Poultry farmers strengthen position, arable farming under pressure

The agricultural sector has both winners and losers this year. Costs remain high, but in some areas they have eased slightly. In the meantime, the livestock sectors benefit from solid output prices. Only arable farming takes heavy blows, according to the latest Stand van de Agrarische Sector by ABN AMRO.

Mixed revenues

The first half of 2025 shows a mixed picture. Arable farming started the year well, but potato prices for the processing industry quickly collapsed. Oversupply and stagnant sales are the main culprits. Companies that rely heavily on the free market feel the impact immediately in their wallets. In greenhouse horticulture, prices vary widely, but higher yields per hectare keep liquidity steady. And floriculture? Growth there is mainly driven by rising prices, although more supply is expected later this year.

Costs partly stabilise

After years of steep inflation, entrepreneurs finally experience some relief. Gas prices, after a brief peak in early 2025, show a favourable trend. Wheat and soy have become cheaper, pushing feed costs slightly down. Manure disposal costs have also eased, thanks to more capacity and a quarter more exports to Germany and France. Still, not all concerns have disappeared. Labour remains expensive, and fertiliser prices have continued to rise in 2025, partly due to European import duties.

Livestock sectors benefit

While arable farming struggles, livestock sectors profit from scarcity. Output prices there are above average. Poultry farmers stand out most. Dairy and veal farmers also see their liquidity improve. For pig farmers the picture is less favourable. They face strong international competition and possible disruptions from Chinese import duties and the EU’s opening to American pork. Fisheries remain stable, with sufficient volumes and prices in line with 2024.

Abnamro.nl