Feed grain in Poland is becoming more expensive, which could affect the profitability of pig farming

According to Bartosz Czarniak, a representative of PZHiPTCh Polsus, feed grain prices should be closely monitored, as the recent upward trend could affect the profitability of pork production.

In his commentary, Czarniak drew attention to the fact that domestic prices have been exceeding the level recommended by the German VEZG for some time now. As the specialist writes, there is an increased search for pigs for fattening on the domestic market:

This leads to increasingly high rates, which are rapidly approaching the limit of 10 zlotys per kg in class E. Currently, the highest rates are around 9.80 zlotys per kg. As you can see, we are already close to the psychological barrier, but will it be overcome? In my opinion, if the German market does not raise rates – then no,” says Czarniak.

Prices do not necessarily have to rise

The representative of Polsus justifies his opinion by the fact that the situation with livestock production in Europe is stable, and this indicates a calming of sentiment among cattle breeders and pig farmers.

– The amount of meat on the European market depends mainly on how much of it can be exported to third countries, and this also seems stable at the moment. There is no oversupply on the EU market, which means that imports are supporting domestic production rather than replacing it, the specialist explains.

What about feed prices?

The Polsus representative assesses the situation on the grain market as a threat to profitability:

– At present, prices are rising slightly. This is safe for closed cycles, but it does not mean that we should not worry about feed prices. Their level is an important element of the economics of production, as is the health of our animals, because with healthy stock the conversion rate is much lower, which means that the pig farm can produce meat cheaper,” says the farmer.

Tags: grain, prices, Poland