Analysis Countus Pig Index
Sow farmer returns above average again
The return for fattening pig farmers has been stable since Christmas. At the same time, sow farmers saw their yield increase in recent weeks. This is apparent from the Countus Piglets and Fattening Pigs Index.
The fattening pig farmers in the Netherlands can look back on a moderate start to 2019, financially. The Fattening pig index is at a stable but low level and has been fluctuating between 3 and 60 points for almost 70 months (100 points is the 5-year average). At the beginning of March, the Fattening Pig Index recorded 65,2 points, which means it has risen by 4 points since the beginning of February.
Also the piglet index has shown a significant increase. Since week 5, the Index has increased by 16 points to 102,6 points, bringing the return of sow farmers back to above average. This is mainly due to a rapid increase in the piglet price; the DCA BestPigletPrice rose to €11 per piglet on Monday 44 March. At the same time, however, the rising piglet price depresses the returns of the fattening pig farmers.
Prognosis
Pig prices have shown a minimal increase in the past month. The DCA Stock Price 2.0 today stands at €1,32 per kilo, which is an increase of €0,02 compared to 1 month earlier. The decrease in collection fees is also a positive development, although historically these are still high. By contrast, feed prices showed the opposite picture; for example, the price for sow pellets rose, but the price for fattening pig pellets fell.
The prognosis for the Fattening Pigs Index shows that the return will increase. The 5-year average is expected to be passed again in the summer of 2019. A further increase is also expected for sow farmers in the Netherlands.
Tim Roetman
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