Pig farm business incomes slip in 2014/15
According to latest forecasts from Defra, the average pig farm business income will be lower in 2014/15 than the year before but will still be higher than in the previous five years.
According to latest forecasts from Defra, the average farm business income (essentially the same as net profit) for specialist pig farms in 2014/15 is set to slip back slightly from the year before. However, at £51,500, the provisional estimate for the current year still represents the second highest income in the last six years. The decline of 21% was the largest proportional fall for any type of farm but most sectors are projected to have recorded declining or static incomes this year. The only exception is grazing livestock farms, which have the lowest average income, despite small rises this year.
Specialist pig farm incomes have been hit by falling pig prices, with an average drop of 7%, partly offset by improved productivity and heavier weights. A decline in stock values, given lower weaner and cull sow prices, has also contributed to the overall reduction in farm business incomes. However, input costs are also projected to be lower, particularly for feed which is the main cost for pig farms. This has limited the fall in farm business income and helped ensure that the overall position of pig farms has stayed relatively strong.