22.
03.19
Proceeds in pig fattening are not covering full costs

Schweine Cockpit, 22.03.2019

  • Supply of slaughter pigs almost nationwide small
  • Demand for global trade in China has picked up
  • Meat trading agencies fill stocks, processors work at full load
  • Noticeably fewer piglets traded and stabled
  • Uncertainty of the market by the ASP
  • Uncontrolled Brexit: Trade with UK threatens high damage to the EU
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(AMI) - After months of more or less stagnant pig prices, the price hikes long hoped for by growers now came. Especially in the first months of the current year, the economic situation of the mowers was difficult, higher prices are essential for cost-effective work. Nevertheless, the costs in the mast still exceed the revenues. With average benefits, it has been difficult since October to gain profits in pig fattening. Due to the extreme heat of the past summer, the feed costs increased due to the lower grain harvest. In regions with intensive refining, the additional costs of housing the manure and cleaning the exhaust air with a combined price of 17 EUR / pig are cost-effective. These are not included in this nationwide model calculation. The Mäster could cover their expenses almost the entire year 2018, towards the end of the year, the margin grew even further. Despite the recent higher prices, economic work is currently hardly possible. According to the model of the Agrarmarkt Informations-Gesellschaft (AMI), full costs of around EUR 1.60 / kg will be incurred in March.Here, in particular, the required feed accounts for a share of 46%, but the prices for piglets have also risen steadily recently. In order for the pig to enter the profit zone, slaughter pig profits of more than EUR 1.60 / kg slaughter weight are required accordingly. From a farmer's point of view, further increasing slaughter pig prices are therefore essential.

Proceeds in pig fattening are not covering full costs
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ZMP Live Expert Opinion

An upturn in meat demand, the on-going Chinese trade and the small supply of slaughter pigs finally enabled producers to significantly increase their prices. Currently, there is little indication that the market could turn. Rather, the supply will remain small, with the warmer temperatures, the meat trade gets additional impetus. Even further surcharges are accordingly not improbable.

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