| Cost price comparison - Pig farming |
2022 cost of pig production 26% higher than in 2021; Results InterPIG 2022
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20/12/2023
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The cost of pig production in European countries varied in 2022 from €1.86 per kg carcass weight in Denmark to €2.89/kg in Italy. Compared to other countries in InterPIG, the Netherlands has a mediocre position, with €2.08 per kg.
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However, compared to direct neighbouring countries, including Germany, Denmark, Belgium, France and Spain, the Dutch production cost was above average. Denmark and France scored the lowest, which is to be explained by the relatively large domestic feed crop production. Italy, Great Britain, Sweden and Finland are the most expensive producers, for several reasons. Italy’s costs are high, due to the high slaughter weight, whereas in Great Britain the high feed price is the most important explanation. In Sweden it is mainly the high building costs; in Finland the high production costs are explained by high welfare demands and a relatively small farm size. The Spanish pig industry is suffering a severe outbreak of PRRS, resulting in high mortality, and consequently higher production costs. The Dutch pig farms have a high performance level, but feed costs are average and manure disposal costs are a relatively heavy burden.
The non-European countries in this comparison have lower costs than the European counterparts. Notably Brazil Mato Grosso has low costs, due to low feed prices, and low housing and labour costs, combined with a high zootechnical performance level.
Compared to the year 2021, production costs in Western European countries have risen by 26%; this is mainly due to high feed prices.
The production costs of a piglet (recalculated to 30 kg) varies between €68 in Denmark and €79 in Germany. The Netherlands is in between with €73 per 30-kg piglet. The relative advantage of the Danes, but also of Dutch producers, compared to Germany, explains the substantial influx of piglets into Germany. The Spanish piglet import, mainly of Dutch piglets, has a temporary character, as compensation for losses due to PRRS.
In finishing, the Netherlands is clearly more expensive than e.g., Denmark and France. Relative high feed costs and high manure disposal costs are important reasons. An additional analysis of monthly feed prices, however, shows that the feed price advantage in Denmark and France compared to the Netherland has diminished in 2023.
InterPIG
The Dutch pig production is part of a European and world market. To gain more insight into the competitive position of the Dutch pig sector, a cost comparison has been performed. This is part of the international InterPIG network with currently members in 18 countries. Every year InterPIG produces a cost comparison of the primary pig production. Wageningen Economic Research has been a member of InterPIG since its start in 2003.
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