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Robust increase in livestock gross margins, except for dairy farms

05/07/2023

The monthly gross margins for dairy farms in May 2023 was 40% lower than in January and a quarter lower than the previous year. The gross margins for laying hens, on the other hand, increased by 84,000 euros in the past twelve months. This sector did experience a slight decline in prices for free-range eggs over the past couple of months. The broiler and pork sectors achieved high revenues, while the sow sector had gross margins three times higher than the long-term average.

The monthly gross margins for the standardised dairy farm in May 2023 was 20,100 euros. This is 40% lower than in January of the same year and a quarter lower than the same month last year. Nevertheless, the gross margins were a few percentage points higher than the long-term average for this month. In 2023, Dutch dairy prices decreased by 3 to 12%. During 2022, the milk price increased from 44 euros per 100 kg to 63 euros, but in May 2023, it dropped to nearly 43 euros.

The monthly gross margins for laying hens in May 2023 was over 122,000 euros per farm. Although the prices of free-range eggs have slightly decreased since March 2023 to 2.37 euro per kg in May, the average price was still nearly 50% higher than in May of the previous year. As a result, the revenues have significantly increased; in May 2023, they were 73,000 euros higher than in the same month last year. The gross margins have increased by 84,000 euros in the past twelve months.

In the broiler chicken sector, revenue prices remained at a high level in May 2023. The gross margins per farm were over 58,000 euros, more than twice the long-term average. The rising costs of energy and feed were more than compensated by higher revenues until May 2023.

The monthly gross margins for the fattening pig sector has been steadily increasing since the beginning of the year. In May, the gross margins for fattening pigs were over 13,000 euros higher than in January 2023 and nearly 14,000 euros higher than in the same month the previous year. This increase is mainly due to a 21% increase in revenue prices compared to January 2023. Additionally, feed costs have decreased by over 10% compared to the beginning of the year.

In May 2023, the gross margins for sow farming were 138,000 euros higher than in May of the previous year. This is mainly due to nearly 90% higher revenues and 13% lower feed costs. The balance is now three times higher than the long-term average for the month of May in the period 2013-2022. In addition to the costs of feed and piglets, the remaining allocated costs are more than covered by the revenues, resulting in a very positive income.

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