2019 delivers exceptionally high feed profits

Pig farmers in the Netherlands have had an excellent third quarter, according to the liquidity monitor that ABN Amro has drawn up together with Wageningen Economic Research.

At the end of the third quarter, €45.000 was in the account of Dutch pig farmers. That is an increase of more than €27.000 compared to the second quarter. These improved earnings are mainly due to the good sales opportunities for pork in China. That country is facing a major production problem as a result of African swine fever. Feed prices also fell.

Fattening pig farmers benefit
What is striking is that the fattening pig farmers in particular benefit. They saw the balance rise by €17.000 to €41.000 in recent months. ABN Amro and WUR expect that the feed profit in fattening pig farming will exceed €100, which is exceptionally high. In 2017, another good year for pigs, the feed profit amounted to €95. 

The sow farmers saw the balance improve by €12.000 to €48.000 negative, thanks to the higher piglet prices. The bank and WUR do have the impression that the creditor position has improved.

Click here to view the liquidity monitor. 

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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