Pig losses rise to up to £28 a pig in October
© Tim Scrivener Finishers were estimated to be losing £26-£28 on each slaughter pig during October as input costs rise.
Higher interest rates, feed, energy and fuel prices have all contributed to rising production costs.
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The full economic cost of production in October was estimated at 232p/kg deadweight, according to data from the AHDB.
Pig prices remained well below cost of production levels throughout the month, at about 200p/kg.
The EU-spec standard pig price (SPP) rose by 0.17p/kg to average 200.39p/kg in the week ended 5 November, while the all pig price (APP) dropped by 0.16p/kg to 204.02p/kg for the week ending 29 October.
Carol Davis, lead farm economics analyst at the AHDB, said: “Compound spot feed prices that eased during the summer increased slightly in September, and have increased again in October, although still not to the peaks of May and June.
“With the bank base rate at 2.25% throughout October, short- and long-term interest rates have increased. Fuel prices continue to fluctuate, and energy prices are being maintained, but at an elevated level,” Ms Davis said.
Pig marketing co-operative Thames Valley Cambac reported in its market summary that markets had remained static price-wise.
“Demand remained flat with no signs of any improvement from promotional activity nor any pull-forward for Christmas. The worry is that, with only six full weeks left until the festive break, there is little opportunity to get on top of numbers,” said the firm.
“The fresh meat market remained quiet with little spark, and anecdotal evidence suggesting strong competition from cheap imports.”
October throughputs
UK clean pig slaughterings in October totalled 926,000 head, down by 0.8% on the same month last year, according to Defra.
Pigmeat production dropped by 1.1% on October 2021 levels to 86,000t.