French pig farming : performance results for 2008

In 2008, no single pig farm category escaped the effects of the hike in feed prices. Faced with rocketing feed expenditure, the profits on end-products were insufficient to compensate for the slipping markup on feed and rotation costs, which continued the 2007 decline.2008 saw production costs hit a 20-year high. Pork prices, despite rallying slightly, still settled way below the cost price. These sprialing cost prices have triggered another industry-wide economic crisis, with the same sale price-cost price differential as in 1998. Pig farmer's have seen their 2008 revenues nosedive to below the levels of the 2002-2003 crisis, and even approaching the critical lows of 1998 levels.On-farm profitability continues the slide from 2007, which was already sharp enough, and has now fallen into the minus figures for every single pig farming system. In 2007 and 2008, the average losses made by French pig farmers have cancelled out the profits made over the previous two yeras (2005-2006).This kind of industry-wide average means that over a 5-year cycle, around half of the nation's pig farms will be under budget.