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Gross margins in livestock farming under pressure from high feed prices

30/06/2021

The gross margins of a standardised dairy farm amounted to 17,400 euros in May 2021. These margins are 20% higher than in May last year. Conversely, the moving twelve-month average of a dairy farm up until May 2021 was still 17% below the long-term average. Dutch dairy quotations until early March of this year increased strongly and then stabilised. Butter quotations increased by 23%.

Layer hen farms are squeezed by lower yields and higher feed costs. Gross margins for layer hen farms in May amounted to 7,500 euros. This is more than 70% lower than in May last year due to lower egg prices and higher feed prices. This means the margins are below the long-term average.
Broiler chicken farms are slowly picking up. Gross margins in May 2021 were a quarter lower than in the same month last year. Revenues are increasing, but feed costs are increasing considerably. The contract price for broiler chickens is 7% higher in May 2021 than last year, resulting in revenues that are 10,000 euros higher for a standardised farm.

Gross margins for fattening pigs in May 2021 were 2,000 euros lower than in the same month last year. The margin decrease of 18% is due to an increase in costs that is higher than the increase in revenues. Conversely, in sow farming the financial results improved over the past months. Gross margins increased to 51,300 euros in May 2021. This is 3,000 euros higher than in the same month last year as a result of 6% higher piglet prices.

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