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Continued decrease in results on dairy farms due to lower sales and higher feed costs

21/12/2020

The margins on a standardised dairy farm amounted to 12,500 euros in November 2020. This is 26% below the ten-year average and 13% below the level of November 2019 as a result of higher feed costs, a lower milk price and lower livestock prices.
In November, the margins on fattening pig farms were 5,200 euros lower than in the same month last year. This is 20% lower because sales dropped faster than costs did. From the second half of March, revenues dropped considerably due to the results of the outbreak of the corona virus. Partly due to the lower prices for fattening pigs, the prices for piglets also dropped considerably since March. The piglet price of 24 euros (including surcharges) is 45 euros lower than in November last year. The margins on sow farms plummeted to a negative 17,000 euros in November, which is more than 91,000 euros lower than in the same month last year. This is the result of strongly decreased piglet prices since March.
Prices in poultry farming also decreased. In November, margins on laying-hen farms amounted to 6,300 euros, which is 27,000 euros lower than in November last year due to lower egg prices. Clearly, margins are now under the long-term average. For broiler chick farms the margins dropped by three quarters to 4,600 euros compared to the same month last year. These are the results of the corona crisis, which caused a strong drop in revenues.

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