Input cost hikes eat into pig producer profits

Pig producers will lose an average of at least £21 per pig in January, as high grain prices boost costs of production to 164p/kg, according to an estimate by Agriculture and Horticulture Development Board.

In early January, the Deadweight Average Pig Price (DAPP) was pegged at 137p/kg – equating to a 27p/kg loss, AHDB said that by the week ending 15 January the DAPP had increased marginally, to 137.6p/kg – 1.1p/kg below the same week last year.

The average carcass weight in the sample was 80.19kg – 0.26kg heavier than the previous week – while average probes increased marginally to 11.2mm.

Average farmgate values fell by 3% throughout 2010, to 142p/kg, while retail prices remained unchanged at 364p/kg, said AHDB. “As a result the proportion of retail price obtained by the producer reduced to 39%, down from nearly 40% in 2009.” By December, producers’ share of the retail price was just 37%.

In 2010, retail values for traditional pork sausages were 5% higher than 2009. Loin steaks and boneless shoulder joints increased by 2% and 1%, respectively while loin chops and boneless leg joints were unchanged. Fillet end legs, pork fillets, diced and minced pork all fell by between 1% and 5% over the year.

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