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Analysis Countus Pig Index

For pig farmers, the knife cuts both ways

10 May 2019 - Wouter Baan - 24 comments

Yields in pig and sow farming have greatly improved in recent months, according to the Countus Pig Index. The increasing yield of sow farmers is expected to level off in the coming weeks, with the fattening pig farmer looking forward to a further increase.

The advance shown by piglet prices is almost incomprehensible. For example, the DCA BestPigletPrice has gone upside down almost 3 times in recent months to €57,50 per piglet. This price recovery has of course major consequences for the Countus Piglet Index, because it has been showing an increase for some time as a result.

The Piglet Index is approaching a new record.

Sow farmer returns are leveling off
The Piglet Index has also gained ground in recent weeks and recorded 158,2 points at the beginning of May, with 100 points being the long-term average. Since the feed prices have fallen since January and piglet prices are rising, the knife cuts both ways. The Index is expected to level off in the coming weeks, before dropping to lower levels in the summer months. This is in line with the seasonal pattern generally shown by piglet prices.

The Piglet Index is expected to fall again.

Pig prices are rising again
The yield of fattening pig farmers, on the other hand, is looking for higher levels. Incidentally, the Countus Fattening Pigs Index has only recently risen above the long-term average and is at 111,4 points at the beginning of May. The yield of the fattening pig farmer, however, lags considerably behind that of the multipliers.

The Fattening Pigs Index has only recently risen above the long-term average. 

With pig prices leveling off around Easter, the Index is now slowing down, but the upward trend is expected to resume soon. Meanwhile, the pig prices weather and historically, the ceiling has not yet been reached. In addition, the price of fattening pig chunks is expected to fall further.

Fattening pig farmers can expect a further improvement in yield. 

Click here for more charts. 

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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.
Comments
24 comments
baby 10 May 2019
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/varkens/ artikel/10882413/voor-varkenshouders-snijdt-het-mes-aan-2-kanten]For pig farmers, the knife cuts both ways[/url]
Is it allowed ?
piglet breeder 10 May 2019
WE DON'T HAVE THE 2017 PEAK YET AND LAST YEAR IT WAS 25% FOR THE PIGS SO IT HAS TO TAKE A LONG TIME TO BE REALLY GOOD
Janneke 10 May 2019
It's not all rocket science. But to be able to talk about returns, you have to look at something more than buying and selling prices.
LL 10 May 2019
And to think that the cost price of the future pig countries is still 50 cents per kilo lower. And that normal earnings in the Netherlands are only achieved at extremely high prices.
bacon steak 10 May 2019
If DCA goes along with this, they will raise at least 5 cents tonight, for a long time I have been approached again by traders who now sell pigs to Germany for a good supplement.
sniff 10 May 2019
Indeed bacon; if they do 5 it's not too bad for me! Actually they should do 8, the Germans will go up again next week. But those shithouses will not be allowed again.
down below 10 May 2019
nl is already 6 cents behind internet price increase in Germany!
says enough I think.
sniff 10 May 2019
I wasn't far off, guys!!, I advise everyone to put on the brakes with the piglets. We're going to get the same as in the past.
v. Arkenshouder 10 May 2019
you're right sniff, always the same song. the returns are far too far apart!!
Jan 10 May 2019
Have the piglets, the pigs and the feed itself. Not big numbers, combination of 200/week, but with a 40 euro margin on each piece you won't hear me complaining.
sniff 10 May 2019
That's nice jan.maar you are also geezed in your pockets, but apparently you like it.until it cools down..
of platings 11 May 2019
Jan, you also have to have your own piglets to earn some money. Pure fattening is getting worse and worse financially.
Jan 11 May 2019
I used to be able to earn little with only 350 sows. By adding a stable of 3200 fattening pigs and our own feed milling and mixing installation, things are now running very smoothly. You can complain on both hands, but the whole pig chain is well deserved. Make sure you have less business in your yard or go out and work for this business community. There is a shout out to staff.
of platings 11 May 2019
Jan, True, only from breeder to a fattening shed is easier than from a fattening shed to a sow shed. I myself would prefer a closed company, but I don't have the age and the knowledge to build another sow barn. I think keeping sows is more difficult than keeping fattening pigs. But clearly, it's the best way financially.
Cees 11 May 2019
You can also invest or start working in another industry. Pig farming in the Netherlands remains a shrinking market with all the associated causes and consequences.
Piet 11 May 2019
Keeping sows is not easy, but you can buy a company like the above with 350 sows for the price of the house. For a company with 3200 fattening pigs and a grinding/mixing line you pay three times that. I also think that on balance there is more return in fattening pigs.
of platings 11 May 2019
Piet, Straathof only has sows and has become very rich with them. Indicates why he has no fattening pigs according to my knowledge. So yield with sows is, in my opinion, many times greater than fattening pigs. A lot more money goes into fattening pigs, you say three times that, while the profit per piglet or fattening pig is the same.
Gert 11 May 2019
Can also name 20 fattening pig farmers who perform very well and sow farmers idem. In every industry there are high earners and poverty-stricken, that is of all times.
Frans 12 May 2019
All things considered, it seems simple to me for pig farmers who think that the grass is greener with the neighbour. Sell ​​your own shop and buy the other one back or make a barter. Everyone satisfied.
13 May 2019
One-man/family farm with 300-400 sows. To be able to partially sell manure on own land and to deliver little foreign ability, good piglets and the number of free-riders/sniffers limited to a minimum. These entrepreneurs earn the most optimal on average.
Piet 13 May 2019
It is remarkable that 90% of these companies have stopped in the last 10 years.
tw_p 13 May 2019
They could also stop, thinks that is also an important fact.
brabo 13 May 2019
Companies that are now owned by feed suppliers or other large companies or investors. You really shouldn't get involved in this discussion. And you can't tell from the outside which companies they are. They make money in a different way.
Nothing 13 May 2019
Is there a difference whether you work for a feed money boss, bank or investor? Whoever works for none of the three is really a fat buyer and certainly does not get involved in the discussion about incomes.
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