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Livestock farming struggling with higher feed costs


The livestock sector is struggling with higher feed costs due to the drought of the summer of 2018. If revenues also lag, such as in dairy farming, poultry farming and sow farming, gross margins are under pressure. The margins for a standardised dairy farm in January 2019 were 15,200 euros, which is almost 3,000 euros less than a year previously. For the layer-hen sector the strong decline (-75%) in the exceptionally high margins of January 2018 is not surprising. This the result of the recovery of the egg production after the Fipronil crisis. Although for broilers the relative decline in margins was smaller, it was not less dramatic in its effects on incomes. The margins for sow farming, which were 10,000 euros lower than in January last year, remain insufficient for a positive income. Lower piglet prices led to revenues in January that were more than 5,000 euros lower than last year, when piglet prices were driven up by the sales market. For fattening pigs, the situation is more positive. Gross margins in January were 900 euros higher than in the same month last year. Revenues for fattening pigs were 5% higher than in January 2018. In addition, higher feed costs (+12%) were partly compensated by a price decrease for piglets (-6%).

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Barometer: results per month
Fattening pig farming: Higher results for pig farming

Huib Silvis

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