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Business analysis of staggered transition periods

Business analysis of staggered transition periods to minimum housing standards in pig fattening and piglet rearing

Following the annulment of the 2022 amendment to the Animal Welfare Act (TSchG) and the 1st Animal Husbandry Ordinance (THVO) by the Constitutional Court (VfGH), this study conducts a business analysis of staggered transition periods to minimum housing standards in pig fattening and piglet rearing. To evaluate the changes in costs and performance associated with the transition to the new housing standards, a differential calculation (for pig fattening and piglet rearing) and an investment calculation (for pig fattening) are applied. The results show that the transition entails high investment costs and ongoing additional expenses in both pig fattening and piglet rearing. The investment calculation highlights that in pig fattening, neither constructing a barn according to the new minimum standards nor according to the previous standard is economically viable. An early adaptation of existing barns to the new minimum standards results in a lower net present value compared to the previous standard. Any shortening of the staggered transition periods further reduces the net present value, particularly due to lost contribution margins and increased labor requirements.

DI Julian Zeilinger (BAB)
DI Gerhard Gahleitner (BAB)
DI Franz Hunger (LK Oberösterreich)

Team

GAHLEITNER, Gerhard

DI Gerhard GAHLEITNER

Agricultural Economics and Data Management
ZEILINGER, Julian

DI Julian Zeilinger

Agricultural Economics and Data Management
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