July 28, 2009
Thirty percent Dutch pig producers to exit business by 2013
Around 30 percent of pig producers in the Netherlands are seen to quit business by 2013.
The Dutch Agri- and Horticultural Organisation (LTO) said the scenario is based on a current survey amongst its members. Chairman Annechien ten Have has also expressed sentiments in Dutch local newspaper De Gelderlander.
In 2013, all sow operations in Europe will have to offer loose sow housing - gestating sows will no longer be allowed being held in sow crates, except for the first weeks of gestation. Reconstructing farm operations can be a costly business, hence producers have the time until 2013 to make necessary changes.
Ten Have said "reorganisations in bad times are logical but the problem is that not only badly-operated farms will be struck by these mandatory investments - but ordinary family-operated farms as well."
In addition, reorganisations are in bad timing as many operations are currently in difficult financial positions due to adverse times in the pig industry. Ten Have fears these pig producers do not have the opportunity to wait with gradually phasing out production until pig prices are back on an acceptable level.
She said that it will not be a disaster in case producers can properly "phase out production, buy a house and repay their debts". The way it goes now, she said many producers who have to quit production prior to 2013 will have very severe debts.
In the Netherlands, discussions have been started up after these developments.
