Impact of Feed Prices on British Pig Industry

December 13, 2006 — 

This article from the British Pig Executive (BPEX) evaluates the impact of the recent rise in the price of feed grains in Europe on the UK pig industry.

The author, Tony Fowler, blames the current feed grain prices on lack of supply related to inclement weather in Europe, Argentina and Australia. Weather conditions will result in an estimated 4% decline in total grain production in the European Union compared to 2005. Shortages may result in record low levels. Overall, the price of soy beans has remained relatively constant due to expected record harvests in the U.S.

The resulting effect on swine production costs is dependent on a number of factors including feed source, forward purchasing of ingredients, and ingredient substitutions. He estimates that feed costs represent approximately 70% of the variable production costs in swine production and he recommends "locking in" feed prices to reduce the variability associated with future grain production.

Source:
British Pig Executive, Knowledge Transfer
Feed Prices and the UK Pig Industry