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Milk Production Costs

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Study on milk production costs in Denmark

After Germany, France, Belgium and the Netherlands milk production costs have now also been calculated for Denmark, on the basis of EU data. According to the study carried out by the German BAL (Büro für Agrarsoziologie & Landwirtschaft), in 2014 total production costs of one kilogramme of milk in Denmark were 43,32 cents. After deducting subsidies of 4,33 cents the cost is 38,99 cents per kilogramme of milk in Denmark.

The result includes a so-called income rate, which corresponds to the minimum value that self-employed dairy farmers – both farm managers and family workers – should include in their costs, depending on their professional qualifications. This approach distinguishes this study from the – unfortunately widespread – opinion according to which farm managers and family members working on a farm should hardly or only insufficiently be paid for their work.

Update 2015: Milk production costs in Denmark

2014: Fact sheet - Milk production costs in Denmark

 

 

 

 

Study on milk production costs in Belgium

On 4 March 2015 in Brussels, the MIG and the EMB presented the results of the scientific study on the costs of milk production in Belgium.

The study follows similar ones recognised by European bodies carried out in Germany, France and the Netherlands. These studies use the same sources (FADN and institutes of national statistics) and the same calculation methods.

Similar to the studies in the other countries the Belgian figures clearly show the gap between the costs of production and the prices paid to farmers for their product.

The study was carried out by the German office BAL (Büro für Agrarsoziologie und Landwirtschaft).

2014: Study on milk production costs in Belgium (FR)

2014: Short version of the study (FR)

Study on milk production costs in the Netherlands

On June 24th 2014, the Dutch EMB member organisation Dutch Dairymen Board (DDB) presented a scientific study on production costs in the Netherlands of 2013. This study is based, among others, on the data of the European Commission’s Farm Accountancy Data Network (FADN). Furthermore, by means of a market-oriented income rate, the cost calculation includes a fair income for dairy farmers.

The presentation of this study is yet another important step that helps to give a clear picture of the situation on the milk market in the Netherlands. It became clear that there is a large gap between costs of production and the milk price paid to producers. The study was carried out by the German office BAL (Büro für Agrarsoziologie und Landwirtschaft)

Update 2015: Milk production costs in the Netherlands

Update 2014: Milk production costs in the Netherlands

2013: Study on milk production costs in the Netherlands (NL)

2013: Study on milk production costs in the Netherlands (DE)

 

 

Study on milk production costs in France

On February 27th 2014 The European Milk Board (EMB) and its two French member organisations APLI (Association des Producteurs de Lait Indépendants) and OPL (Organisation des Producteurs de Lait) presented a scientific study on milk production costs in France.

With this study, a reliable and representative calculation of production costs in the French milk sector is available for the first time. The results of the study take into account the working time of farm managers and their family members and are comparable on a European level.

The study was commissioned by the European Milk Board (EMB) and the MEG Milch Board from the Farm Economics and Rural Studies Office (BAL).

2013: Study on milk production costs in France (FR)

2013: Short version of the study (FR)

Study on milk production costs in Germany

The study, commissioned in late 2011 by the European Milk Board (EMB) and the MEG Milch Board from the Farm Economics and Rural Studies Office (BAL), calculated the production costs nationwide to satisfy these terms of reference. It is based firstly on data provided by the European Commission’s Farm Accountancy Data Network (FADN). This is a reliable, representative and comprehensive basis for the study. Secondly, it also draws on price indices for agricultural means of production like feed, fertilisers, seed and energy, from the German Federal Statistical Office to update the EU data available. A third important basis for the calculation is the wage variable, which incorporates the working hours of the farm managers and their family members. The results for Germany are currently available and are to be updated on a quarterly basis. For other EU countries, the costs will be calculated along the same lines in the next few months and years. This means that figures throughout the EU can be compared with each other – an important point in a market with an international dimension.

 

Update 2016: Milk production costs in Germany

2012: Study on milk production costs in Germany