January 26, 2011

 

High input costs, low meat prices threaten Dutch pig farms

 

 

High animal feed costs combined with low meat prices may drive pig farms in the Netherlands to closure, the head of the Dutch farmers association said.

 

Albert Jan Maat said high feed prices, pressure from animal rights groups and environmentalists and increasing competition from non-EU countries is adding to the cost of pig production.

 

"Every year some 3% of pig farms close down, but this year I think it will be up to 10%," Maat said.

 

The Netherlands, which exports 70% of its total meat production, had a total of 4,050 pig farms in 2009, which produced 1.3 million tonnes of meat, according to official statistics. Its main export markets are Germany, Greece and Italy.

 

The European Commission said on Monday (Jan 24) it would soon approve financial aid to help pig producers cover the cost of storing their meat for several months until pork prices recover.

 

"It is a good short-term measure," Maat said.

 

He said pig farmers were under pressure from animal rights groups and environmentalists to improve conditions for animals and reduce greenhouse gas emissions, which also makes their products more expensive.

 

There is a public debate in the Netherlands, the only EU country with an animal rights group represented in parliament, about the number of animals that may be kept on farms.

 

"The pig sector should maintain good relations with those organisations to get better position on the market," Maat said.

 

He said pig meat prices could pick up by the end of this year, paving the way for recovery of the sector.

 

"Prices usually follow the trend in animal feed," he said.

 

Maat said he expected overall agricultural exports to grow between 5% and 10% in 2011, with flowers, vegetables and dairy leading the growth.

 

Flower exports were hit in the 2008 crisis, and the recovery will be linked to economic activity, Maat said.

 

"We are looking to the German market as the most important one, and we are seeing some signs of recovery there," he said.

 

Dutch agricultural exports rose 8.7% on-year in 2010 to EUR65.8 billion (US$89 billion), helping to boost the country's total exports to EUR370 billion (US$506.43 billion) and widen its trade surplus from EUR35.4 billion-40 billion (US$48.45-$54.75 billion), the government said last week.

 

Maat said a weakening of the UK pounds and of currencies in central and eastern European countries will make Dutch products more expensive and affect exports.

 

He saw potential for Dutch dairy farming to adopt sustainable methods, such as combining energy production and livestock breeding by using animal waste to produce biogas.

 

"There is a possibility of coupling energy production with livestock breed. They can put solar panels on barns and produce solar energy," he said.