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Volatility in economic results livestock farming continues

29/06/2022

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

The gross margins of a standardised dairy farm amounted to 26,200 euros in May 2022. This is 49% more than in the same month last year and 41% above the long-term average for this month. The milk price increased from less than 35 euros per 100 kg at the beginning of 2021 to more than 52 euros in March 2022. Conversely, allocated costs in May were also not as high previously.

The gross margins for layer hens amounted to 38,000 euros per farm, which is almost 31,000 euros higher than in May last year. This was due to the higher egg prices, which saw stronger increases than the feed prices. The contract price for broilers was 44% higher than in the same period last year. The gross margins for broilers increased to 29,600 euros per farm, partly due to higher contract prices. Consequently, the gross margins were 8% above the long-term average of 2012-2022.

Compared to the same month last year, the gross margins for fattening pigs dropped in May to only 2,200 euros per farm. Although from mid-2021 onwards the selling price began to drop to 1.23 euros per kilo in February, from March the selling price picked up again. In May the pig prices had increased to an average 1.70 euros per kg. The gross margins in sow farming in May dropped to 8,600 euros per farm. This is almost 52,000 euros lower than in the same month last year. Despite a drop in the piglet price, the gross margins for May were still positive, just like in the two previous months. At 50 euros (including surcharges), the piglet price is about 5% below the long-term average of 2012-2021.

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