News Liquidity Monitor

Losses for sow farmers are mounting

26 October 2018 - Wouter Baan - 23 comments

These are tough times for Dutch sow farmers. Due to historically low piglet prices, shortages rise to €20 per piglet, according to the liquidity monitor of ABN-AMRO and Wageningen Economic Research (WUR). Fattening pig farmers benefit from the low piglet price.

The current account position of pig farms fell by €7.500 in the third quarter of this year compared to the end of the second quarter and stood at €11.400 at the end of September. A year earlier, the current account position was still almost €50.000.

Historically low piglet prices
The decline is driven by the liquidity development on sow farms; it fell by €9.700 to €34.900 in the third quarter. This is due to the historically low piglet prices† The shortages therefore run from €10 to €20 per piglet.

Fattening pig farmers benefit from the low piglet prices; they saw the liquidity development increase by €9.200 to €33.600 in the third quarter. The report does make the comment that the differences per pig farm vary considerably. This was due to, among other things, technical results and financing costs. In addition, some entrepreneurs have fixed the feed price in advance.

Rising costs
In general terms, the Dutch pig farming sector is confronted with increasing feed- and manure disposal costs. ABN AMRO and WUR expect the selling prices of finishing pigs and piglets to remain low this year. An immediate recovery is not yet expected in 2019.

Click here to read the report. 

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Wouter Job

Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.

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Comments
23 comments
Jan Willem 27 October 2018
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/varkens/ artikel/10880332/LOSSES-voor-zeugenhouders-lopen-op]Losses for sow farmers run at [/url]
Still sad when you read more and more that modern large companies can no longer keep up due to too high costs. Seems like the world is upside down compared to the picture of the future that was portrayed a few years ago.
Better to quit voluntarily than forced by farmers.
of platings 27 October 2018
Jan Willem. it is very distorted. Last year a breeder with 1000 sows, and there are enough of them, saved at least 15 euros net. Makes 450000 euros. I know them anyway. This year they at least break even. How bad?
V. Arkensholder 27 October 2018
vanplating wrote:
Jan Willem. it is very distorted. Last year a breeder with 1000 sows, and there are enough of them, saved at least 15 euros net. Makes 450000 euros. I know them anyway. This year they at least break even. How bad?
You hit the nail on the head. '16 was reasonably good and '17 very good for propagator and the first 5 months of '18 also due to high demand from Spain. An apple for the thirst should be possible!
pete 27 October 2018
Most needed 16 and 17 to be able to close the gap, only that will be forgotten for a moment..
Frans 27 October 2018
Fortunately, as a fattening pig farmer I am well off every year with 120% feed profit = 95 euros.
of platings 28 October 2018
French, 75 euros + 20% = 90 euros.......... Greetings.
Frans 28 October 2018
Last 10 years 79 euros, count it again. Sow farmers think rationally and stop when they no longer earn from the pigs. Fattening pig farmers (there are twice as many of them) plod on even with poor earnings. That is why 120% feed gain is becoming easier to achieve.
piglet breeder 28 October 2018
Well 2016 46 nord west price 2017 54 € and 2018 40 € so far, add an average of 4 € surcharge for slaughter piglets and lesser piglets or occasionally supply below the price.
what is it great cost just 50 €
So just back to square one. This year comes out at 38 €, so on average the last 3 GOOD years, is exactly 50 €.

of platings 28 October 2018
Piglet breeder, I think, no, I am sure that the cost is between 40 and 45 euros. You should therefore not feed expensive food from Agruniek or De Heus, for example, because then you will certainly lose it. Opt for a German is much cheaper or Mijn Voer.nl. Just go to a random feed farmer. You are shocked at what a staff is there, and all insured, 13th month, always a number with a burnout at home, etc, etc. That's not even talking about the management with its heavily paid directors and external advisors. All must be paid by the usual farmer.
piglet breeder 28 October 2018
Day of Plating, I don't think you have any sows of your own, do you? To be able to make a piglet for € 40-45 you don't have to be in debt, just keep 1000 sows with your family. 32 piglets run, have cheap feed and can sell manure on their own land without debt. Other forget it.
3 vaccinations for Germany.
Jan 28 October 2018
Piglet breeder is absolutely right with the cost of 50 euros. Of course, as Van Plateringen states, you can make a difference in feed costs of a few euros. As a fattening pig farmer, however, he can do that to a much greater extent. Feed profit 100 can easily be achieved for those who only purchase 2% premix from the feed farmer and feed 98% as separate raw materials.
Subscriber
farmer 29 October 2018
It's sad if you can't stay a breeder with normal food.
If breeder {and fatteners} would simply count as other entrepreneurs, I think piglets would be 60 euros and fattening pigs at 2 euros.
Subscriber
Jan 30 October 2018
That is the disadvantage of the hourglass model. The producer is often the victim of the bill.
Hello 30 October 2018
With 100% compound feed you can also achieve 125% feed gain in the finisher pigs. Provide a healthy piglet with a tight all in all out system and with a good bag of feed you will achieve conversions of 2.30 and feed costs on liquid feed on average, without the disadvantages of slurry. Of course the best companies can operate a little sharper on the mush
bert 30 October 2018
@hello, how much does that good bag of food cost the 100 kg?
Jan 30 October 2018
That good bag of food always costs 2,50 euros per 100 kg. more than the loose raw materials, at 700 kg. per pig place so € 17,50 = 22% feed gain. You don't have to have mash for that, you can just as well use dry food.
john 31 October 2018
it is very simple after all, a breeder must produce enough healthy piglets per sow and a fattening pig farmer must be keen on feed costs. Together they then realize a good feed profit.

a fattening pig farmer who cannot control the feed costs cannot invest in the piglet, as a result of which the quality is lagging behind and a negative spiral is created.
Jan 31 October 2018
The breeder must also keep a sharp eye on feed costs. Today variations from 15 to more than 20 euros all-in feed costs per piglet. On a farm with 1000 sows, 150.000 euros difference every year. Just as much difference as with 5 piglets per sow and today with 10 piglets per sow per year.
POOR BIG 31 October 2018
ATTENTION within now and 3 months bpp 55 € and not to arrive!!
They are suddenly everywhere with piglets loading, pigs are moved because there is no demand for them, BULLSHIT the slaughterhouses know that there are not enough piglets, so slaughter more heavily.
premium pig 31 October 2018
keep on dreaming....
Frank 1 November 2018
Poor piglet is right. Fixed couplings cannot keep up with demand in places simply because there are fewer piglets during the summer. The surcharges also increase at various slaughterhouses, but then you have to call around instead of relying on the trader's blue eyes.
xx 1 November 2018
Forecasting the market remains very difficult. Frans predicted early Sept. a weser ems of 44 euros for 1 nov. I said 30 at most.
We will pay those 44 euros in Feb. probably get it again.
b 6 November 2018
ID remains difficult
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