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Costs and revenues livestock farming continue to rise

27/09/2022

In the livestock sectors, considerable fluctuations in costs and yields have yet again led to large variations in the operating results for August. For instance, uncertainty about the war in Ukraine, an important exporter of grains, still leads to substantially higher feed prices over last year. On the yield side, however, considerably higher prices for milk, free-range eggs, broilers and, to a lesser extent, fattening pigs and slaughter sows were also reported.

The gross margins of a standardised dairy farm in August 2022 amounted to 32,600 euros. This means the margins were 87% higher than in the same month of the previous year and 85% above the long-term average for this month. The milk price increased from slightly less than 35 euros at the beginning of 2021 to 60 euros per 100 kg in August 2022. Conversely, allocated costs in August also showed a record high: they were 45% above the ten-year average and almost trebled compared to 2001.

The gross margins of layer hens in August 2022 amounted to 33,000 euros per farm, which is 34,000 euros higher than in the same month last year. This was due to the favourable price of free-range eggs, which was 70% above the price level of August 2021. The contract price for broilers in August was 38% higher than in the same period of the previous year. The gross margins for broilers increased to 35,900 euros, partly because of the higher contract price. This means the margins were 17% above the long-term average for 2012-2021.

For the first time in 2022, the gross margins of fattening pigs in August were higher than in the same month in 2021. Compared to the previous year, the gross margins increased by 4,400 euros to 16,700 euros. Both the yields and the costs were higher in August over last year. The yields, however, increased faster due to a recovery of the price of fattening pigs in August 2022 to an average 1.88 euros. Nevertheless, the rolling annual balance in August was 40 euros below the long-term average balance of 70 euros per fattening pig per year.

In August 2022, the gross margins of sow farming were 5,100 euros higher than in the same month of the previous year. This is because the yields increased more than the costs. The gross margins of 9,000 euros were still almost 70% below the long-term average for 2012-2021. After the higher fattening pig price, the price of slaughter sows in August was also higher than in the previous year and 11% above the long-term average. In August, the rolling annual balance of sow farming amounted to a negative 34 euros only, as opposed to a long-term average of 504 euros per sow.

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