Current prices in the Netherlands are approx. 25-28 cents a kilo of milk. And the situation is also critical in the other European countries. Prices of 25-26 cents are reported from Belgium, an average of 29-30 cents for France, and 29 cents a kilo of milk for Denmark.
The costs of milk production in the Netherlands is showing that the cost per litre in not covering the cost of invested money showed a report for 2014. After 3.03 cents/kg subsidies have been deducted, the figure for the whole year was 42.24 cents per kilo of milk. By publishing the data, the EMB organisation Dutch Dairymen Board (DDB) together with the German BAL (Büro für Agrarsoziologie und Landwirtschaft, Office for Agriculture and Agricultural Sociology) has made an important contribution to transparency in the dairy sector.
Despite lower milk production costs with concurrently higher farmgate prices for milk, in 2014 it was not possible to cover production costs. With a price of 38.90 cents a kilo, there was below-cost selling in 2014 of 8 per cent. In the previous year the costs per kilo of milk were still 5 per cent higher and the price about 1.5 cents lower. Sieta van Keimpema, the President of the DDB, says: “You have to consider that 2014 was a year of relatively high prices. But even so it was not possible to cover costs.” This caused many producers in the Netherlands to give up milk production. “Even though producing milk is a passion and we love our profession, the financial pressure gives many of us no other choice but to get out”, is how Sieta van Keimpema describes the disastrous effect of the ongoing deficit.
This pressure has increased again in 2015. Current prices in the Netherlands are approx. 25-28 cents a kilo of milk. And the situation is also critical in the other European countries. Prices of 25-26 cents are reported from Belgium, an average of 29-30 cents for France, and 29 cents a kilo of milk for Denmark. And the situation is no better at present in Germany with 26-30 cents or in Ireland with 28 cents.
At the moment, the EU Commission is ignoring the drastic situation and refusing to implement a crisis instrument such as the Market Responsibility Programme (MRP). “This ignorance is costing a great many dairy farmers throughout Europe their livelihood and is very dangerous for the entire EU dairy sector. The EU governments and the Commission must implement the MRP now”, van Keimpema demands action from those responsible.
(Source – http://www.blackseagrain.net/novosti/diary-sector-is-in-danger-in-netherlands)