Q1 2023 pork cost of production

The latest AHDB quarterly cost of production and margin estimations have been published for 2023 Q1.

These estimates use the latest performance figures for breeding and finishing herds for the 12 months ending 31 March 2023. It indicates that the full economic cost of production for 2023 Q1 is estimated at 213p/kg deadweight, with margins per slaughter pig estimated at -£1 per head.

The estimated cost of production has fallen by 11p/kg from Q4 of 2022, when the estimated cost of production stood at 224p/kg.

Feed costs have fallen from the final quarter of 2022 by 15p/kg, now making up an estimated 65% of total costs in the first quarter of 2023. We have also seen a drop in the cost of fuels from highs seen in 2022, which has helped reduce transport costs.

Interest rates, such as mortgages, have risen throughout the first quarter of 2023, placing increased pressure on building and related finance costs. Costs associated with electricity and gas also continue to remain stubbornly high.

Pig prices stabilised to 211p/kg (APP), and 208p/kg (SPP) for Q1 2023. Pig prices have gained momentum throughout the first quarter of the year, reaching all-time highs. These price increases help bring the cost of production closer to breaking even.

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