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Livestock farming sees large fluctuations in economic results


In the livestock farming sectors, developments in costs and revenues lead to large fluctuations in farm results. For instance, the war in Ukraine, a large exporter of cereals, has led to record high prices on the market for animal feed. In some cases, cost increases are compensated by increased selling prices.

The gross margins of a standardised dairy farm amounted to 19,300 euros in March 2022. This is 37% more than in the same month last year, but more than 4,000 euros less than in January. The milk price increased from less than 35 euros per 100 kg at the beginning of 2021 to more than 46 euros in March 2022. Conversely, allocated costs in March were also not as high previously.

The gross margins for layer hens amounted to 45,400 euros per farm, which is 19,000 euros higher than in March last year. This was mainly due to the higher egg prices, which saw stronger increases than the feed prices. The contract price for broilers was 39% higher than in March last year. This led to an increase in the gross margins for broilers to 23,700 euros per farm. Nevertheless, the gross margins are still 6% below the long-term average of 2012-2021.

Compared to the same month last year, the gross margins for fattening pigs were cut in half in March to 5,200 euros per farm. From mid-2021 onwards, the selling price began to drop to 1.23 euros per kilo in February, but the downturn in the pig market came to an end in March. Within a few weeks, the pig price increased to an average 1.63 euros per kilo in March. The gross margins in sow farming dropped to 35,000 euros per farm, which is 19,000 euros lower than in the same month last year. After months with negative gross margins, margins were finally positive in March due to the higher piglet price. At 55.50 euros per piglet (including surcharges), this price is almost at the level of the long-term average over 2012-2021.

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Barometer: results per month

Huib Silvis

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