June 28, 2013
Following receipt of updated performance data, UK's latest pig cost of production figures have been revised upwards, meaning the cumulative loss to the industry is about Â£90 million (US$137 million) over the last 18 months.
The provisional data from the British Pig Executive (BPEX) for the first quarter of this year showed January Â£1.692 per kilogramme (kg) (US$2.58), February Â£1.653/kg (US$2.52) and March Â£1.643/kg (US$2.51). The revised figures for the same period are Â£1.73/kg (US$2.64), Â£1.688/kg (US$2.57) and Â£1.677/kg (US$2.56).
Senior Analyst, Stephen Howarth, said, "Estimates for recent months have been revised upwards following receipt of updated physical performance data. This shows the impact that the adverse weather earlier in the year had on herd productivity. However, overall costs have declined significantly since the start of the year as global cereal and oilseed prices have eased back as prospects for the 2013-14 season have improved. Nevertheless, costs will need to remain low relative to prices for a sustained period if producers are to recover the losses made in recent years."
The latest provisional Agriculture and Horticulture Development Board (AHDB) figures show pig producers are back in the black for the first time in nearly three years.
Average costs in June were estimated to be around Â£0.03 (US$0.05) lower than revised estimates for the month before, standing at just over Â£1.64/kg (US$2.50).
With the Deadweight Average Pig Price (DAPP) passing this level at the end of May and heading higher still in June, producers stand to make a significant positive margin for the first time since the autumn of 2010. Nevertheless, costs are still more than Â£0.06/kg (US$0.09) higher than they were in June 2012.