Zootechnics

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Where pig farms lose money: efficiency errors that reduce margins without being visible

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2026 March 24

In the pig sector, profitability is not determined solely by the selling price, but largely by technical performance. The production cost for one kilogram of live pig typically ranges between €1.5 and €1.8/kg, with feed accounting for approximately 65% of this cost. Under these conditions, even small variations in feeding efficiency have a direct impact on economic results.

The feed conversion ratio (FCR) is one of the most important indicators. An increase from 2.6 to 2.9 kg feed/kg gain can add €0.08–0.12/kg to the production cost. For herds of several thousand animals, the total impact can exceed tens of thousands of euros per production cycle.

Losses from mortality represent another major source of hidden costs. A mortality rate of 5% compared to 3% directly reduces production volume and increases the cost per kilogram, as initial expenses have already been incurred. A difference of just 2 percentage points can reduce the farm’s margin by over 10%.

Indirect costs—energy, biosecurity, and labor—have also increased significantly. Without strict control of these components, farms can lose competitiveness without the issue being immediately visible. Real profitability is determined by the accumulation of these small variations, which, at an aggregate level, can turn a profitable farm into a vulnerable one.

(Photo: Freepik)

 

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