Mandes Verhaagh

Pig producers in Europe adopt different production methods for male pig fattening. More than half of the animals are surgically castrated. The different interpretations of animal welfare in different countries lead to market differentiation and economically different production conditions, which do not restrict trade, but economically lead to drastic competitive changes for local producers. While the Netherlands has already implemented surgical castration for the export market, using CO₂ narcosis (NL), Denmark and Germany are each introducing their strategies with local anesthesia (DK) and isoflurane anesthesia (DE), respectively. Using typical pig farms from the agri benchmark Pig Network, the additional costs and economic impacts of animal welfare regulations are calculated. In Germany, isoflurane anesthesia increases costs by EUR 28.54 to EUR 49.86 per sow, or EUR 1.93 to EUR 3.81 per male piglet. This corresponds to a cost increase of around 5% per piglet. In Denmark, the costs of local anesthesia with procaine increase more moderately by EUR 3.55 to EUR 5.05 per sow, or around EUR 0.30 per male piglet. The cost increase here is less than 1% per piglet. The additional costs are leading to a loss of competitiveness for Denmark and Germany compared to the Netherlands. However, Germany is also losing profit significantly compared to Denmark. This study highlights that animal welfare regulations can negatively impact the competitiveness of the pig sector. It emphasizes the need for countries to implement such regulations carefully, ensuring that they do not lead to the loss of production or international competitiveness. A balanced approach that supports both animal welfare and economic sustainability is essential.

Global agricultural production is dynamic and complex as various factors impact it. Understanding global agricultural production systems and farmers’ decisions requires an internationally standardized and scientifically sound approach. The agribenchmark Network is a global, non-profit network of producers and agricultural experts which aims to analyze and understand the key drivers of current and future trends and developments in global agriculture. The Network combines its in-depth knowledge of production systems with its expertise in analyzing international commodity markets and value chains to provide scientifically sound advice to policymakers, producers and agribusinesses. This paper details the agribenchmark Standard Operating Procedure (SOP), which is the step-by-step method of establishing typical farm information and quantifying their data. The paper also illustrates how the typical farm approach is applied by the agribenchmark Network to analyze and understand global agriculture, production systems and adaptation strategies. The paper provides examples of how the Network applies the approach in analyzing the status-quo of production systems, benchmarking, practice change analysis and policy analysis. The paper concludes that although the typical farm approach and the institutional settings (agri benchmark) present some limitations, the approach and the Network provide comprehensive, consistent and coherent data on farm economics.

From 2021 onwards, surgical castration of male piglets without pain relief will be banned in Germany. In Europe, stakeholders have committed themselves to end piglet castration from 2018 onwards. Alternatives to surgical castration are pork production with boars or immunocastrates. The competitiveness of these production systems is required to increase their market acceptance. The aim of this study was to test the profitability of pork production with boars and immunocastrates under different carcass pricing systems and penalty systems linked to boar taint. The calculations were based on the performance parameters of 36 animals (n = 12 immunocastrates, n = 12 boars, n = 12 barrows) from an experimental study. In order to analyze the economic effects of both alternatives under different regional German production systems, the performance data were set in relation to the data of agri benchmark. Both boars and immunocastrates performed economically worse than barrows in all the scenarios tested. If immunocastrates are sold according to the boar pricing system, the profitability of this technique is even lower, but still more profitable than boar fattening. Pork production with boars is the most unprofitable alternative in this study and will be further devalued if a penalty system linked to boar taint will be introduced.