twitter RSS Feed linkedin acp contact

DLG-Agrifuture Insight: Mixed prospects for farm business development

October’s "Chart of the Month" from DLG-Agrifuture Insights survey shows mixed prospects for farm business developments in Germany, Netherlands, UK, Brazil and China

dairyDairy farmers are more cautious about their expectations than pig producers. (Image source: William Garrett/Flickr)

The survey indicated that the financial situation for many farms is currently strained, with the risks they face in the next 12 months. Drought conditions have left arable farms with smaller yields, while dairy operations have had to buy-in feed as a result of compromised grass growth.

Pig farmers face the growing threat of African swine fever (ASF). Agricultural professionals view their prospects for business development in the coming 12 months as mixed, and October’s Chart of the Month from DLG-Agrifuture Insights shows how this applies to a selection of the countries surveyed.

In Germany, expectations are down to an average value of 3.0. In addition to a loss of sales due to lower yields, arable farmers must also be prepared for the risks attached to sowing during the continuing drought. Oilseed rape crops are currently most vulnerable, but continuing dry weather could affect winter cereals.

Dairy cattle farmers are lacking the basic feed supplies due to the drought, which means higher costs. Pig farmers face big economic risks from ASF, which is encroaching from the East and has also recently been found in wild boar in Belgium, and this has tempered their expectations for business development.

AFI Oct2018 1

In the Netherlands, the business outlook has deteriorated compared to the survey conducted in autumn 2017. The drought is causing torment to arable and dairy farmers, while all livestock farmers are faced with making the expenses of complying with new phosphorus quotas. ASF is again clouding expectations of business development for Dutch pig farmers in the coming 12 months.

The focus of farmers in the UK is very much on future agricultural policy after Brexit. Current signs are that existing levels of support will continue for a time, but it is expected that payments will become more linked to public benefits. However, as in the EU, a degression of agricultural subsidies cannot be ruled out.

Farmers in China were surveyed by DLG-Agrifuture Insights for the first time this autumn, and they also have average expectations for business development in the coming 12 months.

Outbreaks of ASF in the Far East have already resulted in stock culls and restrictions on the movement of pigs. Fear of further spread of the disease is leading to uncertainty about further development and consequently muted business prospects. However, dairy farmers are more cautious about their expectations than pig producers. Milk is often produced in less favourable locations that incur significant transport costs, so dairy farmers hardly benefit from domestic demand for their products.

In Russia, there is only an ease decline business during the next 12 months. Russias farmers are also facing some business risks like a smaller grain harvest which resulted in expectations of smaller revenues, dampening the expectations of arable farmers’ for developing their businesses. In contrast, Russian pig farmers are much more optimistic. Their market is currently protected from imports by sanctions and countermeasures. This means domestic sales are protected, which should allow these businesses to develop positively.

In Brazil, the trade dispute between US and China has boosted purchases by Chinese traders looking for alternative sources of protein. As a result, the country’s soybean producers are confident about the course of their businesses during the next 12 months. Poultry farmers, however, have come under pressure because of export restrictions resulting from hygiene problems.


LATEST NEWS IN Cattle

Intracare launches the world’s most eco-friendly hoof bandage

Intracare launches the world’s most eco-…

Intracare, developer and supplier of products for veterinary health and nutrition, has come up with the world’s most eco-friendly hoof bandage, which will be available worldwide

Nutreco receives grant to provide sustainable feed solutions for small-scale producers

Nutreco receives grant to provide sustai…

Nutreco, a global animal nutrition leader, has received a US$4.8mn grant from the Bill & Melinda Gates Foundation to accelerate the implementation of localised, sustainable complete feed production in sub-Saharan...

Volatility: challenges in animal feeding

Volatility: challenges in animal feeding

As price volatility propels the use of alternative feed ingredients, Adisseo's team discusses how the quality of diets and the performance of animals can be maintained in such situations

Tackling transboundary animal diseases in Zimbabwe

Tackling transboundary animal diseases i…

To curb high impact transboundary animal diseases in Zimbabwe, the Food and Agriculture Organisation (FAO) and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development launched the animal health...

Nuclear techniques help Zambia ensure safety in animal food products

Nuclear techniques help Zambia ensure sa…

The International Atomic Energy Agency (IAEA) and the Food and Agricultural Organisation (FAO) are working with Zambian experts to address drug resistant microbes as well as food contamination in meat...

Evonik publishes first edition of animal diet

Evonik publishes first edition of animal…

Evonik, a German-based specialty chemicals company has published the first edition of the MetAMINO ATLAS displaying the results of 15 performance trials investigating the relative bioavailability of supplementary methionine sources...

Prev Next

OTHER RELATED ARTICLES - Cattle

Nigerian agri-tech Farmcrowdy acquires Best Foods L&P Ltd

Nigerian agri-tech Farmcrowdy acquires B…

Nigeria’s digital agricultural platform Farmcrowdy has acquired Best Foods (L&P) Limited to provide wider livestock production and processing solutions

Insect-based animal feed plant launched in Rwanda

Insect-based animal feed plant launched …

Rwanda has inaugurated its first commercial plant for insect-based animal feed, along with the new standards that will regulate and facilitate the growth of the sector

Reducing the threat of mycotoxins for local dairy farmers

Reducing the threat of mycotoxins for lo…

Biomin South Africa COO Albert van Rensburg pointed out that the contamination of animal feed with mycotoxins is a threat to farmers internationally

A quick guide to beef genetics

A quick guide to beef genetics

Darrh Bullock from the University of Kentucky gives a brief introduction to genetics in the cattle industry

Cattle keepers and farmers in Bahr El Ghazal agree on peaceful coexistence

Cattle keepers and farmers in Bahr El Gh…

Cattle keepers and farmers in Bahr El Ghazal agree on peaceful coexistence during the tense dry season to minimise the annual conflicts that cattle movements during the dry season tend...

Cattle in Senegal suffering from drought

Cattle in Senegal suffering from drought

Cattle have been dying in Senegal as the West African country struggles to cope with drought

INRAE and Ceva partner for research and innovation in animal health

INRAE and Ceva partner for research and …

Philippe Mauguin, CEO of INRAE, and Dr Marc Prikazsky, chairman and CEO of Ceva Santé Animale (Ceva), have signed a first framework agreement to strengthen collaboration in the field of...

Kenyan Dairy Board pushes SACCO model

Kenyan Dairy Board pushes SACCO model

The Kenyan Dairy Board is pushing a savings and credit cooperative organisation (SACCO) model among milk traders to streamline and transform the sector

Nuclear techniques help Zambia ensure safety in animal food products

Nuclear techniques help Zambia ensure sa…

The International Atomic Energy Agency (IAEA) and the Food and Agricultural Organisation (FAO) are working with Zambian experts to address drug resistant microbes as well as food contamination in meat...

Intracare launches the world’s most eco-friendly hoof bandage

Intracare launches the world’s most eco-…

Intracare, developer and supplier of products for veterinary health and nutrition, has come up with the world’s most eco-friendly hoof bandage, which will be available worldwide

Olam and InVivo to develop animal feed solutions in Nigeria

Olam and InVivo to develop animal feed s…

Global agri-business entity Olam International Limited and InVivo Animal Nutrition & Health have signed a consulting agreement to develop expertise in animal feed production in Nigeria 

Nigerian anti-grazing bill tackling frustrating passage through the House

Nigerian anti-grazing bill tackling frus…

John Dyegh, the lawmaker representing Gboko/Tarka Federal constituency at the Nigeria National Assembly has claimed that 'powerful Nigerians' are disrupting the passage of the bill banning open grazing

Prev Next