News Agro Confidence Index
Livestock farmers see a bright future
Dairy farmers and pig farmers in the Netherlands have been significantly more optimistic about the future since the last quarter of 2018. This is evident from the Agro Confidence Index of Wageningen University & Research (WUR).
The general confidence of both dairy farmers and pig farmers has increased in the fourth quarter of 2018. A new update of the Agro Confidence Index shows this. In addition, both groups expect the economic situation to improve in the long term.
This index measures the confidence of agricultural entrepreneurs on the basis of a survey. A distinction is made between the current situation at the company, the economic outlook in the short term (12 months) and the outlook in the long term (2 to 3 years). In addition, we look back at the past year.
Surprisingly positive among pig farmers
It is somewhat surprising that confidence among pig farmers in the Netherlands has increased. From the liquidity monitor ABN Amro showed that the pig farmers had a hard time financially in the last months of 2018. In the fourth quarter in particular, the pig farmers' current account position declined.
Pig farmers score particularly well in the Agro Confidence Index when it comes to forecasting the future. The index comes out at a score of 9,9 points, which is 3,1 points higher than the previous quarter. This means that the vast majority of respondents experience a positive image of pig farming.
Mood among dairy farmers improved
Dairy farmers in the Netherlands also show an increase in confidence. This is mainly due to an increase in confidence in the future, both in the long and short term. The positive mood among dairy farmers has also increased. On the other hand, they are unhappy about the past few months; the index figure for this is therefore -21,4 points and remained virtually the same until the previous quarter.
General confidence among dairy farmers is higher than among pig farmers. The score comes to 18,1 points, which is an increase of 5,8 points compared to the third quarter in 2018. Confidence has fallen sharply in the first half of 2018, but now seems to be recovering.
Agro Confidence Index
The WUR's Agro Confidence Index works on the basis of a scale of -100 to 100 points. If the score is 0 points, then the same number of respondents are positive as negative. The survey asks about costs, selling prices, production, turnover and profit.
Tim Roetman
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