Hardly any money to be made with pigs
Gross margin slipped into the red
Fattening pigs has not been a lucrative business in Germany for some time. On the contrary, in the past two years, many fatteners were bottom line in the red. They hoped for a significant improvement in their economic results in 2004, but so far there has been a bitter disappointment, although the proceeds have improved as a result of the various administrative measures taken by the European Commission.In the first quarter of this year, according to model calculations for the gross margin - revenue for slaughter pigs minus costs for piglets and feed if recorded at the same time - profitability in pig fattening was negative. While in the very good "pig year" 2001 a gross margin of more than 30 euros per pig was achieved in the first quarter of the year, the following year it was around 6,60 euros and in the first quarter of 2003 it was still 3,10 euros per animal. In the first three months of this year, the gross margin shrank to just 1,20 euros per pig, although the comparable pig price increased on average compared to the previous year. Consequently, according to the model calculation, the price achieved could only cover little more than the cost of feed and piglets; for everything else such as expenditure on water and energy, machinery and buildings, wages and salaries, capital and other things, there was not much left on average.