Q2 average pig farm losses grow as prices fall and costs rise

Average losses for UK pig farmers increased to £20/head in the second quarter of this year, as falling pig prices and rising input costs put huge pressure on businesses, AHDB’s latest net margin figures showed.

The quarterly figures estimate that the full economic cost of production increased by 9p over the course of Q2 2026 to 201p/kg deadweight. This was driven by a 4p hike in feed costs to 119p/kg, alongside a 3p rise in finance and miscellaneous costs and a 1p increase in labour costs.

Meanwhile, pig prices, as measured by the SPP, fell by 9p from an average of 188p/kg over Q1 to 179p/kg (SPP) in Q2.

This resulted in an average margins of -22p/kg deadweight, equating to a loss of of -£20.44 per slaughter pig, down from -£4/head in Q1.

Given that these are average margins, some farmers will have fared significantly better, while others will have suffered far greater losses. Some producers have reported prices in the 130-140p/kg region, a long way below the SPP.

The estimated losses recorded this year followed a period, starting in Q3 2023, of 10 quarters of positive margins and one break-even quarter. Prior to that, the pig sector suffered huge losses over 10 successive quarters of negative margins.

The SPP has increased slightly since the end of Q2, standing at 180.41p/kg in the week ended Aug 1, athough cereal prices have risen so far in Q3.