Positive margins for pig producers

Pig producers averaged a 10p/kg profit in the second quarter of the year, according to latest estimates by AHDB/BPEX.

New estimates show costs of production in the second quarter averaged 154p/kg – 10p/kg lower than the average DAPP, equating to a profit of £8 a pig. “Producers have, on average, now been making positive margins for the past 12 months,” said the report. “With feed prices having fallen further in recent months, costs in the third quarter are likely to be lower than in quarter two. Therefore, despite the recent fall in pig prices, most producers should still be making positive margins.”

In the week to 6 September, the GB EU-spec DAPP continued to fall, losing 0.4p/kg to 157.1p/kg – its lowest level since March 2013 and 15p/kg below the peak reached in October last year. Cooler temperatures meant carcass weights rose for the third consecutive week to 80.55kg. The new standard pig price (SPP) lost 0.26p/kg to 156.91p/kg based on a throughput of 83,452 head.

Weaner prices also fell on the week, with the 30kg average losing £1.19 to £52.56 a head and the 7kg average dropping by 78p to £38.46.