November 16, 2006

Pig production in Germany a loss-making business 

Pig production in Germany has become unsustainable and German pig producers are losing on average about EUR 18 per pig, according to industry group ISN (Interessengemeinschaft der Schweinehalter Deutschlands).

The cost of a pig to a producer is currently about EUR1.41 per kilogramme slaughterweight. In order for a producer to make a profit in Germany they must get at least EUR1.60 per kilogramme slaughterweight, ISN said, adding that producers are losing EUR 18 for every pig they produced. 

ISN blames price reductions on the slaughter pig market, and increases in feed costs and energy.

While things looks bad now, it is likely to remain so or even worsen for the future.

The German farm ministry has also pointedly ignored producer concerns on regulations imposed on the industry, ISN said.