Yield barometer big still historically low

The DCA BestPigletPrice has recently managed to take some small steps upwards. Yet this does not make any difference. After reaching a historic low of 10,4 in October, the index has now risen slightly to 17,4. The economic situation on sow farms is still poor. The DCA Meat Pig Index is now suffering further damage. While the index remained stable until October, the increased piglet and feed prices are now further reducing margins.

Historical deep valley for piglets, compound feed approaching peak 2013
The DCA Piglet index reached a historically low level of 42 points from week 44 to week 10,4. Never before has the efficiency barometer reached such a low level. Free piglets could hardly be sold for weeks and were slaughtered in large numbers. In recent weeks, the share of free piglets seems to be disappearing a little more easily and prices have recovered slightly. Yet there is still a long way to go before the numbers are in the black again. Moreover, the market still seems to be hampered by the poor German demand for piglets. This thwarts a significant improvement in prices in the short term.

In addition to the only limited recovery in revenues, the high costs are hindering the increase. Feed prices have risen again quickly after a brief stabilization last summer. Sow pellet pregnancy became €0,50 per 100 kilos more expensive in November and amounted to €30,60 per 100 kilos, sow pellet lakto thickness increased in price by €0,60 and amounted to €34,50 per 100 kilos. Baby piglet pellets also became €0,60 more expensive per 100 kilos and are now trading at €41,30. Compound feed prices are therefore close to the historical peak from 2013.

Piglet and feed is starting to depress margins for fattening pigs
Fattening pig companies benefited from the sharply lower prices for piglets in the third quarter. Although the lower fattening pig prices also put pressure on the margins of fattening pig farmers, the cheap piglets were still able to maintain returns to some extent. Now that piglet prices are slowly rising and feed prices are also rising further, the DCA Meat Pig Index is taking a big hit. Traditionally, returns on fattening pigs always decline during this period, although margins are under more pressure this year than in recent years.

Pork chunks became on average €0,65 more expensive per 100 kilos in November and now cost €29,50 per 100 kilos.