Farmers are losing £18-£20 per pig slaughtered as the sector continues to see increases in feed, energy and fuel prices.
As a result, the full economic cost of production is currently estimated by AHDB to be 224p/kg deadweight in September 2022.
On a full economic basis, the organisation warns that producers performing at an average level of technical performance are losing £18 to £20 per pig slaughtered.
The pig sector has experienced a continuous loss-making situation since October 2020.
The cumulative loss across all producers since then is now estimated by AHDB to be over £700 million.
This is calculated based on the overall average performance of the sector, the numbers of clean pigs slaughtered and AHDB's cost of production estimations.
In its analysis published on Monday (17 October), the organisation noted that SPP and APP pig prices in September were 200p and 203p per kg deadweight respectively.
But it said compound spot feed prices had increased slightly in September, although not to the same peaks seen in May and June.
"Short and long-term interest rates have increased. Fuel prices continue to fluctuate, reflecting the movement in oil prices, but remain at an elevated level compared to 2021.
"On a full economic basis, pig producers performing at an average level of technical performance will be losing £18 to £20 per pig slaughtered," AHDB said.
"However, assuming the same cost base, pig producers performing at the same technical level as those in the top third, AHDB's estimated full economic cost of production is 194p/kg deadweight.
"This higher productivity should result in at least a breakeven situation or possibly a small positive net margin."
It comes as the National Pig Association (NPA) urged the government to roll out essential reforms across the pork supply chain to avert the collapse of the sector.
These included the introduction of legislation to underpin new pig contracts, which would allow producers, marketing groups and processors to negotiate terms to ensure a fair price for producers.
NPA chairman Rob Mutimer said the sector had taken a 'battering', adding: “It has become fairly obvious to all involved that the supply chain, as it stands, is broken
"The government must act decisively and quickly before it is too late for the pig sector – and in order to fulfil its stated aims of reinforcing the UK’s food security.”
