UK pig producers have, on average, recorded a profit of £16 per head during the first quarter of 2024, the latest figures published by AHDB show.
This was the fourth successive quarters of positive margins, averaging £20/head, after a net margin of £19/head in Q4 2023 and £22/head and £25/head respectively in Q2 and Q3.
This followed 10 successive quarters of losses, which exceeded £50/head during the first half of 2022, with total industry losses estimated to have exceeded £750 million over that period.
The Q1 estimates, which use performance figures for breeding and finishing herds, indicate that the full economic cost of production for Q1 2024 was 194p/kg deadweight, down slightly from 195p/kg over the previous two quarters.
Feed costs have remained at 121p/kg, making up an estimated 62% of total costs. Feed costs are, however, down considerably from the peak of 175p/kg in Q2 2022, when feed accounted for 73% of total costs, and 139p/kg in Q1 2023.
Energy and fuel costs rose slightly over Q4, which contributed to a slight increase in other variable costs, according to AHDB's figures.
Pig prices fell during Q1, compared to the second half of 2023, with the APP down 5p on Q4 to average 212p/kg over the three-month period.
This resulted in a net margin of 18p/kg, compared with 21p in Q4 2023, and a still healthy net margin per head of £16.
Prices have remained remarkably stable moving into Q2. However, looking at a monthly breakdown of costs it is evident that feed costs started to come down towards the end of Q1, AHDB said.
But the levy board added: "It is worth considering that grain prices have been rising in Q2 which could impact feed prices and cost of production going forward."
