Holland-Higher production costs for pig farmers.

HOLLAND-COSTS INCREASE FOR PIG FARMERS.

Production costs in the Dutch pig farming sector will continue to increase in the coming years, primarily as a result of regulations pertaining to animal welfare and the environment, according to a report from Wageningen University Research. In several other European countries, these costs will also increase but not as much. These are some of the conclusions presented by LEI in a study carried out for the Livestock and Meat Product Board and the Ministry of Agriculture, Nature and Food Quality.

The production costs calculated for a typical Dutch pig farm in 2007 were €1.40 per kg slaughter weight, excluding VAT and production rights.

In 2007, the Netherlands and Denmark had the lowest production costs for farming pigs of all the European countries studied. However, if the cost of production rights purchased is also taken into account – €0.05 per kg – the Netherlands lags behind Denmark in terms of production costs. France has a solid third position on the list, whereas Germany, Poland and Spain – where production costs are around €0.20 higher – are quite far behind the numbers one and two in Europe. The production costs in the US and Brazil are significantly lower than in Europe.

In spite of the high cost of stalls, labour, disposal of manure etc., the production costs in the Netherlands are relatively low due to higher productivity and production efficiency.