Pig farming in chiaroscuro: pig prices at record levels but profitability not yet restored
Prices for fresh cuts go up but slaughter pigs suffer. Firm prices for cured hams and high prices for fresh legs weigh on the profitability of curing
08, Sep 2022
In August, the monthly average price for slaughter pigs of the heavy type destined for the protected circuit was 1.937 Euro/kg. On a cyclical level, i.e. compared to July, this means +6%; on a tendential level, i.e. compared to the values recorded in the same period last year, it translates into +15%. This is a new record level in recent years.
In the same weeks, the 7 kg piglets showed a stable average monthly price of 52,700 euros / head; with a positive trend change (+ 28.6%). Similar situation for the 30 kg garments which, again in August, were quoted at 3.155 euros / kg, with a trend variation of + 14.6%.
The market trend of pigs and the slowdown in costs for the procurement of food raw materials have slightly increased (+ 0.4% the Crefis index) the profitability of the weaning phase; while the trend variation is more marked (+ 7%).
Also in August, even in the growth phase, the profitability trend sees the Crefis index month on month at + 1%, and on an annual basis at + 2.6%.
Finally, the fattening phase shows an economic growth of 3% in profitability, thanks to the combination of rising pig prices and falling food costs. But broadening the temporal gaze, also because fattening is a phase that takes a long time, the high prices of cereals in recent months have lowered profitability on a trend level by 4.7%.
A similar situation can be found in closed-cycle breeding which in August marks a cyclical recovery of the Crefis index of 4%, but compared to last year the profitability remains 13.7% lower.