According Bpex, the confidence of pig producers in improving their performance has led to an increase in production, which Bpex has supported through its 2TS campaign.
However, the huge rise in feed costs is leading to mounting losses and is expected to counteract investments and expansion, Bpex warned. The pig levy body also said that increased costs are to hit the amount of pig meat produced next year.
The latest forecasts from the Agriculture & Horticulture Development Board’s (AHDB) Market Intelligence division for Bpex has shown that clean pig slaughterings are to hit a high of more than 10m this year, which is due to more producers going under.
This is the first time that such a milestone has been reached since 2002, when the sow herd was 130,000 more than it is today. However, the latest forecasts also show production is likely to fall by almost 2% in 2013.
Senior analyst at AHDB Stephen Howarth said: “This situation, of tightening supplies, is not just something affecting the UK.
“The rising feed costs are a global problem and will have a global impact. On top of that, within the EU, new welfare rules next year will also lead to a reduction in the sow herd.”