Pig producers are finally beginning to make money after a prolonged period of losses.
According to AHDB Pork, prices are at a 20-month high with the EU-spec Standard Pig Price (SPP) for UK pigs up 1.65p to 139.89p a kilo for the week ended September 10.
“This price has not been recorded since January 2015, and stands almost 9p more than at the same point last year,” said AHDB Pigs.
The organisation said strong European prices, which could be boosted further by improved prices in Germany, had bolstered UK prices.
However, production costs are also on the rise and AHDB Pigs said producers had not yet returned to the “positive situation experienced during much of 2013 and 2014”.
“Having fallen through most of 2015, pig production costs rose in the second quarter of this year,” said the levy body.
“This meant that, despite some recovery in pig prices during the three months, average producer losses were similar to those in the first quarter.”
Producers were estimated to have lost an average of 12p a kilo, or £10 a head, in the three-month period from April to June. The rise in production costs was largely due to higher feed prices.
Aberdeenshire pig farmer and chairman of NFU Scotland’s pigs and poultry committee, Kevin Gilbert, said pig farmers should finally be making a profit again.
He said: “The rise in pig prices is great and it will make up for the losses incurred last year and give pig farmers a positive outlook.”
Mr Gilbert, who produces around 200 pigs a week from his herd of 450 sows at Womblehill Farm, Kintore, Inverurie, reported losses of £19,000 for every lorry load of 200 bacon pigs he produced in February.
He said his business was finally back in the black and said the weakening of the sterling since the Brexit vote had helped boost prices.
“Pig prices are still going up and there are openings for young people to get into pig farming,” added Mr Gilbert.
Last month marketing co-operative, Scottish Pig Producers, launched a recruitment drive to find the “pig farmers of tomorrow”.
The co-op said the future was bright for Scottish pig production and more pig farmers, and in particular, more finishing units were needed to meet growing demand.
