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News 328 views last update:6 Aug 2012

Netherlands: Piglet and pork production price decrease

The costs of producing piglets and pork in the Netherlands have come down over the last six months. Producing a piglet in July 2009 costs €50.09, whereas producing 1 kg of pork costs €1.59.

These prices, calculated by Wageningen University and Research Centre's Animal Sciences Group (ASG) were based on actual feed prices and on the basis of technical and economic results throughout 2008.
 
Every year in July, a new cost price schedule is calculated and in the following January it is updated with current feed prices.
 
In this so-called 'Nationwide Piglet Price Scheme', cost prices for piglets and 1 kg of pork are calculated for a modern enterprise.
 
Piglet prices came down from €52.68 in January 2009, which equals a 5% decrease. Improved technical results in sow breeding and lower feed prices are thought to be the main drivers for the reduction in piglet prices.
 
Cost price for 1 kg of pork came down from €1.67 in the beginning of this year, which is also a decrease by almost 5%. The drop in pork prices is attributed to lower feed prices.
 
Investments
Investments for housing have risen sharply over the last couple of years in the Netherlands. Higher prices for construction materials and strict regulations related to environment and animal welfare were reasons to make a recalculation on pig house construction as well.
 
Investments for a sow house with free access stalls, piglets housed on 0.4 m2, and a low-emission manure disposal system has been calculated to be €2,420 per sow place.
 
An investment into a finisher house with 0.8 m2 per animal and a low-emission manure disposal system has been calculated to cost €400 per place.
 
These figures include extra elements like feed and manure storage, offices, high pressure cleaning system etc.
 
In order to reach these figures, ASG cooperated with the Dutch Agri- and Horticultural Organisation (LTO), advisory group DLV and Rabobank. The project was carried out for the Dutch Product Board for Livestock and Meat (PVE).
 
Related websites:
Wageningen University and Science Centre (WUR)
Animal Sciences Group (ASG)
Dutch Agri- and Horticultural Organisation (LTO)
DLV (in Dutch)
Dutch Product Board for Livestock and Meat (PVE)

Dick Ziggers

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