US farm - company profits of €30 per pig

American pig - of a different kind

Agriculture in the United States is often significantly differs from the European type of agriculture.  Differences in the magnitude and price conditions are actually known. But sometimes even Americans rub their eyes, what as is possible in their country.

The US pig fatteners have a whole year of high profits . After deducting all costs are calculated per pig to 25 to €30 entrepreneurs profit left in the marketing year 2013/14.

The result has several causes. Initially increased the revenues per pig from 150 to less than €200 per pig . U.S. prices at this level has not been there in recent decades. The price increase is due to the tight supply situation in the red meat sector.

It all started with the reduction of beef herds due to the drought in the pasture breeding and cattle fattening areas. The Rinderendmast in the feedlots was becoming less and less profitable for expensive eaters shopping and high corn prices. U.S. beef production has been reduced to - 1.6% annually. Rising imports to compensate were expensive.

The second component of the increase came through the PEDv disease in piglets, which spread from mid-2013 on the American continent at the latest. A significant decline of Schweinebestandes followed with 15% additional loss of piglets. Partial compensation is managed by a sudden increase in the Mastendgewichte to 5 kg.

The scarce availability of piglets and rising pork prices led at the latest with rising pig prices beginning 2014. The standard piglets with 22 kg was traded in the past between 25 and €55. The prices reached peak values of €100 per 22 kg animal in the summer period.  

Nevertheless remained high profits, because since summer 2014 feed costs have eased significantly.

For the fall 2014 , is to go out with a higher availability of piglets due to the result of PEDv cases. The future forward prices for pigs make a good average price level of about €1.50 / kg. (at least for US relations). At the same time, feed prices yielding yet another piece. The profits are clearly give, but remain for the time being positive in the months on average.

But the cold season is questionable in the first months of the year 2015.  In the previous year, the PEDv plague spread suddenly. However the scene believes better under control, because the care of hygiene and the use of a help drug is designed to prevent the worst.

An increase in the U.S. pork production by 5% is expected for the year 2015 . The forward rates provide no increase of €1.55 per kg. Declining rates of piglets and feed costs are the decisive winning charm.

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