As indicated by the latest WIR analysis, the loss incurred on breeding one fattened pig (in an open cycle) amounted in September to PLN 137.34 in the model based on purchased grains, and PLN 195.81 in the model based on grains from own crops. In both models, the loss is lower by PLN 4.12 (purchased grains) and PLN 18.49 (grains from own production), respectively.
Profitability of pig fattening in the open cycle in September 2024. Source: Wielkopolska Chamber of Agriculture
The slight improvement in the revenue to cost ratio resulted from slightly lower prices for weaners (less than PLN 310/piece in September, compared to almost PLN 330/piece in August). In the model based on purchased grain, the difference resulting from the above fact was, however, significantly corrected by the increase in market grain prices. Assuming that a similar purchase price for livestock was adopted in both months, the difference between August and September in this model is not too large.
According to WIR analysts, the purchase price of livestock that allows for balancing production costs is PLN 8.28/kg (purchased grain) and PLN 8.81/kg (own grain), respectively.
Profitability of pig fattening in the open cycle in August 2024. Source: Wielkopolska Chamber of Agriculture
It is worrying that despite the relatively high prices of fattened pigs that we are currently dealing with, the financial result of fattening is still in the red. The situation will not improve in the coming months, when a collapse in fattened pig prices is predicted. This collapse is signaled not only by analysts' forecasts, but also by reports from the Central Statistical Office, which indicated a significant rebuilding of the sow population in Poland.
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