Pig producer huge losses lead to 20% drop in breeding herd

British pig producers lost about £17 a pig during the last quarter of 2022, according to latest figures from the AHDB.

Soaring energy costs and rising interest rates pushed many producers into the red.

Overall, the average cost of production was estimated at 224p/kg deadweight, while finished pig prices remained about 20p/kg below this level.

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The figures mark the ninth consecutive quarter of losses for the pig sector, with more producers driven out of business.

Defra data shows that in December 2022, the female breeding herd in England reduced by 20% (58,000 head) year-on-year to 237,000 head.

In total, there were 374,000 fewer pigs on farm in England on 1 December compared with year-earlier levels, down by 9.2%.

What’s impacting on production costs?

AHDB analyst Isabelle Shohet said increases in mortgages and other interest rates have lifted costs relating to capital, buildings and equipment.

But on a more positive note, she added that feed costs in the final quarter of 2022 had eased when compared with the second and third quarter.

“The overall cost of feed fell 5p/kg from the third to fourth quarter, with feed making up 69% of production costs,” she said.