November 30, 2016
UK pig production costlier than competitors in EU
The average cost of pig production in Great Britain fell by 6% last year to £1.33 (US$1.65) per kilogramme, but it remained among the highest in Europe as other EU countries had bigger falls.
The average EU costs dropped to £1.18/kg, with the weak euro in 2015 contributing to the fall in sterling terms, according to the latest analysis of pig production costs published Monday, Nov. 28, by InterPIG, an international group of pig economists. The lowest costs were again registered in Denmark and Spain, at £1.06/kg. Only Italy had higher average costs than GB in 2015.
The decline in production costs was mainly attributed to cheaper feed. With the decline in production costs, pig prices also fell. This meant that production costs remained above pig prices across all the main EU producing countries.
The above-average pig price in Great Britain meant that producer margins were better than in most other EU countries.