Manure sales costs ruin feed profit

Although the feed gain in sow farming is 40 percent higher than the long-term average, this is again offset by the ever-increasing fertilizer disposal costs. That is one of the conclusions from the Rabobank quarterly report on pig farming.

Manure sales prices currently amount to more than 20 euros, depending on the region and the type of slurry. A few euros higher than last year. Particularly in the east of the Netherlands, where manure processing has not yet started to the same extent as in the south of the Netherlands, there is a lot of competition with dairy farming.

It is attractive for dairy farmers to dispose of solid fraction instead of slurry, because of the costs per kilo of phosphate. The increased competition between pig farmers and dairy farmers means that the price is even higher than last year, although the spreading season has already started and the conditions for spreading manure are much better than last year.

Rabobank warns that pig farming may be able to catch its breath thanks to the structurally increased feed profit, but from the second half of 2017 there is a threat of lower prices again, if the pig herd may start to grow again. Because the structurally increased pig prices are primarily due to the decreased supply. Certainly not to meat consumption, which is constantly declining, partly due to bad publicity, and exports to China are also under pressure, because the United States is more emphatically involved in the Chinese market than before. In addition, Brexit could adversely affect the price of pork. Exchange rates also play an important role in exports, both to China and the United Kingdom.

Rabobank describes the market recovery as a 'loan from the market' for the future and emphasizes that the 'Vital Pig Farming' approach formulated by the Rosenthal Committee at the beginning of last year remains essential. For perspective, the manure problem will have to be solved. Pig farmers will have to seek out cooperation with other chain parties more and more actively. Together they can optimize current business models, according to Rabobank.

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