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Cost of Milk Production Study Shows Losses in Denmark, Netherlands

04 July 2016

EU - Latest figures for the cost of production for milk in Denmark and the Netherlands mean that large farms are not necessarily the solution to the crisis in the dairy sector, according to the European Milk Board.

Denmark and the Netherlands are often touted as countries with robust production and large farm structures. It is often said that such large farms compete well as the large volumes produced efficiently allow them to cover costs. 

However, recent figures suggest a trend of high losses in production is apparent in Denmark and the Netherlands as well.

Research by Büro für Agrarsoziologie (BAL) showed that the deficit in the Netherlands between the average price of 30.75 cents and costs of 44.50 cents/kilogramme of milk is almost 14 cents for the year 2015. With costs of 41.70 cents and an average price of 31.03 cents/kilogramme of milk, losses in Denmark are more than 10 cents.

The European Milk Board advocates Europe-wide milk production cuts to ensure fair prices, as it says the EU authorities are not doing enough to tackle losses in the sector.


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