November 10, 2011

Rising feed costs put strain on British pig industry

Large increases in feed costs have driven the cost of Britain's meat production by 9% above the European average, according to the InterPIG 2010 report published by BPEX, which gives a detailed analysis of Britain's pig industry's competitive position.

In Britain, the cash cost of production, excluding finance costs, was GBP125.5 (US$200.5) per kilogramme, 10% higher than the previous year and 9% per kilogramme above the European average.

Despite the relatively higher cost, there were some improvements in physical performance, for example, litters, sow and year.

However, the latest industry performance figures published on the BPEX website based on Agrosoft data indicate that in the year to June 2011, physical performance has significantly improved over the 2010 data in the report.

The report is collated by AHDB Market Intelligence, and Senior Analyst Mark Topliff, said: "It is not all doom and gloom as there are some positive points to take out of the report.

"It shows mortality to finishing has improved while the number of litters per sow per year has also increased.

"This latest report covers most of Europe and some competitors or potential competitors further afield.

"It all relates to the overall performance of the national herd in 2010 and highlights just how important it is for the industry to achieve two tonnes of pig meat per sow per year.

"The 2TS campaign was launched in May 2010 with the objective of closing the gap in competitiveness that this report highlights."