Never such a good year for dairy farmers

After 2 lean years, 2017 is turning out well for the average income in Dutch dairy farming. Due to the high milk price, so much has never been earned before, according to figures from Wageningen University and Research (WUR).

Per unpaid annual work unit (aje), the average income in dairy farming has increased by more than €50.000 to €68.000, the highest level in history. Despite the good earnings, dairy farming still scores below the average income in Dutch agriculture and horticulture (€71.000 per aje). Organic dairy farmers saw the average income fall by €4.000 this year to €52.000.

Thanks to good milk price
The increased incomes are due to the good milk prices, which have been trading above €40 per 100 kilos since the summer. Butter and cheese in particular performed well in 2017. This despite the fact that worldwide milk production increased slightly.

2018 is unlikely to be as good a year as several dairy products (butter and cheese) are rapidly declining in value. In the longer term, however, WUR foresees good prospects for Dutch dairy farming. This is because the worldwide demand for dairy is increasing.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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