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Increased differences in gross margins in livestock farming

01/03/2022

The gross margins of a standardised dairy farm amounted to 23,200 euros in January 2022, which is 46% higher than in the same month in 2021 and 21% above the long-term average of this month. This is mainly due to the milk price, which increased from more than 34 euros at the beginning of last year to 44.5 euros per 100 kg. This is more than sufficient to compensate for increased costs. The contrast with the margins in intensive livestock farming is big. Both poultry farming and pig farming face strongly increased feed costs. Although the gross margins for broilers in January were 13,600 euros higher over the same month last year, this is still 13% lower than the long-term average. The average gross margin per broiler chick in the last 12 months remained 1.43 euros below the long-term average of 3.23 euros per year. The gross margins for layer hens dropped to 8,300 euros in January, which is two thirds below the long-term average. As a result, the average gross margin per layer hen in the last 12 months was 2.17 euros below the long-term average of 4.60 euros per year. The gross margins for fattening pig farms in January were only 400 euros, which is 12,000 euros less over the same month last year. The average gross margin for fattening pigs in the last 12 months was 65,000 euros below the long-term average - the lowest level in many years - and 8 euros below the long-term average of 70 euros per fattening pig per year. The gross margins on sow farms dropped to almost a negative 17,000 euros. The average gross margin per sow in the last 12 months dropped to 155 euros in January, against a long-term average of 504 euros per year.

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