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Bethan Wilkins

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AHDB Pork Market Intelligence

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Wide dispersion in profitability of pig production

Home \ Prices & Stats \ News \ 2015 \ May \ Wide dispersion in profitability of pig production

There was a wide variation in the economic performance of pig producers in England in 2013/2014.

Even though it was a good year a significant proportion still experienced negative returns. The analysis is based on the DEFRA Farm Business Survey and published by Askham Bryan Rural Business Research Unit. The full report can be found here.

The sample covered 75 specialist pig farms which are defined as having at least two-thirds of the enterprise output generated by pigs.  It found that 15% of farms had a negative Management and Investment Income (MII) and 21% had a negative Farm Business income (FBI).  The top 25% had an average MII of £197,965 while the bottom 25% had an average MII of minus £37,029. Producers with the high MII are inevitably much larger than others even compared with those in the middle 50% band with pig output that was five times higher.

The proportion of loss making pig producers was actually somewhat less than in the previous year but it is clear that many specialist pig farms experienced a sustained period of losses.  In 2012/13 50% of farms displayed a negative MII with 23% experiencing a negative FBI total.