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The report, which looks at the position in 2002, updates an earlier version which examined Britain's competitive situation in 2000 and is an essential tool in helping identify opportunities to improve our competitive position.

The report shows production costs in the rest of Europe have risen by 10p per kg since 2000 but costs in Great Britain are still 11p per kg above this level.

However, things have changed in our favour more recently with favourable exchange rate movements and feed price rises hitting much of Europe, particularly southern Europe, worse than this country.

The prices producers in Great Britain are paid are running below the costs of production, but this scenario is echoed through Europe.

Report author Andrew Knowles, BPEX Strategy Co-ordinator, said: "The two major factors pushing our costs up are daily liveweight gain performance, 635g per day against the EU average of 759g and piglets raised per sow per year, 18.22 against 21.06.

"However, both these are being tackled as part of the five-year BPEX Road to Recovery strategy which aims to reduce costs of production in Great Britain by 15p per kilo.

"Work at the Stotfold Pig Development Unit is very encouraging with initial results from the liquid feeding trials and the finishing systems project showing substantial improvements in daily liveweight gains.

"BPEX has also launched its pig health and welfare strategy and an improvement in herd health nationally should translate into a higher number of piglets finished per sow.

"Many of the issues highlighted in the report are still with us today and some have become even more important, though the gap between GB and the rest of Europe has closed a little."

Copies of the report, Pig Cost of Production in Selected EU Countries, are available from the MLC Press Office.

Source: British Pig Executive - 24th March 2004