Pig producers are continuing to lose £17 per pig slaughtered as the sector continues to see drastic increases in feed, energy and fuel prices.
Pig farmers continued to lose, on average, £17/head in the fourth quarter of last year, the ninth successive quarter of negative margins.
The estimated full economic cost of production came down slightly from 227p/kg in Q3 to 224p/kg in Q4, as feed costs dropped back by 5p, with feed still accounting for an historically high 69% of total costs.
However, energy costs, stemming from rising fuel and gas prices, reached yearly highs in Q4, impacting on transport, rearing and finishing costs.
Meanwhile, increases in mortgages and other interest rates have increased costs relating to capital, buildings, and equipment.
These estimates use the latest performance figures for breeding and finishing herds for the 12 months ending 31 December 2022.
It indicates that the full economic cost of production for 2022 Q4 is estimated at 224p/kg deadweight, with margins per slaughter pig estimated at -£17 per head.
The estimated cost of production has fallen by 3p/kg from Q3, when the estimated cost of production stood at 227p/kg.
Energy costs, stemming from rising fuel and gas prices have reached yearly highs in Q4, impacting on transport, rearing and finishing costs.
Increases in mortgages and other interest rates have increased costs relating to capital, buildings, and equipment.
Meanwhile, feed costs in the final quarter of 2022 eased when compared with Q2 and Q3. The overall cost of feed fell 5p/kg from Q3 to Q4, with feed making up 69% of production costs for Q4.
Pig prices stabilised to 205p/kg (APP), and 200p/kg (SPP) for Q4. However, these prices continue to fail to cover the full economic cost of production.
