Producers are losing £26-28 per pig slaughtered as the sector continues to see drastic increases in feed, energy and fuel prices.
As a result, the full economic cost of production is currently estimated by AHDB to be 232p/kg deadweight in October 2022.
On a full economic basis, the organisation warns that producers performing at an average level of technical performance are losing £26 to £28 per pig slaughtered.
The pig sector has experienced a continuous loss-making situation since October 2020, with cumulative loss across all producers since then estimated by AHDB to be well over £700m.
This is calculated based on the overall average performance of the sector, the numbers of clean pigs slaughtered and AHDB's cost of production estimations.
In its analysis published on 8 November, AHDB said: "We continue to see movements in interest rates, feed, energy, and fuel prices.
"Compound spot feed prices that eased during the summer, increased slightly in September, and have increased again in October, although still not to the peaks of May and June.
"With the bank base rate at 2.25% throughout October, short and long-term interest rates have increased. Fuel prices continue to fluctuate, and energy prices are being maintained, but at an elevated level.
"As a result, the full economic cost of production is currently estimated to be 232p/kg deadweight in October, assuming average technical performance (based on 12-month averages ending 30 June 2022).
"Assuming SPP and APP at 200p and 203p per kg deadweight respectively, pig producers are estimated to be losing £26 to £28 per pig slaughtered."
It comes as the National Pig Association (NPA) urged the government to roll out essential reforms across the pork supply chain to avert the collapse of the sector.
These included the introduction of legislation to underpin new pig contracts, which would allow producers, marketing groups and processors to negotiate terms to ensure a fair price for producers.
NPA chairman Rob Mutimer said the sector had taken a 'battering', adding: “It has become fairly obvious to all involved that the supply chain, as it stands, is broken
"The government must act decisively and quickly before it is too late for the pig sector – and in order to fulfil its stated aims of reinforcing the UK’s food security.”
