Countus Dairy Cattle Index
Dairy farmers are approaching bottom in yield
The return on the dairy farm also declines in January. This is reflected in the Countus Dairy Cattle Index. However, the bottom is now in sight. The Index for 2017 ended below the level at the end of 2016.
In week 50, the Index comes out at 118.20 points. The 10-year average is 100. In 2016, the Index still stood at 126.30 points. Especially the appreciation of the raw materials in milk demands take its toll. This is because the costs are actually lower, compared to last year. Mention, for example, the sale of manure; that price is €19,25 below the €20,33 of 2016.
Higher Yields
On top of the lower costs, there are higher yields for the sale of livestock. Something that is not yet reflected in the Index are the rising prices for structural products. A product that is popular in combination with the current quality of the silage.
The forecast for the Index indicates that the bottom has not yet been reached, but it is in sight. The return has thus taken a big step back, but is still above average.
Phosphate rights
From 1 January, the dairy farming sector must take into account 1 new element in forecasting the operating result, namely the phosphate rights. The Index predicts an above-average milk price, but the production space can be adjusted downwards due to the phosphate rights. In the coming period, dairy farmers will be told where they stand and it will become clear how far-reaching the rights are or are not.
Herman van den Pol
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