Great losses for German pig farmers
The last ten months have resulted in great losses for German pig producers.
Farmers have been operating at an average loss of €7 per weaner sold.
In July, for example, according to the MLC's European Market Survey, for
every weaner sold, sow producers lost between €15 and €20. At the current weaner
sale price only variable costs of production are being covered.
The situation is causing serious concern in the German pig
industry and is the result of a number of factors, not least the high feed and
energy costs, as well the pressure on prices from the high number of imported
weaners from Denmark and the Netherlands, says MLC.
beginning of the year fatteners have also lost on average €15 per slaughter pig.
In July feed costs had risen to account for 44% of production costs, compared
with 30% in July 2006, and now August feed costs are between €65 and €70 per
pig. To cover the future rises in feed costs and to sustain profitable
production, higher slaughter pig returns would be required.
Managers raise alarm
Managers of the German pork industry agree with the pig
farmers that higher prices for piglets, fatteners and end product are needed to
stay in business. "If the price crisis remains, the number of fatteners on the
market will decrease dramatically, the latest next year", concluded top managers from
Vion, Tönnies, Westfleisch at a recently held crisis meeting.
Related news item:
Germany expects rise in feed costs (19 Jan
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Source: Farmers Guardian
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