High costs hit Dutch pig incomes

09-03-2007 | |

Dutch pig producers are losing money due to high costs for feed and manure disposal, according to a Dutch agricultural newspaper. Breeding pig farms in the Netherlands saw their incomes fall in 2006, while slaughter pig producers earned the same as in 2005, according to provisional figures.

Average producer prices for piglets and slaughter pigs reached the highest level for five year, but this was not enough to offset the increased production costs. Dutch pig producers paid 125% more for manure disposal in 2006 than in 2005, while feed prices were up by between 2.5% and 7.2%.

Less net return

Dutch accountancy firm Abab estimates that the average producer price for Dutch slaughter pigs in 2006 was €1.39 per kilo slaughterweight (up 6% on 2005). The net return when costs were deducted was minus €2.00/kg. In 2005 this figure was minus €3.00/kg. In the breeding pig sector, the average net return fell by 31.5% to €61 per sow. On closed farms, the return per sow fell by 5.8% to €276.

Better technical performance

Pig breeding farms obtained an average price for piglets of €46.51 last year (5% up on 2005). However, this added to the costs of the slaughter pig concerns. The technical performance of the farms surveyed improved significantly last year. Sows gave birth to an average of 24.1 piglets, an increase of 0.6 over 2005.

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