In the recently published AHDB quarterly report for Q4 2023, a detailed analysis of the cost of production and margins in the pork industry has been revealed.
The cost of production for Q4 2023 is estimated at 195p/kg deadweight, maintaining consistency with the figures from Q3 2023. Margins per slaughter pig are estimated at £19 per head, shedding light on the economic landscape of the industry.
Feed costs, accounting for approximately 62% of total costs in the fourth quarter of 2023, have remained stable compared to Q3. Interestingly, this reflects a decrease from Q4 2022, where feed costs constituted 69% of total expenses.
While energy costs have continued to decrease into Q4, fuel costs experienced a slight increase, contributing to the overall consistency in production costs despite the decline in energy expenses.
The swine industry witnessed record-high pig prices in Q3, but a subsequent decrease of 8p to 216p/kg (APP) in Q4 has impacted net margin levels. This shift in pricing dynamics has brought new challenges to the forefront.
It’s important to note that due to changes in providers, the figures for Q4 2023 feeding and breeding herds are based on twelve-month performance data from March 31, 2023. This adjustment ensures accuracy and reliability in understanding the current state of the industry.
This comprehensive overview provides key insights into the factors influencing the pork industry’s economics in the final quarter of 2023.
