Report no. 29


Jacob Rasmussen
29.05.2006
Costs in international pig production 2004

Abstract


Over the last decades, the world trade in pork has increased in line with the elimination of various political trade barriers. The trade with Eastern Europe is a good example of this. The increasing global trade in pork increases competition between the pig producers in the exporting countries. As Denmark exports more than 80 % of the country’s pork production, we are particularly affected by these developments. Pork is a relatively standardised commodity traded on the basis of price, quality and reliability of delivery, with price being the most important element. This provides limited opportunities for differential pricing in a sales situation as the market pays little extra for additional qualities such as animal welfare or antibiotics consumption. Competitiveness in the primary production of various countries has become an increasingly decisive factor in determining who produces pork for the global market in the future.

This report focuses on the production costs in a number of countries that are either major players in the global market or important customers for Danish pig production. The primary production costs are estimated on the basis of the size and composition of the cost structure, converted to the price of producing one kg pork in the countries in question. The strengths and weaknesses of the individual countries are analysed and related to the growth of the production of pigs in the individual countries over the last years. This will clearly illustrate the competitiveness of these countries. Finally, the report analyses the trends in the development of the pig production over the next five years in the individual countries.

Report no. 29 as PDF document.
WHO
Forkortelse af: World Health Organization.
Danish Pig Production - Axeltorv 3 - DK-1609 Copenhagen V - Phone +45 3373 2700 - Fax +45 3311 2545