A new British Pig Executive survey has revealed that pig producer confidence is at an all-time low, with the confidence index dropping to 30.2 compared with 2010's 45.8. Roughly 53% of producers feel less confident about the market this year than they did last year.
The confidence index for non-producers also dropped, from 97.1 in 2010 to 92.2 in 2011, with 35% of them feeling less confident this year than last year. According to the report, return on investment uncertainty is a significant factor in the current mood; producers are far more likely to invest in buildings, plants or machinery that are seen as necessary for replacement or to increase efficiency and productivity. Expansion is not, for the most part, an important motivating factor for 2011.
Survey respondents were also less optimistic about the industry's financial situation, with only 7% feeling more optimistic about the general financial situation for 2011 (2010 number: 39%).