Pig producers were down £52/head in the second quarter of the year, according to the latest Agriculture and Horticulture Development Board (AHDB) quarterly cost of production and margin estimations.
The estimates, which are for quarter two (Q2) of 2022, indicate that the full cost of production for 2022 Q2 rose to an estimated average of 240p/kg deadweight, with pig margins per slaughter pig estimated at -£52 per head.
The estimated cost of production in 2022 Q1 was 207p/kg, meaning there was an increase of 33p/kg.
This increase was impacted by the rising cost of feed, energy, fuel, interest rates an cull sow prices the AHDB said in its analysis of the estimates.
The AHDB estimates that the industry has lost over £600 million since October 2020 to the end of June 2022, due to continued negative margins.
However, assuming pig performance reflecting 2022 Q2, and considering the movement in energy, fuel, interest rates and feed prices since the, AHDB estimates the August 2022 full economic cost of production at 223p/kg deadweight.
While this is lower than the Q2 mark, with pig prices hovering around the 200p/kg mark it still represents a continuing loss-making position for pig producers. It would equate to a loss-making situation lasting 22 months the AHDB added.
