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BPEX reports on effects of rising feed price

The British Pig Executive (BPEX) has published a report on the impact of the global feed commodities market on the British pig industry and risk management strategies to mitigate constantly rising costs.

The report, prepared by BPEX with independent contributions by ABN and Barclays states that the British pig industry is operating in an extremely difficult climate with high feed prices having a huge impact on cost of production.

The report examines the industry and its future from three different perspectives: what is likely to happen to cereal prices and the factors affecting those prices; the effects of cereal prices on pig production costs showing them at 148p in March 2008 and estimating them to reach 180p per kg by 2010; risk management and the steps producers can take to manage their feed costs.

The report also examines issues such as foreign exchange, interest rates, buying forward cover, buying an option and types of contracts.

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