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EU Pig Meat Production Cost Report

by 5m Editor
26 October 2009, at 8:49am

EU - The latest in a series of annual reports examining the relative costs of pig meat production up to farmgate level in selected EU countries will be available shortly.

Pig Cost of Production in Selected Countries points out that 2008 marked the return to profitability of the European pig sector. The British pig industry also benefited from a substantial fall in the sterling exchange rate, which had two positive effects: it led to an improvement in the relative competitiveness of Great Britain pig production and it boosted pig prices through its impact on import and export levels.

Some of the key points in this report:

  • The cost of pig meat production in Great Britain production increased by 12 per cent in 2008, to 136.8p/kg. The average cost of production in the EU was 135.9p/kg dw, up 24 per cent. Production costs in Great Britain were therefore much closer to the EU average than in previous years, when we had been one of the highest-cost countries.
  • The improvement in the relative cost of production in Great Britain was in part due to improved physical performance, but it was mainly due to the lower exchange rate.
  • In 2008 as a whole, EU feed costs increased by 34 per cent compared with a year earlier, in sterling terms, although they were just 18 per cent higher in Euro terms. The cost increase (in sterling) was 25 per cent in Great Britain.
  • The average number of pigs finished/sow in Great Britain increased for the fifth consecutive year in 2008. At 20.9 pigs/sow, average performance was 0.7 pigs (4 per cent) higher than in 2007 and 2.0 pigs (11 per cent) higher than in 2004. This was the highest annual improvement recorded for at least 15 years.