In Europe's main milk-producing countries, average production costs exceed yields. In the Netherlands, a dairy farmer is 26% short of revenue to cover the costs. This is just above the European average of 24%.
The above is evident from the annual survey of the Dutch Dairymen Board (DDB) which is carried out by the German Scientific Bureau of Agricultural Sociology and Agriculture (BAL). In 2019, the average production costs for 100 kilos of milk in the Netherlands were €44,54. The average bare milk price in the Netherlands was €32,75 cents per kilo and as a result companies fell 26% short of income to cover the costs.
Averaged over the past 5 years (2015-2019), the milk price was €32,15 per 100 kilos. Including EU subsidies, the average revenue was €33,95. This equates to a deficit of $1,93 to cover the average cost of $35,88.
Main milk producing countries
Since this year, 8 main milk-producing EU countries have taken part in the survey: Belgium, Denmark, Germany, France, Ireland, Latvia, Lithuania and the Netherlands.
The difference in production costs between countries is very large. In 2019, costs were lowest in Ireland (€34,21) and highest in Lithuania (€58,63). There is also a difference in yields, but this is less significant than in costs. The highest underfunding is in Lithuania, where dairy farmers are no less than 51% short in income to cover the costs. Ireland has the lowest deficit at 99%.
European average
This year, a European average was calculated for the first time in the study. Production costs in Europe increased from €2015 to €2019 per 41,18 kilos between 45,35 and 100. The average payout price in 2019 was €34,52 per 100 kilos. This equates to a 24% shortfall in covering production costs.
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This is in response to it Boerenbusiness article:
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