flag de flag gb flag fr
Legal notice     European Milk Board ASBL | Rue de la Loi 155 | B-1040 Bruxelles

News Details

PDF-Icon Icon-Print

16.07.2018

Current figures from Germany show: gap between production costs and milk price is further increasing

(Brussels, 16.07.2018) The quarterly cost figures for Germany are now available and show that cost coverage in April 2018 was only 78%, while it was 88% in January. Production costs in April amounted to 42.70 cents; however, producers only received 33.42 cents per kilogram of milk. This problematic combination of falling milk prices and higher costs is currently a cause of concern for Germany's dairy farmers. These figures come from the German quarterly cost studies published by the Farm Economics and Rural Studies Office (BAL).

According to Johannes Pfaller, dairy farmer from southern Germany and European Milk Board (EMB) Executive Committee member, these figures unequivocally represent the situation on farms. "We are afraid about production costs rising further in coming weeks because it has become necessary to buy in feed in large parts of Europe due to the drought. We milk producers need rising prices and a crisis instrument now to relieve the market."


Evolution of milk production costs in Germany

Here you have the evolution of milk production costs in Germany from 2009 to April 2018.

Price-cost ratio (shortfall)

The price-cost ratio illustrates to which degree milk prices cover production costs. In April 2018, producers only recovered 78% of their production costs from the milk price; the shortfall was thus 22%.

Here you see the cost shortfall since 2009.

Milk Marker Index (MMI)

The Milk Marker Index represents the evolution of milk production costs. In April 2018, the MMI was at 103, i.e. production costs for German dairy farmers had risen by 3% as compared to the base year 2010 (2010=100).

Here you see the evolution of the Milk Marker Index over time.

 

Production cost study for five key milk production countries

Cost calculations are regularly carried out in Germany and four other European countries as well. They also clearly show that milk producers are not paid cost-covering prices.

Here you can find the milk production cost calculations for France, Germany, Denmark, the Netherlands and Belgium for 2016.


There is a chronic shortfall in milk production cost coverage – how can this be solved?

The European Milk Board promotes a legally-anchored crisis instrument to counteract the chronic cost shortfall. The Market Responsibility Programme (MRP) observes and reacts to market signals by aligning production.

Here you have a short description of the EMB Market Responsibility Programme.

 

Background:
Commissioned by the European Milk Board and Germany's MEG Milch Board, the Farm Economics and Rural Studies Office (BAL) started compiling comprehensive data on milk production costs in Germany in 2012 for the study entitled "What is the cost of producing milk?". The calculation is based on data from the EU Farm Accountancy Data Network (FADN) as well as the Federal Statistical Office (Destatis), and has been updated every quarter since 2014.


Download the data sheet

 


Contact:

EMB director Silvia Däberitz (EN, DE, FR): +32 (0)2 808 1936


More News

14.06.2018

Fair – Fairer – Faironika

European Fair Milk Conference honours responsible commitment in agricultural sector

04.06.2018

5th European Fair Milk Conference in France

Invitation to the conference on 14 June 2018 in Villeneuve-d'Ascq near Lille, France

01.06.2018

World Milk Day: Fairness in the dairy sector – from cow stall to fridge shelf

(Brussels, 01.06.2018) Even in 2018, an appeal on World Milk Day for fairness in the dairy sector is not excessive but is, in fact, the need of the day! After all, fair prices are especially important for us milk producers in the EU as well as for our colleagues on other continents.   Fairness for colleagues from African...

22.05.2018

Milk imports from Oceania will destroy small-scale dairy farms

The Federal Government must turn away from this cheap export-import strategy. The AbL calls for a quality offensive.

17.05.2018

Newsletter May online!

A new Executive Committee has been at the helm of the European Milk Board since mid-April 2018. In a very moving Members' Assembly, Romuald Schaber, founder and President of the European Milk Board, was bid farewell after serving for twelve years. John Comer as well stepped down after six years of committed work. Read more

09.05.2018

Fewer agricultural subsidies necessitate framework for cost-covering prices!

Is the EU progressive enough to properly engineer stabilisation of farmers’ income?

26.04.2018

Newsletter April online!

EMB on the right track for the future The annual Members' Assembly of the European Milk Board was held on 16-17 April 2018 in Brussels. The agenda included workshops and discussions on strategic issues as well as the usual procedural points. As part of the latter, a new Executive Committee was elected. Read more