Crisis not going away

Despite very welcome pig price increases in recent months and some reductions in feed ingredients prices in the last few weeks, the stark fact is that producers are still not covering their cost of production, as measured by the difference between the deadweight average pig price (DAPP) and the monthly BPEX estimate of average cost of production.

For a 'typical' 300 sow farrow to finish family business, the above-net margins translate into a loss since June 2007 of over £135,000 for the UK industry. The loss is now over £200m.

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