Allowance keeps German master going

Calculations by the German market agency AMI show that the difference between the cost price and the pig price (call price) increased last May to a negative difference of €0,11 per kilo. The average cost price that month was €1,58 per kilo, while the German pig price averaged €1,41 per kilo.

Surcharge crucial for returns
Such a large gap has not occurred in recent years. For the whole of 2015, the negative difference between the cost price and the pig price was €0,08 per kilo. That year also went down as one bad pig year. Even in subsequent years (2016: €-0,04) and (2017: €-0,01), the call price was not able to fully cover the costs.

This means that the surcharges that German fattening pig farmers receive on top of the call price are crucial to end up in the green at the bottom. The figures do deserve a comment; the figures are an average indication, while it is generally known that the cost price differences can vary considerably per company.

Piglet price not sufficient
The returns of German sow farmers are also on the decline, after 2017 produced extremely high returns. This was too in the Netherlands the case. Since last October, yields have again been below cost price. Last January there was a negative difference of approximately €10 per piglet.

Due to the rising piglet price this spring, the difference has been made up to some extent. However, in May the cost price was €59,70 per piglet, while the yield was €55,60 per piglet. This calculation also takes into account the amount of the sow price.