2014 PIG COST OF PRODUCTION IN SELECTED COUNTRIES …pork.ahdb.org.uk/media/74797/cost-of-production-web-2014.pdf · 4 Pig Cost of Production in Selected Countries Welcome to the

2014 PIG COSTOF PRODUCTION IN SELECTED COUNTRIESAHDB Market Intelligence

£160

2 Pig Cost of Production in Selected Countries

While the Agriculture and Horticulture Development Board seeks to ensure that the information contained within this document is accurate at the time of printing, no warranty is given in respect thereof and, to the maximum extent permitted by law, the Agriculture and Horticulture Development Board accepts no liability for loss, damage or injury howsoever caused (including that caused by negligence) or suffered directly or indirectly in relation to information and opinions contained in or omitted from this document. © Agriculture and Horticulture Development Board 2016. No part of this publication may be reproduced in any material form (including by photocopy or storage in any medium by electronic means) or any copy or adaptation stored, published or distributed (by physical, electronic or other means) without the prior permission in writing of the Agriculture and Horticulture Development Board, other than by reproduction in an unmodified form for the sole purpose of use as an information resource when the Agriculture and Horticulture Development Board is clearly acknowledged as the source, or in accordance with the provisions of the Copyright, Designs and Patents Act 1988. All rights reserved. AHDB Pork is a division of the Agriculture and Horticulture Development Board (AHDB) Stoneleigh Park, Kenilworth, Warwickshire CV8 2TL ISBN: 978-1-904437-96-3

3Pig Cost of Production in Selected Countries

CONTENTS

INTRODUCTION 4

METHODOLOGY 5

KEY POINTS 6

COST OF PRODUCTION 7Aggregate results for 2014 7

Comparisons with previous years (sterling) 8

Comparisons with previous years (euros) 9

FINANCIAL PERFORMANCE SUMMARY 10Feed costs 10

Summary of financial performance 13

PHYSICAL PERFORMANCE SUMMARY 14Pigs weaned per sow per year 16

Pigs finished per sow per year 17

MONITORING CHANGES IN COSTS OF PRODUCTION 18Feed price movements 18

Total production costs 19

Net margins in Great Britain 20

APPENDIX 21European pig industry trends, 2014 21

National carcase dressing specifications 22

Additional tables and figures 23

Standardising the physical results 27

List of tables and charts 30


Welcome to the latest in a series of annual reports examining the relative costs of pig meat production up to farmgate level in selected countries. All these figures relate to 2014. At the start of 2014, there was much optimism among EU pig producers for the year ahead. Pig prices remained relatively strong by historic standards and increased demand from export markets was expected to keep the market firm. At the same time, feed prices had fallen back and looked set to remain low, meaning producer margins were expected to be positive. In reality, it turned out to be a year of two halves, with a reasonable first half followed by a challenging second half.

EU pig prices started 2014 at an average of around €1.60 per kg, around 10 cents lower than a year before but still strong by historic standards. Although EU production was increasing, there were expectations of a strong year for exports, given the impact of PEDv on the US industry, reducing competition for EU exporters. However, that outlook changed in February, following the discovery of the first cases of African Swine Fever on the EU mainland. This led to Russia, the largest buyer of EU pork, banning the import of most pig meat products from the EU. Some other countries banned imports from the countries affected by ASF. The initial Russian ban led to a short-term fall in prices during February and March but the market quickly recovered and prices were close to year earlier levels through the spring and early summer. However, the impact of the Russian ban eventually began to take effect, especially following the imposition of wider sanctions by Russia in August in response to the situation in Ukraine. Despite strong sales to other export markets, particularly in Asia, EU pig prices fell steadily from July onwards with the average dropping from a peak of €1.75 per kg to end the year at little over €1.30, over 30 cents lower than a year before.

GB pig prices followed a similar pattern to those in the EU but remained at a significant premium. The market was largely stable during the first half of the year after a typical post-Christmas dip, although the normal seasonal rise in the spring never really happened. However, as on the continent, GB prices started falling from the summer onwards with the average pig price dropping from over 165p/kg in June to about 145p/kg at the end of the year. As well as the falling price of imports from the EU, plentiful domestic supplies and a subdued consumer market contributed to the falling prices. Nevertheless, with retail buyers remaining committed to sourcing pork from domestic producers, UK prices averaged nearly 30p/kg higher than the EU average across the year. The gradual strengthening of the pound against the euro added to the gap by reducing EU prices in sterling terms.

To assist producers in comparing their physical performance with other pig businesses in England, AHDB Pork has a Key Performance Indicators (KPIs) section on its website which is updated quarterly based on Agrosoft data. The section provides average, top third and top 10 per cent performance for KPIs for indoor and outdoor breeding herds, rearing and finishing herds. For more information visit www.pork.ahdb.org.uk and go to the ‘Prices, Facts and Figures’ section (Costings and Herd Performance).

INTRODUCTION

http://www.pork.ahdb.org.uk


METHODOLOGY

This report examines the relative costs of production in selected countries. This is a joint project currently involving the following organisations in 15 countries, which are known collectively as InterPIG. • Great Britain – AHDB Market Intelligence• Austria – VLV Upper Austria • Belgium – Flemish Government and Boerenbond Belgie• Brazil – Embrapa Swine and Poultry• Canada – Canadian Pork Council• Czech Republic – Institute of Agricultural Economics and Information (UZEI)• Denmark – SEGES• France – IFIP• Germany – Institut für Betriebswirtschaft (FAL) and Interessengemeinschaft der Schweinehalter (ISN)• Ireland – Teagasc Rural Economy Research• Italy – Centro Ricerche Produzioni Animali• Netherlands – Agricultural Economics Research Institute (LEI Wageningen UR) and Product Boards

for Livestock, Meat and Eggs (PVE)• Spain – SIP Consultors• Sweden – Svenska Pig• USA – Iowa State University

We continue to work with other countries and organisations who wish to provide standardised results for international comparison.

The cost and performance data relates to average performance from the national recording systems operating in the participating countries. Definitions have been standardised across countries. For example, the definition of a sow is from first insemination to slaughter and the results are based on average present sows (average daily number of sows in the year).

There will inevitably still be some national differences in definition but where this has occurred the data has been adjusted in the most appropriate way. The results are believed to provide a clear indication of the relative average costs of production within each country and to provide an accurate comparison within 1-2p/kg deadweight. In an attempt to continue to improve the accuracy of the data provided, the glossary of terms and formulae used in calculations is monitored and updated. In some instances previous years’ data may be updated. As a result, there may be some discrepancies between previous publications as definitions and formulae are re-aligned.


• The cost of pig meat production in Great Britain reduced by 13 per cent in 2014, to £1.39/kg. The average cost of production in the EU was £1.34/kg deadweight, a 13 per cent decrease in sterling terms compared to 2013

• All EU countries experienced a decrease in the costs of production (in sterling terms) compared to 2013

• Average producer prices were also lower in 2014 than in 2013, with only four EU countries having production costs below the EU average reference price

• Average feed prices were lower in 2014 than in 2013, falling by 16 per cent on average across the EU countries

• In 2014 as a whole, EU feed costs per kg fell by 17 per cent compared with a year earlier, in sterling terms. The fall in Great Britain was 19 per cent, one of the greatest falls in the EU. All InterPIG member countries experienced a fall in feed costs compared to 2013

• The overall average number of pigs weaned per sow per year in the European InterPIG countries showed a two per cent increase in 2014, up from 26.06 in 2013 to 26.53, with Denmark achieving 30.0 for a second time. There was a two per cent increase in pigs weaned per sow in Great Britain to 24.09 overall. Indoor sow production achieved 25.7, an increase of three per cent compared to 2013

• The main reason Great Britain has a below average number of pigs weaned per sow lies in the number of pigs born alive per litter with Great Britain still performing below the EU average of 13.2. The 2014 Great Britain average at 12.1 (indoor sows 12.6, outdoor sows 11.2) was an increase compared to 11.87 in 2013

• The average number of pigs finished per sow in Great Britain again increased in 2014. At 22.7 pigs per sow (indoor sows 24.2, outdoor sows 20.5), average performance was 0.47 pigs higher than in 2013 but lower than the EU average of 25.13

• Great Britain produced 1.82 tonnes of carcase meat per sow in 2014, three per cent higher than in 2013 due to a combination of the increase in the number of pigs finished per sow and an increase in finishing weight

• An AHDB Pork survey of pig businesses that have achieved the 2TS target identified two common factors affecting high performing success:

— A weekly analysis and review of herd performance data and discussing with staff actual herd performance relative to targets

— Engaging staff and delivering a structured approach to staff training and skills development

KEY POINTS


AUS BEL BRA(MT)

BRA(SC)

CAN CZ DEN FRA GER GB IRE ITA NL SPA SWE USA0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

0.15

0.56

0.050.06

0.10

0.80

0.060.06

0.13

0.65

0.120.08

0.38

0.77

0.09

0.11

0.21

0.74

0.11

0.17

0.19

0.77

0.12

0.17

0.24

0.76

0.12

0.18

0.22

0.85

0.14

0.18

0.21

0.95

0.10

0.15

0.20

1.07

0.14

0.16

0.26

0.77

0.13

0.16

0.16

0.84

0.07

0.11

0.22

0.81

0.15

0.31

0.13

0.62

0.12

0.100.16

0.84

0.10

0.15

0.22

0.79

0.11

0.20

Depreciation and finance

Labour

UK average price

EU average price

Other variable costs

Feed

£/Kg

COST OF PRODUCTION

Aggregate results for 2014The production costs of pig meat in 2014 for all the countries covered in this report are shown below in Figure 1. This data includes all variable costs (other than transport of pigs to abattoirs) and fixed costs. Fixed costs include depreciation and interest costs for capital items such as buildings and equipment. Costs for regular and casual labour are included but no allowances are made for directors’ salaries or partners’ drawings.

Figure 1 Cost of production in selected countries, 2014

The average cost of production in the EU in 2014 was £1.34/kg deadweight, a 13 per cent decrease on the previous year, mainly due to a reduction in feed costs. Costs of production in Great Britain were higher than the EU average at £1.39, a 13 per cent decrease on the previous year, almost entirely due to the reduction in feed costs. In 2014, Italy had the highest costs at £1.57, with Sweden the second highest at £1.48. The two countries with the lowest production costs in the EU were; Spain (£1.19) and Denmark (£1.23).

The average UK reference price was 4 per cent lower during 2014 than in 2013, averaging £1.54/kg, but this was nearly 24 per cent above the EU average of £1.26/kg. With falling pig prices there was a 12 per cent difference between the beginning and end of 2014. Although margins fluctuated throughout 2014, on average the UK price was above the estimated costs of production for each of the twelve months, although it had reduced to just above breakeven by the end of 2014. Across the EU countries which were sampled, there was a technical loss of eight pence on every kg of pig meat produced, with only four EU countries (Belgium, Denmark, France and Spain) having production costs below the EU average reference price.


COST OF PRODUCTION

Comparisons with previous years (in sterling terms)Costs of production in 2014, compared with results for the five previous years, are shown in Table 1. The average cost of production in the EU countries was 13 per cent lower than 2013 levels for the same countries and stood at £1.34/kg. All EU countries experienced a decrease in the costs of production.

Table 1 Average costs of production, 2009-2014 (£/kg deadweight)

Year 2009 2010 2011 2012 2013 2014 2013/12% change

Austria 1.28 1.36 1.45 1.43 1.51 1.33 -12

Belgium 1.24 1.25 1.39 1.40 1.47 1.25 -15

Brazil (MT) na 0.86 1.02 0.93 0.95 0.83 -13

Brazil (SC) 0.88 0.93 1.17 1.17 1.12 1.02 -9

Canada 0.91 0.94 1.12 1.17 1.19 0.97 -19

Czech. Rep. 1.47 1.52 1.57 1.54 1.57 1.34 -14

Denmark 1.25 1.19 1.37 1.35 1.42 1.23 -14

France 1.21 1.16 1.38 1.34 1.44 1.25 -13

Germany 1.35 1.29 1.51 1.45 1.53 1.30 -15

Great Britain 1.29 1.39 1.49 1.53 1.59 1.39 -13

Ireland 1.31 1.28 1.48 1.44 1.60 1.41 -12

Italy 1.54 1.52 1.68 1.59 1.70 1.57 -7

Netherlands 1.29 1.21 1.40 1.35 1.49 1.31 -12

Spain 1.27 1.20 1.38 1.32 1.38 1.19 -14

Sweden 1.29 1.44 1.67 1.70 1.78 1.48 -17

USA 0.97 0.96 1.09 1.12 1.25 0.97 -23

EU 1.31 1.32 1.48 1.45 1.54 1.34 -13


Comparisons with previous years (in euro terms) During 2014, the pound continued to strengthen against the euro. Consequently, the decrease in average costs was lower in euro terms, as shown in Table 2, than in sterling terms. Historic exchange rates are given in Appendix 3, Table 9

Table 2 Average costs of production, 2009-2014 (€/kg deadweight)

Year 2009 2010 2011 2012 2013 2014 2013/12% change

Austria 1.45 1.60 1.67 1.78 1.79 1.65 -8

Belgium 1.41 1.48 1.61 1.73 1.74 1.56 -10

Brazil (MT) na 1.02 1.18 1.17 1.13 1.04 -8

Brazil (SC) 0.99 1.10 1.35 1.46 1.33 1.28 -3

Canada 1.03 1.11 1.29 1.45 1.41 1.21 -14

Czech. Rep 1.65 1.76 1.79 1.86 1.83 1.67 -9

Denmark 1.42 1.41 1.59 1.68 1.68 1.53 -9

France 1.37 1.37 1.60 1.66 1.71 1.56 -9

Germany 1.54 1.53 1.76 1.82 1.82 1.63 -10

Great Britain 1.46 1.64 1.74 1.91 1.89 1.74 -8

Ireland 1.48 1.52 1.72 1.80 1.91 1.77 -7

Italy 1.74 1.79 1.95 1.98 2.01 1.96 -3

Netherlands 1.46 1.43 1.62 1.68 1.77 1.64 -7

Spain 1.44 1.42 1.60 1.64 1.64 1.49 -9

Sweden 1.47 1.72 1.96 2.13 2.12 1.86 -12

USA 1.10 1.12 1.27 1.40 1.49 1.21 -19

EU 1.49 1.56 1.72 1.81 1.83 1.67 -8

COST OF PRODUCTION


Table 3 contains financial performance data for 2014, while Table 4 presents comparisons with 2012 and 2013. Among the EU countries there was a range of 38p/kg between the highest-cost and the lowest-cost producer, a two pence increase in the range observed in 2013. The recorded differences are due to a combination of physical performance and input costs (eg feed, depreciation).

Table 3 Summary of financial performance, 2014 (£/kg deadweight)

AUS BEL BRA (MT)

BRA (SC)

CAN CZ DEN FRA GER

Feed 0.79 0.84 0.56 0.80 0.65 0.77 0.74 0.77 0.76

Other variable costs 0.22 0.16 0.15 0.10 0.13 0.38 0.21 0.19 0.24

Total variable costs 1.01 1.00 0.71 0.90 0.78 1.14 0.95 0.96 1.00

Labour 0.11 0.10 0.05 0.06 0.12 0.09 0.11 0.12 0.12

Depreciation and finance 0.20 0.15 0.06 0.06 0.08 0.11 0.17 0.17 0.18

Total fixed costs 0.32 0.25 0.12 0.12 0.19 0.20 0.28 0.29 0.30

Total 1.33 1.25 0.83 1.02 0.97 1.34 1.23 1.25 1.30

GB IRE ITA NL SPA SWE USA AVE EU

Feed 0.85 0.95 1.07 0.77 0.84 0.81 0.62 0.83

Other variable costs 0.22 0.21 0.20 0.26 0.16 0.22 0.13 0.22

Total variable costs 1.07 1.16 1.27 1.03 1.00 1.02 0.75 1.05

Labour 0.14 0.10 0.14 0.13 0.07 0.15 0.12 0.12

Depreciation and finance 0.18 0.15 0.16 0.16 0.11 0.31 0.10 0.17

Total fixed costs 0.31 0.25 0.31 0.28 0.19 0.46 0.22 0.29

Total 1.39 1.41 1.57 1.31 1.19 1.48 0.97 1.34

*totals may not add up due to rounding

Feed costsMarket developments in 2014Despite a good global harvest in 2013, the knock-on effect of the previous year’s poor harvest meant that cereals prices started 2014 at relatively high levels, although they were much lower than a year before. UK feed wheat prices began the year at around £160 per tonne, well below the £200 plus of early 2013. Prices fluctuated around this level until May, reacting to weather events and other market influences. However, as it became clear that the 2014 harvest was likely to be favourable, prices began to fall. For the second year running, there were no major weather events affecting global supplies.

By late September, the UK feed wheat price had fallen as low as £110 per tonne, a level not seen for over four years. Although prices did subsequently increase again, partly due to the need to encourage supplies out of stores, UK feed wheat ended the year at around £130 per tonne.

FINANCIAL PERFORMANCE SUMMARY


Oilseed and meal prices also followed a downward trend during the year, as weather conditions were generally favourable in both North and South America, the main producing regions. This led to record production of soyabean meal, which was sufficient to meet the increasing demand, particularly from China. Having been around £400 per tonne at the start of the year with a slight increase in the early spring, UK soyabean meal prices fell steadily following the South American harvest and fell further as US supplies came on stream. Prices ended the year below £350 per tonne.

With both the main components of animal feed reducing in price, it was inevitable that compound pig feed would also be cheaper. However, in the UK at least the fall was smaller than in the commodity markets. The average price for compound pig feed in the final quarter of 2013 was £260 per tonne, while a year later it had fallen to £234 per tonne, a drop of just 10%.

The impact on pig producers’ feed costs in 2014With lower prices for raw materials, on average pig feed prices were lower in 2014 than in 2013. Across the EU members of InterPIG, prices fell (in sterling terms) by an average of 16 per cent compared to the previous year. There was a range of feed prices across the EU countries, with a difference of nearly £57 per tonne between the highest and lowest average feed price in 2014.

Figure 2 Changes in feed costs, 2014

The impact of feed prices on the feed cost per kg is also affected by physical performance. All countries experienced a fall in feed costs, the lowest fall of eight per cent in Brazil and the highest fall of 29 per cent in the USA. Within the EU countries 2014 feed costs fell on average by 17 per cent compared to 2013, Italy had the lowest fall at nine per cent compared to the 21 per cent fall in Sweden.

USA CAN SWE GER GB DEN NL BEL FRA SPA CZ IRE AUS BRA(MT)

ITA BRA(SC)

-30

-25

-20

-15

-10

-5

0




Figure 3 Feed costs, 2014

Feed costs averaged 85p/kg in Great Britain, compared with the £1.06 recorded in 2013, a decrease of 19 per cent. The decrease in feed costs in Great Britain during 2014 was amongst the highest in the InterPIG group, compared to the average EU decrease of nearly 17 per cent. Feed costs in Great Britain were two per cent above the EU average of 83p/kg, lower than the six per cent difference in 2013.

BRA(MT)

USA CAN DEN GER NL CZ FRA AUS BRA(SC)

SWE SPA BEL GB IRE ITA0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

£/Kg

2013 2014



Table 4 Summary of financial performance, 2012-2014 (£/kg deadweight)

AUS BEL BRA (SC)2012 2013 2014 2012 2013 2014 2012 2013 2014

Feed 0.91 0.93 0.79 0.95 1.01 0.84 0.91 0.87 0.80



Labour 0.12 0.12 0.11 0.11 0.11 0.10 0.07 0.07 0.06



Total 1.43 1.51 1.33 1.40 1.47 1.25 1.17 1.12 1.02

CAN CZ DEN2012 2013 2014 2012 2013 2014 2012 2013 2014

Feed 0.84 0.85 0.65 1.01 0.91 0.77 0.86 0.91 0.74



Labour 0.11 0.11 0.12 0.16 0.12 0.09 0.12 0.12 0.11



Total 1.17 1.19 0.97 1.54 1.57 1.34 1.35 1.42 1.23

FRA GER GB2012 2013 2014 2012 2013 2014 2012 2013 2014

Feed 0.85 0.93 0.77 0.92 0.97 0.76 1.01 1.06 0.85



Labour 0.13 0.13 0.12 0.12 0.12 0.12 0.13 0.13 0.14



Total 1.34 1.44 1.25 1.45 1.53 1.30 1.53 1.59 1.39

IRE ITA NL2012 2013 2014 2012 2013 2014 2012 2013 2014

Feed 0.98 1.13 0.95 1.09 1.17 1.07 0.84 0.93 0.77



Labour 0.11 0.11 0.10 0.13 0.13 0.14 0.12 0.13 0.13



Total 1.44 1.60 1.41 1.59 1.70 1.57 1.35 1.49 1.31

SPA SWE USA EU AVE2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014

Feed 0.95 1.00 0.84 0.95 1.03 0.81 0.79 0.87 0.62 0.94 1.00 0.83

Other variable costs 0.17 0.17 0.16 0.24 0.24 0.22 0.12 0.15 0.13 0.21 0.23 0.22

Total variable costs 1.12 1.17 1.00 1.19 1.27 1.02 0.91 1.02 0.75 1.15 1.23 1.05

Labour 0.08 0.08 0.07 0.16 0.17 0.15 0.11 0.12 0.12 0.12 0.12 0.12

Depreciation and finance 0.12 0.12 0.11 0.36 0.35 0.31 0.10 0.12 0.10 0.18 0.19 0.17

Total fixed costs 0.20 0.20 0.19 0.51 0.51 0.46 0.21 0.24 0.22 0.30 0.31 0.29

Total 1.32 1.38 1.19 1.70 1.78 1.48 1.12 1.26 0.97 1.45 1.54 1.34*totals may not add up due to rounding


Table 5 Summary of physical performance, 2012-2014 (Part 1)

AUS BEL BRA (MT)2012 2013 2014 2012 2013 2014 2012 2013 2014

Pigs weaned/sow/year 23.85 23.84 24.36 25.43 27.44 27.81 25.13 25.33 26.09Pigs reared/sow/year 23.28 23.27 23.67 24.81 26.62 26.82 24.63 24.82 25.57Pigs sold/sow/year 22.90 22.88 23.27 24.06 25.74 25.99 23.89 24.28 25.01Litters/sow/year 2.29 2.29 2.30 2.31 2.33 2.32 2.41 2.41 2.41Rearing mortality (%) 2.40% 2.40% 2.80% 2.43% 2.97% 3.58% 2.00% 2.00% 2.00%

Finishing mortality (%) 1.63% 1.65% 1.73% 3.05% 3.32% 3.08% 3.00% 2.20% 2.20%Finishing Daily Liveweight Gain (g/day) 790 792 796 659 656 676 831 831 831Finishing Feed Conversion Ratio 2.85 2.85 2.89 2.93 2.89 2.86 2.60 2.60 2.60Average liveweight at slaughter (kg) 120 120 120 113 113 113 113 119 122Average carcase weight - Cold (kg) 93.7 93.7 93.9 89.8 90.2 90.1 84.0 88.9 91.1Carcase meat production/sow/year (kg) 2145 2143 2185 2160 2323 2342 2007 2159 2279Average lean meat percentage 60.5% 60.5% 60.2% 63.4% 63.4% 63.4% 57.7% 57.7% 57.7%Lean meat production/sow/year (kg) 1297 1297 1316 1370 1473 1485 1158 1245 1315

BRA (SC) CAN CZ2012 2013 2014 2012 2013 2014 2012 2013 2014

Pigs weaned/sow/year 24.61 25.51 25.73 23.59 22.95 22.73 23.19 25.14 26.65Pigs reared/sow/year 24.12 25.00 25.22 23.12 22.49 22.28 22.21 24.32 25.86Pigs sold/sow/year 23.59 24.45 24.66 22.43 21.70 21.50 21.57 23.75 25.33Litters/sow/year 2.31 2.31 2.30 2.32 2.27 2.27 2.23 2.23 2.27Rearing mortality (%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 4.21% 3.25% 2.96%Finishing mortality (%) 2.20% 2.20% 2.20% 3.00% 3.50% 3.50% 2.87% 2.35% 2.04%Finishing Daily Liveweight Gain (g/day) 820 820 820 875 878 870 745 822 844Finishing Feed Conversion Ratio 2.60 2.60 2.60 3.00 3.02 3.00 3.47 3.00 2.92Average liveweight at slaughter (kg) 118 119 120 122 123 124 111 114 115Average carcase weight - Cold (kg) 88.0 88.8 89.6 96.3 96.8 97.9 86.7 88.3 88.3Carcase meat production/sow/year (kg) 2076 2170 2210 2160 2101 2105 1869 2098 2237Average lean meat percentage 57.7% 57.7% 57.7% 60.0% 60.0% 60.0% 57.1% 57.9% 58.4%Lean meat production/sow/year (kg) 1198 1252 1275 1296 1260 1263 1068 1214 1307

DEN FRA GER2012 2013 2014 2012 2013 2014 2012 2013 2014


PHYSICAL PERFORMANCE


Table 5 Summary of physical performance, 2012-2014 (Part 2)

GB IRE ITA2012 2013 2014 2012 2013 2014 2012 2013 2014


NL SPA SWE2012 2013 2014 2012 2013 2014 2012 2013 2014


USA EU AVE2012 2013 2014 2012 2013 2014

Pigs weaned/sow/year 24.94 24.83 24.57 25.34 26.06 26.53Pigs reared/sow/year 23.99 23.87 23.58 24.65 25.36 25.81Pigs sold/sow/year 22.79 22.67 22.44 24.02 24.72 25.13Litters/sow/year 2.37 2.37 2.37 2.29 2.30 2.30Rearing mortality (%) 3.80% 3.87% 4.01% 2.72% 2.65% 2.74%Finishing mortality (%) 5.03% 5.04% 4.85% 2.55% 2.49% 2.59%Finishing Daily Liveweight Gain (g/day) 780 795 812 781 787 793Finishing Feed Conversion Ratio 2.80 2.76 2.74 2.90 2.85 2.85Average liveweight at slaughter (kg) 124 124 129 117 118 119Average carcase weight - Cold (kg) 91.6 92.0 96.6 89.9 90.6 91.0Carcase meat production/sow/year (kg) 2088 2086 2167 2157 2234 2281Average lean meat percentage 56.0% 55.5% 54.8% 58.4% 58.6% 58.7%Lean meat production/sow/year (kg) 1169 1158 1188 1252 1301 1333




Pigs weaned per sow per year The overall average number of pigs weaned per sow per year in the European InterPIG countries showed a two per cent increase in 2014, up from 26.06 in 2013 to 26.53 in 2014. Performance improved in all the EU countries with Czech Rep continuing to show the greatest increase, up six per cent compared with 2013. Denmark and the Netherlands again had the best results for pigs weaned, with Denmark continuing to achieve an average of over 30 pigs weaned per sow per year. The non-EU countries all continued to perform below the EU average, with Canada the lowest at 22.73.

The number of pigs weaned per sow per year in Great Britain increased by two per cent to 24.09. While Great Britain has a significant proportion of sows kept outdoors, the low number of pigs weaned per sow per year in all systems is still a major cause of the relatively high cost of production and needs to be addressed if costs are to be competitive with the rest of Europe. Pigs weaned per sow per year is a result of three different elements: pigs born alive per litter, litters per sow per year and pre-weaning mortality.

• The Great Britain result for litters per sow per year was 2.27 (indoor sows 2.30, outdoor sows 2.24), a decline in the outdoor sow performance compared to 2013. Indoor sow performance was equal to the EU average of 2.30.

• Pre-weaning mortality, at 12.6 per cent (indoor sows 11.5, outdoor sows 14.2), was lower than 2013 for the indoor sows but slightly higher for the outdoor sows. Indoor sows were lower than the EU average of 12.9 per cent

• As in previous years, the main reason that Great Britain has a below average number of pigs weaned per sow per year lies in the number of pigs born alive per litter. The 2014 average at 12.1 (indoor sows 12.6, outdoor sows 11.2) was an increase compared to 11.87 in 2013 compared to an EU average of 13.2

Figure 4 Pigs weaned per sow per year, 2013-2014

GB(outdoor)

CAN GB SWE AUS ITA USA GB(indoor)

BRA(SC)

SPA BRA(MT)

CZ IRE FRA GER NL DENBEL17181920212223242526272829303132

2013 2014



Through its ‘Breed +3’ initiative to help pig producers wean more pigs, AHDB Pork continues to aim for the Two-Tonne Sow (2TS) target. To achieve these targets requires businesses to adopt the two most common factors affecting high performing success:

• A weekly analysis and review of herd performance data and discussing with staff actual herd performance relative to targets

• Engaging staff and delivering a structured approach to staff training and skills development.

An AHDB Pork survey also examined other factors such as production systems, building design and age, herd health status, nutrition and genetics but there were no other factors common to the cohort of high performing businesses

Pigs finished per sow per year The average number of pigs finished per sow in Great Britain again increased in 2014. At 22.7 (indoor sows 24.2, outdoor sows 20.5) performance was 0.47 pigs (2%) higher than in 2013.

In 2014, there was an average 25.13 pigs finished per sow in the EU, two per cent higher than in 2013. Denmark has the highest numbers, again finishing over 28 pigs per sow per year. Within the EU, Great Britain has the lowest number of pigs finished per sow per year, with Canada and USA achieving a lower performance in the InterPIG group.

Figure 5 Pigs finished per sow per year, 2013-2014

CAN USA GB AUS SWE ITA SPA BRA(SC)

BRA(MT)

CZ IRE FRA BEL GER NL DEN1718192021222324252627282930

2013 2014


The relative costs analysed in this report relate to the 2014 calendar year. The annual average cost of feed decreased between 2013 and 2014. With the favourable 2014 harvest, grain prices fell further resulting in lower compound feed prices. In sterling terms, both GB and the EU average show a reduction comparing July 2015 feed prices with 2014. This chapter examines how the changes in monthly average feed prices have affected relative costs of production in 2014. In these calculations, feed prices are the only factors that have been changed; all other variables have been left unchanged. For this reason and also because the current feed costs will not have applied throughout 2015, these figures should not be considered as provisional 2015 results.

Feed price movementsTable 6 Changes in feed prices, 2012-2015

2012 2013 2014 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Jul-15 compared with

2014Weighted average feed prices (€/tonne)Austria 304.4 293.2 266.8 na na na na na na na naBelgium 304.9 315.9 278.6 244.3 244.8 244.8 244.8 242.5 240.3 240.9 -14Brazil (SC) 304.7 280.1 270.8 na na na na na na na naCanada 268.5 255.1 207.1 na na na na na na na naCzech Rep. 267.1 275.2 244.8 na na na na na na na naDenmark 288.2 292.5 250.6 na na na na na na na naFrance 284.3 298.6 268.0 238.7 240.9 257.1 257.3 257.2 na na naGermany 302.0 304.5 253.2 na na na na na na na naGB 332.5 316.7 282.9 302.2 307.5 314.8 289.8 287.2 286.8 300.6 +6Ireland 324.4 358.3 315.2 296.9 301.8 302.2 302.5 303.7 304.7 304.4 -3Italy 287.1 290.9 279.4 296.8 292.8 288.7 293.2 301.1 302.8 304.6 +9Netherlands 301.7 317.4 276.0 249.8 254.5 257.4 259.2 259.2 258.7 259.1 -6Spain 306.4 314.0 280.9 273.2 274.9 275.6 277.1 276.2 276.0 279.8 -0Sweden 303.3 319.0 261.5 245.7 248.3 256.5 na na na na naUSA 239.7 253.6 194.3 na na na na na na naAverage 294.6 299.0 262.0 268.4 270.7 274.6 274.8 275.3 278.2 281.6 +7

Weighted average feed prices (£/tonne)Austria 246.8 249.0 215.2 na na na na na na na naBelgium 247.2 268.3 224.7 187.4 181.3 177.0 176.8 175.0 173.2 170.4 -24Brazil (SC) 247.1 237.9 218.4 na na na na na na na naCanada 217.7 216.6 167.0 na na na na na na na naCzech Rep. 216.6 233.7 197.4 na na na na na na na naDenmark 233.7 248.4 202.1 na na na na na na na naFrance 230.5 253.6 216.2 183.0 178.4 185.9 185.8 185.6 na na naGermany 244.9 258.6 204.2 na na na na na na na naGB 269.6 269.0 228.2 231.7 227.7 227.7 209.4 207.3 206.7 212.6 -7Ireland 263.1 304.3 254.2 227.7 223.5 218.6 218.5 219.2 219.6 215.3 -15Italy 232.8 247.0 225.3 227.6 216.8 208.8 211.8 217.3 218.2 215.4 -4Netherlands 244.6 269.5 222.6 191.6 188.4 186.1 187.2 187.0 186.4 183.3 -18Spain 248.5 266.6 226.6 209.5 203.5 199.3 200.1 199.3 198.9 197.9 -13Sweden 245.9 270.9 210.9 188.4 183.8 185.5 na na na na naUSA 194.4 215.4 156.7 na na na na na na na naAverage 238.9 253.9 211.3 205.9 200.4 198.6 198.5 198.7 200.5 199.2 -6

The ability for producers to control their costs, such as feed, is paramount in obtaining a positive margin.

MONITORING CHANGES IN COSTS OF PRODUCTION



Total production costsThe estimates of total production costs in Table 7 are based on the changes in feed costs only, with all other factors being held constant. In reality, of course, there will be other changes affecting production costs. However, the dominance of feed in the cost of producing pig meat means that these other factors are likely to be dwarfed by the effects of feed price changes.

Table 7 Changes in total production costs, 2012-2015

2012 2013 2014 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Jul-15 compared with

2014Pigmeat production costs (€/kg)Austria 1.78 1.79 1.65 na na na na na na na naBelgium 1.73 1.74 1.56 1.43 1.43 1.43 1.43 1.42 1.41 1.42 -9Brazil (SC) 1.46 1.33 1.28 na na na na na na na naCanada 1.45 1.41 1.21 na na na na na na na naCzech Rep. 1.86 1.84 1.65 na na na na na na na naDenmark 1.68 1.68 1.53 na na na na na na na naFrance 1.66 1.71 1.56 1.45 1.46 1.52 1.52 1.52 na na naGermany 1.82 1.82 1.63 na na na na na na na naGB 1.91 1.89 1.74 1.85 1.90 1.94 1.85 1.84 1.84 1.91 +2Ireland 1.84 1.93 1.77 1.72 1.72 1.72 1.72 1.73 1.73 1.73 -2Italy 1.98 2.01 1.96 2.04 2.03 2.01 2.03 2.06 2.07 2.08 +6Netherlands 1.68 1.77 1.64 1.55 1.57 1.58 1.58 1.58 1.58 1.58 -4Spain 1.64 1.64 1.49 1.46 1.47 1.47 1.47 1.47 1.47 1.48 -0Sweden 2.14 2.08 1.86 1.77 1.77 1.83 na na na na naUSA 1.40 1.49 1.21 na na na na na na na naAverage 1.74 1.74 1.58 1.66 1.67 1.69 1.66 1.66 1.69 1.70 +7

Pigmeat production costs (£/kg)

Austria 1.44 1.52 1.33 na na na na na na na na

Belgium 1.40 1.47 1.26 1.10 1.06 1.03 1.03 1.03 1.02 1.00 -20

Brazil (SC) 1.18 1.13 1.03 na na na na na na na na

Canada 1.18 1.20 0.98 na na na na na na na na

Czech Rep. 1.51 1.56 1.33 na na na na na na na na

Denmark 1.36 1.42 1.23 na na na na na na na na

France 1.35 1.45 1.26 1.11 1.08 1.10 1.10 1.10 na na na

Germany 1.48 1.55 1.32 na na na na na na na na

GB 1.55 1.60 1.41 1.42 1.40 1.40 1.34 1.33 1.33 1.35 -4

Ireland 1.49 1.64 1.43 1.32 1.27 1.25 1.25 1.25 1.25 1.22 -14

Italy 1.61 1.71 1.58 1.57 1.50 1.45 1.46 1.49 1.49 1.47 -7

Netherlands 1.36 1.50 1.32 1.19 1.16 1.14 1.14 1.14 1.14 1.12 -15

Spain 1.33 1.39 1.20 1.12 1.09 1.06 1.07 1.06 1.06 1.05 -13

Sweden 1.73 1.76 1.50 1.36 1.31 1.32 na na na na na

USA 1.14 1.26 0.98 na na na na na na na na

Average 1.41 1.48 1.28 1.27 1.23 1.22 1.20 1.20 1.21 1.20 -6


Net margins in Great BritainThe net margins shown in Figure 6 are based on the difference between the monthly Average Pig Price (APP) and the total cost of producing pig meat (including depreciation costs) for an average producer. The results shown in the chart should, however, only be considered as indicative of general trends because:• Physical and financial performance levels can vary greatly between producers• The assumptions used for feed costs using spot compound prices will not apply to all producers, due to

the range of feed procurement strategies in the industry.

Figure 6 Estimated net margins in Great Britain, 2005-2015

During 2009 producers in Great Britain obtained a good positive margin per pig produced. This was following several years of negative returns and considerable losses in the industry. Higher costs in 2010, 2011 and 2012 also resulted in negative margins for each of these years. During prolonged periods of negative margins specialist pig producers are particularly vulnerable and may leave the industry. Many other producers make little or no investment during these periods and some depopulate for a period of time. Many only survive due to income from other enterprises such as cash crops.

In 2013 rising pig prices, improved productivity and reducing feed prices returned negative margins in the first part of the year and positive margins in the second half of the year resulting in a slightly negative margin overall. In the early part of 2014, the higher pig price left positive margins. Declining pig prices throughout the rest of 2014 resulted in declining positive margins until they reached almost a breakeven point at the end of 2014. Overall, 2014 showed a positive margin for the year. At the beginning of 2015, continued pig price reductions have resulted in a return to negative margins.

2007 2008 20142013 2015Q2

2015Q1

201220112010200920062005-13

-8

-3

2

7

12

£/he

ad



APPENDIX 1

Pig industry trends, 2014AUS BEL BRA CAN CZE DEN FRA GER

Breeding Sow numbers (000 head) 246 464 2,930 1,193 143 1,242 1,066 2,080

Annual pig slaughterings (000 head) 5,407 11,855 36,800 20,498 2,640 18,781 23,655 58,730

Pig meat production (000 tonnes) 526 1,118 3,313 1,964 246 1,589 1,955 5,518

Pig meat imports (000 tonnes cwe)* 220 155 2 230 293 152 571 1,136

Pig meat exports (000 tonnes cwe)* 266 827 645 1,145 85 1,386 555 2,300

Pig meat consumption (000 tonnes cwe)* 480 446 2,670 1,049 454 355 1,971 4,354

Pig meat consumption (kg/head)* 56.4 39.8 13.2 29.5 43.2 63.2 29.9 53.9

IRE ITA NL POL SP SWE UK USA

Breeding Sow numbers (000 head) 150 578 1,092 1,009 2,353 143 486 5,855

Annual pig slaughterings (000 head) 3,043 10,931 14,596 20,504 43,484 2,562 10,466 106,876

Pig meat production (000 tonnes) 254 1,333 1,371 1,940 3,620 237 862 10,368

Pig meat imports (000 tonnes cwe)* 112 1,138 246 673 152 141 916 563

Pig meat exports (000 tonnes cwe)* 210 243 936 586 1,332 30 236 2,123

Pig meat consumption (000 tonnes cwe)* 156 2,228 681 2,027 2,440 348 1,542 8,808

Pig meat consumption (kg/head)* 34.0 36.7 40.5 53.3 52.4 36.1 24.0 27.3

*Estimated figuresBreeding sow numbers are for mid-2014 except for Brazil, Czech Republic (Dec 14)Source: AHDB, Eurostat, USDA, Statistics Canada, GTIS


National carcase dressing specificationsCountry Presentation of the carcase Payment

Austria Without reproductive organs, tongue, spinal cord, lard, kidneys, diaphragm, brain and the organs of thoracic cavity and abdominal cavity, with the head and feet (without nails)

hot

Belgium Without head and feet, without flare fat, kidneys and trimmings hot -2%

Czech Republic With the head, flare fat, skin, without brain, kidneys and organs in breast, abdomen and pelvic cavity

hot

Denmark With head and feet, without flare fat, kidneys and trimmings hot

France With head (including eyes, ears and tongue), with hooves and tail, without kidneys, diaphragm and flare fat

cold

Germany Without reproductive organs, tongue, spinal cord, lard, kidneys, diaphragm, brain and the organs of thoracic cavity and abdominal cavity

hot

Ireland REMOVED : Oesophagus, stomach, intestines, spleen, bladder, heart, liver, lungs, testicles, hair, neck glands, fatty tissue, blood, flare fat, kidneys and diaphragm

cold

Netherlands With the head and feet (without nails), without flare fat, kidneys and trimmings

hot

Sweden With the head, feet and tail. No intestines of any kind. No flare fat. cold

UK With head, feet and tail but without flare fat, kidneys and diaphragm cold

APPENDIX II


Additional tables and figures*labels on bar charts are rounded and may indicate the same results when the bars do not appear equal

Table 8 Ranking of EU production costs, 2009-2014

Year 2009 2010 2011 2012 2013 2014 % of EU ave

Spain 4 3 3 1 1 1 89.1

Denmark 3 2 1 3 2 2 91.5

Belgium 2 5 4 5 4 3 93.1

France 1 1 2 2 3 4 93.2

Germany 10 7 9 8 7 5 97.8

Netherlands 6 4 5 4 5 6 98.2

Austria 5 8 6 6 6 7 98.4

Czech. Rep 11 11 10 9 8 8 100.1

Great Britain 7 9 8 10 9 9 104.2

Ireland 9 6 7 7 10 10 105.9

Sweden 8 10 12 12 12 11 111.2

Italy 12 12 11 11 11 12 117.3

Notes: Rankings – 1 = lowest cost, 12 = highest cost

Figure 7 Exchange rate movements, 2009-2015

APPENDIX III

Jan-09 Jan-14Jan-14Jan-13Jan-12Jan-1016

20

24

28

32

36

40

44

UK

pen

ce

Brazilian real


52

56

60

64

68

72

76

UK

pen

ce

US dollar


42

46

50

54

58

62

66

70

UK

pen

ce

Canadian dollar


60

64

68

72

76

80

84

88

92

96

100

UK

pen

ce

Euro


APPENDIX III

Table 9 Annual exchange rates

Year 1€ = €:£ $US:£ $C:£ Real:£2009 89.0p 1.123 1.57 1.78 3.112010 85.8p 1.166 1.55 1.59 2.722011 86.7p 1.153 1.60 1.59 2.682012 81.1p 1.233 1.59 1.58 3.102013 84.9p 1.178 1.56 1.61 3.382014 80.6p 1.241 1.65 1.82 3.87

Table 10 Feed prices and energy content, 2014

AUS BEL BRA (MT)

BRA (SC)

CAN CZ DEN FRA GER

£/tonneSow 208.07 222.87 124.03 167.18 166.14 170.98 188.68 213.68 203.31Rearer 305.89 326.19 434.63 460.89 248.09 279.61 274.00 299.25 293.39Finisher 200.00 212.80 134.36 204.35 155.40 185.54 190.95 202.36 190.89Average 204.09 224.65 155.29 218.42 167.05 192.41 197.09 205.87 204.18Energy content (MJ ME/kg)Sow 12.20 12.80 na na 12.95 na 13.07 12.80 13.00Rearer 13.00 14.20 na na 13.65 na 13.94 13.30 13.40Finisher 13.00 13.57 na na 12.05 na 13.07 12.80 13.00Average 12.73 13.52 na na 12.88 na 13.36 12.97 13.13Cost of feed (p/kg MJ ME)Sow 1.71 1.74 na na 1.28 na 1.44 1.67 1.56Rearer 2.35 2.30 na na 1.82 na 1.97 2.25 2.19Finisher 1.54 1.57 na na 1.29 na 1.46 1.58 1.47Average 1.60 1.66 na na 1.30 na 1.47 1.59 1.55

GB IRE ITA NL SPA SWE USA EU AVE

£/tonneSow 197.68 233.31 221.42 220.86 195.65 204.74 155.18 206.77Rearer 282.15 331.74 301.94 319.77 345.89 311.87 225.81 305.97Finisher 222.86 237.10 216.78 211.35 220.89 196.28 152.86 207.32Average 228.15 250.00 223.90 222.57 226.55 198.78 156.66 214.85Energy content (MJ ME/kg)Sow 13.20 13.30 13.00 12.90 na 12.60 13.62 12.89Rearer 14.40 14.20 14.00 13.60 na 12.70 13.92 13.67Finisher 13.40 13.40 12.75 13.80 na 12.40 13.96 13.12Average 13.67 13.63 13.25 13.43 na 12.57 13.83 13.23Cost of feed (p/kg MJ ME)Sow 1.50 1.75 1.70 1.71 na 1.62 1.14 1.60Rearer 1.96 2.34 2.16 2.35 na 2.46 1.62 2.24Finisher 1.66 1.77 1.70 1.53 na 1.58 1.09 1.58Average 1.67 1.83 1.69 1.66 na 1.58 1.13 1.62


APPENDIX III

Figure 8 Depreciation and finance costs, 2013-2014

Figure 9 Daily Liveweight Gains (finishing herds), 2013-2014

CAN USA GB AUS SWEITASPABRA(SC)

BRA(MT)

CZ IRE FRABEL GERNL DEN0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.402013 2014

CANUSAGBAUS SWEITA SPA BRA(SC)

BRA(MT)

CZIREFRABEL GERNL DEN500

550

600

650

700

750

800

850

900

950

10002013 2014


APPENDIX III

Figure 10 Feed Conversion Ratios (finishing herds), 2013-2014

Figure 11 Carcase meat production/sow/year, 2013-2014

CAN USA GBAUS SWEITA SPABRA(SC)

BRA(MT)

CZ IRE FRABEL GER NLDEN2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

3.82013 2014

CAN USAGB AUSSWE ITASPA BRA(SC)

BRA(MT)

CZIRE FRA BEL GER NLDEN1200

1450

1700

1950

2200

2450

2700

2950

32002013 2014


APPENDIX III

Standardising the physical resultsMethodologyThere is a wide variation in physical performance measures reported by InterPIG countries. Some of these variations could be due to differences between countries in the weight of animals produced. Other things being equal, an increase in slaughter weights and the length of time an animal is in the system will lead to a worsening in both the marginal daily liveweight gain (DLG) and the marginal feed conversion ratio (FCR).

Using methodology created by our French InterPIG partner, ITP, the figures have been standardised on the basis of three weights: • Transfer from breeding unit to rearing unit: 8kg (GB = 7.1kg in 2014)• Transfer from rearing unit to finishing unit: 30kg (GB = 37.1kg)• Liveweight at slaughter: 120kg (GB = 105.4kg).

This section examines the adjustments that have been made to the finishing FCR and DLG figures in the European InterPIG countries to exclude the differences caused by variations in national transfer and slaughter weights.

Figure 12 Standardised Daily Liveweight Gains (finishing herds), 2014

CAN USAGBAUS SWEITA SPABRA(SC)

BRA(MT)

CZ IREFRABEL GER NLDEN500

550

600

650

700

750

800

850

900

950

1000Actual Standardised


APPENDIX III

Figure 13 Standardised Feed Conversion Ratios (finishing herds), 2014

CAN USAGBAUS SWEITA SPABRA(SC)

BRA(MT)

CZ IREFRABEL GER NLDEN2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

3.8

4.0Actual Standardised


APPENDIX III

Table 11 GB and EU physical results, 2014

GB Overall

GB Indoor*

GB Outdoor*

EU average

GB overall difference

with EU average

2014%Pigs weaned/sow/year 24.1 25.7 21.8 26.5 -9Pigs reared/sow/year 23.4 24.9 21.2 25.8 -9Pigs sold/sow/year 22.7 24.2 20.5 25.1 -10Pigs born alive/litter 12.1 12.6 11.4 13.2 -8Pigs weaned/litter 10.6 11.2 9.7 11.5 -8Litters/sow/year 2.27 2.30 2.24 2.30 -1

Sow mortality (%) 4.6% 5.2% 3.8% 5.8% -20Pre-weaning mortality (%) 12.6% 11.5% 14.2% 12.9% -2Rearing mortality (%) 2.8% 2.7% +4Finishing mortality (%) 3.2% 2.6% +22

Transfer weight from breeding to rearing unit (kg) 7.1 7.1 7.0 7.5 -5Lactation period (days) 26.4 26.6 26.1 26.7 -1Transfer weight from rearing to finishing unit (kg) 37.1 30.0 +24Rearing Daily Liveweight Gain (g/day) 502 419 +20Rearing Feed Conversion Ratio 1.7 1.8 -7Finishing Daily Liveweight Gain (g/day) 801 793 +1Finishing Feed Conversion Ratio 2.7 2.8 -6Average number of days in rearing unit 60 53 +12Average number of days in finishing unit 85 114 -25Empty finishing unit days per cycle 7 8 -14Pigs/pig place/year (finishing) 4.0 3.1 +26Average live weight at slaughter (kg) 105.4 118.5 -11Average carcase weight - Cold (kg) 80.4 91.0 -12

Killing-out percentage (cold weight) 76.3% 76.3% 76.3% 76.7% -1Carcase meat production/sow/year (kg) 1823 1945 1650 2281 -20Average lean meat percentage 61.4% 61.4% 61.4% 58.7% +5Lean meat production/sow/year (kg) 1119 1194 1013 1333 -16

Sow feed/sow/year (kg) 1426 1345 1547 1309 +9Weaner/rearer feed/reared pig (kg) 52 42 +24Finishing pigs feed consumption/slaughter (kg) 184 257 -28

*All pigs from indoor and outdoor sows are assumed to be reared in the same type of straw based system after weaning.


APPENDIX IV

List of tables and chartsPage

Table 1 Average costs of production, 2009-2014 (£/kg dw) 8

Table 2 Average costs of production, 2009-2014 (euros/kg dw) 9

Table 3 Summary of financial performance, 2014 (£/kg dw) 10

Table 4 Summary of financial performance, 2012-2014 (£/kg dw) 13

Table 5 Summary of physical performance, 2012-2014 14

Table 6 Changes in feed prices, 2012-2015 18

Table 7 Changes in total production costs, 2012-2015 19

Table 8 Ranking of EU production costs, 2009-2014 23

Table 9 Annual exchange rates 24

Table 10 Feed prices and energy content, 2014 24

Table 11 GB and EU physical results, 2014 29

Figure 1 Cost of production in selected countries, 2014 7

Figure 2 Changes in feed costs, 2014 11

Figure 3 Feed costs, 2014 12

Figure 4 Pigs weaned/sow/year, 2013-2014 16

Figure 5 Pigs finished/sow/year, 2013-2014 17

Figure 6 Estimated net margins in Great Britain, 2006-2015 20

Figure 7 Exchange rate movements, 2009-2015 23

Figure 8 Depreciation and finance costs, 2013-2014 25

Figure 9 Daily Liveweight Gains (finishing herds), 2013-2014 25

Figure 10 Feed Conversion Ratios (finishing herds), 2013-2014 26

Figure 11 Carcase meat production/sow/year, 2013-2014 26

Figure 12 Standardised Daily Liveweight Gains (finishing herds), 2014 27

Figure 13 Standardised Feed Conversion Ratios (finishing herds), 2014 28

Appendix l Pig industry trends, 2014 21

Appendix ll National carcase dressing specifications 22

Appendix III Additional tables and figures 23

AHDB Pork Working with you

pork.ahdb.org.uk Find out more at:

Ask us about…• Farm reviews• Training • Pig clubs• Study tours• Conferences• Technical information

• Field trials • On-farm tools• Publications • Website • Pork promotion• Prices, facts

and fi gures

MEET THE TEAM

Stephen Winfi eld

KT Team Leadand Corporate Account Manager

T: 07891 656784E: stephen.winfi eld@ahdb. org.uk

Richard Bows

KT Manager – North

T: 07816 941223E: [email protected]

Kate Mellor

KT Manager – South


Andrew Palmer

KT Manager – East


Angela Cliff

KT Manager – Midlands

T: 07967 788484E: angela.cliff @ahdb.org.uk

AHDB Pork Working with you

pork.ahdb.org.uk Find out more at:

Ask us about…• Farm reviews• Training • Pig clubs• Study tours• Conferences• Technical information

• Field trials • On-farm tools• Publications • Website • Pork promotion• Prices, facts

and fi gures

MEET THE TEAM

Stephen Winfi eld

KT Team Leadand Corporate Account Manager

T: 07891 656784E: stephen.winfi eld@ahdb. org.uk

Richard Bows

KT Manager – North


Kate Mellor

KT Manager – South


Andrew Palmer

KT Manager – East


Angela Cliff

KT Manager – Midlands

T: 07967 788484E: angela.cliff @ahdb.org.uk

Kantar Worldpanel Sales. 4 weeks ending 24th May 2015.

Additional sales of fresh pork and added value pork products generated directly by marketing campaign, excludes all price promotions. Kantar Consumer Mix Model July 2015

AS A DIRECT RESULT OF THE MARKETING CAMPAIGN

£7.8MMORE FRESH PORK SOLD

206,000MORE HOUSEHOLDSBOUGHT FRESHPORK SHOULDER VERSUS LAST YEAR

YPULLEDPORK

PULLEDPORK

ARE YOU READY TO PULL NEXT FEBRUARY?ARE YOU READY TO

PULL NEXT FEBRUARY?ARE YOU READY TO

PULL NEXT FEBRUARY?ARE YOU READY TO

PULL NEXT FEBRUARY?

PULLEDPORK

PULLEDPORK

BACK ON TV IN FEBRUARY after a successful campaign in 2015

TO FIND OUT HOW TO BENEFIT FROM OUR CAMPAIGN, CONTACT: [email protected]

© Agriculture and Horticulture Development Board 2016. All rights reserved.

B9691 Meat Traders Journal Advert.indd 1 04/01/2016 12:11

Documents

2014 PIG COST OF PRODUCTION IN SELECTED COUNTRIES …pork.ahdb.org.uk/media/74797/cost-of-production-web-2014.pdf · 4 Pig Cost of Production in Selected Countries Welcome to the