UK Pig Production Costs Higher than Europe

Pig producers’ costs of production in GB continue to be higher than most other major pork producing countries, according to the latest publication from AHDB/BPEX.  The report, which relates to the 2012 year, examines the costs of production in 15 selected countries known as InterPIG – GB, Austria, Belgium, Brazil, Canada, Czech Republic, Denmark, France, Germany, Ireland, Netherlands, Spain, Sweden and USA. 

The 2012 average costs of production in GB were £1.53 per kg deadweight, a yearly increase of 2%, mainly due to the increase in feed costs.  In contrast, the average costs of production in the EU in 2012 reduced by 2% to 1.46 per kg deadweight.  Only Sweden (£1.71), Italy (£1.60) and Czech Republic (£1.57) had higher production costs per kg thanGB out of the group.  The table below shows the costs of production for the other members of InterPIG.  Notably, costs of production in France, Denmark, the Netherlands and Spain are 18-21p per kg less than GB’s.

The rise in feed costs has been well documented.  In 2012 GB feed costs averaged £1.01p per kg compared to 95.6p per kg in 2011 and 10% higher than the EU average of 94.8p per kg.  But with feed costs being driven by the comodity markets producers have little control over them.  But perhaps where GB producers can have a positive influenece over their costs of production is sow productivity.

We have previously written about the increased productivity of the GB sow herd but interestingly (and rather disappointing) Great Britain still has the lowest number of pigs weaned per sow per year in 2012 at 22.80.  This compares to the EU average of 25.41, a year-on-year increase of 2%, compared to GB’s increase of just 1%.  Denmark and the Netherlands continue to have the highest pigs weaned per sow per year at 29.6 and 28.8 respectively.  The table above records the results for the other participating countries. 

It is acknowledged that GB is unique in its number of outdoor reared pigs but the relatively low number of pigs weaned per sow needs to be addressed if costs are to become competitive with the rest of Europe.  Further analysis reveals GB has a below average number of pigs born alive per litter.  The 2012 GB average was 11.54  but only the Czech Republic recorded lower numbers.  The EU average was 12.71, with Denmark recording 15.1 pigs born alive per litter.  The full report can be found at http://www.bpex.org.uk/prices-facts-figures/reports/InterpigReports.aspx