The cost of pig production may be falling, but producers are still losing around £2 a pig.

According to the latest BPEX market report, pig producers are inching closer to breakeven, with a reduction in losses that stood at £7 a pig in January.

The cost of production for April was down for the third month in a row at 162p/kg, according to AHDB provisional estimates.

The decrease was mainly due to a small drop in feed prices, with costs down by around 2p/kg on March.

“However, compared with the same month in 2012, costs are almost 9p higher, but they were lower than 2011 levels for the same period, when feed prices were even higher,” said the report.

Forecasts suggested some easing in feed costs for the remainder of the year, especially after harvest, bringing the prospect of more positive margins.

“However, this is weather-dependent and assumes that pig prices will maintain their current level or even strengthen further, based on the expected shortage of EU pig production,” said the report.

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