Benchmarking the profitability
of raising pigs 2024
Dr. Derald Holtkamp, Dr. Lee Schulz and Dr. Dermot Hayes, Iowa State University (USA).
Using 2024 Data
Country comparisons and factors contributing to their relative advantage or disadvantage in a global market.
Conclusions
- If we compare pork producers based on profitability, then Vietnam, Brazil, South Korea, Spain, Sweden, and Japan come out on top in 2024.
- If we use animal husbandry and productivity as a performance measure, then Denmark, Czech Republic, and the Netherlands rank at the top.
- Using production costs as a metric, Brazil is the most competitive, followed by Canada and the USA.
- Relatively low productivity in the USA is a persistent competitive disadvantage for producers there.
Comparisons 2024
versus 2023
- Based on net profit performance, Asia showed improved financial results, while Belgium and the Netherlands experienced a deterioration in profitability.
- The simple average change in profitability across all countries was +US$0.18 per kg of carcass weight, driven by lower feed costs in every country and higher market pig prices in approximately half, with only modest declines elsewhere.
Productivity:
- Denmark, the Czech Republic, and the Netherlands all exceeded 30 pigs marketed per female per year showing the highest productivity.
- South Korea and China marketed the least carcass weight per breeding female.
Production
costs:
- Japan and South Korea had the highest production costs per kg of pork sold. China, Italy and Vietnam also had very high production costs.
- Brazil, Canada, and the USA had the lowest overall costs. Brazil continued to be the world’s low-cost supplier.
Feed
prices:
- Feed prices were highest in Asia, especially in Japan, China, and Vietnam.
- Lowest feed costs in Brazil (Mato Grosso), Canada, Finland and the USA provided these countries with a significant production cost advantage.
Market
pig prices:
- South Korea, Japan, and Vietnam benefited from relatively high market pig prices in 2024.
- Canada, Brazil, Denmark, and the USA lost out in this regard.
Profit:
- Net profit was positive or near breakeven in most of Asia, Europe, the USA, and Brazil.
- Minor losses were incurred in Finland, Denmark, and Canada.
Revenue, cost, and profit per carcass kg sold –
2024.
Profit advantage of select factors, all other variables held constant, US$ per carcass kg sold basis, 2024.
Note: Each factor was evaluated alone, one at a time. Therefore, any differences in profitability are due strictly to the country’s differences in the values for that factor. For each factor, the relative advantage or disadvantage is reported as the difference in profitability relative to a hypothetical country with average values for the factor evaluated. An advantage (disadvantage) is reported as a positive (negative) contribution to profitability above (below) the hypothetical average country.