More woe for pig farmers as feed costs rise

Latest figures show it costs 170p per kg to raise a pig, but at present producers are being paid just 150p per kg – an unsustainable position.

These figures do not take full account of recent rises in feed prices and the cost of production is set to rise even further in the coming weeks.

Global weather conditions have been the major driver of the price rises, which have also affected the other main component of pig feed, soya, according to a BPEX report and the effects are being felt across Europe.

The report has been produced by AHDB Market Intelligence and senior analyst Stephen Howarth, the author, said: “Based on the July cost of production estimate, this means that producers are losing an average of 23p per kg, equivalent to a loss of about £18 per pig.

“In recent months, feed costs have risen faster than the DAPP, increasing the losses experienced by producers.

“Producers have now been in a loss-making position for 22 consecutive months, dating back to October 2010.

“Cumulative losses during this period are now approaching £200m.”

Yorkshire is one of the prime pig farming areas in the country, with as much as a quarter of the national pig herd being based in the region.

The full report is available to read and download from the Bpex website www.bpex.org.uk/prices-facts-figures/reports/FeedReports.aspx

The news comes just days after the Scottish pig industry was rocked by the news Vion Food UK could be forced to close its loss-making site, Hall’s of Broxburn. The plant kills around 8,000 pigs a week but has been losing some £79,000 each week, according to the company.