Cost of Milk Production Study Shows Losses in Denmark, Netherlands

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. Such large farms theoretically compete well in the market, as large volumes efficiently produced allow them to cover their costs.

However, the EMB said the new report suggests the opposite, as it shows a pattern of high losses in both countries that matches wider trends in the industry – click here to read more.

In market news, Tuesday’s Global Dairy Trade auction showed a decrease in the price index of just 0.4 per cent. This follows no change at the previous auction, and a rise in dairy prices at two May and June auctions before that.

The UK’s National Farmers’ Union this week said that more money should now be coming back to the farm gate as market indicators show further positive moves.

NFU dairy board chairman Michael Oakes said prices remain far below sustainable levels, and processors need to ensure there are not unnecessary delays in passing improved returns back to farmers - read more.