Netherlands: Dairy farmer is doing well, pig farmer is not

Dairy farmers can look back on a good year from a financial point of view, as payment prices rose faster than feed prices. For pig farmers, the situation was exactly the other way around, ABN AMRO concludes. The bank also expects high dairy prices for next year. This forms the basis for a good milk price. The uncertainty in pig farming continues. Dairy farmers saw the milk price rise by 50% in recent months. Concentrate prices, the largest cost item on an average dairy farm, rose by 30%. As a result, the margin has been able to develop favourably, although the bank does not provide concrete yield estimates. The high milk prices are due to the imbalance in the global dairy market, which has created scarcity. This is also a consequence of the shrinking European milk production. Since the summer months, the Dutch milk supply in the Netherlands has been increasing again, but the bank does not expect this increase to continue next year. Under normal weather conditions, the milk supply ...