Significant fluctuations in gross margins in livestock farming until August 2024 |
01/10/2024 |
The monthly gross margins in livestock farming showed significant fluctuations up to and including August 2024, depending on the specific sector. While some sectors, such as pig and broiler farming, saw substantial increases in their gross margins, others, such as sow farms and laying hen farms, experienced a sharp decline. These variations were driven by differing market price developments, ranging from declining revenue prices and rising costs to price recoveries in some products. Despite these fluctuations, many sectors continue to outperform previous years in the long term, thanks to sustained high demand and favourable price developments.
Dairy Cattle
In August 2024, the gross margin for a standard dairy farm reached 26,600 euros, marking a 35% increase compared to the same month in 2023. The margin was also above the long-term average for August. Milk prices recovered to nearly 49 euros per 100 kg, 28% above the ten-year average. Despite allocated costs, such as feed and fertiliser, remaining relatively high, they were 5% lower in August 2024 compared to a year earlier.
Laying Hens
In August 2024, the gross margin for laying hen farms was approximately 30,000 euros per farm, a 25% decrease compared to August 2023. Egg prices in the EU were lower than last year but remained above the long-term average. Feed prices increased slightly after a long period of decline, contributing to the lower gross margin.
Broiler Chickens
For broiler farms, the gross margin in August 2024 was over 33,000 euros per farm, a 10% increase compared to the previous three months. Broiler prices remained relatively high, with a selling price of 1.15 euros per kg. The continued demand for poultry meat in the EU supports this positive trend.
Fattening Pigs
The gross margin for fattening pig farms rose to 38,400 euros per farm in August 2024, a significant increase compared to the average of 21,500 euros up to July. This was the first time the margin exceeded the 2023 average. Lower piglet purchase costs and a decrease in feed costs contributed to this positive result, despite lower revenues due to reduced demand for slaughter pigs.
Sows
In August 2024, the gross margin for sow farms decreased to 48,900 euros per farm, a 62% drop compared to April 2024, when the margin reached its peak. Piglet prices continued to decline, leading to a lower margin. Despite the decrease, the rolling twelve-month margin remained at a high level of 1,100,900 euros. |