December is upon us, which is a time to take inventory of the passing 12 months. To take action it’s excellent to begin by means of figuring out how the present profitability of pig manufacturing in Poland is shaping up. Surely, during the last months no longer most effective have costs been reducing however particularly so have prices, which permits us manufacturers to appear with a bit of luck on the monetary steadiness of our trade. For instance, during the last 3 to 4 months (evaluating the start of August with the start of December), the cost of the fundamental feed grain, barley, fell by means of about 110 zł in step with ton, or 13.75%. On the similar time, the hog worth fell by means of 1.35 zł, or 12.46%. Taking a look at this dating on my own, we will see that, regardless of the decreases on the purchasing stations, manufacturing will have to now be extra successful (we are speaking a couple of farrow-to-finish operation, the place the price incurred to procure a piglet isn’t dependent at the acquire worth of the animal). Now to look if we’re incomes kind of than we had been in the beginning of August 2023 I can provide an research of the price of manufacturing and examine it to the only I did in the beginning of August 2023.
These days, the price of feed used on my farm for gestating sows is round 1,219.07 zł, whilst for lactating sows it’s 1,470.22 zł. How those costs are calculated, and the percentage of each and every part within the ration is proven within the desk underneath:
| Gestating sow | Lactating sow | ||||||
|---|---|---|---|---|---|---|---|
| Factor | Value in step with ton | % inclusion | Value | Factor | Value in step with ton | % inclusion | Value |
| Barley | 690.00 zł | 41.25% | 284.63 zł | Barley | 690.00 zł | 29.72% | 205.07 zł |
| Triticale | 680.00 zł | 22.00% | 149.60 zł | Wheat | 750.00 zł | 27.00% | 202.50 zł |
| Wheat bran | 780.00 zł | 10.00% | 78.00 zł | Soybean meal | 2 720.00 zł | 12.50% | 340.00 zł |
| Fiber additive | 2 560.00 zł | 7.00% | 179.20 zł | Wheat bran | 780.00 zł | 7.50% | 58.50 zł |
| Beet pulp | 1 000.00 zł | 5.00% | 50.00 zł | Triticale | 680.00 zł | 5.00% | 34.00 zł |
| Soybean meal | 2 720.00 zł | 4.00% | 108.80 zł | Fiber additive | 2 560.00 zł | 4.00% | 102.40 zł |
| Apple pomace | 1 200.00 zł | 4.00% | 48.00 zł | Premix 4% | 5 620.00 zł | 4.00% | 224.80 zł |
| Peas | 920.00 zł | 3.00% | 27.60 zł | Beet pulp | 1 000.00 zł | 3.00% | 30.00 zł |
| Premix 2.5% | 5 220.00 zł | 2.50% | 130.50 zł | Apple pomace | 1 200.00 zł | 3.00% | 36.00 zł |
| Soybean oil | 6 000.00 zł | 0.50% | 30.00 zł | Peas | 920.00 zł | 2.50% | 23.00 zł |
| Acidifier | 11 770.00 zł | 0.20% | 23.54 zł | Soybean oil | 6 000.00 zł | 1.50% | 90.00 zł |
| Mycotoxin binder | 33 100.00 zł | 0.05% | 16.55 zł | Acidifier | 11 770.00 zł | 0.20% | 23.54 zł |
| Probiotic | 1 870.00 zł | 0.50% | 9.35 zł | Mycotoxin binder | 33 100.00 zł | 0.05% | 16.55 zł |
| Blending carrier | 83.30 zł | 100.00% | 83.30 zł | Probiotic | 1 870.00 zł | 0.03% | 0.56 zł |
| Blending carrier | 83.30 zł | 100.00% | 83.30 zł | ||||
| General: | 1 219.07 zł | General: | 1 470.22 zł | ||||
Taking the above information and calculating the selection of reared piglets at reasonably greater than 11 piglets in step with sow in step with muddle, the price of acquiring a piglet is 165.09 zł. It’s value noting right here that with better-managed manufacturing, this worth might be decrease.
In my research this time, I can skip the prices of manufacturing breeding animals, and center of attention most effective on fattening pigs as the overall product. These days, the prices of manufacturing feed for starter, grower, and finisher pigs are as follows:
| Starter feeds | |||
|---|---|---|---|
| Factor | Value in step with ton | % inclusion | Value |
| Barley | 690.00 zł | 35.00% | 241.50 zł |
| Wheat | 750.00 zł | 32.25% | 241.88 zł |
| Listen | 4 550.00 zł | 27.00% | 1 228.50 zł |
| Premix | 6 800.00 zł | 0.80% | 54.40 zł |
| Soybean oil | 6 000.00 zł | 1.50% | 90.00 zł |
| Acidifier | 11 770.00 zł | 0.40% | 47.08 zł |
| Mycotoxin binder | 20 000.00 zł | 0.05% | 10.00 zł |
| Probiotic | 14 000.00 zł | 0.50% | 70.00 zł |
| Fermented soybeans | 5 600.00 zł | 2.50% | 140.00 zł |
| Blending carrier | 83.30 zł | 100.00% | 83.30 zł |
| General | 2 206.66 zł | ||
| Grower feed | Finisher feed | ||||||
|---|---|---|---|---|---|---|---|
| Factor | Value in step with ton | % inclusion | Value | Factor | Value in step with ton | % inclusion | Value |
| Barley | 690.00 zł | 41.75% | 288.08 zł | Barley | 690.00 zł | 29.55% | 203.90 zł |
| Wheat | 750.00 zł | 17.00% | 127.50 zł | Wheat | 750.00 zł | 0.00% | 0.00 zł |
| Premix | 6 500.00 zł | 2.50% | 162.50 zł | Premix | 6 500.00 zł | 2.50% | 162.50 zł |
| Triticale | 680.00 zł | 12.00% | 81.60 zł | Triticale | 680.00 zł | 37.00% | 251.60 zł |
| Soybean oil | 6 000.00 zł | 1.00% | 60.00 zł | Soybean oil | 6 000.00 zł | 0.70% | 42.00 zł |
| Acidifier | 11 770.00 zł | 0.20% | 23.54 zł | Acidifier | 11 770.00 zł | 0.20% | 23.54 zł |
| Mycotoxin binder | 20 000.00 zł | 0.05% | 10.00 zł | Mycotoxin binder | 20 000.00 zł | 0.05% | 10.00 zł |
| Probiotic | 14 000.00 zł | 0.50% | 70.00 zł | Probiotic | 14 000.00 zł | 0.50% | 70.00 zł |
| Soybean meal | 2 720.00 zł | 11.00% | 299.20 zł | Soybean meal | 2 720.00 zł | 7.50% | 204.00 zł |
| Wheat bran | 780.00 zł | 7.50% | 58.50 zł | Wheat bran | 780.00 zł | 12.50% | 97.50 zł |
| Peas | 920.00 zł | 6.00% | 55.20 zł | Peas | 920.00 zł | 9.00% | 82.80 zł |
| Fodder chalk | 320.00 zł | 0.50% | 1.60 zł | Fodder chalk | 320.00 zł | 0.50% | 1.60 zł |
| Blending carrier | 83.30 zł | 100.00% | 83.30 zł | Blending carrier | 83.30 zł | 100.00% | 83.30 zł |
| General | 1 321.02 zł | General | 1 232.74 zł | ||||
Allowing for the typical feed intake, the length by which those pigs will have to acquire weight, we get the next value values:
| Completing pig | |
|---|---|
| Direct prices | |
| Value of a piglet | 176.64 zł |
| Diet Segment I | 80.32 zł |
| Segment II | 88.77 zł |
| Segment III | 103.06 zł |
| Segment IV | 92.46 zł |
| Water | 2.26 zł |
| Veterinary carrier | 25.00 zł |
| Human exertions prices | 91.20 zł |
| General direct prices | 659.71 zł |
In the end, let’s test what worth we’re recently getting for fattening pigs at acquire. On the time of writing this text, the category E worth is ready 9.80 zł in step with kg. With a dressing share of 80, we get a value of seven.84 zł in step with kg reside weight. The above calculations had been for pigs fattened to a weight of 110 kg, so the worth we will be able to get for such an animal is 862.40 zł. That implies the benefit, with out bearing in mind oblique prices, might be: 862.40 zł – 659.71 zł = 202.69 zł. Now let’s examine this to the quantity of benefit (with out oblique prices) we won in August, which was once 280.03 zł. We will now see in black and white that the present costs we obtain for pigs, sadly, give us a worse monetary outcome than in the beginning of August. I will admit frankly that once I sat down to arrange this file, I used to be satisfied that manufacturing prices had fallen such a lot that the benefit can be higher. As you’ll see, as in any trade, we will no longer depend only on hunches, however at the start on details, and the above calculations display obviously – it’s reasonably worse than in the summertime – on the other hand, in my view – it’s nonetheless excellent… and what’s going to the long run convey?
These days, Europe nonetheless has the most costly red meat on the planet. This isn’t conducive to world industry, so commodities that had been meant to visit 3rd markets are increasingly more touchdown inside the intra-EU marketplace – and that is beginning to have an effect on costs, which can get started reducing after the length round Christmas. Alternatively, we nonetheless have a security buffer in profitability, this means that that in the meanwhile we will have a look at those adjustments frivolously, however with a robust eye – the theory is to hedge for a length of decrease costs. Is the sector headed for even decrease costs? Within the brief time period sure, however in the longer term? Listed below are some elements that might alternate this pattern. To start with, will Brazil, which recently has an excessively low breakeven level, keep growing its manufacturing and thus push costs decrease international? How will U.S. manufacturing behave, which is attempting to compete with Brazil in relation to worth, however their costs are a ways from pleasurable to U.S. farmers, who not have the rest so as to add to manufacturing? How will Europe, which lately has been specializing in making improvements to welfare and the surroundings, and because of this, is rising manufacturing prices and generating more and more “elite” items, to find itself in all this? Will it be capable of take care of exports at this type of degree as to not cave in manufacturing at the previous continent? Will manufacturing in China stay as prime as it’s nowadays, regardless of prime manufacturing prices and the ever-increasing issues confronted by means of pig farmers there because of the focus of manufacturing? A lot is dependent no longer most effective in the marketplace but in addition on politicians…
Bartosz Czarniak