News Pigs
'Margin for pig farmer better in first quarter'
The margins of fattening pig farmers are still under pressure due to high input costs. Rabobank sector specialists, however, expect lower feed costs in the second quarter of 2023 and a (further) uptick in prices.
Agricultural commodity prices have been falling since the end of October 2022, the bank quotes in a new update. The price of corn in the port of Rotterdam in week 1 of 2023 was 14% lower than at the end of October 2022. The price of feed wheat fell by 11% in the same period. The specialists expect feed prices to fall in the first quarter of this year.
With supply tightening across Europe, the bank expects a rebound in prices in the second quarter of 2023. High demand for piglets is also expected in Q1. "The lower supply of piglets, in combination with the seasonally higher demand, resulted in a clear recovery of the piglet price. The market shows confidence in a further increase."
Moderate export prospects
The outlook for pork exports remains mediocre in 2023, according to sector specialists. In the first quarter, exports from the 27 EU countries and the UK to China are likely to decline compared to the end of 2022, they say. Prices." Pork prices fell from 27 Chinese renminbi per kilo to 15 renminbi in early January, a drop of 45% in two months. At the same time, demand fell due to the high number of cases of infection after the corona rules were released. The sector specialists also expect pig prices to recover in China in the second quarter. Brazil overtook Spain as China's largest supplier in August.
Linda van Eekeres
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