In 2022, global pig production costs are expected to increase by an average of 27% due to high feed prices, with Finland and Sweden seeing an increase of approximately 55%. Rising feed and energy costs, as well as depreciation, will drive up production costs, with Italy's production costs more than twice that of central and western regions of Brazil. Despite the high cost, Italy focuses on differentiated production, resulting in higher fat pig prices.
Labor costs are also a factor in production costs, with the Netherlands having the highest labor costs but also the highest production efficiency. But, the most competitive countries in terms of labor costs are Brazil, the United States, and Spain.
Denmark has the highest sow productivity, with an average of 34.1 piglets weaned per sow per year in 2022. However, the difference between actual transaction price and cost price is mostly negative in the International Pig Economics Group countries, with only the United States making a small profit. Import prices have also risen sharply due to the shortage of pork supply, particularly in Germany.
In 2023, the cost of pig production is expected to remain high, with feed prices expected to fall slightly in the second half of the year, but still at historically high levels. France will also face the impact of rising energy costs.