Watch costs to gain from higher pig prices

Over the past 12 months, ex-farm feed wheat prices have fallen from £192/t to £145/t, although recent reports of dry weather in the USA have led to futures prices firming over the past two weeks. London November wheat was quoted at £158.50/t and March 2014 at £164.50/t as Farmers Weekly went to press (28 August).


Producers are advised to keep a close eye on cereal markets and currency levels to capitalise on opportunities to lock in cost of production (COP) levels. Feed accounts for more than 60% of the costs involved in slaughter pig production. The latest BPEX COP figure is 159p/kg for July 2013, compared with an average producer price of 168p/kg. This marks the second month in which the COP is lower than the DAPP. Prior to this, producer margins had been negative since January 2010.


With harvest well under way and crop yields higher than anticipated, straw supplies are also more plentiful than they were during last year’s wet harvest. As a result, straw values in the eastern counties have fallen, with ex-farm prices in the £38-£45/t range for big bales of wheat straw, providing producers with some further savings in this sector.


There is also no doubt that following on from the horsemeat scandal earlier this year, UK retailers and consumers are looking for larger volumes of farm-assured pigmeat with a guaranteed audit trail, all of which should help to maintain UK producers’ margins for the remainder of 2013 and beyond.


More on this topic


Contract changes reflect tighter pigmeat market

Transition Live

Find out more and get tickets
See more