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Crisis point fast approaching for the German pig industry

by 5m Editor
31 August 2007, at 10:43am

GERMANY - For 10 consecutive months German pig producers have been operating at an average loss of €7 per weaner sold.

In July, for example, according to the MLC’s European Market Survey, for every weaner sold, sow producers lost between €15 and €20. At the current weaner sale price only variable costs of production are being covered.

The situation is causing serious concern in the German pig industry and is the result of a number of factors, not least the high feed and energy costs, as well the pressure on prices from the high number of imported weaners from Denmark and the Netherlands, says MLC.

Since the beginning of the year fatteners have also lost on average €15 per slaughter pig. In July feed costs had risen to account for 44 per cent of production costs, compared with 30 per cent in July 2006, and now August feed costs are between €65 and €70 per pig.

Source: FarmersGuardian

5m Editor