GB: Q2 net margins drop back, as industry remains in profit
The full economic cost of production for April to June, calculated by AHDB using performance figures for breeding and finishing herds, was estimated at 195p/kg deadweight, fractionally up on the Q1 figure of 194p/kg.
Feed costs, which made up up 62% of total costs, remained in line with Q1 on average over the three months, but they have been increasing through Q2, which could affect cost of production and net margins in the second half of 2024, according to AHDB senior economist Jess Corsair.
Energy prices fell by 12% compared to Q1, although this was offset by an increase in fuel costs.
Pig prices have stayed consistent with the beginning of 2024 at 212p/kg (APP) during Q2, giving an estimated average margin per slaughter pig of £14.86 per head and 16.74p/kg deadweight.
This compares with £25/head during Q2 2023 and, although margins have now fallen for three successive quarters, this relatively prolonged period of pig industry profitability follows 10 successive negative that saw estimated cumulative losses in excess of £750 million.
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