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Figures Reveal Continuing Rise in Producer Margins

by 5m Editor
24 April 2009, at 10:26am

UK - BPEX figures show a continuing rise in English pig producers' returns. The result for April is an estimate.

The net margins shown in the chart above are based on the difference between the monthly DAPP and the total cost of producing pigmeat (including depreciation costs) for an average producer.

Costs have been estimated using the latest annual InterPIG results (2007) as a baseline and updating on the basis of changes in spot compound feed prices. Changes in iinterest rates and fuel and power prices are also taken into account but all other factors have been held constant.

BPEX says the results shown in the chart should only be considered as indicative of general trends, because physical and financial performance levels can vary greatly between producers, and the assumptions used for feed costs of spot compound prices will not apply to all producers due to the range of feed procurement strategies in the industry.