Average farm business income expected to fall notably for specialist pig farms

By Bronwyn Magee

According to the latest Defra forecast, average farm business incomes of specialist pig farms in England are expected to fall 87% (-£32,700) in 2020/21. This brings the average farm business income to £5,000 for the 2020/21 year, compared to £37,700 in 2019/20.

This comes as input costs are expected to have risen 5% on the previous year. Increased feed costs seen towards the end of the year are a key driver in this rise.

Meanwhile, the value of output from pig enterprises is forecast to have fallen by 1% in the year. While finished pig prices were firm at the beginning of 2020, notable declines in prices following the detection of ASF in Germany and COVID-19 related challenges have since challenged farm profitability.

As such, any increases in revenue seen at the start of the year are expected to have been outweighed by a change in livestock valuation. Weaners, store pigs and cull sows are all estimated to be lower in value than at the beginning of 2020.

Altogether, higher input costs in combination with declining output values are expected to have significantly reduced the average farm business income on pig farms in 2020/21.

It should be noted that these figures are based on a relatively small sample size and the confidence intervals are relatively large, meaning there is a considerable degree of uncertainty. Figures should be treated with caution and may not be representative of the sector as a whole.

*Farm Business Income represents the financial return to all unpaid labour (farmers and spouses, non-principal partners and their spouses and family workers) and on all their capital invested in the farm business, including land and buildings. In essence, Farm Business Income is the same as Net Profit. 

Subscribe to receive pork market news straight to your inbox. Simply complete our online form.

While AHDB seeks to ensure that the information contained on this webpage is accurate at the time of publication, no warranty is given in respect of the information and data provided. You are responsible for how you use the information. To the maximum extent permitted by law, AHDB accepts no liability for loss, damage or injury howsoever caused or suffered (including that caused by negligence) directly or indirectly in relation to the information or data provided in this publication.

All intellectual property rights in the information and data on this webpage belong to or are licensed by AHDB. You are authorised to use such information for your internal business purposes only and you must not provide this information to any other third parties, including further publication of the information, or for commercial gain in any way whatsoever without the prior written permission of AHDB for each third party disclosure, publication or commercial arrangement. For more information, please see our Terms of Use and Privacy Notice or contact the Director of Corporate Affairs at info@ahdb.org.uk  © Agriculture and Horticulture Development Board. All rights reserved.