Following 10 successive quarters of losses, the UK pig industry has finally returned to a profit, according to a report from AHDB.

Figures from the levy board, show that an average net margin of £22 per head was achieved in the second quarter of 2023 – up from a narrow loss of£1/head in the first quarter.

This compares to the second quarter of 2022, when the average net margin was -£52/head.

The full economic cost of production for Q2 2023, based on performance figures for breeding and finishing herds, was estimated at 196p/kg deadweight. This was a 17p/kg fall from Q1 as feed costs fell back by that amount to an estimated 123p/kg.

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Feed costs accounted for an estimated 63% of total costs – the lowest percentage since Q3 2020. However, interest rates continued to rise in the second quarter of 2023, which put pressure on costs associated with buildings, mortgages, and any related finance.

Pig prices rose over the quarter, with the APP up 10p to 221p/kg and the SPP up 13p to 221p/kg, resulting in a net margin, based on the APP, of 25p/kg, or £22/head, the highest figure since Q3 2020.

Since the end of Q1, pig prices have continued to rise, with the SPP now at 225p/kg.

AHDB believes that the pig industry has lost in the region of £750m over the past 2.5 years as s result of rising costs and global labour shortages putting pressure on producers.