The difference in income between dairy farmers from the European member states is very large. This is apparent from the International Milk Price Comparison of ZuivelNL published on Wednesday, 14 June. This was carried out on behalf of LTO Nederland.
The difference in income for an average European dairy farm (with a milk production of 500.000 kilos of milk per year) is 70.000 euros per year. Irish dairy farmers, affiliated with dairy Glanbia, earn the least. They received an average of 22,90 euros per 100 kilos of milk in 2016. In contrast, the Italian dairy farmers who supply Granarolo were paid the most. That is 36,83 euros per 100 kilos of milk. That is a difference of almost 15 euros.
Dutch dairy farmers
Of the Dutch dairies, FrieslandCampina (RFC) pays out the best, namely EUR 30,80 per 100 kilos of milk. DOC is in the list of the 16 leading European dairies, in penultimate place with a payout price of 23,96 euros per 100 kilos of milk.
French take advantage
Italian milk prices are so high because they are often united in small cooperatives that make special cheeses. For the same reason, the French milk price is also relatively high.
The French milk prices also fluctuate much less than those in the other European member states. This has to do with the sales structure in France. French dairy farmers benefit from a strong home market, which yields more returns than the fresh market.
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.