Costings & Herd Performance
Producer net margins
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The net margins shown in the following chart are based on the difference between the monthly DAPP and the total cost of producing pig meat (including depreciation costs) for an average producer. Costs have been estimated using the latest annual InterPIG results (2010) as a baseline and updating on the basis of changes in spot compound feed prices. Changes in iinterest rates and fuel and power prices are also taken into account but all other factors have been held constant.
The results shown in the chart should only be considered as indicative of general trends, because:.
- Physical and financial performance levels can vary greatly between producers
- The assumptions used for feed costs of spot compound prices will not apply to all producers due to the range of feed procurement strategies in the industry.
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