Economic aspects of pig breeding

SYRŮČEK, Jan and BARTOŇ, Luděk. Economic aspects of pig breeding. Roľnícke noviny, 2023, vol. 2023(16. 8. 2023), p. 27-28. ISSN .
Year2023
CathegoryOthers
Internal link23107.pdf
Abstract

Pork is very popular among Czech consumers and has long been the most consumed type of meat in the Czech Republic. Per capita consumption in the Czech Republic is one of the highest in Europe and the world. Unfortunately, almost half of domestic consumption has to be met by imports, making the Czech Republic one of the EU countries with the lowest level of self-sufficiency in pork production. The economic efficiency of domestic production is influenced by the situation on the world and European markets. This is defined by the level of supply and demand, which determines current market prices. Their level can be considered one of the most important factors determining the economics of production. The farmgate price of slaughter pigs has not developed evenly in the EU in recent years, but has fluctuated. Compared to other years, the price has been low, especially in 2021 when supply exceeded demand due to lower exports. In contrast, the highest price was recorded in 2022 (on average 26 % and 29 % higher year-on-year in S and E classes). It is stated that in the long term, pork production in the Czech Republic is unprofitable without subsidies. In the current conditions, only some top farms seem to be able to maintain positive profitability, while many others are forced to close down as a result of economic pressure.