Analysis Pigs
Highest feed profits at mash feed companies
The pig farming sector has achieved feed profits in 2024 that are reasonably in line with 2023, despite the fact that pig prices fell sharply. Circularly operating mash feed companies in particular were able to profit from lower feed costs in 2024. Pig farming consultants do point to the increased costs. The current feed profit levels are needed to cover the increased costs for manure, buildings, labour and energy.
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Where the long-term average feed profit level was around €5 until about 75 years ago, the sector is unlikely to see these levels again anytime soon. The increased costs after the feed balance have ensured that the critical feed profit has been increasing for years. The critical feed profit is the feed profit level required to cover all other expenses. In 2023, the feed profit for a fattening pig farm was €120 per average animal present. Over the year 2024, the feed profit appears to have been slightly higher on average. The long-term feed profit forecast was last set at €89. This means that the feed profits are above the norm for the second year in a row.
Pig meat prices almost €0,20 per kilo lower
Based on sources in the sector, an indicative feed profit calculation for 2024 can be drawn up. The starting points are a regularly delivered pig on 0,8m2 at 100kg slaughter weight, an average compound feed consumption of 245kg feed per pig and an average piglet price paid by the fattening pig farmer.
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Indicative feed profit calculation for pigs |
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Yield of meat pigs |
€199 |
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Feed costs for meat pigs (compound feed) |
€77 |
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Big costs (paid) |
€82,50 |
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Cost of failure |
€2,10 |
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Feed profit per delivered pig |
€37,40 |
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Feed profit per average fattening pig present at round speed 3,30 |
€123 |
Advisors note that slurry feed companies also achieved significantly higher feed profits in 2024. The costs for many products from slurry feed rations fell slightly more sharply in price last year than compound feed. This is also evident from the annual averages of Wageningen Economic Research. For example, the price of potato steam peels, part of many pig rations, fell by almost 25% compared to 2023. Cheese whey, wheat yeast concentrates and wheat starches were also considerably cheaper than in 2023. According to insiders, the feed costs per delivered pig at slurry feed companies were €7 to €9 lower than at compound feed companies throughout the year. On an annual basis, this means an increase in feed profit level of more than €26 per average pig present, which brings the feed profit of slurry feed companies towards €150.
€120 feed profit is also needed
Although a feed profit of over €120 seems high historically, in the eyes of advisors it is also necessary to cover the costs and reserve for replacement investments. "Of the €37 feed profit all other costs still have to be paid: manure, energy, labor, and animal health. You also want to reserve something for an investment and you have withdrawals for repayment and private"
The average meat pig price in 2024 was just €0,20 per kilo lower, dropping slightly below €2 per kilo. The delivery weight did increase slightly. On balance, this means a loss of turnover of between €15 and €20 per delivered pig. Per average meat pig present, the decline in turnover is slightly lower as a result of slightly increased growth figures. The decline in the meat pig price was also offset by significantly lower piglet and feed prices. The price for piglets was around €5,50 lower and the feed costs per delivered pig were around €10 to €12 lower.
Advisors indicate that, as every year, the variations around these figures are large. For example, the average sales price per kilogram of slaughtered weight is determined by whether a company supplies boars or guars, whether it realises high or low weight discounts and whether it supplies large or small herds of fattening pigs.