22/08/2003 
Farmers receive less than 18 cents of each Euro spent for pork - losses of 10 Euros per pig at present
The Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e.V. (ISN) at Damme recently made an enquiry on consumer prices to be paid for pork at supermarkets, butcher's shops and discount shops which were then compared with the producer's prices. According to ISN chairman Franz Meyer zu Holte the result of the enquiry was very disappointing.
Given the current price of 1.25 Euros per kg slaughter weight, the farmers achieved about 110 Euros per pig for slaughter. The consumers, however, who at the counters pay about 700 Euros for that same pig have to pay more than six times the price, said Meyer zu Holte. So these days the farmers' share in returns were just about 17.4 % of the consumer prices. Two years ago, it had still been 20 %, after all. According to the ISN chairman, the profit margin had clearly shifted in favour of both slaughter industry and grocery trade. Grocery trade's price pressure had even grown.
ISN's manager Detlef Breuer said the economical situation should indeed be taken very seriously. A price of 45 Euros for food and of 50 Euros for the piglet had to be paid from the 110 Euros profit made per pig. Energy costs, costs for buildings and all other costs arising amount to another 26 Euros.
According to ISN manager Detlef Breuer, it was not possible to keep on like this much longer. The capital surplus was used up, and liquidity was very critical. The compound feed industry had allready announced to raise prices shortly. This would certainly result in an additional 2 to 4 Euros costs per pig. The farmers and their families already tried to survive without consumption and to live on their capital. Breuer finally said that
For further Questions please contact Andreas Beckhove, phone number 0049-5491-9665-17 or beckhove@schweine.net .
Given the current price of 1.25 Euros per kg slaughter weight, the farmers achieved about 110 Euros per pig for slaughter. The consumers, however, who at the counters pay about 700 Euros for that same pig have to pay more than six times the price, said Meyer zu Holte. So these days the farmers' share in returns were just about 17.4 % of the consumer prices. Two years ago, it had still been 20 %, after all. According to the ISN chairman, the profit margin had clearly shifted in favour of both slaughter industry and grocery trade. Grocery trade's price pressure had even grown.
ISN's manager Detlef Breuer said the economical situation should indeed be taken very seriously. A price of 45 Euros for food and of 50 Euros for the piglet had to be paid from the 110 Euros profit made per pig. Energy costs, costs for buildings and all other costs arising amount to another 26 Euros.
The pig keepers are not being paid for the work they do. And on top of that, they are losing 10 Euros per pig at present, said Breuer.
This year, a farmer keeping 1,000 pigs has to cope with a loss of 25,000 Euros.Since the pig keepers had made no cost-covering margin for a period of two years already, many farmers' sheer livelihood were threatened.
According to ISN manager Detlef Breuer, it was not possible to keep on like this much longer. The capital surplus was used up, and liquidity was very critical. The compound feed industry had allready announced to raise prices shortly. This would certainly result in an additional 2 to 4 Euros costs per pig. The farmers and their families already tried to survive without consumption and to live on their capital. Breuer finally said that
we have to be very, very careful, because the ice we walk on is very fragile.
For further Questions please contact Andreas Beckhove, phone number 0049-5491-9665-17 or beckhove@schweine.net .
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