July 8, 2009
Pork production costs decrease over last six months in Netherlands
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 EUR50.09, whereas producing 1 kg of pork costs EUR1.59.
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 EUR52.68 in January 2009, which equals a 5-percent 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 EUR1.67 in the beginning of this year, which is also a decrease by almost 5 percent. The drop in pork prices is attributed to lower feed prices.
US$1 = EUR1.392 (July 8)
