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    Reducing the Impact of Increasing Pig Feed Costs
26/07/07

Red Meat Industry Forum (RMIF) and Agrosoft have launched a booklet to help pig producers reduce the impact of increasing feed costs.

pig production

The collaborative publication will help producers understand the relationship between management strategy and financial response.

The impact of increasing feed costs upon the cost of production is a constant challenge for pig producers unless there is some 'slack' in the business to absorb the current pressures. For example, an estimated increase in productivity required to mitigate £5 per tonne incremental rises is nearly 0.5 pig sold per sow per year. Or if looked at from Feed Conversion Ratio (FCR) angle the same incremental rise requires 0.08 improvement in FCR.

The booklet will help producers identify where they can improve key performance areas of production and will mean increasing feed costs take on a different challenge. British Pig Executive (BPEX) Strategy Co-ordinator Andrew Knowles said: "Feed represents over 50% of production costs and increases in feed prices in the last 12 months have, on average, pushed up pig meat costs by 11%.

"Providing production tools that will help pig businesses to minimise the impact of volatile feed prices is essential in maintaining the competitiveness and sustainability of the British pig industry. However, all elements of the pig meat supply chain, including retailers, need to recognise the impact increased feed prices are having on all European pig production."

A major report is published on Friday (Jul 27), on the BPEX website, examining the factors driving changes in feed prices, what the implications are for the costs of producing pig meat and what the industry can do to mitigate some of those effects.

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