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Livestock farming experiences first effects of corona crisis

24/04/2020

The results for dairy farming amounted to 14,700 euros in March. Although these results are somewhat higher than in March 2019, they are significantly lower than in January (16,500 euros). In March, the 12-month moving average was still below the long-term average (-13%). The monthly gross margins are expected to be lower than a year previously, partly due to the effects of the corona measures.

Poultry farming saw positive results for February and March. The margins for broiler chicks were 4,500 euros higher than in the same month last year. A similar increase can be seen for layer hens. The corona crisis caused many changes during the course of March. Sales of broiler chicken meat to the hotel and catering industry collapsed due to the closure of restaurants and food services. Similar effects could be seen in the egg chain. Supermarkets, however, experienced significant increases in the demand for eggs (indoor, free range and organic). Hoarding also led to many more sales temporarily, which in turn led to an increase in the price level of free-range eggs.

The results of pig farming remained at a high level in February and March due to shortages on the global market. The gross margins for fattening pigs in March were twice as high as in the same month a year earlier (+7,000 euros). For sow farming, the margins even tripled: the yields in March were 75,000 euros higher over last year, due to piglet prices that doubled compared to 2019. Prices of fattening pigs were still 36% higher in March than a year previously, but in the second half of March they decreased. Due to the corona crisis, exports came under pressure and domestic sales to restaurants and food services collapsed. Conversely, sales to supermarkets increased, leading to higher supermarket turnovers.

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