Pork cost of production update: 1st June 2022

The AHDB quarterly cost of production and margin estimations for 2022 Q1 were published at the beginning of May but both feed, energy and fuel prices have significantly increased since then.

In my article of 6 May, I outlined that the full economic cost of production for April was estimated to have reached 230p/kg deadweight due to continuing feed price increases.

May compound feed prices have increased further but forward prices, feed ingredient and future grain prices are all indicating that we just might have reached a feed price peak, although this is at an elevated level and this opinion cannot be guaranteed. There is still a long way to go for UK and global planting results and harvest outcomes!

With May feed prices increasing and energy and fuel increases beginning to bite, the full economic cost of production is currently estimated to have reached 240p/kg deadweight in May, assuming the same technical performance as for the 12 months ending 31 March 2022.

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