Thursday, 28 April 2022
The next quarterly cost of production estimation for 2022 Q1 will be published after the receipt of the quarterly AgroVision pig performance information, which is due in the second week of May. Our estimations include the cost of producing a kg of pork from conception to slaughter and therefore take account of various performance aspects such as litters per sow per year; piglets born per litter; sow and piglet mortality; daily liveweight gain and feed conversion ratio (FCR). How well the industry has performed in the 12 months ending 31 March 2022, will have a positive or negative impact on the cost of production. A more detailed explanation of the cost of production estimations can be found here.
Energy and feed ingredient prices continue to rise and whilst pig prices have also significantly increased, the SPP and APP reported prices have failed to keep pace with the impact of these increasing input costs.
Our article earlier in the month stated that we estimated that the current full economic cost of pork production was in the region of 203p/kg to 216p/kg. As feed ingredient prices and compound feed prices start to trickle through, indications are that feed price increases alone are likely to add another 20p/kg onto the cost of producing a kg of pork.
It should be noted that our cost of production estimations do not include any allowance for profit margin or owner or director management time or reward. The only labour hours and cost included are for the time spent looking after sows and piglets on a day-to-day basis.
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