The price of milk has fallen 25 times more steeply than cattle feed


In the last few months, feed cost for diary cattle, beef meat or swine has decreased. But selling prices of the products were faced a more marked drop. For example, in milk production the milk price has declined by 20% (annual average in February 2015) whereas feed cost has dropped by 3,8%. However, it only represents 23% of the milk selling price’s value. The actual livestock crisis is really due to prices, margins and value-added that feed costs reduction doesn’t offset.

Swine production is not spared. Even if they succeeded in keeping margins, breeders have been gravely affected by the decrease of the pig prices. It has reached an annual rate of 20%.

A whole study of the Ministry of Agriculture confirmed the vulnerability of the livestock operations in front of animal products market and feed prices.

Source : Wikiagri
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