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

News Details

News Details

Germany: 19% of production costs not covered by milk price

(Brussels, 18 January 2022) According to the quarterly figures published by the Farm Economics and Rural Studies Office (BAL) – current figures of October 2021 –, production costs amount to 46.13 c/kg, whereas the farm-gate milk price was only 37.45 c/kg in the same period. Producers in Germany thus lack 8.68 c/kg to cover their costs.

Results for 2019 for Belgium, Denmark, France, Germany, Ireland, Lithuania, Luxembourg and the Netherlands were published last year. You can find the complete study here and a video presenting the costs here.


Development of milk production costs in Germany
Here you have the evolution of German milk production costs from 2014 to October 2021.

Price/cost ratio (shortfall)
The price/cost ratio illustrates to which extent milk prices cover the cost of production. In October 2021, producers only recovered 81% of their production costs from the milk price; the shortfall was thus 19%.
Here you see the cost shortfall since 2014.

 

Milk Marker Index (MMI)
The Milk Marker Index (MMI) represents the evolution of milk production costs. In October 2021, the MMI was at 112, i.e. production costs for German dairy farmers had risen by 12% as compared to the base year 2015 (2015 = 100).
Here you see the evolution of the Milk Marker Index over time.

 

Study on organic milk production costs
In November 2019, a study on the cost of production of organic milk in Germany was published (period: 2011/12 to 2018/19). You can find this study here as well as current data for 2020/21 here.


New: Study on milk production costs in eight key milk producing countries 
Cost calculations are regularly carried out in Germany but also in seven other countries. They as well clearly show that the prices paid to milk producers do not cover the cost of production.
The study on milk production costs in Belgium, Denmark, France, Germany, Ireland, Lithuania, Luxembourg and the Netherlands in 2019 is available here. In this video, you will find a presentation of the costs as well as individual contributions from all cost countries.

A chronic shortfall between production costs and milk prices – what is the solution?
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's Market Responsibility Programme.

 

Background:

Commissioned by the European Milk Board and the German producer organisation 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 German Federal Statistical Office (Destatis), and has been updated every quarter since 2014.

 

Download data sheet here

 

Contact:
EMB press office Vanessa Langer (EN, DE, FR): +32 (0)484 53 35 12