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Inside Milk

A fifth of costs German livestock farmer not covered

15 October 2021 - Klaas van der Horst

Dairy farmers' incomes are not as bad as in 2020, but in the first half of this year, German dairy farmers were still 21% short on their calculated production costs, the EMB says.

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This is noted by the European Milk Board (EMB), the umbrella organization of which the Dutch Dairymen (DDB) is also a member. The cost calculation was made by the German BAL Institute. The figures used come from the EU.

The picture so far is slightly less negative than in 2020, when German dairy farmers saw 30% of their production costs not covered by income. The milk price was lower throughout 2020 and production costs were higher than was the case during the first half of 2021.

EMB
2014 and 2017 were 'peak years' for German dairy farming, with only 13% of production costs uncovered.

The EMB periodically has milk production costs calculated in European member states. Expressed in index costs, costs had increased to a factor of 2021 in July 110 compared to 100 in base year 2015.

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