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Livestock sector faces high feed costs

01/10/2021

In July and August 2021, gross margins from dairy farming amounted to 17,000 euros per farm, which is 17% higher than in August last year. The moving annual average up until August 2021 is still 13% below the long-term average. The milk price in August was relatively high, but the gross margins were depressed by higher costs. For instance, feed concentrate prices were 17% higher than in August 2020. The price increases of animal feed materials affected intensive livestock farming even more. The gross margins from pig fattening amounted to 10,200 euros in August, which is almost 8,000 euros lower than in the same month last year. Sow farming saw gross margins drop to 4,400 euros in August due to higher feed costs, which is a halving compared to the same month last year. Poultry farming is also confronted with higher feed costs. Gross margins on broiler chicken were 18,500 euros, which is about 40% below the long-term average, while at minus 500 euros gross margins on layer hen farms didn't even surpass the zero line, which is more than 13,000 euros lower than in August last year.



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