Point of view: Profit margins for European pig farmers in 2024

Margins on feed costs will remain stable in 2024 for European pig farmers. Other expenses have risen sharply in recent years. However, results remain positive, except for Danish farmers.

The InterPIG network brings together experts from many countries in Europe and the Americas. Experts from Germany (ISN and Thünen Institute), the Netherlands (Wageningen University and Research), Spain (SIP Consultors) and Denmark (SEGES) have submitted their food prices for 2024. Standardised where necessary and compared with the perceived prices calculated by Ifip, they can be used to express the margins on feed costs for pig farmers in 2024.

After a difficult year in 2022 for European pig farmers’ cash flow, marked by soaring raw material and energy prices, followed by an exceptional year in 2023 with record margins driven by the sharp rise in pig prices, 2024 confirms this favourable trend : farmers are managing to maintain high margins. Slightly down in France (-6% 24/23) and Germany (-4%) on average over the year, margins on feed costs held steady in the Netherlands (+1%) and even improved in Denmark (+3%) and Spain (+3%).

Change of instant margins on feed costs (€ per sow in production per year)

Source: Ifip based on InterPIG

In absolute terms, the Dutch will have the highest gross margins in 2024, at €3,120 per sow in production per year on average, followed by the Germans (€2,720/sow in production/year) and the French (€2,510/sow in production/year). The Spanish come next (€2,180/sow in production/year). Danish margins are the lowest of the five