Analysis Pigs
Pig yield is coming out of a dip, remains historically low
After a long period of price pressure, the pig industry can finally look upwards again. That the mood in the sector - despite the recent price increases - is not yet great, is clear from the DCA pig indices. Stocks remain historically low.
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While the listing pick-up has certainly brought relief to the industry, there is still a long way to go. The pig farming industry is struggling with significant cost increases for, among other things, feed and energy. Before both the breeding and fattening pig farms again breakeven To be able to operate, the prices of both piglets and fattening pigs will have to increase significantly.
Piglet index is slowly gaining ground
While returns for sow farms traditionally peak in March, this is different this year. Piglet prices only managed to achieve the seasonal spring increase to a limited extent. Fattening pig farmers were not prepared to accept significant increases in piglet prices due to low pig prices and high feed costs. Although small steps have been taken, the return on sow farms is still at a low level. Even at a historically low level before the start of March.
The fact that piglet prices are at a low level for this time of year is also evident from the annual comparison in the table below. The current quotation is the lowest in week nine since the establishment of the DCA BestPigletPrice in 2015. At €33,50, the quotation is €8,50 below last year's level and almost €40 below the 2020 level, when the price was BestPigletPrice at €73,00.
In addition to the low piglet prices, the high feed price also plays a major role in the poor financial and economic situation in propagation. Also in the month of February feeds more expensive again.
The fattening pig index is not sliding any further
In recent months, the fattening pig index has continued to slide, as a result of rising feed prices and slightly increasing piglet prices. Now that fattening pig prices are moving upwards, the downward trend has stopped.
The increase in the index is also tempered by rising feed costs for fattening pig farmers. According to figures from Wageningen Economic Research, fattening pig feed is now almost 100% more expensive than in 2005.
Pig prices must rise further
Although the pig market is looking upwards, significant steps still need to be taken. Now that raw material prices for feed have shot through the roof last week, costs for pig farmers are rising even further. It is therefore heard in the sector that pig prices must approach €2,00 per kilo in order to achieve a positive result for both breeding and fattening pig companies.