Analysis Countus Pig Index
Pig farmer returns approaching tipping point
Margins in sow farming were under considerable pressure in the second half of 2018, but now it is possible to look upwards again. The Countus Piglet Index therefore shows an increase. The yield in the fattening pig sector, on the other hand, is approaching a tipping point.
The Countus Piglet Index, a product of Countus and DCA Groep, has continued the upward trend (which started in November 2018) in recent weeks. In the first week of this year, the Index came in at 76 points, with 100 being the 5-year average.
Piglet prices on the rise
The reason for the increase is the price increases on the piglet market. The DCA BestPigletPrice has been on the rise for weeks and seems to be heading for €40 per piglet. The other piglet quotations are also improving. The upward trend is expected to continue for a few more weeks. As we know now, the Index is likely to be back at the 5-year average by mid-May.
On the cost side, the Index is held back by rising feed costs and high fertilizer disposal costs. Selling prices have often quoted at such low levels in the past, but the feed prices en manure disposal costs were never this high before.
Pig price still stable
The rising piglet price has a negative effect on the Countus Fattening Pigs Index. Since the price increase in the piglet market started, the Index has been declining. In the first week of January, the Index recorded 63,7 points. The high feed and high manure disposal costs also depress returns in the fattening pig farming sector.
The negative line is expected to be reversed soon. It should be noted, however, that the pig market still lacks price-increasing factors to break through the stable price; in the somewhat longer term the prospects are somewhat better.
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Wouter Job
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