Contact

Photo of GB production costs remain above competitors

Bethan Wilkins

Analyst

AHDB Pork Market Intelligence

email

Email Bethan

T: work 024 7647 8757

GB production costs remain above competitors

Home \ Prices & Stats \ News \ 2016 \ November \ GB production costs remain above competitors

Average pig production costs in Great Britain fell by 6% in 2015, to £1.33/kg, but even bigger falls in other EU countries meant that GB costs remained among the highest in Europe.

This is among the key conclusions of the latest analysis of pig production costs from InterPIG, an international group of pig economists, published today. Average EU costs dropped to £1.18/kg, with the weak euro during 2015 contributing to the fall in sterling terms. The lowest costs were again in Denmark and Spain, at £1.06/kg, while only Italy had higher average costs than GB in 2015.

The decline in production costs was mainly due to cheaper feed. Despite this, falling pig prices meant that production costs remained above pig prices across all the main EU producing countries. Indeed, the above average pig price in Great Britain meant that producer margins were better than in most other EU countries.

undefined

The InterPIG analysis also shows that productivity improved across the EU at a similar rate to that in Great Britain. The GB average of 24.4 pigs weaned per sow per year remained well below the EU average of 26.8, never mind Denmark’s 31.3. Even the UK’s indoor sows only managed a below average 26.0 pigs weaned per year. As in previous years, the main reason for the relatively low UK figure was smaller litter sizes; GB litters averaged 12.3 born alive (12.8 indoors), compared with an EU average of 13.5.

A new AHDB Pork report comparing the cost of pig production in selected countries, including Brazil, Canada and the US as well as major EU countries, can be downloaded by clicking here.

undefined

Stephen Howarth, Market Specialist Manager
Stephen.howarth@ahdb.org.uk, 024 7647 8856