Pig farmer more spacious at greenhouse. Will this remain so?

Dutch pig farmers have a lot more money than last year. At the end of the first quarter, the current account of an average pig farm was €173.000. That is the highest level in years. In 2019, a pig farm was still down by €3.600 in the same period.

This is apparent from the ABN Amro liquidity monitor, which was drawn up in collaboration with WUR. The better liquidity position is due to better selling prices. Pig farmers benefited last year from the good sales opportunities on the Chinese market. From August 2019 there is also an increasing need for imports from other Asian countries. Finishing pig prices peaked in December and piglet prices reached a record in March.

Liquidity sow farmers up again
The current account position of the average sow farm was negative for almost 2 years. Since January this year, the position has improved to such an extent that it has risen above zero again. In the first quarter, the position improved to almost €60.000.

The liquidity position of fattening pig farmers has also improved. At the end of March, the average balance rose to €154.000. This has increased the balance by €38.000 since the last quarter of 2019.

Impact of COVID-19
Of course, the coronavirus also has consequences for the pig sector. The corona crisis will disrupt world trade and market prices of animal feed raw materials in March. Due to the closure of the catering industry, sales to restaurants and food service have disappeared. This is partly compensated by an increase in sales to supermarkets.

ABN Amro expects prices to remain good despite the global pandemic. For the coming quarter, the forecast is that the liquidity position of an average pig farm can continue to improve.

Chanti Oussoren

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets.

c.oussoren@boerenbusiness. Nl

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