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AHDB Pig Market Weekly

28 November 2016

AHDB Pig Market Weekly - 28 November 2016AHDB Pig Market Weekly - 28 November 2016


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.

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