News WUR . income estimate
Rising costs inhibit dairy farmer's income
The income of dairy farmers will be meager in 2019, according to the income estimate of Wageningen Economic Research (WUR). On the other hand, a lot of money has been made in goat farming.
The average income of conventional dairy farmers has fallen by €6.000 this year to €31.000 per unpaid annual work unit. The average income for organic dairy farmers is €28.000. This is a decrease of €9.000 compared to 2018. The income is therefore below the agricultural average of €57.000.
According to the WUR, the fall in income is mainly due to rising costs. Inflation has caused the prices of machines and other tools to rise, which has logically made investing more expensive. Of course, the lower milk price and increased feed price also have a negative effect on income.
Scaling doesn't work anymore
Where it was previously possible to absorb the higher costs through economies of scale, this is less the case at present. Expansion is, according to WUR, nipped in the bud by current legislation and regulations. This is partly due to the introduction of the phosphate rights system.
It is striking that the income of conventional and organic livestock farmers has been close to each other in recent years. Despite the fact that earnings in conventional dairy farming were higher this year, dairy farmers continue to switch to organic. They may be doing this to prepare for a better raison d'être in the future.
Goat and veal farmers
The WUR estimates the income of goat farmers at €102.000. This is an increase of €25.000 compared to 2018. The increase is due to the rising price of goat milk. The income of veal farmers actually decreases by €6.000 to €40.000, as a result of lower veal prices.
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Jorine Cosse
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