Good results for the Flemish dairy sector

The Flemish dairy sector showed an improved economy in the fourth quarter of 2017, resulting in positive results. This is evident from figures from the Flemish dairy barometer.

The milk price fell in the last 3 months of 2017, but there was a moderate milk price increase between the third and fourth quarters. As a result, the index of the Flemish dairy barometer still from 110 points to 112 points. The rolling gross balance, as a measure of the profitability of the last year, rises from 98 to 103 points. 

Butter price of influence
Under the influence of the falling butter price, the Flemish milk price paid fell in December to an average of €36,74 per 100 litres. However, if you look at the quarters, the average milk price increases from €37,10 per 100 liters in the third quarter to €37,83 per 100 liters in the fourth quarter of 2017. The milk price is the most determining yield factor for the dairy barometer, but is subject to volatility. 

The yield index also rose from 110 to 112 points. This means that after a long period of time this index is just above that of the variable costs. Since 2015, it has fluctuated around 110 points. The Flemish dairy barometer also reports that energy and fertilizers have again become more expensive in the past quarter. Conversely, feeder prices continue to fall slightly.

Gross balance shows increase
The Flemish dairy barometer shows that the gross balance has also increased from 110 to 112 points. According to the researchers, this has to do with the increase in the milk price in the fourth quarter of 2017. In addition, the index of the moving gross balance also climbs further, from 98 to 103 points. This exceeds the average profitability of the reference period. 

The full report can be viewed here.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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