Pig producers reach breakeven in 2023 as costs fall

Falling feed costs and a steady increase in finished pig prices has helped more producers to break even on farms in 2023 after more than two years of making a loss.

The average pig producer was losing £1 a pig during the first quarter of 2023, according to industry estimates. This is compared to average losses of £17 a pig at the end of 2022.

And figures from AHDB put the average cost of production at 213p/kg deadweight for the first quarter of 2023, while deadweight pig prices averaged about 210p/kg.

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But the standard pig price has now reached 220p/kg in May and feed costs have fallen further, putting some producers back into profit for the first time since 2020.

AHDB analyst Isabelle Shohet said feed costs had fallen by 15p/kg since the final quarter of 2022, and made up an estimated 65% of total costs.

“We have also seen a drop in the cost of fuels from the highs seen in 2022, which has helped reduce transport costs,” she said.

“Interest rates, such as mortgages, have risen throughout the first quarter of 2023, placing increased pressure on building and related finance costs. Costs associated with electricity and gas also continue to remain stubbornly high.”