Swine producers representing over twenty-five percent of the United Kingdom’s pig herd will not be able to continue production after December, 2007 without significant price increases. Likewise, the economic situation for Danish pig producers is reported to be the worst in 30 years.
A survey conducted by the UK’s National Pig Association (NPA) between September 30 and October 3 predicts a much more profound effect on supplies of British pork, sausage, bacon and ham in 2008 than had been previously estimated.
Soaring feed costs in Denmark are being blamed for heavy economic losses to Danish pig producers. Feed prices have almost doubled in the last few months with little change in market prices. The sharp rise in grain prices are the result of poor harvests and the increasing use of crops for biofuels. In addition, the report indicates there is a large supply of pork available globally.
The Danish Pig Production (DPP) group, responsible for research supporting Danish pig production, is encouraging its producers to remain in the industry. The group believes the outlook for 2008 is more promising and will show a better balance between feed costs and market prices.
Source:
The PigSite Swine News