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Pig yield under pressure despite high prices

6 April 2022 - Stef Wissink

Despite the sharp increase in yield, the return in the pig sector is lagging behind. The cost explosion on the input side is putting pressure on margins.

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The DCA BestPigletPrice nearly doubled in a matter of weeks and that is reflected in the yield barometer for the increase. The DCA Piglet Index rose from 35 points in February to 135 points in March. Despite this record-breaking increase, there is no euphoria in the sector. Prices have come to a halt and high costs mean that returns for the time of year are only mediocre.

The influence of the high costs is well reflected in the index. Whereas in the spring the index still reached a position of 57,00 points at a piglet price of €160, whereas last week the position was about 57 points lower at a piglet price of €25. It should be noted that the index is based on the average feed price for the month of March. At the end of March, however, feed costs were significantly higher, which means that the index is actually a bit too high. 

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Fattening pig index
The DCA Fattening Pigs Index also rose sharply, but the return, in addition to the sharply increased feed prices, was also severely depressed by the significantly more expensive piglets. In the period from week 8 to week 12, the DCA Stock Price 2.0 increased by €0,59 per kilogram of slaughtered weight. During the same period, the DCA BestPigletPrice increased by €28,50. Although the pig yield rose by several tens of euros per pig faster than the price for a piglet, fattening pig farmers also spend a considerable part of this extra balance on higher feed costs.

The DCA Fattening Pigs Index rose from 31,5 points in week 8 to over 90 points in week 12. For this index, too, the average feed price for March has been included in the calculation of the index and the prices for pig feeds are now significantly higher. level. Historically, too, the yield index for finishing pigs is only low, given the relatively high pig prices. At a DCA Stock Price 2.0 of around €1,80 in week 8 of 2020, the fattening pig index still reached a level of around 135 points, a significantly above-average return. The index with a comparable pig price is now well below that.

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