News Liquidity Monitor
Pig farmer still sees red numbers
Pig farms saw their current account position fall by more than €2019 in the first quarter of 5.000. The fattening pig farms are doing a lot better than the sow farms, according to the ABN Amro liquidity monitor.
The current account position at pig farmers was in the red on average €14.100 in March. The current account average is mainly brought down by the current account position of sow farmers, who saw it fall by €1 in 59.000 year.
Sow farmers in red
The sow farmers experienced a lower current account position at the end of March. At the end of March, the average sow farmer was down by €85.000. The low point was in February, when the result was a negative result of €90.000. On the other hand, better times are ahead, because the outbreaks of African swine fever in China have caused piglet prices to climb out of a trough.
The number of sows has decreased in the Netherlands and Germany. The scarcity on the market also boosts the piglet price. Exports are likely to increase in 2019. In short: 2019 seems to be a better year for sow farmers than 2018.
Better situation with fattening pigs
The current account position for the fattening pig companies has remained virtually stable. Due to the slight decrease, the current account of the average fattening pig farm amounts to €23.000 at the end of March. The decline in the first quarter was mainly due to piglet prices rising faster than pig prices.
The future prospects for fattening pig farmers are also rosy. Pig prices have already risen considerably. This is also mainly due to the strong demand from China. ABN Amro also writes that the Chinese pig population has shrunk by 25% and that the market price there is expected to rise by 70%.
Tim Roetman
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