The average full economic cost of production for pig producers remained unchanged in November at 232p/kg, meaning producers continued to lose, on average, up to £29 per pig.
Compound spot feed prices that had increased in October eased in the November estimate, although they were still higher than the levels seen in the spring. However, with the bank base rate now at 2.93% for November, short and long-term interest rates have increased, while fuel prices continue to fluctuate, and energy prices are being maintained, but at an elevated level.
As a result, the full economic cost of production is currently estimated to be 232p/kg deadweight in November, assuming average technical performance, based on 12-month averages ending September 30, 2022).
Assuming SPP and APP at 200p and 205p per kg deadweight respectively, this would result in estimated negative margins of between -£23 and -£29 per slaughter pig, similar to the October estimate.
“We continue to see a turbulent marketplace for inputs, with feed values playing a prominent role in the changes to Novembers estimate,” said AHDB analyst Carol Davis.