Farmers lost on average £39 a pig in the final quarter of 2021 – the largest quarterly net margin loss on record.
The figures mark the fifth consecutive quarterly estimate of negative net margins for the pig sector.
The AHDB data show costs of production through October to December 2021 averaged £177 a pig, while selling prices averaged £138 a pig.
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Feed costs rose to 134p/kg, an increase of 28p/kg on the year and accounted for 70% of total costs of production. Historically, this figure has been closer to 60%. Labour and building costs have remained relatively unchanged for the sector in recent years.
Carol Davis, lead analyst farm economics at the AHDB, said: “Based on current feed prices and pig prices, there is nothing to indicate that net margins would be better during the first quarter of 2022 than it was indicated in the last quarter.”
Pig consultant and valuer Peter Crichton said: “Producer prices will need to be well above 200p/kg if feed costs remain at their current levels before the pig meat supply chain is back on the rails.”
Current pig prices
The EU-spec standard pig price (SPP) increased by 0.57p/kg on week-earlier levels to 138.06p/kg for the week ending 26 February, according to the AHDB.
Average pig weights for the SPP sample have reached 94.91kg, an increase of 4.63kg on the same time last year.
This has been driven by increases in the number of heavier pigs coming forward due to ongoing backlogs.However, pig prices on the continent are beginning to show early signs for optimism.
German deadweight pig prices averaged €1.31/kg (£1.09/kg) for the week ending 20 February, up 3.4 cents (2.8p) on the previous week, according to the EU Commission.
Scottish pig producer group Scotlean reported that supplies of pigs in Denmark, Spain, the Netherlands and Germany were all beginning to tighten, following on from the increased culling of sows in some EU countries last year.
