Delivering heavy pigs pays off more than ever

All year round, animal feed manufacturers (including Agrifirm) have been pointing out the benefits of a higher slaughter weight. The feed price is currently relatively low, while the discount if the slaughter weight is too high increases less quickly than a number of years ago. The upper limit (margin) has increased considerably compared to a number of years ago. This also explains why the average slaughter weight has increased in recent years to almost 100 kilos. The increased top margins in slaughterhouse payment schedules are driven by the increasing market share of brand concepts.

To top it all off, the fors increased feed profit (since the first quarter of this year) ensures that the upper limit is actually sought. The disadvantage of the deteriorating feed conversion, which was already relatively small due to the low feed price and higher top margin, is that it has become even smaller due to the increased feed profit. The same applies to the decreasing meat quality and slaughter yield with an increasingly higher slaughter weight.

Better Living under pressure
There are a number of caveats when pushing the boundaries. There is a big difference in feed conversion and weight reductions between boars and boars as they become heavier. The efficiency of making the pigs gain weight depends on the breed. The fattening pigs of the Piétrain breed grow for a shorter time, no matter how much is fed.

In addition, it is important to take into account the housing and transport requirements of these heavier pigs. This could become a problem, especially for pig farmers who have invested in additional 'Better Life' housing requirements. They are compensated for the additional costs of extra living space based on the average feed profit figures. This can be advantageous in bad years, but in the current market this principle actually causes 'Better Life pig farmers' to miss out on income.

Investing in sustainability and welfare for the Western European market is being held back by the explosively grown pork export market, the Financieele Dagblad recently analyzed. While domestic demand is declining due to rising consumer prices, it is becoming increasingly attractive to produce for the less demanding export market from outside Western Europe. According to the Financieele Dagblad, the choice between short-term profit with certainty and uncertain investments in capital-intensive long-term projects (such as Better Life) is quickly made.

Jan Vernooij, sector chairman of the pig trade at Vee&Logistiek Nederland, emphasizes the importance of a concept such as 'Better Life' in a market of declining meat consumption. However, a different time is coming, as both slaughterhouses and animal feed companies emphasize. Vernooij: "It is important that sellers increase the price of carcass parts for supermarkets and butchers. This also applies to the 2 and 3 star meat of the Better Life Quality Mark. The time is now ripe for that."

Piglet price development
Last but not least, the development of the piglet price determines the slaughter weight. If the piglets are expensive, delivery to the slaughterhouse can be postponed for that reason. This is on the assumption that the piglets are less expensive a few weeks later. In recent weeks, the piglet price has risen as quickly as the pork price. In recent summer months, the development of the piglet price lagged somewhat behind the development of the pork price.