Net margins remain negative for UK pig producers

Feed costs high, labor and fixed costs remain steady


The Pig Site

16 November 2021 


Estimated pig production costs for British farmers fell slightly in the third quarter, but are still higher than Q3 costs from last year.


Estimated costs for pig production are currently 178p/kg, slightly lower than the record 182p/kg that was posted in the previous quarter, according to AHDB estimates. Estimated costs are 20p/kg higher than they were then.


Contributing costs include high feed costs. A tight global market for cereals is supporting the cost of pig feed ingredients. Labour and fixed costs remained steady compared to the second quarter of 2021.


Pig prices increased again in Q3 compared to earlier in the year. The APP averaged 163p/kg in Q3, 9p/kg higher than in the second quarter. However, finished pig prices have declined since then, and so profitability is only likely to have been challenged even further.


On average, pig producers continue to be in a significant loss-making situation. Estimated net margins...