Analysis Countus Pig Index
Pig farmer returns skyrocket
The return in pig farming has shown a significant increase in the past 4 weeks. The fattening pig index and the piglet index of Countus have both risen sharply.
The Countus Finishing Pig Index rose by 18,8 points to 79,9 points in March, with 100 points being the 5-year average. In the last 2 weeks of March in particular, the yield of fattening pig farmers increased sharply, partly due to the rising pig prices.
The Countus Piglet Index has also risen considerably. At the beginning of March, the Index stood at 99,4 points, while at the beginning of April it was already trading at 117,2 points. It's an increase of almost 18 points. Sow farmers benefit from rising piglet prices, notes the DCA BestPigletPrice now €50 per piglet again.
Major role for China
The sharp rise in pig prices is mainly caused by the tight (German) pig supply and explosive demand for pork from China. Due to the outbreaks of African swine fever the Chinese pig herd has shrunk sharply. In order to provide the population with sufficient pork, the country currently has no other option but to import large quantities.
It is striking that China mainly focuses on Europe and the United States. Demand from China is expected to continue for the time being, which is why fattening pig farmers are very committed to having full barns. Piglet prices subsequently benefit from this.
Increasing return?
The Countus Indices show that returns in pig farming are expected to continue to improve in the coming months. This is reinforced by the fact that feed and fertilizer sales prices are moving towards lower levels.
Tim Roetman
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