Average cost of pig production rises further

Average cost of pig production rises further

According to figures by the Agriculture and Horticulture Development Board (AHDB), the average cost of pig production increased by 4p to 244p/kg in June 2022.

Global wheat prices have fallen from around £350/t in May 2022, with AHDB quoting a figure of below £250/t in June. The National Pig Association (NPA) said that this decrease in price is yet to “fully translate” into a lower feed price, whilst lower returns on cull sows and interest rates have pushed overall costs up for British producers.

In a report for AHDB, analyst Carol Davies suggested that feed prices may have peaked at “an elevated level.” Davies claimed that this forecast may be possible given the combination of the Ukraine war limiting the country’s exports, “better than originally expected” harvests and planting information coming in from other countries around the world.

She added, however, that the full economic cost of production was yet to be felt by producers this month, with estimates for June around 244p/kg deadweight.

The Standard Pig Price (SPP) surpassed 186p/kg in June.

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