In this file:
· Report shows 8% increase in cost of pig meat production
… an 8% increase in cost of production…
· Above average margins for GB producers in 2017
Despite having the largest rise in feed costs, pig producers in Great Britain were amongst the most profitable in 2017…
Report shows 8% increase in cost of pig meat production
29 November 2018
The costs of pig meat production in 17 countries during 2017 are examined in a new report, which shows an 8% increase in cost of production.
The report shows that the cost of pig meat production in Great Britain increased by 8% in 2017, to £1.37 per kg.
The average cost of production in the EU also increased, to £1.36 per kg, a 7% increase, in sterling terms.
In contrast with 2016, this reflects an increase in the costs of production across all sampled EU countries.
Comparing Britain’s cost of production with that of one of its main competitors, Denmark’s cost of production during 2017 was a much lower £1.18 per kg.
The report also shows an increase, once again, in the overall average number of pigs weaned per sow per year in the 17 countries included in the analysis, up from 27.32 in 2016 to 27.9 in 2017, representing nearly a 2% increase.
In Britain, the increase was slightly greater, at 4%, bringing the average number of pigs weaned per sow per year up to 25.75, overall.
This breaks down to an average of 26.97 pigs in the indoor herd and 23.95 pigs in the outdoor herd.
Although below the national average, Great Britain’s outdoor herds showed the greatest improvement in performance, up 5% compared with 2016.
While Great Britain has a significant proportion of pigs kept outdoors, the lower numbers of pigs weaned per sow per year in all systems is still a major cause of the relatively high cost of production compared with many other EU countries, especially, for example, Denmark, which had an average of 33.3 pigs weaned per sow per year in 2017; this is an area that needs to be addressed, for Great Britain to be competitive with the rest of Europe.
'Weaned per sow per year' ...
Above average margins for GB producers in 2017
By Simon King, Pig World (UK)
November 29, 2018
Despite having the largest rise in feed costs, pig producers in Great Britain were amongst the most profitable in 2017.
This conclusion is derived from the latest pig production costs report from InterPIG, an international group of pig economists, in which AHDB represents GB. In sterling terms, GB margins in 2017 are estimated at 16p/kg, whereas the EU average for the group stands at just 7p/kg.*
In sterling terms, all countries covered by the reports experienced a rise in production costs in 2017. However, this was mainly the result of the pound weakening during the year, a trend which began following the Brexit vote in mid-2016. The annual average value of sterling against the euro was 7% lower than year earlier levels. As a result, in Euro terms trends were more mixed, with EU production costs generally remaining stable overall across the period. Meanwhile in the US, production costs declined 3% in dollar terms.
Despite the weakening currency making the production costs of other countries comparatively higher, GB producers still experienced one of the largest rises in production costs last year. This reflects a significant (+16% year-on-year) rise in feed costs, driven by both rising feed prices and higher consumption rates amongst the finishing herd. As such, GB costs were around 1p/kg above the EU average, at an estimated 137p/kg in 2017...
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