October pork cost of production

We continue to see movements in interest rates, feed, energy, and fuel prices.

Compound spot feed prices that eased during the summer, increased slightly in September, and have increased again in October, although still not to the peaks of May and June. With the bank base rate at 2.25% throughout October, short and long-term interest rates have increased. Fuel prices continue to fluctuate, and energy prices are being maintained, but at an elevated level.

As a result, the full economic cost of production is currently estimated to be 232p/kg deadweight in October, assuming average technical performance (based on 12-month averages ending 30 June 2022). Assuming SPP and APP at 200p and 203p per kg deadweight respectively, pig producers are estimated to be losing £26 to £28 per pig slaughtered.

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