Though Britain still has the highest costs, the picture is not as black as it might seem as exchange rate changes have had a major beneficial effect.

Britain's costs of production were at 110.3p, compared with 105.4p in 2002 (figures adjusted to give a comparable definition) and 92.8p in 2000.

The average cost of production in all the participating EU countries was 102.5p in 2003. This was up from 97.8p in 2002 and 83.1p in 2000.

Report author Tony Fowler, Senior Economic Analyst, said: "The fall in the sterling exchange rate against the Euro increased production costs of other countries in Sterling terms.

"Expressed in national currency terms, costs of production in the EU declined by four per cent in 2003."

But Great Britain still has some ground to make up in key areas, such as litters per sow per year, mortality and daily liveweight gain. Performance has also suffered since 2000, due largely to PMWS.

Mr Fowler said: "However, there are some encouraging signs in GB breeding herds in 2003, with a number of performance indicators either beginning to stabilise or recover slightly.

"The average number of pigs weaned per sow per year was very similar to 2002 while there were improvements in litters per sow per year and pre-weaning mortality."

Source: British Pig Executive - 23rd December 2004