Last Year, Profitability of Livestock Products Worsened Except Broilers... Laying Hens and Beef Cattle 'More You Raise, More You Lose'

Statistics Korea, 2019 Livestock Product Production Cost Survey

[Asia Economy Reporter Kim Hyun-jung] Except for chicken (broilers), whose selling price increased last year, the profitability of most livestock species such as cattle, pigs, and laying hens significantly deteriorated. This was largely due to rising rearing costs and falling selling prices.

According to the '2019 Livestock Production Cost Survey' released by Statistics Korea on the 22nd, the net profit per broiler last year was 180 won, an increase of 59 won (49%) compared to the previous year (121 won). This was because while the selling price rose by 4.1%, from 1,939 won to 2,019 won, production costs decreased by 45 won (-3.5%) to 1,217 won due to a drop in livestock costs.

Laying hens, raised for egg production, recorded a net loss of 1,823 won per bird last year. Although this was an improvement of 392 won compared to the previous year due to rising egg prices, it marked a net loss for two consecutive years following the previous year's loss of -2,216 won. The wholesale price of 10 premium eggs last year was 974 won, up 4.1% from the previous year.

The profitability of fattening pigs (pork) also worsened significantly. Last year, the net profit per fattening pig plummeted by 42,000 won (86.9%) from the previous year to only 6,000 won. This was largely due to the pork price (based on Tangbak standard) dropping 28% from 4,362 won per kg to 3,140 won per kg.

The profitability of cattle also mostly declined. The net loss per Hanwoo beef cattle increased from 57,000 won last year to 76,000 won this year, marking two consecutive years of net losses. This was due to rising rearing costs, including labor costs, exceeding total income. The production cost per 100 kg of Hanwoo beef cattle rose by 26,000 won (2.3%) from the previous year to about 1,132,000 won, driven by increases in livestock and feed costs.

For similar reasons, the net loss per Korean beef cattle (Yukwoo) worsened by 110,000 won (22.4%) from the previous year, reaching 602,000 won. The production cost per 100 kg of Yukwoo increased by 19,000 won (2.7%) from the previous year to about 704,000 won due to rising livestock and feed costs.

The net profit per Hanwoo breeding cow rose by 89,000 won from the previous year to 303,000 won, thanks to an increase in calf prices. The price of calves (female, 6-7 months old) was 321,200 won last year, up 2.6% from the previous year. The net profit of dairy cows was 2,701,000 won, down 35,000 won from the previous year.

This content was produced with the assistance of AI translation services.