Feed costs have again spiked due to global weather patterns and pig producers in the United Kingdom are facing large losses as the price they are paid is well below the cost of production.
Latest figures show it costs 170p (€2.15) per kg to raise a pig, but at present producers are being paid just 150p (€1.90) 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 (€0.29) per kg, equivalent to a loss of about £18 (€23) 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 here.
• British Pig Executive (BPEX)