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Danish Milk Production Profits Fall

08 December 2011

DENMARK - Fluctuations in food prices are likely to see earnings in the dairy sector fall in coming years.

An average full-time farmers can expected an operating profit of approximately 500,000 Kroner between 2011 and 2012, according to an income forecast from the The Agriculture and Food Research Centre.

"This is good progress," says Klaus Kaiser, business manager at the Research Centre. "Product prices of meat and skins have increased in recent years and are expected to remain stable at a relatively high level. Productivity gains and the continued low interest rates also contribute to the positive development of the rural economy."

However uncertainty is increasing due to the European crisis.

Farmers operating costs are increasing. The difference in agricultural enterprises operating profits has increased significantly in the past 10 years.

Whilst some producers are struggling, such as the dairy sector, others are seeing good returns and growth.

TheCattleSite News Desk



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