The market for pig production in the Netherlands may prove to be that adverse that producers may shut up shop, Dutch agricultural newspaper Agrarisch Dagblad reports.
Chairwoman, Pig Production, at the Dutch Agricultural and Horticultural Organisation (LTO), Annechien ten Have, advised pork producers to think twice and find their way to either bank and suppliers to discuss their future.
She said, “At the moment there are too many pigs in the market – predominantly this is true for growers. Within the existing structures, things are not so bad, but it’s pretty tough getting rid of them on the market. That is why producers have to look seriously to their own situation and draw their conclusions. If they want to stop, they should address their banks and suppliers as to who is paying for what.”
She confirmed that a meeting will be held between the LTO, the Dutch union of pig producers (NVV), banks and the animal feed sector, within one to two months, about the situation.
She added that in the past market-driven reorganisations mainly happened in the EU’s southern and eastern countries. She said, “Now we are in a situation that even in the Netherlands we cannot escape this. It will happen here as well.”
The message seems to be in line with a report by the Dutch research company Agridirect. This company recently presented a survey indicating that the percentage of Dutch pig and poultry producers that would like to shut up shop has grown.
In finisher production, the percentage is highest with 9.6%, compared to 8% last year. In sow production, 8% of the producers thinks about quitting the business, somewhat less than last year.
In the layer industry, 6.1% considers an exit strategy (4% last year) and in broiler production this amount is about 3% - about the same as last year.
In addition, the number of plans for innovation and expansion has decreased.
The results became available after contacting 3,600 pork producers and 1,600 poultry producers by phone.