Fears have been raised that pig farmers could quit the industry after suffering prolonged losses including the "worst financial situation on record".
New analysis by the AHDB (Agriculture and Horticulture Development Board) shows how record production costs and lower pig prices compared to 2020 resulted in producers losing an average of 28p/kg - or £24 per pig - during the second quarter of 2021, following similar losses in the first quarter of the year.
"The first half of 2021 therefore represents the worst financial situation for pig producers, across a six-month period, on record," said AHDB senior analyst Bethan Wilkins.
"It is typical for pig production to go through cycles of profitability and loss-making. However, it is unusual for margins to be this low for a prolonged period."
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The AHDB analysis shows estimated production costs in the second quarter of this year reached a record 182p/kg, driven by rising animal feed, labour and fixed costs. Meanwhile, pig prices were 13p/kg lower than the previous year, meaning the average producer remains in a "significant loss-making situation".
And the current situation is equally troubling for East Anglia's pig farmers.
The National Pig Association (NPA) says there is an estimated backlog of 70,000 pigs on farms, growing at a rate of 15,000 a week, as a result of labour shortages in meat processing plants.
NPA chief executive Zoe Davies warned that farmers could quit the industry unless the government takes urgent action to alleviate crippling staff shortages in the food chain.
"We are expecting an exodus of pig keepers from this year into next, as they have simply had enough – for almost a year now they have been losing money," she said.
Last week, the NPA was one of the food and farming organisations to call on ministers to introduce a 12-month Covid-19 Recovery Visa to fill an estimated 500,000 vacancies across food and drink businesses.
A post-Brexit loss of migrant workers returning to eastern Europe, exacerbated by Covid-19 factors, has been blamed for the shortage of HGV drivers and food processing staff.
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