Netherlands: Income differences between poultry farms increased sharply

Published 2022년 12월 19일

Tridge summary

The article highlights a significant increase in income disparity among egg-producing farms in the Netherlands, as reported by Wageningen Economic Research. The year 2022 has seen a dramatic rise in prices for industrial eggs, leading to a 313,000 euros difference in income for leading laying hen farms and 230,000 euros for top broiler farms. This is attributed to a 91% increase in industrial egg prices. In contrast, free-range and organic egg producers, though facing higher costs, experienced only marginal contract price increases, resulting in a wider income gap. The average income on laying farms has surged to 112,000 euros, more than doubling from the previous year, while broiler farm income is expected to decline due to faster cost growth than revenue. These trends, exacerbated by economies of scale and the shift towards higher-welfare chicken practices, have resulted in a growing chasm between the most and least profitable operations in the egg production sector.

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Original content

These differences amount to more than 313,000 euros for laying hen farms and more than 230,000 euros for broiler farms, reports the Information Network of Wageningen Economic Research. Prices for industrial eggs will increase by 91 percent in 2022. Prices for free-range eggs increased by 66 percent and for free-range eggs by 41 percent, but 90 percent of free-range farms have a contract and that price only increased by 7 percent. The same applies to producers of organic eggs, who only saw their contract price increase by 5 percent. Average income According to Wageningen Economic Research, this explains why the difference between the laying farms in the bottom and top 20 percent is now 313,000 euros, while it is normally about 150,000 euros. The average income on laying farms is 112,000 euros per unpaid annual work unit (aje). Last year that was 68,000 euros. The income of 2022 is one third above the average of 2015-2021. Income on broiler farms will fall to 99,000 euros per unpaid ...

Source: Nieuwe Oogst