Gross margins in livestock farming: recovery for sow and broiler sectors, heavy pressure on pig finishing sector |
06/05/2025 |
In March 2025, livestock farming showed a mixed picture. The sow and broiler sectors recorded an improvement in gross margins, while pig farmers faced a negative gross margin for the first time in years. The laying hen sector reported a strong increase in margins, and gross margins in dairy farming remained at a high level despite a falling milk price.
Gross margins of dairy farms remain high despite falling milk price
In March 2025, the gross margin of the standardised dairy farm amounted to 33,400 euros. This was 36% higher than in March of the previous year and 65% above the long-term average for this month. Despite a decline in the milk price, margins remained high, mainly due to strong prices for cull cows and newborn calves. Allocated costs remained virtually unchanged.
The milk price fell by almost 3.5 euros per 100 kilograms in the first quarter of 2025 but remained relatively high. Compound feed prices remained stable compared to a year earlier, although still about 20% above the ten-year average. The rolling twelve-month gross margin in March was 43% above the long-term average.
Sow sector balance recovers in March
The sow sector showed a recovery in March 2025. The monthly gross margin amounted to 83,000 euros per farm, more than 3% higher than the 2024 annual average. The increase in piglet prices by 13 euros compared to January and February, combined with higher prices on the cull sow market, contributed to this improvement. Costs remained virtually stable. Feed costs rose slightly (+2%), in line with the broader trend of increasing feed prices early in 2025. The rolling twelve-month gross margin amounted to 837,000 euros, nearly twice the long-term average of 470,000 euros.
Fattening pig farms face negative gross margins
For the first time in years, the monthly gross margin for pig finishing farms was negative in March 2025. The gross margin was minus 1,074 euros per farm, 18,000 euros lower than in March 2024. Revenues dropped sharply due to lower pig prices, while piglet and feed costs continued to rise. Despite the negative monthly result, the rolling twelve-month gross margin remained 9% above the long-term average, thanks to higher margins during 2024.
Gross margins for broiler chickens 20% higher
In the broiler sector, the monthly gross margin rose by 20% in March 2025 compared to January. The margin amounted to 41,600 euros per farm. The broiler price increased slightly from 1.20 to 1.25 euros per kilogram, while feed prices remained stable. Due to the shift towards slower-growing broilers, supply in the Netherlands and other EU countries has declined. The rolling twelve-month gross margin stood at 413,000 euros, well above the long-term average of 145,000 euros.
Laying hen sector benefits from high egg prices
The laying hen sector recorded a strong increase in gross margins in March 2025. The monthly gross margin reached 106,000 euros per farm, nearly double the level of January. The price of white barn eggs rose from 1.94 to 2.78 euros per kilogram over this period. The egg market remains tight due to farm closures, stricter regulations, and avian influenza outbreaks. As a result, the rolling twelve-month gross margin for laying hens stood at 674,000 euros per farm, significantly above the long-term average of 293,000 euros.
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