Feed costs have again spiked due to global weather patterns and pig producers are facing large losses as the price they are paid is well below the cost of production.
Latest figures show it costs 170p per kg to raise a pig, but at present
producers are being paid just 150p per kg – an unsustainable position.
These figures do not take full account of recent rises in feed prices and the
cost of production is set to rise even further in the coming weeks.
Global weather conditions have been the major driver of the price rises,
which have also affected the other main component of pig feed – soya, according
to a BPEX report and the effects are being felt across Europe.
The report has been produced by AHDB Market Intelligence and senior analyst
Stephen Howarth, the author, said: “Based on the July cost of production
estimate, this means that producers are losing an average of 23p per kg,
equivalent to a loss of about £18 per pig.
“In recent months, feed costs have risen faster than the DAPP, increasing the
losses experienced by producers.
“Producers have now been in a loss-making position for 22 consecutive months,
dating back to October 2010. Cumulative losses during this period are now
approaching £200 million.”
The full report is available to read and download by following this link:
or view the video with Stuart Bosworth, Farmers Weekly Pig Farmer of the Year
2011, talking about the rising costs of pig feed and how this is affecting the
here to view it.
Also a short video talking about feed costs produced
by Stephen Howarth, Senior Analyst for Pigs can be found by clicking