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Dairy farmer must immediately use buffer again
The average dairy farmer performed well last year. Income from milk and livestock sales was excellent, allowing them to build up a solid liquidity position of around €132.000. This year, however, this buffer can be used immediately, as costs have again significantly exceeded income. This is according to ABN-Amro Bank. the liquidity monitor from January 2026.
This monitor is based on transaction data from more than 1.000 specialized dairy farms. Liquidity is not the same as income. According to WUR estimates, the average dairy farmer income (conventional farm) was approximately €120.000 last year.
Some liquidity was also built up in 2024. At the end of the year, this averaged €57.000. Last year, it more than doubled to €132.000. This was mainly due to good results in the first nine months of the year. In the last quarter of 2025, the milk price, in particular, fell sharply and even fell below the critical milk price. This is estimated at €47 per 100 kilos. In December, the average milk price fluctuated just above €40 per 100 kilos. See also the DCA index of the average Dutch basic (milk) price. Every euro decrease in the milk price per 100 kilos represents approximately €10.000 in annual revenue.
While the average dairy farmer can withstand a blow, not everyone is equally resilient. Young entrepreneurs who have recently made an acquisition or other major investment are particularly vulnerable to extended periods of lower prices. They not only have smaller buffers but also, on average, much higher interest and repayment costs.
Major expense items that the average company faces this year include the tax assessment (for 2025), manure disposal costs, and spring work costs.
Klaas van der Horst
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