £21,000 recorded in 2015/16 when prices hit rock bottom. It is slightly below the recent high of £65,200 in 2013/14.
Finished pig prices have been around 17% higher in 2017/18 than the previous year, despite the downturn in recent months, although throughput has fallen slightly. Weaner, store and cull sow prices have also increased.
Input costs
Input costs on specialist pig farms are also expected to increase, particularly feed which represents a substantial proportion of their costs.
This is assumed to track the increased value of feed wheat and barley, but will be dampened by cheaper soya.
Output is also expected to be reduced due to the change in livestock valuation as the value of weaners and growing pigs is estimated to be lower at closing, compared to opening valuation. This reflects some weakening of pig prices towards the end of 2017 and the early part of 2018.
Mr Lister continued: “It is also worth noting that these figures mask significant variation between farms.
“Looking forward, as plentiful supplies continue to put downward pressure on prices, demand for British pork at home and abroad will be critical to ensuring prices stay at reasonably healthy levels.
“We continue to call for backing from across the supply chain and for consumers to seek out high quality Red Tractor Assured British pork produced to the very highest standards.”
