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EU DAIRY FARMS REPORT BASED ON 2016 FADN DATA

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Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË — Tel. +3222991111

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT Directorate C. Strategy, Simplification and Policy Analysis C.3. Farm economics

Brussels, November 2018

EU DAIRY FARMS REPORT BASED ON 2016 FADN DATA

Executive summary

This annual report provides an economic overview of EU milk specialised farms1 based on

the latest available data from the farm accountancy data network (FADN) for 2016.

It provides trends in milk margin per tonne and in income per annual work unit from 20072

to 2016, together with estimates of gross milk margins3 for 2017. The sample of milk

specialized farms in 2016 represented 85 % of dairy cows and 90 % of EU-28 milk

production.

Over the period 2007-2016, in terms of milk margins, dairy farms experienced 3 crises.

The first one in 2009 when the milk price dropped by 17 % year on year and margins

declined from 139 EUR/t of milk in 2007 to barely 89 EUR/t two years later. This was

followed by an improvement in 2010 and 2011 with margins reaching peak of 134 EUR/t.

The second crisis came in 2012 due to price decrease and costs increase. Consequently,

margins dropped but not to the level from 2009. By contrast, 2013 and 2014 were beneficial

years with raw milk prices going up to 383 EUR/t and margin of 130 EUR/t in both years.

After this rise, the third crisis started in 2015 and lasted until third quarter of 2016. Raw

milk prices went down and, as a result, margins too.

Source: EU FADN — DG AGRI, Model of the allocation of milk costs

1 The report concerns not only farms classified as 'milk' by typology i.e. TF 45 Specialist dairying, but also some farms belonging to TF 47

Cattle dairying, rearing and fattening combined, TF 73 Mixed livestock, mainly dairying and TF 83 Field crops – grazing livestock

combined, where milk production is significant. For details on farms selection for this report please see Annex 1, Methodology 1. 2 2013 for Croatia.

3 Gross margin = (milk price + coupled payments) – (feed, veterinary, energy costs and other operating costs). Decoupled payments,

progressively introduced from 2005, are not included in margins, but they are part of income.

EU Dairy farms report based on 2016 FADN data

4

The impact of the most recent 2015-2016 crisis was different in respective EU groups of

countries. The margins of 13 MS which joined the EU during and after 2004 enlargement,

and which until 2014 were regularly below the EU average, were affected less severely.

Between 2014 and 2016 their margins fell by 23 % in this group. More pronounced decrease

experienced farms from EU-15 group where margins, in only 2 years period, fell by 40 %.

All in all, 2016 year saw the milk margins of 83 EUR/t which happened for the first time

since 2009 year. After 2014 milk price rise, in the following 2 years both, dairy cows herd

and milk production increased. This additionally coincided with decline in global import

demand (in particular from Russia and China) and had adverse impact on EU margin. The

proportion of specialized milk farms in EU-28 with a positive milk margin fell from 95 % to

90 % between 2014 and 2016.

The situation on global market changed again in 2017 due to decline in milk collection and

growing demand for dairy fats (notably butter) and cheese. As a consequence, milk

producers saw an increase in raw milk prices, leading to a significant improvement in

margins as well. According to the estimate, in 2017 margins went up to 137 EUR/t of milk,

which was higher level than in 2013-2014 years and similar to 2007.

The trend was similar in all the Member States even if levels of gross margin were

significantly different. However, the gap among Member States is large as it is displayed in

Annex II figures, with gross margin with coupled payments in 2016 ranging from 21 EUR/t

in Hungary to 178 EUR/t in Romania.

After continuous increase of input costs between 2009-2014, from 2015 onwards the

downward trend was observed. In 2015 the total operating costs for milk production

decreased by 8 % year on year, and in 2016 went down by another 2 % relative to previous

year. In 2017 input costs were expected to drop by another 3 % compared to 2016. It was

caused by decline in specific costs while overheads costs were little changed.

Source: EU FADN — DG AGRI, ESTAT (HICP index).


5

The changing trend in milk margins from one year to another had also an impact on dairy

income, which followed similar path. In terms of farm net value added by annual work

unit (FNVA/AWU), 2013 and 2014 were positive with EU-28 dairy farms obtaining a

higher average FNVA/AWU than in 2007 (base year) in both, nominal and real terms. In the

following two years, 2015 and 2016 incomes deteriorated and in real terms were at the same

level (in 2015) or slightly higher (in 2016) than in 2007.

Overall, dairy specialized farms provided higher incomes per annual work unit than an

average EU-28 farm, however they were not in the top 3 best performing types of farming

in 2016. The FNVA/AWU in 2016 in the average farm was 19 511 EUR/AWU, whereas

specialized milk farms reached 20 506 EUR/AWU (after horticulture, wine and granivores

types of farms).

Income levels varied among the Member States. This can be explained by differences in

productivity, farm size, herd size and milk production levels. In terms in FNVA per labour

unit the gap is still large. Milk margin does not always correlate with income. Some

Member States with large margin were not those with high income. In Romania, even

though margin per tonne of milk was the highest in EU-28, the income was the smallest

(3 571 EUR/AWU) due to very small herd (only 4 LU of dairy cows on average) and milk

yield only 3 227 kg/cow. Similarly in Bulgaria, in spite of decent margin at 105 EUR/t

(26 % higher than EU average), income was barely 4 295 EUR/AWU, due to small milk

yield (2 877 kg/cow) and moderate herd size (14 LU of dairy cows). On the other side, the

highest income was in Denmark 64 330 EUR/AWU, even though margin was below the

average (63 EUR/t, which was 24 % less than EU-28 average). Denmark achieved the

highest milk yield of 9 504 kg/cow with very big dairy herd (160 LU of dairy cows) which

let it profit from economy of scale.

In 2017, due to positive trend in prices and costs decrease, it is expected that income would

increase in milk specialized farms compared to two preceding years.

Source: EU FADN — DG AGRI, Model of the allocation of milk costs

Whereas margins and income fluctuated over the analysed period of time, the direct

payments and subsidies played a crucial role in income remaining its stable component,

especially from 2009 onwards. In EU-N13 Member States direct payments were gradually

phased in which also affected positively income trends. In 2009 subsidies accounted for


6

more than half of income (56 %) and their share fell below 40 % only in recovery 2013 and

2014 years (39 % and 37 % respectively). Importance of subsidies rose again in crisis years

2015 (46 %) and in 2016 (49 %).

Introduction of voluntary coupled support (VCS) in 2015 affected positively revenues

from milk4. In 2007-2009 coupled support was on average 2 EUR/t of milk, rose to 4 EUR/t

until 2014 and from 2015 remained unchanged at 7 EUR/t. However, the level of support is

significantly different by Member State. The highest coupled milk payments were received

in Finland (80 EUR/t of milk), followed by Croatia (52 EUR/t) and Lithuania (43 EUR/t).

Several MS (Denmark, Germany, Ireland, Luxembourg, the Netherlands and the United

Kingdom) did not support milk sector by VCS at all

EU average results conceal a wide range of situations at national and regional levels, as

illustrated further in the report.

4 In the model for cost of milk production coupled payments i.e. those linked to actual year's production, both, national and EU financed are

considered part of milk revenues


7

Table of contents

Contents

1. INTRODUCTION ....................................................................................................... 9

2. DAIRY FARMS IN THE EU ..................................................................................... 9

3. ANALYSIS OF MILK MARGINS .......................................................................... 11

3.1. Introduction ..................................................................................................... 12

3.2. Distribution of gross margin ........................................................................... 15

3.3. National level .................................................................................................. 15

3.3.1. EU-15 Member States ....................................................................... 17

3.3.1. EU-N13 Member States .................................................................... 20

3.4. Regional level .................................................................................................. 23

4. INCOME ANALYSIS .............................................................................................. 24

4.1. Introduction ..................................................................................................... 25

4.2. Distribution of FNVA/AWU ........................................................................... 28

4.3. National level .................................................................................................. 28

4.3.1. EU-15 Member States ....................................................................... 30

4.3.1. EU-N13 Member States .................................................................... 31

4.4. Regional level .................................................................................................. 35

5. ANNEXES ................................................................................................................ 36


8

Box 1: The Farm Accountancy Data Network (FADN)

The FADN5 is a European system of sample survey that is carried out each year to collect

structural and accountancy data relating to farms; the aim is to monitor the income and

business activities of agricultural holdings and to evaluate the impacts of the common

agricultural policy (CAP).

The FADN survey covers only those farms exceeding a minimum economic size (threshold)

so that only the most relevant part of the agricultural activity in each EU Member State is

covered, i.e. at least 90 % of the standard output and 90 % of Utilised Agricultural Area

covered in the Farm Structure Survey (FSS, Eurostat). For 2015 and 2016, the FADN sample

consists of over 80 000 holdings in the EU-28, which represent almost 5 million farms out of a

total of some 10 million farms included in the FSS.

The survey provides representative data by: region, economic size and type of farming

activity.

The FADN is the only harmonised source of micro-economic data, which means that the

accounting principles are the same in all EU Member States.

At the time of this report's publication, the most recent FADN data available were for 2016

accounting year6. These data were fully validated by the MS and by the European

Commission. The two years gap between most recent data and the presence stems from the

amount of time needed to collect, check and correct the accountancy data from all EU

Member States after closing the financial years in question.

There was a significant change in the FADN methodology entered into force in 2010 where

the revised EU-typology of farms (replacing standard gross margin by the standard output7)

was integrated into the FADN database. This report is the third edition of the dairy farms

report based on the ‘standard output’ database.

Another significant change in the FADN farm return (questionnaire for the collection of

FADN data) took place in accounting year 2014. This report is the first edition of the dairy

farms report based on the new farm return structure, which, as a consequence, had to create

certain variables and discontinue some others as well as adapt IT tools for analytical purposes.

As a disclaimer, you may see some differences in absolute values with previous editions of

this report. Therefore we invite you to focus on the trends as we have chosen to display data

before and after 2013 to gain a better insight into the time series.

5 For more information on FADN: http://ec.europa.eu/agriculture/rica/index.cfm .

6 In principle, 2016 FADN data cover for all Member States accounting data from 1st January 2016 to 31st December 2016. For Germany

it covers from 1st July 2016 to 30th June 2017. 7 See the FADN website for more information.

http://ec.europa.eu/agriculture/rica/index.cfm


9

1. INTRODUCTION

This report provides an economic overview of EU dairy farms based on the latest available

FADN data, for 2016. Cost of production and gross margins for 2017 are also estimated. The

main feature of the period covering 2007-2016 was the high level of volatility in agricultural

production in general, and in the dairy sector in particular, with both milk prices and input

prices being affected. After the 2009 crisis, producer prices recovered in 2010 and 2011,

dropped again in 2012 and rose in 2013-2014 above 2011 level. Raw milk prices fell again in

years 2015 and 2016 and recovered again from 2017.

This report also provides an analysis of the economic situation of EU dairy farms. Chapter 2

describes the sample of dairy farms on which the results presented in this report are based.

Chapter 3 provides an analysis of milk margin at EU and Member State level. Chapter 4 is

dedicated to income analysis at EU and national level. Detailed data for the EU, by Member

State and region are provided in Annex II, together with explanations on the methodology

(Annex I).

2. DAIRY FARMS IN THE EU

This study is based on farms mainly oriented towards milk production.8 Following changes in

the farm typology from accounting year 2010 onwards, this sample of dairy farms increased

substantially, particularly in Member States that joined the EU in 2004, 2007 and 20139. It

now includes to some extent10

farms which were not well covered previously, in particular

large farms in Slovakia and the Czech Republic that diversify their activities to a large extent.

Therefore, the coverage of the sector has therefore improved. In the FADN 2016, the sample

is made up of 14 718 farms, representing 595 383 farms in the EU-28.

The share of the milk production covered by dairy farms in the FADN is 90 % in the EU-28

with notable differences in coverage among Member States. There is a significant diversity of

dairy farms across the EU (Table 1). There are some Member States where dairy cows

achieve higher average yields compared to the EU average (7 021 kg/cow).

In terms of competitiveness, as it was said before, the 'dairy belt' countries (Germany, France,

Ireland, United Kingdom, the Netherlands and Denmark) in many aspects rate above the EU

average.

For example, in 2016 in terms of average yields most of these countries11

had higher average

yields (9 504 kg/cow for Denmark was the highest, followed by 8 222 kg/cow for the

Netherlands, 7 574 kg/cow for Germany, 7 152 kg/cow for United Kingdom and 6 963kg/cow

for France) than the EU average (7 021 kg/cow). ). However, very high milk yields were

recorded also in Finland and Sweden (respectively 9 063 and 9 039 kg/cow).

8 See Annex I.

9 Cyprus, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovakia and Slovenia joined the Union in 2004; Bulgaria

and Romania in 2007 and Croatia in 2013. 10

Provided that milk production is significant enough in the individual structure and actual output of the holdings. 11

5 637 kg/cow for Ireland is below the EU average but is still rated quite well compared to other Member States


10

These data reflect the diversity of dairy farm structures in the EU-28, which are linked to the

differences in natural potential and also in the social, economic and regulatory context. In

some Member States, farms are much bigger on average. In terms of hectares of forage area,

farms in Slovakia and the Czech Republic have the biggest farms (with 672 and 265 ha in

average respectively). In terms of number of livestock units (LU), also Slovakia (with 215

LU) and Denmark (160 LU) followed by the Czech Republic (154 LU) and the United

Kingdom (130 LU) are those that have the highest number of dairy cows, well above the EU

average being established at 33 livestock units per farm on average.

By contrast, there are some Member States where farms are much smaller in size and yields

are well below the EU average. Lower yields are found in Bulgaria (with 2 877 kg/cow) and

in Romania (with 3 227 kg/cow) and in these Member States we also find smaller structures

(e.g. the average number of livestock units equals 4 in Romania and 14 in Bulgaria, with

average forage areas of 2 hectares in Romania and 7 hectares in Bulgaria).

Table 1: Structural information on dairy farms by Member State

Source: EU FADN, Eurostat production statistics, treatment by DG AGRI. '.': data are not displayed, fewer than 15 farms in

the sample.

FADN 2016Dairy cow s -

LU

Forage area

- ha

Total labour -

AWU

Share of

family

labour - %

Milk yield -

kg/cow

Milk

production

/farm - tons

Milk price -

€/ton

Share of milk

production -

%

Belgium 70 50 1.84 97% 7482 523 282 87%

Bulgaria 14 7 1.95 74% 2877 40 290 85%

Cyprus . . . . . . . .

The Czech Republic 154 265 15.71 9% 7699 1188 258 50%

Denmark 160 113 2.85 42% 9504 1524 323 93%

Germany 66 57 2.10 69% 7574 502 276 92%

Greece . . . . . . . .

Spain 59 25 1.93 77% 7684 451 302 95%

Estonia 99 174 5.40 16% 8981 887 233 94%

France 59 75 1.93 87% 6963 412 316 95%

Croatia 13 12 2.06 90% 4667 62 304 81%

Hungary 41 38 3.21 29% 7087 289 262 68%

Ireland 73 62 1.61 87% 5637 412 265 99%

Italy 50 26 1.80 84% 7101 357 422 93%

Lithuania 11 23 1.73 85% 5840 66 214 84%

Luxembourg 66 80 1.82 88% 7587 504 279 94%

Latvia 18 40 2.06 64% 6453 114 214 92%

Malta 60 4 2.29 81% 6916 414 448 100%

The Netherlands 90 50 1.70 90% 8222 742 333 97%

Austria 18 24 1.80 98% 6912 127 325 88%

Poland 18 15 1.87 96% 5741 104 245 80%

Portugal 32 17 1.71 79% 7651 247 261 91%

Romania 4 2 0.97 98% 3227 12 310 47%

Finland 35 43 2.05 85% 9063 316 367 97%

Sw eden 84 112 2.61 68% 9039 762 324 98%

Slovakia 215 672 27.04 2% 7150 1536 267 45%

Slovenia 19 16 1.80 100% 5595 105 258 90%

The United Kingdom 130 109 2.69 61% 7152 933 285 96%

EU 33 30 1.69 83% 7021 233 302 90%

Specialised milk farms


11

3. ANALYSIS OF MILK MARGINS

This chapter highlights the main results for revenue, costs and margins of dairy activity. They

relate exclusively to the production of milk and milk products, without taking into account the

by-products (calves and cull dairy cows). They are expressed in terms of current euros per

tonne (EUR/t) of milk produced. The tables in Annex II show the detailed results for the EU,

by Member State and region.

Three different margin indicators are studied.12

The gross margin (over operating costs) is

generally used when making comparisons with alternative types of production (labour, land

and capital costs still have to be paid, whichever type of production is chosen). The net

margin (before own factors) is calculated as the gross margin minus depreciation and

external factors (wages, rent and interest paid). The net economic margin assess the residual

revenue (profit or loss) obtained from production, after remuneration of all production factors

including imputed family factors (opportunity costs for family factors).

The method is summarised in Box 2 and detailed in Annex I.

Box 2: Summary of the method

The FADN database contains information about output and subsidies per product, but as far

as costs are concerned it only provides information related to the farm as a whole. Hence, the

direct contribution of each enterprise to the farm income is not available, which means that

the costs of production per product have to be estimated. The EU FADN unit has built several

models to estimate costs and margins for the different products: arable crops, milk and beef,

and permanent crops. These models allocate farm costs to a particular product using different

ratios. Annex I gives details of the model for estimating the cost of production and margins

for milk, which is used in this analysis (see Methodology 1).

Since 2008, imputed costs for unpaid family factors have been estimated (family labour costs

and own capital costs). The aim is to make it possible to compare between Member States

with different structures in terms of labour (share of family and paid labour), land

(rented/owned) and capital. The methodology for estimating the opportunity costs of family

labour, land and capital is explained in Annex I (see Methodology 2).

The output, operating costs and gross margin (over operating costs) for 2017 are estimated on

the basis of milk prices, milk yield indices and input price indices. It is assumed that farm

structures remain unchanged (e.g. the number of cows remains the same), but a change in

milk production resulting from a change in average yield per cow is taken into consideration.

The sources of the indices used are the following:

- for the milk price: the Commission’s Directorate-General for Agriculture (DG AGRI)

- for milk yield and input prices: Eurostat databases (agricultural production, agricultural

prices and price indices).

12 For a detailed definition of the margins and costs presented, please refer to the milk model description in Annex I.


12

3.1. Introduction

Following the milk crisis of 2009, the period 2010-2013 was a recovery in the majority of

EU Member States. At EU level, 2014 even saw raw milk prices reaching a peak

(383 EUR/t (euros per tonne) on average) for the period 2007-2017. However, operating

costs per tonne did increase in parallel. All in all, margins recovered compared to 2009. By

contrast, dairy margins declined in years 2015 and 2016 following the declining trend in

milk prices. However, this trend did not last long as the situation started to improve in 2017,

due to the decline in milk collection and the growing demand for dairy fats and cheese.

At EU-28 level, the operating costs for milk production consist mainly of:

Feed costs (around 50 % of operating costs, 70 % of which are for purchased feed and

30 % for home grown feed), and

Energy, machinery and building upkeep, and contract work, each representing about

10% of operating costs.

Since the decoupling of direct support, revenues from milk13

have depended mostly on the

price and the quantity produced.14

In the short term, gross margin is therefore mainly

influenced by the raw milk price and feed costs.

Between 2007 and 2009, the average price for milk fell by 17 % while operating costs per

tonne remained stable. As a consequence, the average milk gross margin with coupled

payments fell to 89 EUR/t (Figure 3). Raw milk prices subsequently recovered, reaching their

highest level in 8 years in 2014. This more than compensated for the continuous increase in

operating costs, which also hit their highest point in December 2013. As a result, there was a

recovery in the gross margin, which reached 134 EUR/t with coupled payments in 2014.

However, in 2015 and particularly in 2016 margins went down, following the trend of dairy

prices, reaching record low level 83 EUR/t for the first time since 2009 year. They recovered

again in 2017 reaching similar levels to the period 2013-2014 (above 130 EUR/t).

The average net margin (gross margin minus depreciation and external factors, both of which

remained mostly unchanged) had the same trend. After a sharp decrease between 2007 and

2009, it recovered in 2010 and in 2014 reached 42 EUR/t with coupled payments. It went

down again in 2015 and 2016, although there were better prospects for the following year.

After deducting the estimated opportunity costs for family labour and capital, the net

economic margin was obtained, and also recovered between 2010-2014 to -46 EUR/t in 2014

with coupled payments (the highest figure was -35 EUR/t in 2011). Not only did it benefit

from the positive trend in other margins, but the opportunity costs for own capital were lower

as compared with 2009 following a decrease in the real interest rate15

, with the imputed

family labour costs remaining more or less stable. A negative net economic margin means

that, on average, farmers do not obtain what could be considered a sufficient wage for their

own labour and capital for the activity in question.16

Following relatively good results in

13 The decoupling also means that the link between milk margins and income of dairy producers is somewhat less obvious than in the

past. 14

Since the margins are presented per tonne of milk, the impact of the quantity produced is mostly visible in the income indicators. 15

See Methodology 2 for further explanation. The ‘real interest rate’ used to calculate own capital unpaid costs corresponds roughly to

the difference between the long-term interest rate and inflation. It should be noted that opportunity costs for family labour and own

capital are only estimates, however, and should be interpreted with caution. 16

It is worth mentioning that the margins presented in this section relate exclusively to the production of milk. The ‘by-products’ (calves

and cull dairy cows) are not taken into consideration although they are accounted for in the income part.


13

2014, the net economic margin deteriorated in the years 2015 and 2016 and is expected to

recover again after 2017. In 2016, it is estimated that 9 % of the EU-28 dairy farms achieved a

positive net economic margin, representing 15 % of the milk production of EU dairy farms.

In 2015 and 2016, the level of imputed costs for family factors (family labour and own

capital) went slightly down. Over this period, opportunity costs for family labour per tonne

also followed a downward trend, together with the share of family labour in the labour force,

while apparent labour productivity (milk production per AWU) has increased continually

since 2007 (Figure 1), which offsets the gain in imputed wage for family labour (Figure 2)17

.

As a result, net economic margin with coupled payments, although negative (-67 and -80

EUR/t in 2015 and in 2016 respectively), was still higher than in 2009 (-89 EUR/t).

Figure 1: Apparent labour productivity

Figure 2: Imputed wage for family labour

Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.

17 The increase in labour productivity decreases the cost of labour per tonne of milk, but increases the income of family workers.

Commission européenne/EuropeseCommissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË — Tel. +3222991111

Figure 3: Trend in cost of milk production and margins, EU-28

Source: EU FADN — DG AGRI, Model of the allocation of costs for milk


15

3.2. Distribution of gross margin

The results displayed until now are averages. In order to provide a better understanding, the

figure below shows the trend in the distribution of gross margin with coupled payments in the

EU-28. The average (mean) and the median are quite close, and the distribution is close to a

normal distribution. The inter-quartile range (Q3 – Q1) for the period 2007-2016 is between

approximately 46 EUR/t and 72 EUR/t in the last year. This gap has been fluctuating in the

analysed period with evident drops in recovery years for milk margins and increases in the

years when milk margins went down. The gap between the 5 % top-performing farms (PC95)

and the 5 % least-performing ones (PC5) shows similar trends, probably as a result of the

price volatility in the recent years and how this impacted on the subsequent performance of

the farms.

Figure 4: Trend in the weighted distribution of gross margin – EU-28

Source:EU FADN – DG AGRI

3.3. National level

This section focuses on the individual Member State performances between 2007 and 2016

based on trends in costs and margins provided in Annex II. Indeed, as seen in the previous

section, the EU averages conceal big differences between farms. Some are national (country-

specific), while others are regional (within individual Member States). See Annex II for a

better insight of regional data within the different EU Member States.

It is worth mentioning that in some countries (e.g. Romania), which have high average gross

margins (displayed with the +), the median gross margin is lower; this means that well over

the half of farms does not reach the average gross margin. By contrast, in other Member

States such as Croatia, we observe that the average is lower than the median meaning that in

this case over half of farms reach the average gross margin.


16

In terms of Member States' competitiveness, the graph below shows that the most

competitive Member States in the dairy sector belong to the EU-15 group and are Belgium,

Denmark, Luxembourg, Ireland and the United Kingdom. These Member States not only have

a gross margin with coupled payments per tonne of milk close to or exceeding EU average,

but also have the smallest inter-quartile ranges, less than 60 EUR/tonne of milk. It shows that

differences between the agricultural holdings are not as big as in other, less competitive

Member States.

Figure 5: Weighted boxplot of gross margin with coupled payments per Member State

— 2016

Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The

mean is a global ratio. CYP and ELL data are not displayed for confidentiality reasons (minimum number of farms should be

15).


17

Figure 6: Weighted boxplot of gross margin with coupled payments per Economic Size

Class (ESC) for EU-28 — 2016


mean is a global ratio.

If we consider all the Member States together, at the EU-28 level, in terms of

competitiveness of the different economic size classes (ESC), we can see that in 2016 the

first classes had the highest average gross margins compared to the economic size classes that

fall in the middle. The results of the first ESC (ESC1) are strongly related to the situation in

Romania, where gross margins with coupled payments were 178 EUR/t in 2016, well above

the EU average of 83 EUR/t, due to the special feature of its structures leading to very

competitive costs. However, the first classes (small farms) also had bigger differences among

holdings than the last classes (bigger farms), because the inter-quartile range showing the

differences between the highest and the lowest average gross margins was much larger (155

EUR/t).

The lowest results in terms of average are found in ESC6 where it almost overlapped with

median and in addition inter-quartile range was the smallest among analysed groups

(69 EUR/tonne). Both, median and mean showed downward tendency from the smallest

economic size group to the largest.

3.3.1. EU-15 Member States

The margins for Italy (176 EUR/t) were the highest in 2016 among EU-15, and this was due

to its high value added products generating high prices combined with limited costs per tonne


18

of milk. It was followed by Ireland (97 EUR/t), which had experienced a good recovery since

the 2009 crisis, and as in the case of Italy, it had low average operating costs, and Belgium

(also 97 EUR/t) where prices went down in 2015 and 2016 but were offset by operating costs

also going down in this period, especially farming overheads which were one of the lowest in

this group of countries.

Austria (94 EUR/t) recorded moderate drop of margin in 2016 where price decline was

followed by costs. In spite of the highest costs of production (355 EUR/t) with prevailing

share of farming overheads, Finland recorded margin at 91 EUR/t mainly due to higher than

in most of other MS milk price and the highest coupled payments, especially voluntary

coupled support which in 2015-2016 were at the level of above 80 EUR/t of milk.

France (87 EUR/t), the Netherlands (81 EUR/t) also recorded the decrease of gross margins

in 2015 and 2016 compared to two previous years, but they still performed well as they

succeeded to sustain operating costs.

Sweden (81 EUR/t), Spain (77 EUR/t) and Denmark (63 EUR/t) were the only MS in EU-15

to record increase in margin from 2015 to 2016 despite milk price going down. Sweden and

Spain continued to increase coupled payments and decrease operating costs, particularly

purchased feed. Denmark, however, noted decline of operating costs, in particular home-

grown feed.

By contrast, in the United Kingdom (69 EUR/t), Luxembourg (67 EUR/t) Portugal (55

EUR/t) and Germany (50 EUR/t) gross margins decreased more dramatically because the

loss of income linked to the downward trend in prices development could not satisfactory

compensate the operating costs which remained in rather stable level in 2015 and 2016 years.

Figure 7: Cost of milk production and margins in the EU-15 Member States, 2016


19



20

3.3.1. EU-N13 Member States

In 2016 gross margin figures in the EU-N13 Member States were on average lower than in the

EU-15 Member States. This happened in spite of relatively higher level of coupled payments

which were important revenue components.

As had happened in the EU-15, the situation in 2016, with milk prices dropping, had a

negative impact on the revenues and therefore, also on the dairy margins, with only four

Member States showing figures above 100 EUR/t, Romania (178 EUR/t), Poland (109

EUR/t), Bulgaria (105 EUR/t) and Lithuania (101 EUR/t).

The two Member States that joined the Union in 2007, Bulgaria (105 EUR/t) and Romania

(145 EUR/t) showed high gross margins among the EU-N13 group, mainly due to relatively

high milk prices reinforced by coupled payments. Particularly in Romania in 2016 farmers

could receive very high voluntary coupled support reaching 732.88 EUR per one head of

animal. However, subsidy was not evenly distributed among the dairy farms therefore on

average coupled support reached the level of 32 EUR/tonne of milk.

In the case of Poland, adjustment of operating costs to declining milk price over the period

played a major role.

In Lithuania (101 EUR/t) the average gross margin with coupled payments increased in 2016

in relation to 2015 due to an increase in coupled payments whereas milk price and total

operating costs remained at the same level. The opposite could be noticed for Latvia. In spite

of sustained milk price and milk operating costs even falling down, in 2016 non-market

coupled support decreased comparing to two previous years causing milk margin with

subsidies going down. The margins fell down also in Estonia (from 34 EUR/t in 2015 to 30

EUR/t in 2016). Even though milk price went up in 2016, the costs increased even more. The

coupled support was marginal, only 2 EUR/t of milk, the least in EU-N13.

In Slovakia18

(36 EUR/t) and Hungary (21 EUR/t ) total operating costs exceeded revenues

and positive margin was possible only thanks to coupled support.

In other EU-N13 Member States, the situation also worsened. The average gross margins with

coupled payments were 61 EUR/t in Croatia, 46 EUR/t in Slovenia, 24 EUR/t in Czech

Republic.

18 Slovakian (and, to a lesser extent, the Czech Republic) has only a few milk specialised farms. However these are very big (on average

215 dairy cows and 655 ha of fodder area in 2016); they rely heavily on paid labour and very little on unpaid labour (as they are cooperatives or companies), and may produce a significant amount of other products (which are not very specialised). Therefore it is

difficult to properly allocate non-specific costs properly and the Slovakian estimates should be interpreted with caution.


21

Figure 8: Cost of milk production and margins in the EU-N13 Member States, 2016



22



23

3.4. Regional level

As previously highlighted, there are also differences within Member States. The map below

shows the average gross margin per tonne with coupled payments by FADN regions.

The best performing regions are those with high average raw milk prices (e.g. in Italy), low

operating costs (e.g. Romania and Bulgaria), coupled support (e.g. in Finland) or higher

competitiveness (e.g. Ireland, France, Belgium, Germany and Poland). More detailed results

are available in Annex II.

Map 1: Average gross margin per tonne with coupled payments by FADN regions, 2016

Source: EU FADN – DG AGRI, Model of the allocation of costs for milk


24

4. INCOME ANALYSIS

This chapter focuses on trends in dairy farm income for the farm as a whole, thus also

incorporating the results of other activities that may be carried out on it. The following

income indicators are studied:

– Farm net value added (FNVA) equals total output (total production value), plus balance of

current subsidies and taxes, incl. direct payments, minus intermediate consumption and

depreciation. It represents the amount available to pay for all fixed production factors

(land, labour and capital), that are either owned by the farm or are external.

– Farm net income (FNI) (or family farm income (FFI) in case of farms using unpaid labour

force19

) equals FNVA minus external factors, plus the balance on subsidies and taxes on

investments. It is the amount available to pay for own production factors (labour, land and

capital).

– Remuneration of family labour (RFL) is calculated in Annex II only for family farms. It

equals FNI minus the opportunity cost for own capital. It represents the amount available

to pay family labour.

These indicators are expressed per annual work unit (AWU), for FNVA and FNI, or per

family work unit (FWU) for FFI or RFL, in order to take into account of the differences in

the labour force salary on the holding. All income indicators are calculated before deduction

of income or any personal taxes and expressed in current euros. Detailed tables are presented

in Annex II.

Box 3: What are the components of income on dairy farms?

Holdings have two sources of agricultural20

income: market and subsidies.

Income from the market:

- dairy enterprise: the margins associated with the production of milk are presented in the first

part of this report. However, since public support is no longer incorporated in the milk price,

it is not always easy to predict the income of dairy farms by looking solely at the margins.

- coproducts of the dairy activity: to ensure comparability, the results presented in the first

part of this report relate specifically to the production of milk. Because they could blur the

picture and make it difficult to interpret the results21

, the costs and revenues of products

directly linked to milk production (calves and cull dairy cows) are not taken into

consideration when calculating the margins. They are however part of the income calculation.

As an indication, cattle sales (be they dairy cattle or other cattle, including fattened animals)

account for around 12 % of the total output22

of dairy farms at EU-28 level, with differences

between the Member States.

- other enterprises: the sample of dairy farms has been selected in such a way that the dairy

represents at least 40 % of the holding' potential production. Although farms are quite

specialised, especially in the EU-15, they may run other enterprises which contribute to the

total output of the farm and generate costs. These not only include crop production, but also

farm related OGA such as forestry, tourism (e.g. in Austria), etc..

Subsidies: these include decoupled payments and also contribute significantly to the income

of dairy farms.

19 For the purpose of this report, ‘family farms’ are defined as farms employing an unpaid labour force, which is usually family labour

force. 20

Farmers may have other sources of external income. These are not taken into account. 21

Besides, they are not always well reported in the farm return. 22

SE131, i.e. total output without compensating for differences in forage valuation.


25

4.1. Introduction

The income of the EU dairy farms experienced a peak in 2013-2014 dropping again in

2015 and 2016 with a change of the trend in 2017.

In the EU, the income of dairy farms experienced a peak in 2013-2014 only to fall again in

2015 and 2016, with the downward cycle ending towards the start of 2017. Direct payments

and subsidies increased moderately, due in particular to introduction of voluntary coupled

support in the new CAP reform followed by majority of MS. Milk sector, next to beef is the

second most subsidised sector by this measure.

Regarding positive factors, we can find that the number of dairy cows, expressed in livestock

units increase constantly (almost 44 % from 2007), the average milk yield over the period

increased (+8 % from 2007) and the average milk production per farm increased (around

+55 % from 2007).

Figure 9: Trend in income of dairy farms, EU


In the period 2013-2016, the decrease in the raw milk price was compensated by an increase

in the volume of milk production (around +17 % between 2013 and 2016 on average per

farm). As a result, market revenue decreased less than the price. Accordingly, FNVA had

decreased by around 9 % between 2013 and 2016.


26

Figure 10: Trends in the income of dairy farms, EU-28


The income trends in nominal and real terms over the period 2007-2016 were as follows: The

income of dairy farms increased significantly between 2009 and 2012, followed by a slight

decline again in 2012, with a further increase in the period 2012-2014 and another decrease in

2015-2016. Income figures in nominal terms remained higher than in real terms, always

measured in farm net value added by annual work unit (FNVA/AWU).

Figure 11: Income trends in nominal and real terms, EU-28

Source: EU FADN — DG AGRI, ESTAT (HICP index EUR 2007).

However these EU-28 results concealed substantial differences in income among the different

Member States, as we will see in the following sections.

All in all, milk specialised farms' incomes remain in a favourable position. Similar to previous

year, in 2016 dairy farms showed results above the EU-28 total average across all types of

farming. However, since 2009, they have no longer been in the top three of types of farming

for income.


27

Figure 12: Comparison of the income of milk farms with other farms, EU-28, 2016

* Source: EU FADN — DG AGRI, FADN public database http://ec.europa.eu/agriculture/rica/database/database_en.cfm

http://ec.europa.eu/agriculture/rica/database/database_en.cfm


28

4.2. Distribution of FNVA/AWU

Similar to the distribution of margins, the average EU income results concealed major

differences. The figure below shows the trend in the distribution of weighted FNVA/AWU for

milk specialised farms. The results show that the distribution is not normal (but skewed to the

right side), having quite a wide gap between the 5 % top-performing farms (PC95) –with

much higher income levels - and the 5 % least-performing farms (PC5) – with income levels

closer to the median-.

As we can see in the figure, the mean FNVA/AWU is closer to the third quartile (Q3) than to

the median (which is closer to the first quartile Q1), which is significantly lower. This means

that a majority of dairy farms (more than 50% have) have an income lower than the average.

Figure 13: Trend in the weighted distribution of FNVA/AWU

Source: EU FADN — DG AGRI

4.3. National level

Results are not only affected by differences between Member States but also by differences

within Member States, as illustrated in the following figure.

In contrast to what can be observed for the distribution of gross margin with coupled

payments, the biggest spreads in terms of inter-quartile range for FNVA/AWU are in the EU-

15 Member States, particularly in Italy, Denmark, the Netherlands and Sweden. Besides, in

these Member States, the median is significantly lower than the average, meaning that a large

number of holdings have income levels lower than the average.

By contrast, in the EU-N13 Member States, the inter-quartile range figures, which show

differences between the top 25 % performing farms and the 25 % least-performing farms, are

smaller. Only Malta showed high, similar to EU-15 pattern for inter-quartile range, but with

significantly slower average values and median slightly above the mean.


29

Figure 14: Distribution of FNVA/AWU (weighted boxplot) in milk specialised farms

within Member States — 2016


mean is a global ratio. CYP and ELL data are not displayed for confidentiality reasons (minimum number of farms should

be 15).

If we consider all the Member States together, at EU-28 level, in terms of competitiveness of

the different economic size classes (ESC), we can see that in 2016 the last classes (bigger

holdings) had the highest average income compared to the small farms which had much lower

levels of income. This can be explained by several factors such as the existence of economies

of scale, especially in most of the 'dairy belt' countries (Germany, France, Ireland, United

Kingdom, the Netherlands and Denmark).

In terms of dispersion, the group of the biggest agricultural holdings had also the largest

spreads in terms of inter-quartile range for FNVA/AWU. And, the median FNVA/AWU in

the biggest farms from ESC (6) is significantly higher than the average. This meant that well

over half of the farms had their incomes higher than mean calculated as a global ratio.


30

Figure 15: Distribution of FNVA/AWU (weighted boxplot) in milk specialised farms

within Economic Size Classes (ESC) for EU-28 — 2016


mean is a global ratio.

4.3.1. EU-15 Member States

Figures 16-18 show the average income indicators of dairy farms by Member State in 2016.

FNVA/AWU varied a lot throughout the different EU-15 Member States, ranging from above

64 000 EUR/AWU in Denmark to around 17 000 EUR/AWU in Portugal and 15 000

EUR/AWU in Austria. The main cause of the high value in Denmark was the high average

size of the dairy herd and specially the very high average yield per cow in Denmark reaching

levels above 9 500 kg/cow, which were well above the EU average (around 7 000 kg/cow) in

2016.

Following the trend in gross margin, among the best performing Member States in terms of

income, was Italy, with higher milk prices (more than 400 EUR/t) compared to the EU

average in 2016 (around 300 EUR/t). Besides, the EU average was noticeably influenced by

the very good records of Sweden, Ireland, the Netherlands and Germany, all with values

around 40 000 EUR/AWU.


31

At the other end of the spectrum, FNVA/AWU was low in Portugal and Austria. In Austria,

this was due to the lower average milk production (in 2016, in average 127 t per farm

compared to the EU average 233 t per farm ) and in Portugal this was due to low milk price

(261 EUR/t whereas EU average was 301 EUR/t) resulting in low total output figures and a

small average holding size (with forage areas of barely 17 ha in average, whereas the EU

average was 30 ha in 2016).

Concerning farm net income, Italy, Ireland and Sweden had the highest FNI/AWU23

figures. This was mainly because Italy and Ireland had relatively contained external factors

costs, especially in terms of interests paid. In the case of Sweden, the main driving factor

were lower rents and interests paid than for instance in Denmark and the Netherlands.

4.3.1. EU-N13 Member States

Income in EU-N13 Member States was generally lower than in EU-15 in 2016, and in all of

them lower than EU-28 average set at 20 505 EUR/AWU. However, this difference still

concealed a variety of situations, ranging from the highest FNVA/AWU values of Slovakia,

the Czech Republic, and Hungary (all above 19 000 EUR/AWU) to the countries with lower

FNVA/AWU values, such as Bulgaria, Poland (around 4 000 EUR/AWU) and Romania

(around 3500 EUR/AWU).

This can be explained by differences in farm size, productivity, milk price (only Malta,

Romania and Croatia were above EU average) as well as direct payments still lower than in

EU-15. Milk yields were the highest in Estonia (almost 9000 kg/cow), followed by Czech

Republic, Slovakia and Hungary were they were above 7 000 kg/cow, figure similar to the

EU-28 average for 2016. Whereas in Bulgaria and Romania, dairy yields were less than a

half of it, around 3 000 kg/cow in 2016.

In terms of farm net income, Malta recorded the highest value (above 10 000 EUR/AWU)

mainly due to low external factors. Poland and Hungary rated similar to each other, above

7 800 EUR/AWU farm net incomes per AWU but with significant differences in its

components. Poland had one of the lowest in the EU external factors, whereas Hungary

recorded low interests paid as for such big enterprises.

23 23 In order to express income per annual work unit, wages paid which where before deducted are now added up(in FADN standard results

[SE420+SE370]/SE010)


32

Income indicators for dairy farms in the EU-28 Member States, 201624

Figure 16: Income per work unit and margins per tonne (Farm Net Value Added and Gross margin with coupled payments), 2016


24 For Finland, Luxembourg, Lithuania and Slovenia average income without CAP support was negative in 2016. On the graph, below zero value is a part of negative income compensated by CAP support.


33

Figure 17: Income25

per work unit and margins per tonne (Farm net income and Net margin with coupled payments), 2016


25 In order to express income per annual work unit, wages paid which where before deducted are now added up (in FADN standard results [SE420+SE370]/SE010)


34

Figure 18: Income per work unit and margins per tonne (Remuneration of family labour and Net economic margin with coupled

payments), 2016



35

4.4. Regional level

The map below shows the average FNVA/AWU in milk specialised farms by region in 2016.

The picture is quite different from that of the gross margin mentioned earlier in this report.

The best performing regions are mostly located in the northern Europe: Ireland, the United

Kingdom, the Benelux countries, Denmark, Sweden, north-west Germany and northern part

of Italy. Most of them belong to what is called the 'dairy belt' which can be easily seen in the

map (regions with darker colours). By contrast, Europe's southern and eastern regions had the

lowest income levels. More detailed results are available in Annex II.

Map 2: FNVA/AWU in milk specialised farms by FADN regions, 2016

Source: EU FADN – DG AGRI, Model of the allocation of costs for milk


36

5. ANNEXES

ANNEX I

Methodology 1

The model for estimating milk production costs and margins

on the basis of FADN data

The FADN (farm accountancy data network) database contains information on output and

subsidies per enterprise. However, as regards costs, it only provides information for the farm

as a whole26

. In this context, the contribution of each enterprise to the farm income is not

directly available. Therefore production costs by product have to be estimated. The EU

FADN unit has constructed several models to estimate costs and margins, for a range of

different products: arable crops, milk and beef, and permanent crops. This note describes the

methodology used to estimate milk production costs and margins.

The allocation of costs

The following terminology is used with regard to costs:

– Operating costs, which include the following:

– Specific costs: for milk production, they cover purchased concentrates, purchased

coarse fodder, farm use of non-fodder crops, specific forage costs, milk herd renewal

costs, the milk levy and other specific livestock costs (veterinary etc.).

– Non-specific costs: upkeep of machinery and buildings, power (fuel and electricity),

contract work, taxes and other dues (excluding the milk levy), taxes on land and

buildings, insurance for farm buildings and other direct costs (including water for the

milk model).

– Depreciation

– External factors: i.e. wages, rent and interest

– Imputed family factors, which cover: family labour cost and own capital cost (own land

cost + estimated cost for own capital except land – interest paid).

The costs are illustrated in the following breakdown.

26 It is difficult for the accountant or the farmer to assess the proportion of water or electricity or fertilisers to allocate to each activity,

especially for mixed farms.


37

Purchased concentrates for

grazing livestockX DLU/GLU +

Purchased coarse fodder for

grazing livestock X DLU/GLU +

Farm use of non-fodder crops X DLU/GLU +

Specific forage costs X DLU/GLU + +

seeds and plants

fertilisers

crop protection +

Milk herd renewal costs +

Milk levy +

Other specific livestock costs

(veterinary costs…)X DLU/TLU +

Machine and building upkeep X MO/TO +

Energy (fuels, electricity) X MO/TO + +

Contract work X MO/TO +

Taxes and other dues (exc. Milk

levy)X MO/TO +

Other direct costs (inc. water) X MO/TO +

Taxes on land and buildings X MO/TO +

Insurance for farm buildings X MO/TO +

Depreciation X MO/TO +

Wages paid X MO/TO +

Rent paid X MO/TO + +

Interest paid X MO/TO +

Family labour costs (imputed) X MO/TO + +

Own capital cost X MO/TO +

DLU/GLU: Dairy livestock units / Grazing livestock units

DLU/TLU: Dairy livestock units / Total livestock units

MO/TO: % of milk output & subsidies in the total output & coupled subsidies

EU dairy

payments and

article 69

national dairy

payments

Net margin

(before own

factors) with

coupled

subsidies

Gross

margin

(over

operating

costs) with

coupled

subsidies

Net economic

margin (after

own factors)

with coupled

subsidies

(minus forage farm use plus the milk herd renewal purchases to avoid to double

count these costs, cause the pruchases are already deducted in the output meat)

Total

operating

costs

External

factors

Imputed

family factor

costs Net margin

(before own

factors)

Total

inputs

Net economic

margin (after

own factors)

MILK MODEL

MarginsProduction costs

Total

revenues

from milk

Revenues

Milk price

Specific

costs

Gross

margin

(over

operating

costs)

Non

specific

costs


38

The basis of the methodology is to allocate a share of the farm costs to milk production.

Different ratios are used:

– Dairy livestock units27

as a proportion of grazing livestock units (DLU/GLU on the

flow chart) is used to allocate grazing livestock feed costs;

– Dairy livestock units as a proportion of total livestock units (DLU/TLU) is used to

allocate other livestock specific costs;

– Milk output and subsidies as a proportion of total output28

plus linked subsidies

(MO/TO) is used to allocate non-specific inputs and fixed costs. Subsidies are taken

into account to make it possible to compare results over time. Since 2004 part of the

milk support that was previously included in the price has been allocated via a direct

payment. Moreover, this makes it possible to distinguish and to take better account of

the co-existence of beef production on farms where costs of milk production are

estimated (increasing the importance of direct aid support compared with market price

support in beef production). The total output (TO denominator) is also adjusted by

deducting the value of home-grown fodder recorded in the FADN and adding the

purchase costs for milk herd renewal (see below).

As the milk levy is directly linked to milk production only, it is fully allocated to the

costs of milk production. In the previous model design, the milk levy was deducted from

subsidies on the revenues side. In the current model, there is a disparity in recording by

Member States concerning the milk levy, as with the change of the farm return in 2014,

milk levy figures had been registered in different places according to the different

Member States.

Some disparities in FADN recording among Member States also have to be taken into

account in order to be able to make comparisons. Some Member States (generally from

the north of the EU) do not put a value on fodder in the FADN, mainly because of the

difficulty of estimating production and the value of forage. Based on the principle that

forage production is simply an input for animal production, and that failure to record it

— either on the crop output side, or on the animal costs side — does not affect income,

no effort is made to estimate it. In other Member States — generally those where fodder

production is more expensive — a value is assigned to the production of fodder. Even if

this difference is unlikely to affect margins, it can lead to biases when comparing costs

between Member States. To take account of the differences in records, fodder production

used on the farm is treated as follows for the purpose of the model:

– The value of the farm use of non-fodder plants (e.g. barley, rye, etc.) is maintained

in the item ‘Crops used for feed’, but the farm use value of all crops used as forage

(fodder roots, other fodder plants — e.g. silage of cereals, temporary grass, meadows

and pastures and rough grazing) is excluded.

– The value of fodder plants produced on the farm is estimated on the basis of the

specific costs of the crops (e.g. seeds, fertilisers, crop protection). Specific costs are

allocated to fodder production according to a ratio (fodder on total area). However,

some forage crops do not benefit from all inputs (e.g. there is no crop protection for

27 Dairy livestock units are defined as dairy cows and a share of total breeding heifers and young females. This share is equal to dairy

cows as a proportion of the total number of cows (dairy cows, cull dairy cows and other cows).

28 Output after deduction of forage crops farm use.


39

temporary grass). Therefore, the area taken into account in the ratio varies according

to the input. The following table details the calculation. This item is called ‘Specific

forage costs’.

Estimation of ‘Specific forage costs’

Cost item Allocation key29

Seed costs

% area of fodder crops, other forage crops and temporary grass

in the total Utilised Agricultural Area (UAA)

- after exclusion of fallow lands, areas leased to others, meadows

and rough grazing

Fertiliser costs

% area of fodder crops, other forage crops, temporary grass and

meadows

in the total UAA

- after exclusion of fallow lands, areas leased to others and rough

grazing

Crop protection costs

% area of fodder crops and other forage crops

in the total UAA

- after exclusion of fallow lands, temporary grass, areas leased to

others, meadows and rough grazing

– The home-grown fodder value is deducted from total output (the denominator in

the allocation ratio MO/TO) because it is included in the farm total output and it has to

be deducted to obtain a comparable ratio between the Member States that value fodder

and those that do not.

The milk herd renewal purchases cost was introduced when the model was revised in

2008. Although the cost of rearing the farm’s own milk heifers was already included in

the model, the cost of the purchase of new heifers (for example, to renew the genetic

potential of the herd) was not included. It was indirectly taken into account in part by the

MO/TO ratio, because the total output of the farm includes the meat output, which is

calculated by deducting the purchases. Therefore, for farms that rely heavily on

purchases rather than on rearing their own animals, total output (the denominator) was

lower and therefore the ratio used for the allocation of costs to milk was higher, with the

result that all of their costs calculated using this ratio were higher. However, it was done

regardless of whether these purchases were linked to the milk enterprise or to the meat

enterprise. With the new method, an attempt has been made to take direct account of the

share of purchases that can be related to milk.

The aim is therefore to take direct account of the cost of purchases of young female

bovines to be used for milk production30

. This cost is calculated by multiplying the farm

purchases of female cattle from 12 to 24 months and of breeding heifers by the ratio of

dairy cows over the total dairy cows plus suckler cows. This makes it possible to allocate

a share of young female cattle purchases to milk production. Information on details of

purchases of animals is available in the FADN only from 2000 onwards; therefore this

estimate can only be made from 2000 onwards. Moreover, it is not obligatory and, in

29 Codes refer to product or cost codes in the farm return (Commission Regulations 2237/77 and 868/2008).

30 The value of sales of cull dairy cows cannot be deducted because of the scarcity of information about this item in the FADN

database. Moreover, it can be considered as a meat by-product, which anyway has not been included in the model design until

now. The value of calves is not taken into account in revenues, despite the fact that it is an obligatory by-product of milk

production.


40

practice, some Member States did not record it in the initial years after its introduction.

This has to be taken into account when interpreting the results.

However, a correction should be made for total output (the denominator in the

allocation ratio MO/TO) to avoid the double counting of these costs. The total output

already deducts all purchases of animals, so the calculated milk herd renewal costs

should be added back into the total output used in the allocation ratio MO/TO.

The following FADN cost items have been included in the 2008 revision of the model:

– taxes and other dues (excluding the milk levy) (part of farming overheads, non-

specific costs),

– insurance on farm buildings (part of farming overheads, non-specific costs), and

– taxes on land and buildings (part of farming overheads, non-specific costs).

The estimation of imputed unpaid family factors has also been included in the margin

and income calculation. The methodology used is explained in another annex.

Revenues from milk

Revenues from milk take into account:

– the value of sales of milk and milk products;

– EU coupled dairy payments such as voluntary coupled support (VCS); and

– any coupled national dairy payments.

This means that the value of calves and of sales of cull dairy cows is not taken into account,

because no satisfactory method has been found to estimate this value on the basis of the current

data.

The margins

The following terminology is used in relation to margins:

– Gross margin (over operating costs): sales of milk and milk products minus

operating costs;

– Net margin (before own factors): sales of milk and milk products minus operating

costs, depreciation and external factors; and

– Net economic margin (after own factors): sales of milk and milk products minus

operating costs, depreciation, external factors, and imputed unpaid family factors.

All the margins are displayed with and without coupled payments for milk (EU and

national). This makes it possible to simulate the removal of coupled payments.


41

The sample of farms

Given the estimation methodology, i.e. the need to allocate costs, to obtain reliable

estimations of production costs and margins it is necessary to focus on milk specialised

farms. Depending on the specific objectives of the analysis, different specialisation

criteria might be chosen. In general, the following criteria have been used:

– Farms covered by the following types of farming (TF): 45 Specialist dairying, 47

Cattle dairying, rearing and fattening combined, 73 Mixed livestock, mainly dairying,

83 Field crops — grazing livestock combined. The decision was made to include

farming types 47, 73 and 83 (and not only 45) in the sample so as to cover a larger

proportion of dairy cows, particularly in the new Member States.

– A structural specialisation rate31

greater than 40 %. This criterion has been introduced

to make the sample of specialised farms more stable over time and therefore ensure

better comparability of results over time32

.

– An actual specialisation rate33

greater than 35 %. This criterion has been kept to make

sure that in reality, milk production remains the holding's main activity in reality.

– A share of sales of milk and milk products in the milk output higher than 50 %.

– An average milk price at farm level of less than 900 EUR/t of milk, in order to

exclude farms producing buffalo milk. These farms are mainly located in the two

Italian regions Lazio and Campania, essentially for the production of ‘Mozzarella di

buffala’. It was decided to exclude them because of their major differences in terms of

milk yield, price, costs and margins.

Moreover, given the use of different ratios for the allocation keys34

, some precautions are

necessary in order to prevent problems with estimates:

– total output and total output plus subsidies should be strictly positive;

– total output plus subsidies should be greater than milk output plus subsidies; and

– total output should be greater than milk output35

.

31 Structural specialisation rate: the potential contribution of the ‘cattle, dairying pole’ (as defined by Commission Regulation (EC)

No 1242/2008 establishing a Community typology for agricultural holdings) to the total production of the farm i.e. the share of

the milk sector in the total standard output.

32 The comparability of results over time is however also affected by the extrapolating factors: as FADN is a sample survey, the

collected data need to be extrapolated against the population of farms reported under the Farm Structure Survey (FSS). A new

FSS is carried out every 3 years and takes the form of a census every 10 years. Due to this update in the population used for

extrapolation, the weight of a given farm remaining in the sample may change quite significantly, which affects the average results. However, extrapolating with the newest FSS population is deemed to provide more precise, actual results for the most

recent years, which is what matters for the purpose of this report.

33 Actual specialisation rate: the share of milk output and subsidies in total output and coupled subsidies (forage farm use

deducted) as reported in the farm accounts.

34 Allocation keys: dairy livestock units as a proportion of grazing livestock units, dairy livestock units as a proportion of total

livestock units, milk output and subsidies as a proportion of total output and coupled subsidies, milk output as a proportion of

total output.


42

Farms that do not meet these conditions are excluded from the sample used to estimate costs

and margins.

The results are presented in EUR/t of milk. They are known as the ‘global ratio’, i.e.

they are obtained by dividing the average revenues, costs or margin in the Member State

(or region) by the average quantity of milk produced in that Member State (or region)

(and not by the weighted average of the individual ratio by farm).

35 The number of dairy cows and of grazing livestock units must also be greater than 0.


43

Methodology 2

The method for estimating imputed unpaid family factor costs —

Method

Family labour cost: this is estimated on the basis of the wages which the owner

of the farm would have to pay to hire employees to do the work carried out by family

members.

It is estimated as the average regional wage per hour obtained in the FADN database36

multiplied by the number of hours worked by family workers on the farm.

It is commonly acknowledged that the number of hours worked by family workers is

sometimes overestimated. Thus the method uses a maximum of 3 000 hours per annual

work unit (this is the equivalent of 8.2 hours a day, 365 days a year, and corresponds

more or less to the time that can be spent on a farm by dairy farmers)37

.

Using hours makes it possible to remunerate a manager more than an employee for

working more hours.

It is challenging to calculate a reliable estimate because records of hours worked on the

farm might be overestimated and it is not easy to determine what an appropriate wage for

family labour is. Farmers may indeed agree to be paid less than they would be based on

the average agricultural wage. They may consider farming a way of life or benefit from

other sources of income for their household (other gainful activities directly related to the

holding, spouse working outside the farm, etc.).

Own capital cost

– Own land cost: this is estimated on the basis of the rent that the owner of the

farm would have to pay if the land were rented instead of owned.

It is estimated as the owned area multiplied by the rent paid per ha on the same

farm or, if there is no rented land on the farm, by the average rent paid per ha in the

same region and for the same type of farming38

.

– Cost of own capital (other than land): the cost of own capital (permanent

crops, buildings, machinery and equipment, forest land, livestock and crop

stocks) is estimated at its opportunity cost. That is how much money the farmer

could gain from investing the equivalent of its capital value in a bank.

The interest paid on the capital is not known, as this information is optional in the FADN

farm return. Nevertheless, to take into account the actual interest rate paid on the farm, a

‘weighted’ interest rate is calculated as the weighted average of this interest rate for debts

36 If there are not enough farms (fewer than 15) with paid labour at regional level, the national average is taken into account.

37 A constraining factor of the estimation method is that if a farmer receiving a salary would probably work less.

38 If there are not enough farms (fewer than 15) in a given region for a type of farming, the national rent per hectare for the given

type of farming is used (the TF8 classification is used).


44

and the long term interest rate taken from the Global Insight database for the net worth. It

should be noted that if the ‘weighted’ interest rate is lower than the long-term interest

rate (which means that the calculated rate of interest paid is lower than the long-term

interest rate), the LT interest rate is used instead of the ‘weighted’ interest rate.

In the end, the own capital value (excluding land and land improvement) is estimated as

the average value of the assets (closing plus opening valuation divided by 2) multiplied

by the real interest rate39

. The correction is made by subtracting the inflation rate40

from

the nominal interest rate. A condition is applied to avoid negative real interest rates.

The total circulating capital is not valued because of the unreliability of this variable in

some Member States. Nevertheless, the crop stock value is taken into account.

To calculate the unpaid capital costs, in order to avoid double counting, we have to

deduct the interest paid should be deducted from the sum of the own land cost and the

cost of own capital except land:

Imputed unpaid capital costs = own land cost + estimated cost for own capital except

land — interest paid (when interest paid is lower than the sum of own land and own

capital costs).

The total cost of imputed unpaid family factors is then the sum of family labour costs

and unpaid capital costs:

Imputed unpaid family factors = family labour cost + unpaid capital costs

Or

Imputed unpaid family factors = family labour cost + (own land cost + estimated cost for

own capital other than land – interest paid)

39 The increase in the value of assets is excluded from income calculations. For example, land appreciates in value over time,

which is one of the reasons why investors invest in land. This gain is not included in income; therefore it would not be

consistent to include it in the cost of capital. In addition, in the FADN, assets are valued at replacement value. Depreciation is based on this replacement value and therefore already takes into account the increase in prices (inflation). Consequently, it

would be double counting to include the inflation part of interest in the cost of capital. 40

The inflation rate is based on the Eurostat annual average rate of change in Harmonised Indices of Consumer Prices (HICPs) .

Inflation rates based on price indexes of GDP and gross fixed capital consumption have been tested, but they are very high and

were leading to very high negative costs for capital, mainly in the EU-N13. An inflation rate calculated on the basis of price

indexes for gross fixed capital consumption has been tested, as it seemed to be more closely related to assets. However, this rate has fluctuated widely over the years for certain Member States. In addition, land is one of the most important assets which does

not depreciate. Therefore the inflation rate of gross fixed capital consumption must not have a closer relationship with the

change in the price of agricultural assets than with the consumer price indices.


45

Table 2: Share of dairy cows covered by the FADN by Member State

Source: EU FADN 2016, Eurostat cattle survey 2013, treatment DG AGRI.

Eurostat

cattle

survey

2013

Number of

dairy cow s

Non-

specialised

milk farms

Specialised

milk farmsTotal

Non-

specialised

milk farms

Specialised

milk farmsTotal

Belgium 132 605 379 945 512 550 515 990 26% 74% 99%

Denmark 53 935 533 896 587 831 567 000 10% 94% 104%

Germany 497 569 3 875 719 4 373 288 4 267 610 12% 91% 102%

Greece . . 39 226 130 000 . . 30%

Spain 92 682 925 499 1 018 182 844 060 11% 110% 121%

France 410 895 3 422 010 3 832 905 3 697 000 11% 93% 104%

Ireland 28 603 1 231 711 1 260 314 1 082 460 3% 114% 116%

Italy 398 462 1 226 048 1 624 510 2 074 540 19% 59% 78%

Luxembourg 4 211 43 570 47 781 48 270 9% 90% 99%

The Netherlands 102 806 1 549 374 1 652 180 1 597 000 6% 97% 103%

Austria 80 681 483 494 564 175 529 560 15% 91% 107%

Portugal 24 661 180 015 204 677 230 840 11% 78% 89%

Finland 9 872 289 010 298 882 282 010 4% 102% 106%

Sw eden 12 096 379 607 391 703 346 120 3% 110% 113%

The United Kingdom93 466 1 660 484 1 753 950 1 817 000 5% 91% 97%

EU 15 1 942 543 16 180 383 18 122 926 17 899 460 11% 90% 101%

Bulgaria 86 106 235 170 321 276 313 250 27% 75% 103%

Cyprus . . 17 059 24 550 . . 69%

The Czech Republic196 474 179 672 376 147 375 330 52% 48% 100%

Estonia 8 643 96 990 105 633 97 900 9% 99% 108%

Croatia 54 001 101 993 155 994 168 000 32% 61% 93%

Hungary 100 034 173 411 273 445 250 000 40% 69% 109%

Lithuania 54 677 227 844 282 521 315 700 17% 72% 89%

Latvia 22 453 144 874 167 326 165 010 14% 88% 101%

Malta 763 6 823 7 586 6 330 12% 108% 120%

Poland 599 512 1 594 204 2 193 716 2 299 080 26% 69% 95%

Romania 1 029 525 672 051 1 701 576 1 168 900 88% 57% 146%

Slovakia 84 825 53 466 138 291 144 880 59% 37% 95%

Slovenia 18 074 86 394 104 469 109 570 16% 79% 95%

EU N13 2 255 087 3 572 893 5 827 980 5 413 950 42% 66% 108%

EU 28 4 197 630 19 753 276 23 950 906 23 313 410 18% 85% 103%

FADN 2016 Coverage FADN/FSS


46

Table 3: Share of milk production covered by the FADN by Member State

Source: EU FADN 2016, Eurostat production statistics 2013, treatment DG AGRI. FSS2013 was used as FSS 2016 data was

still not available for all EU-28 Member States at the moment of the redaction of the report.

Eurostat

2013

Milk

production

(in 1000

tonnes)

Non-

specialised

milk farms

Specialised

milk farmsTotal

Non-

specialised

milk farms

Specialised

milk farmsTotal

Belgium 983 2 843 3 826 3 529 28% 81% 108%

Denmark 483 5 074 5 557 5 082 9% 100% 109%

Germany 3 694 29 353 33 047 31 324 12% 94% 106%

Greece . . 168 731 . . 23%

Spain 626 7 112 7 738 6 559 10% 108% 118%

France 2 978 23 828 26 807 24 460 12% 97% 110%

Ireland 129 6 943 7 072 5 601 2% 124% 126%

Italy 1 417 8 701 10 118 11 281 13% 77% 90%

Luxembourg 28 331 359 296 10% 112% 121%

The Netherlands 945 12 739 13 683 12 408 8% 103% 110%

Austria 559 3 342 3 900 3 393 16% 98% 115%

Portugal 152 1 377 1 529 1 848 8% 75% 83%

Finland 94 2 619 2 714 2 328 4% 113% 117%

Sw eden 79 3 431 3 510 2 870 3% 120% 122%

The United Kingdom 655 11 875 12 530 13 943 5% 85% 90%

EU 15 12 854 119 705 132 559 125 652 10% 95% 105%

Bulgaria 275 676 952 1 149 24% 59% 83%

Cyprus . . 127 163 . . 78%

The Czech Republic1 578 1 383 2 961 2 849 55% 49% 104%

Estonia 61 871 932 772 8% 113% 121%

Croatia 189 476 665 588 32% 81% 113%

Hungary 682 1 229 1 911 1 773 38% 69% 108%

Lithuania 332 1 331 1 663 1 720 19% 77% 97%

Latvia 114 935 1 049 912 13% 103% 115%

Malta 6 47 53 41 14% 115% 129%

Poland 2 792 9 152 11 944 12 718 22% 72% 94%

Romania 3 865 2 168 6 033 3 966 97% 55% 152%

Slovakia 572 382 955 912 63% 42% 105%

Slovenia 63 483 547 596 11% 81% 92%

EU N13 10 531 19 262 29 793 28 158 37% 68% 106%

EU 28 23 385 138 967 162 352 153 809 15% 90% 106%

FADN 2016 Coverage FADN/FSS


47

Table 4: Share of milk production by Member State in the FADN 2016

Source: EU FADN – DG AGRI.

Member StateShare of milk production

2016

Belgium 2%

Denmark 3%

Germany 20%

Greece 0%

Spain 5%

France 17%

Ireland 4%

Italy 6%

Luxembourg 0%

The Netherlands 8%

Austria 2%

Portugal 1%

Finland 2%

Sw eden 2%

The United Kingdom 8%

EU 15 82%

Bulgaria 1%

Cyprus 0%

The Czech Republic 2%

Estonia 1%

Croatia 0%

Hungary 1%

Lithuania 1%

Latvia 1%

Malta 0%

Poland 7%

Romania 4%

Slovakia 1%

Slovenia 0%

EU N13 18%

EU 28 100%


48

Table 5: Share of milk production by Member State in the and farm type in FADN 2016

Source: EU FADN – DG AGRI.

Share of milk production by farm type Share of farms by farm type

FADN 2013Specialist

dairying

Cattle - dairying,

rearing and

fattening

combined

Mixed livestock,

mainly grazing

Mixed f ieldcrops

and grazing

livestock

combined

Specialist

dairying

Cattle -

dairying,

rearing and

fattening

combined

Mixed

livestock,

mainly

grazing

Mixed

f ieldcrops

and grazing

livestock

combined

Belgium 78% 14% 4% 4% 77% 16% 3% 4%

Denmark 99% 0% 0% 0% 99% 0% 0% 0%

Germany 89% 3% 2% 6% 89% 4% 1% 6%

Greece . . . . . . . .

Spain 94% 5% 1% . 94% 6% 1% .

France 72% 9% 5% 14% 73% 10% 4% 13%

Ireland 96% 4% . . 96% 4% . .

Italy 91% 8% 1% 1% 91% 7% 1% 1%

Luxembourg 82% 16% 1% 0% 81% 17% 1% 0%

The Netherlands 97% 1% 2% 0% 97% 1% 1% 0%

Austria 92% 6% 0% 1% 93% 6% 0% 1%

Portugal 100% 0% . . 100% 0% . .

Finland 98% 1% . 0% 98% 1% . 0%

Sw eden 99% 0% . 0% 99% 0% . 0%

The United Kingdom 96% 3% 0% 1% 96% 3% 0% 1%

EU 15 91% 6% 2% 3% 91% 6% 1% 3%

Bulgaria 93% 2% . 5% 94% 2% . 4%

Cyprus . . . . . . . .

The Czech Republic 52% 3% 8% 37% 55% 3% 7% 34%

Estonia 96% 1% 1% 2% 95% 1% 1% 2%

Croatia 83% 11% . 6% 85% 8% . 7%

Hungary 84% 0% . 15% 84% 1% . 15%

Lithuania 82% 1% 0% 17% 84% 1% 0% 14%

Latvia 83% 0% 1% 16% 85% 1% 1% 13%

Malta 93% 6% 1% . 94% 6% 1% .

Poland 91% 1% 1% 7% 92% 1% 1% 6%

Romania 76% 11% 9% 5% 76% 11% 9% 5%

Slovakia 71% 5% . 23% 73% 7% . 20%

Slovenia 99% 1% . . 99% 1% . .

EU N13 85% 3% 3% 13% 86% 4% 3% 12%

EU 28 88% 5% 2% 8% 88% 5% 2% 7%

Share of milk production by farm type Share of farms by farm type

Specialised milk farms Specialised milk farms


49

ANNEX II

Results for the EU, by Member State and region.

Data as of November 2018.

EU dairy farms report based on 2016 FADN data EU28

EU28 Milk specialised farms

e: estimate

*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)

STRUCTURAL INFORMATION

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 15000-

<20000

15000-

<20000

15000-

<20000

15000-

<20000

15000-

<20000

10000-

<15000

15000-

<20000

15000-

<20000

10000-

<15000

10000-

<15000 -

Farms represented 847 315 840 979 740 831 666 088 670 254 670 911 686 587 657 888 624 123 595 383 -23%

% production from specialised farms 90% 90% 90% 91% 91% 90% 92% 92% 91% 90% 1%

Forage area - ha 22 23 25 28 29 28 27 28 29 30 25%

Dairy cows - LU 23 24 27 30 30 29 29 31 32 33 31%

Rented UAA - % 59% 59% 60% 61% 60% 60% 60% 59% 59% 59% 0%

Total labour - AWU 2 2 2 2 2 2 2 2 2 2 -10%

Family labour - % 87% 85% 85% 83% 83% 83% 82% 82% 82% 83% -3%

Milk per ha fodder area - t/ha 7.8 7.5 8.1 7.7 8.1 8.1 7.9 8.1 8.5 8.4 7%

Milk yield - kg/cow 6 499 6 480 6 566 6 745 6 894 6 816 6 839 6 925 7 037 7 021 7 075 7% 9%

Milk production - t 150 154 174 199 205 199 200 212 225 233 239 40% 59%

MILK MARGINS in EUR/t of milk (nominal)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 330 332 274 315 350 339 376 383 321 302 350 7% 6%

Coupled payments (incl. Art.69) 2 2 2 3 3 3 4 4 7 7 7 5872% 223%

Total revenues from milk 332 334 275 318 353 342 378 386 327 309 357 9% 8%

Production costs

Feed 91 100 87 92 107 116 125 127 119 115 112 30% 24%

homegrown feed 29 31 27 28 31 33 34 40 38 36 35 32% 22%

purchased feed 62 69 60 64 77 84 91 87 81 79 77 29% 24%

Herd renewal purchases 3 3 3 3 3 3 3 3 2 2 2 -25% -34%

Milk levy 1 1 0 0 0 0 1 1 0 0 0 -21% -100%

Other specific costs 20 22 21 22 23 25 24 26 25 24 24 19% 17%

Specific costs 115 126 112 118 134 145 154 157 146 142 138 26% 20%

Machinery and building upkeep 19 20 18 20 20 19 21 22 19 19 19 6% 0%

Energy (fuel, electricity) 18 20 18 20 22 23 24 24 20 19 19 12% 7%

Contract work 16 18 17 17 18 19 20 21 19 20 19 18% 19%

Taxes 1 1 1 2 2 2 2 2 2 1 1 41% 14%

Other direct inputs 22 23 22 23 24 23 25 26 25 25 23 15% 4%

Non specific costs 77 82 75 81 85 86 92 96 85 85 83 13% 7%

Total operating costs 192 209 187 199 219 231 246 253 232 226 221 21% 15%

Gross margin 138 124 87 116 131 108 130 130 89 76 130 -15% -6%

Gross margin with coupled

payments139 125 89 119 134 111 133 133 96 83 137 -12% -2%

%spe.farms with positive gross

margin 96% 95% 93% 95% 96% 94% 95% 95% 87% 90% -4%

%milk production with positive gross

margin 99% 97% 95% 98% 98% 97% 97% 97% 95% 92% -2%

Depreciation 45 47 46 48 48 49 52 48 45 45 0%

Wages 14 15 15 15 16 16 18 18 16 16 17%

Rent 13 13 12 13 13 13 14 15 13 14 12%

Interest 13 15 13 13 13 13 12 11 10 10 -24%

External factors 40 43 41 41 42 42 44 44 40 40 1%

Net margin 53 34 0 27 42 17 34 38 4 -9 -62%

Net margin with coupled

payments55 36 2 30 45 20 37 41 11 -2

-46%

Family labour costs 72 74 66 67 66 64 66 70 65 67 -5%

Own capital unpaid cost 31 12 25 19 13 12 16 17 13 11 -39%

Imputed family factors 102 86 91 86 79 76 82 87 78 78 -13%

Net economic margin -49 -52 -91 -58 -38 -59 -47 -49 -74 -87 -9%

Net economic margin with

coupled payments-47 -51 -89 -55 -35 -56 -45 -46 -67 -80

-3%

%spe.farms with positive net

economic margin 20% 21% 12% 14% 19% 15% 18% 17% 11% 9% -30%

%milk production with positive net

economic margin 33% 29% 16% 26% 37% 25% 35% 33% 20% 15% -13%

Source: EU FADN DG AGRI, model of the allocation of costs for milk 51



INCOME in EUR/AWU (nominal)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 39 441 41 371 39 795 51 939 58 493 59 947 64 713 67 396 63 620 64 211 62%

Intermediate consumptions 23 474 26 771 27 714 33 214 37 235 40 310 42 167 44 104 43 983 44 611 70%

Balance subsidies and taxes 6 646 6 971 7 723 9 312 9 153 8 725 8 755 8 622 9 187 9 982 30%

Decoupled payments 4 277 4 450 5 073 6 005 6 096 5 980 5 971 6 125 5 920 6 194 32%

Depreciation 5 265 5 746 6 478 7 636 7 900 8 358 8 723 8 499 8 853 9 076 51%

Farm Net Value Added (FNVA) 17 347 15 825 13 325 20 400 22 510 20 004 22 578 23 416 19 970 20 506 37%

External factors 4 671 5 157 5 725 6 557 6 904 7 246 7 386 7 880 7 930 8 110 54%

Wages 1 717 1 884 2 186 2 577 2 810 2 928 3 124 3 363 3 383 3 420 76%

Rent 1 531 1 538 1 775 2 057 2 132 2 253 2 333 2 646 2 675 2 849 69%

Interest 1 423 1 735 1 764 1 923 1 962 2 065 1 929 1 871 1 872 1 841 13%

Balance invest. subs. and taxes -39 40 326 211 124 111 82 196 245 175 89%

Farm net income (FNI) 12 637 10 709 7 926 14 054 15 731 12 868 15 274 15 732 12 285 12 571 30%

Family farms only in EUR/FWU (nominal)

Own capital unpaid cost 4 091 1 658 4 060 3 449 2 496 2 459 3 136 3 540 3 003 2 630 -6%

Remuneration of Family Labour

(RFL) 6 272.7 6 789.3 3 638.0 8 925.8 10 880.2 9 013.0 10 762.1 9 217.2 6 974.7 9 012.3 51%

%spe.farms with positive RFL 84% 91% 76% 89% 91% 87% 88% 83% 73% 78% -7%

139 125

89

119 134 111

133 133

96 83

137

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t

Milk specialised farms - gross margin

Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments

332 334

275

318

353 342

378 386

327 309

357

277 299

273 288 309 322 341 345 317 311

221

55

36

2

30

45

20

37

41

11

-2

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t

Milk specialised farms - net margin

Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments




332 334

275

318

353 342

378 386

327 309

357

379 385 364 374

388 398 423 432

395 389

221 -47

-51

-89

-55

-35

-56

-45 -46

-67

-80

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t Milk specialised farms - net economic margin

Total revenues from milk Total costs Net economic margin with coupled payments

45 47 46 48 48 49 52 48 45 45

72 74

66 67 66 64 66 70

65 67

31 12 25 19 13 12

16 17

13 11

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t

Milk specialised farms - non-operating costs

Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost

-150

-100

-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t of milk EUR/WU

Milk specialised farms - income per work unit and margins per tonne

Farm Net Value Added (FNVA) Farm net income (FNI)

Remuneration of Family Labour (RFL) Gross margin with coupled payments

Net margin with coupled payments Net economic margin with coupled payments


EU dairy farms report based on 2016 FADN data EU-N13

EU-N13 2016 Milk specialised farms

e: estimate

*: trend between the average of the first three available years and the average of the last available three years


BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN

Sample farms 200-<500 100-<200 100-<200 100-<200 100-<200 40-<100 200-<500 200-<5002000-

<3000500-<1000 40-<100 100-<200

Farms represented 16 796 1 165 982 7 693 4 250 114 20 032 8 209 88 094 185 220 249 4 607

% production from specialised farms 85% 50% 94% 81% 68% 100% 84% 92% 80% 71% 45% 90%

Forage area - ha 7 265 174 12 38 4 23 40 15 2 672 16

Dairy cows - LU 14 154 99 13 41 60 11 18 18 4 215 19

Rented UAA - % 84% 84% 63% 46% 83% 87% 45% 43% 29% 28% 92% 41%

Total labour - AWU 1.95 15.71 5.40 2.06 3.21 2.29 1.73 2.06 1.87 0.97 27.04 1.80

Family labour - % 74% 9% 16% 90% 29% 81% 85% 64% 96% 98% 2% 100%

Milk per ha fodder area - t/ha 4.4 4.5 5.0 5.0 7.4 79.2 2.8 2.8 7.1 4.0 2.3 6.7

Milk yield - kg/cow 2 877 7 699 8 981 4 667 7 087 6 916 5 840 6 453 5 741 3 227 7 150 5 595

Milk production - t 40 1 188 887 62 289 414 66 114 104 12 1 536 105



Revenues

Price 290 258 233 304 262 448 214 214 245 310 267 258

Coupled payments (incl. Art.69) 27 17 2 52 39 31 43 23 12 32 37 11

Total revenues from milk 317 275 235 356 302 479 257 236 257 342 304 269

Production costs

Feed 151 143 116 205 170 288 76 92 89 91 165 123

homegrown feed 44 80 52 152 74 6 47 47 47 54 103 62

purchased feed 108 63 64 53 96 282 29 45 42 38 62 61

Herd renewal purchases 1 2 2 1 1 8 3 4 3 1 7 5

Milk levy 0 0 0 0 0 0 0 0 0 0 0 0

Other specific costs 12 22 17 22 32 11 16 17 10 8 19 23

Specific costs 164 167 135 228 203 307 96 113 102 101 191 151

Machinery and building upkeep 9 29 18 13 16 14 17 19 13 11 15 21

Energy (fuel, electricity) 22 29 22 25 28 30 23 28 18 30 36 28

Contract work 5 6 17 6 10 2 2 4 7 13 10 8

Taxes 1 0 1 12 3 0 0 0 1 2 1 0

Other direct inputs 11 19 11 11 21 7 18 16 7 8 15 15

Non specific costs 48 84 68 67 78 53 60 67 46 63 77 72

Total operating costs 212 250 203 295 281 360 156 180 148 164 268 223

Gross margin 78 7 30 9 -19 88 58 34 97 146 -1 35


payments 105 24 32 61 21 118 101 57 109 178 36 46

%spe.farms with positive gross margin75% 79% 73% 64% 74% 78% 87% 79% 93% 80% 69% 78%


margin86% 66% 76% 75% 54% 91% 97% 89% 99% 96% 65% 83%

Depreciation 35 39 38 48 22 27 79 39 40 55 45 91

Wages 28 77 55 17 55 12 18 31 4 4 101 0

Rent 14 13 7 7 13 2 8 3 3 4 9 5

Interest 4 5 6 3 3 4 3 3 3 0 4 5

External factors 46 95 68 26 71 18 29 37 10 8 114 11

Net margin -3 -127 -77 -66 -112 43 -50 -43 46 84 -159 -66

Net margin with coupled payments24 -110 -74 -14 -73 74 -7 -20 58 116 -123 -55

Family labour costs 107 12 11 188 18 55 126 67 67 262 4 91

Own capital unpaid cost 15 0 13 47 11 0 18 5 31 51 3 24

Imputed family factors 122 12 24 235 29 55 144 71 99 313 7 114

Net economic margin -125 -139 -101 -301 -141 -11 -194 -114 -53 -229 -166 -181

Net economic margin with coupled

payments -98 -122 -99 -249 -102 19 -151 -91 -40 -197 -129 -169


economic margin7% 4% 1% 1% 12% 40% 2% 1% 13% 9% 2% 1%


economic margin27% 2% 0% 4% 8% 54% 11% 8% 31% 25% 1% 1%






Total output 8 843 48 290 68 164 20 334 49 108 91 841 16 053 21 592 20 229 6 957 41 882 30 831

Intermediate consumptions 5 890 38 574 57 057 14 722 39 616 80 021 11 441 17 082 12 205 3 544 29 739 23 174

Balance subsidies and taxes 2 370 15 660 8 891 4 609 13 725 7 262 6 117 7 773 4 227 1 226 13 128 6 936

Decoupled payments 875 5 864 5 778 2 692 4 608 255 2 647 2 582 2 625 580 7 011 2 957

Depreciation 1 027 6 306 9 295 2 366 3 702 5 566 4 859 3 460 3 614 1 068 5 748 8 162

Farm Net Value Added (FNVA) 4 295 19 071 10 704 7 855 19 516 13 517 5 871 8 823 8 638 3 571 19 523 6 431

External factors 1 433 15 658 17 190 1 232 11 698 3 553 1 875 3 437 963 174 14 310 946

Wages 844 12 731 13 857 747 9 014 2 328 1 171 2 845 432 88 12 619 45

Rent 466 2 190 1 895 335 2 232 343 506 309 301 81 1 180 458

Interest 123 737 1 438 149 452 882 199 283 230 6 511 443

Balance invest. subs. and taxes 15 0 305 197 -7 347 1 678 882 144 10 392 -121

Farm net income (FNI) 2 877 3 412 -6 181 6 820 7 811 10 311 5 674 6 269 7 819 3 406 5 605 5 363


Own capital unpaid cost 621 687 19 803 2 603 6 346 27 1 236 642 2 960 1 087 15 749 2 130


(RFL)2 764 19 862 -10 942 4 745 18 886 12 660 5 081 8 469 5 282 2 295 39 033 3 253

%spe.farms with positive RFL 85% 83% 43% 81% 97% 69% 81% 92% 80% 72% 72% 66%

105

24 32

61

21

118 101

57

109

178

36 46

0

100

200

300

400

500

600

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts


EUR/t



317

275

235

356

302

479

257 236

257

342

304

269

293

385

310

370 375 405

264 256 199

226

427

324

24

-110

-74

-14

-73

74

-7 -20

58

116

-123

-55

-150

-100

-50

0

50

100

150

0

100

200

300

400

500

600


EUR/t






317 275

235

356

302

479

257 236

257

342 304

269

415 397

334

605

404

460

408

328 298

539

433 438

-98

-122

-99

-249

-102

19

-151

-91

-40

-197

-129

-169

-300

-250

-200

-150

-100

-50

0

50

0

100

200

300

400

500

600

700




35 39 38 48 22 27

79 39 40 55 45

91

107 12

11

188

18

55

126

67

67

262

4 91

15

0

13

47

11 0

18

5 31

51

3

24

0

50

100

150

200

250

300

350

400


EUR/t Milk specialised farms - non-operating costs


-300

-250

-200

-150

-100

-50

0

50

100

150

200

-20 000

-10 000

0

10 000

20 000

30 000

40 000

50 000




Farm Net Value Added (FNVA) Farm net income (FNI) Remuneration of Family Labour (RFL)

Gross margin with coupled payments Net margin with coupled payments Net economic margin with coupled payments



EU15 2016 Milk specialised farms

e: estimate



BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI

Sample farms 200-<500 200-<5002000-

<3000

500-

<1000

1000-

<2000

200-

<500

500-

<1000

200-

<500

200-

<500

500-

<1000

200-

<500

200-

<500200-<500

200-

<500

Farms represented 5 435 3 329 58 520 15 780 57 793 16 840 24 365 656 17 166 26 342 5 568 8 276 4 502 12 732

% production from specialised farms 87% 93% 92% 95% 95% 99% 93% 94% 97% 88% 91% 97% 98% 96%

Forage area - ha 50 113 57 25 75 62 26 80 50 24 17 43 112 109

Dairy cows - LU 70 160 66 59 59 73 50 66 90 18 32 35 84 130

Rented UAA - % 73% 31% 64% 46% 88% 24% 64% 53% 40% 31% 41% 37% 63% 42%

Total labour - AWU 1.84 2.85 2.10 1.93 1.93 1.61 1.80 1.82 1.70 1.80 1.71 2.05 2.61 2.69

Family labour - % 97% 42% 69% 77% 87% 87% 84% 88% 90% 98% 79% 85% 68% 61%

Milk per ha fodder area - t/ha 10.4 13.2 8.8 16.5 5.5 6.7 13.9 6.3 15.0 5.3 14.1 7.3 6.8 8.6

Milk yield - kg/cow 7 482 9 504 7 574 7 684 6 963 5 637 7 101 7 587 8 222 6 912 7 651 9 063 9 039 7 152

Milk production - t 523 1 524 502 451 412 412 357 504 742 127 247 316 762 933



Revenues

Price 282 323 276 302 316 265 422 279 333 325 261 367 324 285

Coupled payments (incl. Art.69) 2 0 0 12 5 0 7 0 0 1 32 80 19 0

Total revenues from milk 284 323 276 314 321 265 430 279 333 326 293 447 343 285

Production costs

Feed 99 147 102 161 101 79 177 101 120 95 166 128 129 111

homegrown feed 23 51 29 27 33 25 58 33 28 32 65 36 30 28

purchased feed 76 97 73 134 68 54 119 67 91 64 101 92 98 84

Herd renewal purchases 1 2 3 2 2 2 2 2 2 3 2 2 5 2

Milk levy 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Other specific costs 25 28 29 18 12 41 16 25 35 28 24 35 29 35

Specific costs 126 177 134 181 116 122 195 127 157 127 191 164 163 149

Machinery and building upkeep 13 25 22 12 22 13 9 25 21 26 13 48 27 18

Energy (fuel, electricity) 13 12 23 14 18 9 23 16 15 21 18 32 22 13

Contract work 21 29 20 14 34 13 6 19 25 19 8 38 24 17

Taxes 1 1 1 0 3 0 6 1 1 0 2 1 0 0

Other direct inputs 13 17 26 16 42 11 15 24 34 40 6 73 26 20

Non specific costs 61 84 92 56 118 46 59 84 96 105 47 192 99 67

Total operating costs 187 260 226 237 234 168 254 212 253 232 238 355 262 216

Gross margin 95 63 50 65 82 97 168 67 81 93 23 12 62 68


payments 97 63 50 77 87 97 176 67 81 94 55 91 81 69


margin 95% 91% 94% 91% 95% 98% 94% 96% 93% 84% 80% 82% 81% 88%

%milk production with positive

gross margin98% 95% 88% 90% 96% 99% 99% 95% 92% 94% 76% 91% 95% 93%

Depreciation 42 39 44 16 65 21 23 91 47 89 23 94 49 31

Wages 2 35 20 15 8 9 19 7 6 2 13 21 32 24

Rent 15 14 20 4 21 10 12 15 16 8 6 14 15 10

Interest 11 40 9 1 9 5 1 10 30 5 1 12 12 7

External factors 28 90 49 20 38 24 32 32 51 15 20 47 59 41

Net margin 26 -66 -43 29 -21 51 114 -56 -17 -11 -19 -129 -46 -3


payments 28 -66 -43 41 -16 51 121 -56 -17 -10 13 -49 -27 -3

Family labour costs 66 31 56 44 58 64 85 56 68 193 40 165 78 39

Own capital unpaid cost 1 8 6 12 1 27 15 8 11 7 12 16 2 10

Imputed family factors 66 40 62 55 59 91 100 64 79 200 51 181 80 50

Net economic margin -41 -106 -105 -26 -80 -40 13 -120 -96 -211 -70 -310 -126 -53


coupled payments -39 -106 -105 -14 -75 -40 20 -120 -96 -210 -39 -230 -107 -52


economic margin15% 3% 2% 21% 6% 17% 33% 1% 6% 1% 17% 1% 1% 10%


net economic margin16% 3% 3% 32% 7% 28% 58% 2% 8% 3% 19% 1% 4% 19%






Total output 111 156 264 736 114 043 87 431 103 719 105 280 116 240 122 058 177 789 38 553 52 530 81 586 167 708 142 046

Intermediate consumptions 74 658 196 274 76 810 63 307 77 097 66 321 64 727 91 146 124 297 25 152 41 141 76 914 130 127 104 581

Balance subsidies and taxes 13 770 22 329 17 704 10 061 17 990 12 259 9 555 37 806 10 548 11 754 9 421 33 048 31 286 11 880

Decoupled payments 10 184 21 517 11 353 5 677 13 451 11 537 6 864 14 497 12 168 4 246 3 024 5 590 12 443 10 453

Depreciation 16 451 26 460 15 968 4 329 21 393 7 819 5 783 40 455 24 153 10 675 3 975 17 473 21 324 14 272

Farm Net Value Added (FNVA) 33 817 64 330 38 969 29 857 23 219 43 399 55 286 28 263 39 887 14 481 16 834 20 248 47 543 35 073

External factors 10 982 61 609 18 587 5 494 12 661 8 826 7 837 14 266 25 729 1 777 3 332 8 906 25 066 18 579

Wages 582 24 280 8 417 4 168 2 580 3 304 4 627 3 154 2 899 257 2 147 4 036 13 293 10 852

Rent 6 136 9 892 7 125 1 086 7 098 3 552 3 033 6 967 7 987 901 1 013 2 623 6 550 4 546

Interest 4 263 27 437 3 044 240 2 983 1 970 178 4 144 14 843 619 172 2 247 5 222 3 181

Balance invest. subs. and taxes 1 410 208 -958 -20 757 2 408 300 7 415 1 220 -1 490 256 1 037 240 385

Farm net income (FNI) 24 245 2 929 19 424 24 344 11 314 36 981 47 749 21 412 15 377 11 213 13 758 12 378 22 717 16 880


Own capital unpaid cost 346 13 657 3 004 4 047 395 12 152 4 598 4 102 6 202 910 2 637 3 573 1 290 8 180

Remuneration of Family

Labour (RFL)24 487 -6 732 26 138 26 823 12 557 30 502 52 251 20 052 10 595 10 566 14 826 10 981 32 124 19 669

%spe.farms with positive RFL 89% 47% 89% 93% 76% 95% 94% 79% 61% 79% 93% 76% 80% 72%

97

63 50 77 87

97

176

67 81 94

55

91 81 69

0

50

100

150

200

250

300

350

400

450

500

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts


EUR/t



284

323

276

314 321

265

430

279

333 326

293

447

343

285

256

389

319 273

337

213

309 335 351 336

280

496

370

288

28

-66

-43

41

-16

51

121

-56

-17 -10

13

-49

-27

-3

-100

-50

0

50

100

150

0

100

200

300

400

500

600


EUR/t






284 323

276 314 321

265

430

279

333 326 293

447

343

285

323

429 382

328

396

305

409 399 430

536

332

677

450

337

-39

-106 -105

-14

-75

-40

20

-120

-96

-210

-39

-230

-107

-52

-250

-200

-150

-100

-50

0

50

0

100

200

300

400

500

600

700

800




42 39 44 16

65

21 23

91

47

89

23

94

49 31

66

31

56

44

58

64 85

56 68

193

40

165

78

39

1

8 6

12

1

27

15

8 11

7

12

16

2

10

0

50

100

150

200

250

300

350




-300

-250

-200

-150

-100

-50

0

50

100

150

200

-20 000

-10 000

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000



Milk specialised farms - income per work unit and margins per tonne Farm Net Value Added (FNVA) Farm net income (FNI)




EU dairy farms report based on 2016 FADN data BE

Belgium Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500200-

<500

200-

<500

200-

<500

200-

<500200-<500

200-

<500200-<500 200-<500

-



Forage area - ha 40 40 44 45 47 48 48 49 48 50 18%

Dairy cows - LU 48 49 55 55 56 61 62 63 65 70 30%

Rented UAA - % 75% 74% 75% 74% 75% 74% 73% 74% 73% 73% -2%

Total labour - AWU 1.6 1.7 1.7 1.8 1.8 1.8 1.9 1.8 1.8 1.8 10%

Family labour - % 99% 99% 98% 99% 98% 98% 98% 98% 98% 97% -1%


Milk yield - kg/cow 6 673 6 558 6 766 6 964 7 092 7 161 7 057 7 214 7 379 7 482 7 570 10% 13%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 347 329 252 310 338 309 379 374 302 282 359 3% 4%

Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 1 2 2 - -


Production costs

Feed 81 96 76 85 97 103 113 108 101 99 97 22% 20%

homegrown feed 31 34 29 28 33 31 31 30 27 23 23 -14% -27%

purchased feed 49 62 48 56 64 73 81 77 74 76 74 43% 50%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 106 121 101 110 124 130 140 133 128 126 124 18% 17%

Machinery and building upkeep 14 15 13 14 15 14 15 16 13 13 13 -2% -10%


Contract work 19 21 19 20 22 22 24 26 22 21 21 18% 12%

Taxes 1 1 1 1 1 1 1 1 1 1 1 -4% -7%

Other direct inputs 11 12 10 11 12 13 14 13 13 13 10 18% -10%



Gross margin 183 143 96 141 148 113 167 170 112 95 177 -11% -3%


payments183 143 96 141 148 113 167 170 114 97 179 -10% -2%


margin 100% 98% 96% 99% 98% 98% 97% 99% 94% 95% -2%


margin 100% 99% 98% 99% 99% 99% 99% 100% 98% 98% 0%

Depreciation 42 47 45 47 49 49 54 48 46 42 1%

Wages 1 1 1 1 1 1 1 2 2 2 104%

Rent 15 15 14 14 16 15 16 17 16 15 8%

Interest 16 16 16 17 17 16 16 14 12 11 -22%

External factors 32 32 31 32 35 32 33 33 29 28 -5%

Net margin 109 64 21 62 64 32 81 89 36 26 -22%


payments109 64 21 62 64 32 81 89 38 28

-20%




Net economic margin 11 -23 -65 -18 -17 -44 -5 5 -37 -41 5%


coupled payments11 -23 -65 -18 -17 -44 -5 5 -36 -39

11%


economic margin 46% 30% 11% 29% 34% 17% 41% 45% 20% 15% -8%


economic margin 61% 42% 16% 43% 46% 22% 56% 60% 27% 16% -13%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 99 591 92 332 84 030 96 661 104 492 107 978 124 598 124 927 112 626 110 959 26%


Balance subsidies and taxes 16 082 15 558 15 634 15 462 15 331 14 277 14 298 13 209 12 330 13 746 -17%

Decoupled payments 11 359 11 267 11 648 11 014 11 211 11 053 10 681 10 456 9 422 10 166 -12%

Depreciation 12 247 13 262 14 772 14 636 15 074 16 826 17 513 15 924 17 091 16 422 23%

Farm Net Value Added (FNVA) 54 537 41 122 34 267 45 529 44 944 37 798 50 155 49 240 35 135 33 757 -9%


Wages 175 201 286 259 343 354 351 504 568 581 150%

Rent 4 628 4 475 4 749 4 610 5 115 5 321 5 549 5 996 6 039 6 125 31%

Interest 4 511 4 446 5 223 5 174 5 251 5 401 5 100 4 599 4 465 4 255 -6%

Balance invest. subs. and taxes -1 378 -1 432 -406 682 -289 190 -647 1 003 981 1 407 205%

Farm net income (FNI) 43 846 30 569 23 604 36 168 33 947 26 912 38 508 39 144 25 044 24 202 -10%


Own capital unpaid cost 4 607 376 4 442 985 744 605 1 586 1 543 872 345 -71%


(RFL) 24 276 18 581 11 487 19 919 19 091 14 897 20 703 18 634 11 271 13 631 -20%


183

143

96

141 148

113

167 170

114 97

179

0

50

100

150

200

250

300

350

400

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



347 329

252

310

338

309

379 374

303 284

361

238 265

232 249 274 277

299 285 265 256

182

109

64

21

62 64

32

81

89

38

28

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






347 329

252

310

338

309

379 374

303 284

361 336

352

317 328

355 353

384 369

339 323

182

11

-23

-65

-18 -17

-44

-5

5

-36 -39

-70

-60

-50

-40

-30

-20

-10

0

10

20

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



42 47 45 47 49 49 54 48 46 42

83 86

73 76

79 74

81 80

71 66

15 1 13 3

2 2

4 4

2

1

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-100

-50

0

50

100

150

200

0

10 000

20 000

30 000

40 000

50 000

60 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data DK

Denmark Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500200-

<500

200-

<500

200-

<500

200-

<500

200-

<500200-<500

200-

<500200-<500 200-<500

-


% production from specialised farms 99% 98% 96% 98% 99% 99% 99% 99% 99% 93% -1%

Forage area - ha 79 83 105 103 102 122 119 122 116 113 31%

Dairy cows - LU 117 115 146 148 141 170 167 164 164 160 29%

Rented UAA - % 27% 26% 26% 28% 29% 31% 28% 29% 31% 31% 15%

Total labour - AWU 2.2 2.2 2.6 2.5 2.4 2.8 2.8 2.9 2.9 2.9 23%

Family labour - % 58% 56% 47% 48% 49% 43% 43% 42% 41% 42% -22%


Milk yield - kg/cow 8 231 8 258 8 404 8 550 8 418 8 599 8 927 9 255 9 607 9 504 10 043 14% 22%

Milk production - t 964 948 1 225 1 266 1 190 1 461 1 490 1 517 1 571 1 524 1 583 47% 64%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 332 386 292 336 371 358 405 412 330 323 397 5% 20%



Production costs

Feed 92 118 106 96 116 123 137 163 153 147 141 47% 54%

homegrown feed 18 23 21 18 23 24 24 60 57 51 48 174% 173%

purchased feed 74 95 85 78 93 99 113 103 95 97 92 16% 25%

Herd renewal purchases 0 6 5 4 3 3 2 2 1 2 1 -50% -

Milk levy 2 0 0 1 2 0 1 6 0 0 0 228% -100%

Other specific costs 28 31 31 30 31 30 29 29 28 28 27 -6% -3%

Specific costs 121 155 142 131 152 155 168 200 182 177 170 34% 40%



Contract work 27 32 30 28 30 30 30 32 29 29 29 3% 8%

Taxes 1 1 1 1 1 1 1 1 4 1 1 54% -23%




Gross margin 135 140 64 120 130 114 146 118 60 63 147 -29% 9%


payments133 140 64 119 129 114 145 112 60 63 147 -30% 10%


margin 99% 94% 89% 100% 96% 98% 97% 95% 91% 91% -2%


margin 100% 99% 94% 100% 99% 99% 100% 99% 96% 95% -1%

Depreciation 39 45 46 46 45 43 44 43 40 39 -6%

Wages 25 30 34 32 32 35 35 36 36 35 21%

Rent 15 15 15 15 15 16 14 14 14 14 -5%

Interest 65 120 87 81 67 61 53 48 44 40 -51%


Net margin -11 -70 -117 -53 -30 -41 0 -24 -74 -66 17%


payments-12 -70 -117 -54 -31 -41 -1 -29 -74 -66

15%


Own capital unpaid cost 13 4 9 7 5 5 11 9 9 8 1%


Net economic margin -70 -122 -163 -97 -73 -78 -44 -65 -113 -106 20%



19%


economic margin 6% 4% 0% 5% 5% 5% 13% 7% 1% 3% 12%


economic margin 8% 5% 0% 5% 8% 7% 19% 10% 1% 3% 13%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 237 798 251 469 211 081 262 238 291 450 290 395 310 070 314 609 269 486 264 284 21%




Depreciation 23 433 24 806 27 760 29 763 29 920 29 252 28 871 28 647 27 499 26 415 9%


External factors 63 381 91 153 81 862 84 304 76 049 75 288 67 036 64 959 63 735 61 504 -20%

Wages 15 449 16 732 20 537 21 252 21 435 23 480 23 457 24 129 24 252 24 239 38%

Rent 9 106 8 390 9 082 9 890 10 405 11 189 9 359 9 545 9 987 9 875 11%

Interest 38 826 66 032 52 243 53 162 44 208 40 619 34 220 31 285 29 496 27 390 -44%

Balance invest. subs. and taxes 103 50 42 208 55 516 546 680 317 208 518%

Farm net income (FNI) 23 859 -13 720 -43 348 -6 172 9 898 3 741 24 383 32 938 -870 2 924 205%


Own capital unpaid cost 14 003 5 311 11 709 9 383 7 890 7 884 17 639 13 430 15 051 13 633 36%


(RFL) 21 219 -24 413 -85 921 -18 663 10 506 625 31 576 -8 251 -74 443 -5 565 1%


133 140

64

119 129 114

145 112

60 63

147

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



331

386

292

335

370 358

404 407

330 323

397

343

456 409 389 401 399 405

436 404 389

250

-12

-70

-117

-54

-31

-41

-1

-29

-74 -66

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






331

386

292

335

370 358

404 407

330 323

397

402

508

455 433 445 437 449

477

443 429

250

-71

-122

-163

-98

-75 -78

-45

-71

-113 -106

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t

Milk specialised farms - net economic margin


39 45 46 46 45 43 44 43 40 39

46

48

37 37

38 33

33 33 30 31

13

4

9 7

5 5 11 9

9 8

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-200

-150

-100

-50

0

50

100

150

200

-100 000

-50 000

0

50 000

100 000

150 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data DE

Germany Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000 -



Forage area - ha 45 45 51 52 52 55 56 57 56 57 21%

Dairy cows - LU 47 47 53 54 55 61 63 64 65 66 33%

Rented UAA - % 67% 66% 68% 67% 66% 66% 65% 64% 64% 64% -4%

Total labour - AWU 1.9 1.9 2.1 2.1 2.1 2.1 2.2 2.2 2.1 2.1 7%

Family labour - % 76% 75% 70% 71% 69% 69% 66% 68% 71% 69% -6%


Milk yield - kg/cow 7 136 7 241 7 406 7 500 7 585 7 545 7 725 7 514 7 659 7 574 7 532 4% 6%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 344 274 245 305 352 327 377 396 315 276 371 14% 8%



Production costs

Feed 81 80 67 81 103 106 122 112 105 102 101 40% 24%

homegrown feed 30 30 24 31 32 35 38 33 31 29 28 10% -6%

purchased feed 51 50 43 50 70 71 84 79 74 73 73 57% 42%

Herd renewal purchases 3 3 3 3 3 3 3 3 3 3 3 16% 9%

Milk levy 2 0 0 0 0 0 2 0 0 0 0 -96% -100%


Specific costs 108 107 92 112 136 139 158 147 137 134 133 36% 23%

Machinery and building upkeep 26 22 20 24 25 23 26 25 21 22 23 0% -12%

Energy (fuel, electricity) 26 25 23 26 28 28 30 29 24 23 24 4% -5%

Contract work 18 18 17 18 18 19 21 21 19 20 20 14% 14%

Taxes 2 2 2 2 2 2 2 5 1 1 1 48% -38%

Other direct inputs 29 27 25 27 28 25 28 26 24 26 24 -6% -18%

Non specific costs 100 93 87 96 100 96 107 107 90 92 92 3% -8%


Gross margin 136 74 66 97 116 92 111 142 89 50 145 2% 7%


payments134 74 66 97 116 92 109 142 89 50 145 3% 8%


margin 99% 89% 89% 95% 96% 93% 95% 97% 94% 82% -2%


margin 100% 95% 94% 97% 98% 97% 97% 99% 97% 88% -2%

Depreciation 49 48 46 51 51 49 53 45 43 44 -7%

Wages 19 18 20 20 21 19 23 24 19 20 11%

Rent 21 18 17 17 16 16 17 19 18 20 2%

Interest 10 9 10 9 9 9 9 9 8 9 -9%


Net margin 38 -19 -26 0 19 -2 8 45 1 -43 144%


payments36 -19 -26 0 19 -2 6 45 1 -43

135%

Family labour costs 53 48 43 43 43 40 42 58 56 56 19%






17%


economic margin 15% 4% 3% 12% 25% 14% 20% 28% 11% 2% 82%


economic margin 29% 8% 6% 21% 38% 23% 32% 42% 16% 3% 41%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 97 452 83 699 79 797 100 248 107 472 116 822 130 341 117 041 109 375 113 948 30%




Depreciation 12 527 12 897 13 328 15 101 15 629 16 649 17 269 15 274 15 775 15 955 21%



Wages 5 317 5 379 6 639 6 721 7 375 7 625 8 594 9 064 8 130 8 411 48%

Rent 5 226 4 924 5 012 5 065 5 207 5 680 5 788 6 635 6 706 7 120 35%

Interest 2 429 2 478 2 732 2 677 2 726 3 015 2 902 2 817 3 031 3 041 16%

Balance invest. subs. and taxes -1 236 -1 196 -632 -1 123 -1 227 -1 124 -1 222 -884 -816 -958 13%





(RFL) 17 684 9 826 5 810 16 879 18 857 17 882 24 084 12 948 9 170 18 167 21%

%spe.farms with positive RFL 89% 79% 71% 89% 91% 89% 93% 83% 75% 89% 3%

134

74 66

97 116 92

109

142

89

50

145

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



343

274

245

305

352 327

374 396

315

276

371

306 293 271

305 333 329

368 351 314 319

226

36

-19

-26

0

19

-2

6

45

1

-43

-50

-40

-30

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






343

274

245

305

352 327

374 396

315

276

371

396

355 344

363 383 373

422 419

379 382

226 -53

-81

-99

-57

-31

-46 -48

-23

-64

-105

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



49 48 46 51 51 49 53 45 43 44

53 48 43 43 43 40

42 58 56

56

37

14 30 15 7 4

12 10

9 6

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data ES

Spain Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 1000-

<2000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000 -



Forage area - ha 17 16 21 19 21 24 26 25 26 25 44%

Dairy cows - LU 33 35 43 40 43 47 48 53 54 59 49%

Rented UAA - % 38% 37% 43% 46% 47% 50% 45% 50% 49% 46% 23%

Total labour - AWU 1.6 1.6 1.6 1.7 1.7 1.8 1.7 1.8 1.9 1.9 17%

Family labour - % 95% 95% 92% 90% 89% 85% 87% 84% 81% 77% -14%


Milk yield - kg/cow 6 830 6 873 6 934 6 788 7 436 7 109 7 051 7 167 7 460 7 684 7 903 8% 16%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 355 384 298 292 312 310 339 353 310 302 312 -7% -12%


Total revenues from milk 356 383 298 294 315 315 345 362 319 314 324 -4% -9%

Production costs

Feed 112 136 119 129 138 158 168 186 166 161 155 40% 38%

homegrown feed 9 9 8 10 10 11 12 26 27 27 26 202% 179%

purchased feed 103 126 111 118 128 147 156 160 139 134 129 27% 25%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -100%

Other specific costs 20 22 20 20 20 22 21 23 21 18 19 3% -4%

Specific costs 136 166 147 158 166 185 192 212 190 181 176 30% 29%



Contract work 5 6 6 7 7 7 8 8 11 14 14 88% 171%

Taxes 0 0 0 0 0 1 1 0 0 0 0 -10% 132%




Gross margin 186 177 112 92 103 77 96 85 65 65 82 -55% -56%


payments186 177 112 95 105 81 103 93 73 77 93 -49% -50%


margin 100% 97% 97% 96% 98% 89% 97% 97% 91% 89% -6%


margin 100% 98% 97% 97% 99% 94% 98% 96% 91% 90% -6%

Depreciation 18 19 18 18 15 16 16 21 18 16 1%

Wages 5 5 6 9 8 11 10 12 13 15 151%

Rent 4 4 4 4 4 4 4 5 5 4 11%

Interest 2 2 2 2 2 2 1 1 1 1 -31%


Net margin 158 148 82 60 74 44 65 46 28 29 -74%


payments158 147 82 62 76 48 71 54 36 41

-66%




Net economic margin 60 55 -11 -30 -1 -29 -9 -22 -35 -26 -180%


coupled payments60 55 -11 -28 1 -24 -2 -14 -27 -14

-152%


economic margin 66% 61% 37% 23% 36% 22% 36% 30% 20% 21% -57%


economic margin 82% 75% 47% 41% 50% 32% 44% 41% 35% 32% -47%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 65 505 71 946 71 383 61 158 72 671 76 537 82 514 88 718 83 697 87 418 24%




Depreciation 2 990 3 180 3 860 3 382 3 215 3 706 3 699 4 961 4 543 4 328 38%



Wages 856 881 1 325 1 707 1 822 2 568 2 225 2 944 3 312 4 167 240%

Rent 673 728 962 869 839 1 103 975 1 187 1 206 1 086 47%

Interest 283 287 353 293 322 351 313 305 348 239 -3%

Balance invest. subs. and taxes -115 -30 108 204 82 -15 28 -170 40 -20 -313%





(RFL) 20 939 20 916 17 336 12 162 16 707 12 307 15 990 17 363 15 961 18 403 -13%


186 177

112 95 105

81 103 93

73 77 93

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



356

383

298 294 315 315

345 362

319 314 324

198 236 216 232 238

266 274 308

282 273 230

158

147

82

62

76

48

71

54

36 41

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






356

383

298 294 315 315

345 362

319 314 324

295

329 309

322 314

339 347

375

345 328

230

60 55

-11

-28

1

-24

-2

-14

-27

-14

-40

-30

-20

-10

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



18 19 18 18 15 16 16 21 18 16

72 77 72 70

63 56 58 53

49 44

26 16 21 20

12 17 15 14 13

12

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data FR

France Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000

1000-

<2000 -



Forage area - ha 61 62 66 70 71 74 74 74 74 75 18%

Dairy cows - LU 46 47 51 52 52 55 56 58 58 59 22%

Rented UAA - % 90% 90% 91% 91% 91% 92% 92% 89% 88% 88% -2%

Total labour - AWU 1.8 1.8 1.9 1.9 1.9 2.0 2.0 2.0 1.9 1.9 4%

Family labour - % 92% 92% 91% 91% 90% 89% 89% 88% 88% 87% -4%


Milk yield - kg/cow 6 557 6 580 6 539 6 799 7 099 6 984 6 953 7 069 7 096 6 963 6 860 7% 5%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 316 347 296 326 345 332 365 373 328 316 341 6% 8%



Production costs

Feed 86 100 96 91 100 111 118 109 104 101 101 12% 18%

homegrown feed 33 36 37 33 35 38 38 35 34 33 33 -4% 0%

purchased feed 52 64 58 59 65 73 80 74 70 68 68 21% 29%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 -94% -100%


Specific costs 101 117 112 107 116 127 134 125 120 116 115 9% 14%



Contract work 27 29 29 28 29 32 35 34 33 34 34 19% 27%

Taxes 2 3 3 3 3 2 3 3 3 3 3 5% 11%




Gross margin 117 121 81 115 118 93 111 124 93 82 107 -6% -9%


payments117 121 81 116 120 95 113 126 99 87 112 -2% -4%


margin 97% 97% 94% 98% 98% 94% 94% 98% 95% 92% -2%


margin 99% 98% 96% 99% 99% 97% 97% 99% 98% 96% 0%

Depreciation 61 66 68 66 65 64 71 66 63 65 0%

Wages 5 5 6 5 6 7 7 8 7 8 43%

Rent 19 20 21 20 20 20 22 22 21 21 4%

Interest 10 11 12 12 11 11 11 11 9 9 -12%


Net margin 21 19 -25 12 17 -8 0 18 -7 -21 -157%


payments21 19 -25 13 18 -6 1 20 -1 -16

-80%







15%


economic margin 12% 16% 2% 13% 17% 8% 11% 17% 8% 6% -3%


economic margin 18% 21% 3% 17% 23% 10% 15% 21% 10% 7% -7%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 84 105 91 912 80 886 94 952 106 422 108 911 113 955 118 539 110 120 103 788 29%




Depreciation 16 691 17 985 19 283 19 248 20 071 20 930 22 370 21 148 21 076 21 407 18%



Wages 1 369 1 420 1 709 1 677 1 818 2 231 2 377 2 507 2 404 2 582 67%

Rent 5 491 5 718 6 108 6 127 6 328 6 646 6 883 7 011 7 040 7 103 22%

Interest 2 871 3 142 3 403 3 398 3 437 3 490 3 484 3 460 3 178 2 985 2%

Balance invest. subs. and taxes 1 002 1 114 1 110 1 030 753 887 696 576 579 758 -41%



Own capital unpaid cost 4 432 711 3 412 802 581 328 835 687 564 396 -81%


(RFL) 11 799 13 145 3 415 14 546 15 964 12 835 11 612 11 447 8 483 7 448 -3%


117 121

81

116 120 95

113 126

99 87 112

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



316

347

295

327 346

334

367 374

334 321

346

295 328 321 314 328 340

365 354 335 337

234

21 19

-25

13

18

-6

1

20

-1

-16

-30

-20

-10

0

10

20

30

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






316

347

295

327 346 334

367 374

334 321

346

376 398 397

381 391 401 430 419

395 396

234 -60

-51

-102

-53

-45

-67 -64

-45

-61

-75

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



61 66 68 66 65 64 71 66 63 65

66 67 65 63 61 60

63 62

58 58

15 3 11

3 2 1

2 2

2 1

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data IE

Ireland Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-



Forage area - ha 56 55 58 59 57 61 58 60 61 62 8%

Dairy cows - LU 55 54 60 62 62 66 64 64 69 73 22%

Rented UAA - % 21% 22% 23% 25% 23% 24% 23% 23% 23% 24% 3%

Total labour - AWU 1.6 1.6 1.6 1.7 1.6 1.6 1.6 1.6 1.6 1.6 0%

Family labour - % 87% 88% 87% 87% 86% 86% 87% 87% 87% 87% 0%


Milk yield - kg/cow 5 410 5 281 5 108 5 435 5 461 5 248 5 381 5 393 5 735 5 637 6 378 6% 18%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 323 330 229 289 329 304 369 360 291 265 321 4% 0%



Production costs

Feed 78 97 84 83 90 107 127 94 83 79 71 -1% -9%

homegrown feed 32 41 34 34 40 40 46 32 29 25 23 -19% -29%

purchased feed 46 56 50 50 50 66 81 62 53 54 48 11% 5%


Milk levy 1 1 0 0 0 3 0 0 0 0 0 -100% -100%


Specific costs 113 133 118 117 127 145 163 139 124 122 110 6% -3%



Contract work 15 15 14 14 15 14 16 16 14 13 12 -2% -20%

Taxes 1 1 1 1 1 1 1 1 1 0 0 -10% -53%


Non specific costs 53 56 53 56 58 56 62 61 51 46 42 -2% -21%

Total operating costs 167 189 170 173 185 202 225 201 175 168 152 3% -9%

Gross margin 156 141 58 117 144 103 144 159 116 97 169 4% 8%


payments156 140 59 118 145 101 145 159 116 97 169 5% 9%


margin 100% 97% 85% 98% 98% 94% 96% 99% 98% 97% 4%


margin 100% 99% 94% 99% 100% 97% 99% 100% 98% 99% 1%

Depreciation 45 50 29 35 27 34 35 25 22 21 -45%

Wages 11 12 11 11 12 11 11 10 9 9 -15%

Rent 9 10 10 10 9 10 10 10 9 10 -1%

Interest 8 10 8 7 7 6 6 6 5 5 -35%


Net margin 84 59 1 53 89 42 82 108 71 51 60%


payments83 58 1 54 90 40 83 108 71 51

62%




Net economic margin -51 -59 -141 -94 -57 -76 -38 1 -14 -40 79%


coupled payments-51 -60 -141 -92 -56 -78 -38 1 -14 -40

79%


economic margin 18% 14% 0% 4% 15% 8% 26% 46% 34% 17% 209%


economic margin 25% 22% 1% 8% 23% 14% 38% 59% 47% 28% 178%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 78 919 85 605 67 050 83 335 97 471 98 645 111 840 113 701 110 926 105 201 42%




Depreciation 11 191 12 474 7 872 9 649 7 625 10 384 10 281 7 520 7 782 7 813 -27%



Wages 2 658 2 782 2 825 3 049 3 256 3 305 3 141 2 985 3 081 3 301 13%

Rent 2 489 2 471 2 677 2 823 2 658 3 043 2 913 2 990 3 183 3 550 27%

Interest 1 994 2 440 2 105 1 958 1 969 1 877 1 714 1 736 1 879 1 968 -15%

Balance invest. subs. and taxes -846 -305 7 311 -147 -1 174 -1 479 -1 321 2 817 2 859 2 406 31%





(RFL) 15 541 15 560 2 481 6 694 14 845 10 685 17 701 27 527 25 717 21 847 124%


156

140

59

118 145

101

145 159

116 97

169

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



322 328

229

291

330

303

370 360

291

265

321

239 270

228 237 240 263

287 252

220 213

152

83

58

1

54

90

40

83

108

71

51

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






322 328

229

291

330

303

370 360

291

265

321

374 389

370 383 385 381

408

359

305 305

152

-51 -60

-141

-92

-56

-78

-38

1

-14

-40

-160

-140

-120

-100

-80

-60

-40

-20

0

20

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



45 50 29 35 27 34 35 25 22 21

78 85

71 74

70 69 73 69

57 64

57 34

71 72

75 49 47

38

28 27

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-200

-150

-100

-50

0

50

100

150

200

0

10 000

20 000

30 000

40 000

50 000

60 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data IT

Italy Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 1000-

<2000

1000-

<2000

1000-

<2000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000 -



Forage area - ha 19 20 21 22 23 24 23 23 25 26 23%

Dairy cows - LU 40 37 43 45 46 48 50 50 50 50 24%

Rented UAA - % 54% 61% 58% 61% 62% 62% 64% 65% 67% 64% 13%

Total labour - AWU 2.0 1.7 1.8 1.9 2.0 2.0 2.0 1.8 1.8 1.8 -2%

Family labour - % 87% 86% 82% 82% 80% 81% 80% 85% 79% 84% -3%


Milk yield - kg/cow 6 724 6 512 6 394 6 706 6 864 6 887 6 663 7 057 7 556 7 101 7 424 11% 10%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 384 399 384 404 460 444 448 445 416 422 437 10% 14%



Production costs

Feed 124 113 114 115 133 144 144 167 172 177 167 47% 34%

homegrown feed 22 21 19 18 19 21 21 43 54 58 54 149% 146%

purchased feed 102 92 95 96 114 123 123 124 118 119 112 25% 10%

Herd renewal purchases 2 1 3 3 2 2 2 3 2 2 2 14% -17%

Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -100%

Other specific costs 13 22 18 15 18 19 18 18 17 16 15 -6% 10%

Specific costs 140 136 135 133 153 165 165 189 191 195 183 40% 31%



Contract work 4 3 4 3 4 4 5 5 6 6 5 53% 31%

Taxes 2 5 6 6 6 7 6 8 7 6 6 49% 136%




Gross margin 196 217 199 218 248 214 218 193 162 168 197 -14% 1%


payments196 217 199 221 250 217 220 195 168 176 204 -12% 4%


margin 99% 99% 98% 98% 98% 97% 94% 95% 94% 96% -3%


margin 100% 100% 99% 99% 99% 99% 98% 98% 98% 99% -2%

Depreciation 41 40 39 36 38 38 37 22 22 23 -44%

Wages 14 13 18 18 21 20 22 17 22 19 27%

Rent 11 10 10 10 10 10 11 12 12 12 17%

Interest 2 1 1 1 1 1 1 1 1 1 -28%


Net margin 128 152 131 153 178 145 147 141 106 114 -13%


payments128 152 131 156 181 147 150 143 112 121

-9%




Net economic margin -1 41 14 35 57 9 28 31 10 13 -1%


coupled payments-1 41 14 38 60 12 30 33 16 20

27%


economic margin 25% 33% 28% 30% 32% 30% 29% 35% 32% 33% 15%


economic margin 58% 71% 63% 69% 71% 63% 63% 67% 64% 58% -2%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 75 674 81 279 82 712 88 011 97 797 103 355 103 640 123 389 119 249 116 350 50%




Depreciation 7 271 7 584 7 632 7 154 7 609 8 287 8 066 5 605 5 707 5 788 -24%



Wages 2 373 2 483 3 485 3 600 4 069 4 173 4 549 4 260 5 654 4 631 74%

Rent 2 066 1 842 1 987 2 001 1 920 2 160 2 212 3 060 3 105 3 036 56%

Interest 359 165 183 189 168 258 279 283 255 178 1%

Balance invest. subs. and taxes 530 124 448 1 082 124 135 29 249 436 300 -11%





(RFL) 16 680 26 669 23 821 26 890 29 557 23 733 25 983 35 850 35 862 34 563 58%


196 217 199 221

250 217 220

195 168 176

204

0

50

100

150

200

250

300

350

400

450

500

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



384 399

384 406

462 447 451 448

422 430 444

255 247 253 250 281 300 301 304 310 309

240

128

152

131

156

181

147 150 143

112 121

0

20

40

60

80

100

120

140

160

180

200

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






384 399

384 406

462 447 451 448

422 430 444 385

358 370 369

402

435 421 414 407 409

240

-1

41

14

38

60

12

30 33

16 20

-10

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



41 40 39 36 38 38 37 22 22 23

90 98 86 95 98 93 94

86 77 85

39 13 31 23

22 43 26

24 20 15

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-50

0

50

100

150

200

250

300

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data LU

Luxembourg Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-

Farms represented 860 861 738 742 743 656 676 679 652 656 -19%


Forage area - ha 68 66 75 75 76 83 81 81 80 80 15%

Dairy cows - LU 42 42 49 52 53 58 61 63 66 66 46%

Rented UAA - % 49% 48% 50% 49% 52% 53% 53% 53% 53% 53% 8%

Total labour - AWU 1.7 1.6 1.8 1.8 1.8 2.0 1.9 1.9 1.9 1.8 9%

Family labour - % 93% 93% 92% 91% 92% 89% 88% 87% 86% 88% -6%


Milk yield - kg/cow 7 155 7 044 7 243 7 220 7 593 7 513 7 199 7 236 7 549 7 587 7 869 4% 10%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 351 374 264 293 326 309 358 369 294 279 341 -5% -3%



Production costs

Feed 65 74 70 72 83 91 98 95 101 101 98 43% 49%

homegrown feed 29 33 35 31 34 35 33 35 36 33 32 7% 12%

purchased feed 37 40 34 41 49 57 65 61 65 67 65 73% 79%

Herd renewal purchases 1 2 2 1 1 1 2 2 2 2 2 -6% 11%

Milk levy 2 2 1 3 0 0 0 16 0 0 0 226% -100%


Specific costs 88 100 93 95 107 115 122 134 129 127 124 39% 41%


Energy (fuel, electricity) 19 23 17 21 23 24 23 23 17 16 16 -7% -14%

Contract work 17 19 17 16 17 18 18 20 16 19 19 6% 10%

Taxes 1 2 1 1 1 1 1 2 1 1 1 -18% -28%




Gross margin 177 178 89 109 128 103 145 138 84 67 136 -35% -23%


payments175 176 88 107 128 103 144 122 84 67 136 -38% -22%


margin 98% 95% 97% 97% 96% 95% 98% 96% 96% 88% -4%


margin 99% 99% 98% 99% 98% 98% 99% 96% 97% 95% -3%

Depreciation 100 106 94 102 98 96 104 101 93 91 -5%

Wages 5 5 5 6 6 7 8 9 9 7 64%

Rent 19 18 17 18 18 18 18 19 16 15 -9%

Interest 19 20 12 11 10 10 12 11 11 10 -37%


Net margin 33 29 -40 -28 -3 -27 3 -2 -44 -56 -553%


payments31 27 -40 -31 -3 -27 3 -18 -44 -56

-761%







-7%


economic margin 8% 18% 0% 2% 9% 4% 9% 9% 2% 1% -53%


economic margin 13% 27% 0% 5% 12% 3% 16% 13% 2% 2% -55%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 103 372 110 011 92 070 96 806 114 922 116 291 130 379 136 412 126 493 121 843 26%




Depreciation 29 421 31 195 32 630 33 394 34 719 36 141 38 480 38 427 40 609 40 384 28%



Wages 1 503 1 504 1 859 2 168 2 061 2 699 2 895 3 418 3 832 3 149 114%

Rent 5 495 5 455 6 019 5 913 6 139 6 653 6 670 7 085 6 892 6 955 23%

Interest 5 623 5 765 3 982 3 669 3 477 3 787 4 266 4 219 4 431 4 137 -17%

Balance invest. subs. and taxes 4 124 3 147 4 864 4 551 2 637 182 1 627 556 7 329 7 402 26%





(RFL) 14 545 20 703 -622 11 575 22 003 14 254 18 675 15 132 19 122 12 429 35%


175 176

88 107

128 103

144 122

84 67

136

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



349 372

263

291

326 309

358 353

294 279

341

318 345

304 321 329 336 355 371 338 335

205

31 27

-40

-31

-3

-27

3

-18

-44

-56

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






349 372

263 291

326 309

358 353

294 279

341

438 427 417 401 398 400

429 447

398 399

205 -89

-55

-154

-111

-72

-91

-72

-94 -104

-120

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



100 106 94 102 98 96 104 101 93 91

66 70

64 67

64 60 65 62

51 56

53 12

50 13 4 3

10 14

9 8

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-200

-150

-100

-50

0

50

100

150

200

-10 000

0

10 000

20 000

30 000

40 000

50 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data NL

Netherlands Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-



Forage area - ha 44 44 48 48 49 53 52 51 50 50 11%

Dairy cows - LU 70 73 80 81 81 91 93 93 91 90 23%

Rented UAA - % 38% 38% 38% 42% 43% 37% 37% 36% 38% 40% 0%

Total labour - AWU 1.6 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.7 1.7 5%

Family labour - % 93% 92% 92% 91% 89% 88% 88% 88% 89% 90% -3%


Milk yield - kg/cow 7 781 7 809 7 898 8 031 8 023 7 961 7 980 8 072 8 192 8 222 7 616 4% -2%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 358 367 282 351 394 372 431 427 351 333 416 10% 16%

Coupled payments (incl. Art.69) 0 0 0 2 0 0 0 0 0 0 0 -7% -


Production costs

Feed 74 95 79 79 99 109 116 129 125 120 120 51% 62%

homegrown feed 12 16 15 13 16 16 16 34 32 28 28 117% 130%

purchased feed 62 79 64 66 83 93 100 95 93 91 92 37% 49%


Milk levy 2 3 2 2 1 0 5 8 0 0 0 14% -100%


Specific costs 103 130 111 112 132 144 155 175 164 157 157 44% 52%



Contract work 20 22 20 21 23 23 24 28 24 25 26 26% 28%

Taxes 1 0 0 1 1 1 1 1 1 1 1 48% 26%




Gross margin 168 145 88 152 168 135 179 147 92 81 163 -21% -3%


payments167 142 86 151 166 134 174 138 92 81 163 -21% -2%


margin 99% 98% 94% 99% 100% 98% 98% 97% 93% 87% -5%


margin 99% 99% 96% 99% 100% 99% 99% 99% 96% 92% -2%

Depreciation 41 45 48 51 53 53 53 50 49 47 10%

Wages 4 5 5 5 6 7 7 7 6 6 35%

Rent 15 15 14 17 17 15 18 19 13 16 7%

Interest 42 46 41 41 42 41 37 35 32 30 -25%


Net margin 67 34 -20 37 49 19 64 36 -9 -17 -88%


payments65 31 -23 37 47 18 58 27 -9 -17

-99%







-17%


economic margin 32% 14% 4% 18% 26% 17% 36% 20% 9% 6% -29%


economic margin 42% 20% 6% 26% 36% 24% 46% 26% 11% 8% -34%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 150 157 153 059 130 057 163 905 181 792 185 732 215 127 217 035 188 023 177 893 35%




Depreciation 17 320 19 099 22 385 24 203 24 814 26 821 26 907 24 846 25 343 24 168 26%



Wages 1 889 2 071 2 386 2 373 2 916 3 594 3 527 3 468 3 257 2 901 52%

Rent 6 174 6 320 6 757 7 853 8 016 7 581 8 775 9 320 6 644 7 992 24%

Interest 17 483 19 163 19 141 19 258 19 530 20 073 18 473 16 769 16 330 14 851 -14%

Balance invest. subs. and taxes -1 538 -1 664 -766 -607 -996 -696 324 -278 2 320 1 221 182%





(RFL) 22 145 13 203 -3 471 12 523 21 999 16 247 26 113 -250 1 602 6 927 -74%


167

142

86

151 166 134

174 138

92 81

163

0

50

100

150

200

250

300

350

400

450

500

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



356 364

279

351

392 372

426 419

351 333

416

291 332

302 314 345 354 367

392 360 351

253

65

31

-23

37

47

18

58

27

-9

-17

-30

-20

-10

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






356 364

279

351

392 372

426 419

351 333

416

390

433 399

424 436 433 456

499

433 430

253

-34

-69

-120

-73

-43

-61

-30

-80 -83

-96

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



41 45 48 51 53 53 53 50 49 47

72 80

71 72 71 65 65 66

66 68

27 21

26 38 19

15 24 41

8 11

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

150

200

-10 000

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data AT

Austria Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000 -



Forage area - ha 26 26 28 26 26 28 28 24 24 24 -10%

Dairy cows - LU 16 15 17 16 16 18 18 18 18 18 14%

Rented UAA - % 26% 26% 25% 25% 24% 28% 29% 32% 31% 31% 22%

Total labour - AWU 1.6 1.6 1.6 1.6 1.5 1.6 1.6 1.8 1.8 1.8 11%

Family labour - % 98% 98% 98% 98% 97% 98% 97% 98% 98% 98% 0%


Milk yield - kg/cow 6 457 6 582 6 398 6 372 6 609 6 826 6 768 6 861 6 727 6 912 7 200 5% 12%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 330 388 294 313 349 339 366 396 343 325 375 5% 13%



Production costs

Feed 80 89 78 80 92 95 107 104 100 95 93 21% 17%

homegrown feed 33 33 29 30 31 32 33 34 34 32 31 5% -6%

purchased feed 47 57 49 50 61 64 73 70 66 64 62 31% 32%


Milk levy 6 6 2 0 1 8 6 6 0 0 0 -58% -100%


Specific costs 109 123 105 107 121 133 143 140 131 127 125 18% 15%



Contract work 13 17 14 15 16 16 17 20 17 19 19 23% 41%

Taxes 0 0 0 0 0 0 0 0 6 0 0 2109% -78%




Gross margin 125 151 89 99 118 99 110 141 98 93 148 -9% 18%


payments119 145 87 106 121 96 109 139 98 94 149 -6% 25%


margin 90% 96% 86% 89% 88% 85% 88% 91% 84% 82% -5%


margin 96% 98% 93% 96% 97% 93% 94% 97% 93% 94% -1%

Depreciation 75 84 86 88 88 88 94 90 89 89 9%

Wages 2 2 2 2 2 2 3 2 2 2 11%

Rent 6 7 7 7 7 8 8 9 8 8 26%

Interest 9 13 9 7 7 7 6 6 6 5 -45%


Net margin 33 45 -16 -4 15 -5 -1 33 -7 -11 -76%


payments28 39 -18 2 18 -8 -2 32 -7 -10

-71%



Imputed family factors 191 173 207 180 142 152 160 191 193 200 2%




-9%


economic margin 2% 7% 0% 1% 6% 3% 3% 5% 1% 1% -26%


economic margin 6% 16% 1% 3% 15% 7% 9% 12% 3% 3% -26%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 36 519 40 173 33 898 36 069 41 723 44 522 46 599 43 851 39 856 38 658 11%




Depreciation 8 619 9 042 10 305 10 261 10 717 11 889 12 389 10 205 10 436 10 704 12%


External factors 1 841 2 268 2 112 1 830 1 800 2 150 2 145 1 904 1 837 1 782 -11%

Wages 208 225 283 290 239 237 358 274 284 258 14%

Rent 687 726 771 761 788 989 1 034 965 931 904 28%

Interest 946 1 317 1 058 779 773 924 753 665 622 621 -43%

Balance invest. subs. and taxes -1 313 -76 -197 139 1 416 922 1 034 -1 600 -2 021 -1 494 -223%



Own capital unpaid cost 9 398 4 006 9 742 5 531 1 981 2 446 2 631 1 906 2 149 910 -79%


(RFL) 5 093 10 037 2 406 7 108 11 425 8 979 9 502 7 744 4 697 6 008 5%


119 145

87 106 121

96 109

139

98 94 149

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



325

383

292

320

353 336

365

394

343 326

375

297 344

310 318 334 344 367 362 350 336

227

28

39

-18

2

18

-8

-2

32

-7 -10

-30

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






325

383

292 320

353 336

365 394

343 326

375

488 517 517

498 477

496 527

554 544 536

227

-164

-134

-225

-178

-124

-160 -163 -160

-200 -210

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



75 84 86 88 88 88 94 90 89 89

112

137 129 136 128 135 142

176 176 193

79 36

78 44

14 17

18

16 17 7

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-250

-200

-150

-100

-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data PT

Portugal Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-



Forage area - ha 15 16 16 18 17 20 19 17 18 17 10%

Dairy cows - LU 26 24 27 29 30 34 32 32 34 32 28%

Rented UAA - % 46% 39% 40% 41% 42% 42% 44% 47% 47% 41% 8%

Total labour - AWU 1.9 1.7 1.7 1.8 1.7 1.8 1.8 1.7 1.8 1.7 -3%

Family labour - % 83% 85% 86% 86% 86% 82% 82% 81% 79% 79% -6%


Milk yield - kg/cow 6 812 6 784 7 032 7 097 7 181 7 366 7 271 7 542 7 727 7 651 7 676 11% 13%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 307 345 280 273 293 290 310 328 281 261 279 -7% -9%



Production costs

Feed 118 136 116 118 132 142 144 185 165 166 169 39% 43%

homegrown feed 20 24 21 20 22 23 23 65 60 65 66 190% 226%

purchased feed 98 112 95 98 109 119 121 120 105 101 103 7% 6%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -

Other specific costs 23 22 23 22 23 23 22 23 9 24 24 -18% 2%

Specific costs 151 162 143 144 158 168 170 211 177 191 194 27% 29%



Contract work 3 4 5 4 4 5 5 6 7 8 8 71% 127%

Taxes 2 2 1 2 1 2 3 3 3 2 2 60% 24%




Gross margin 112 137 95 85 91 77 91 66 55 23 37 -58% -67%


payments124 154 113 106 111 98 111 87 81 55 69 -43% -44%


margin 95% 99% 91% 98% 93% 97% 96% 84% 80% 79% -15%


margin 100% 100% 99% 99% 98% 99% 99% 88% 87% 76% -16%

Depreciation 32 27 25 23 23 22 24 23 22 23 -20%

Wages 10 9 8 9 8 10 11 11 12 13 32%

Rent 6 6 6 6 6 5 6 6 6 6 -1%

Interest 4 2 3 2 2 2 1 1 2 1 -55%


Net margin 61 92 53 45 53 38 48 25 13 -19 -91%


payments73 109 71 66 73 59 69 46 39 13

-62%




Net economic margin -6 32 -12 -17 -17 -29 -18 -30 -37 -70 -1157%


coupled payments6 49 6 3 3 -8 3 -9 -11 -39

-198%


economic margin 36% 44% 33% 28% 29% 25% 30% 32% 27% 17% -33%


economic margin 58% 73% 48% 40% 48% 35% 44% 37% 29% 19% -53%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 34 975 40 501 39 723 40 528 46 295 52 217 52 636 59 135 53 849 52 389 44%




Depreciation 3 427 3 009 3 260 3 118 3 299 3 588 3 748 3 717 3 868 3 965 19%



Wages 1 009 995 1 003 1 169 1 123 1 622 1 730 1 799 2 057 2 142 99%

Rent 633 712 830 851 830 867 974 933 1 094 1 010 40%

Interest 350 257 313 232 257 285 172 228 274 172 -27%

Balance invest. subs. and taxes 166 178 205 401 914 1 448 990 769 1 206 255 306%





(RFL) 6 815 10 446 8 195 8 317 8 898 9 056 9 914 13 938 14 237 11 005 54%


124 154

113 106 111 98 111

87 81

55 69

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



319

362

298 294 313 312

331 349

307 293

311

246 254 227 228 241 253 262

304 268 280

241

73

109

71 66

73

59

69

46 39

13

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






319

362

298 294 313 312

331 349

307 293

311

313 314 292 290

310 320 328

359

318 332

241

6

49

6 3 3

-8

3

-9 -11

-39

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



32 27 25 23 23 22 24 23 22 23

50 50

47 47 46 41 43 40 41 40

17

10 19 15 24

27 23

15 9 12

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data FI

Finland Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-



Forage area - ha 31 31 35 38 40 42 41 44 45 43 36%

Dairy cows - LU 25 25 29 30 31 33 33 36 36 35 34%

Rented UAA - % 35% 34% 35% 36% 36% 36% 37% 37% 38% 37% 6%

Total labour - AWU 2.1 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.0 2.1 1%

Family labour - % 90% 90% 88% 86% 85% 83% 82% 82% 84% 85% -6%


Milk yield - kg/cow 8 602 8 472 8 544 8 572 8 711 8 685 8 721 8 830 8 824 9 063 8 819 4% 3%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 360 438 390 376 411 434 441 444 374 367 375 0% 4%



Production costs

Feed 109 125 116 107 126 139 148 135 133 128 130 13% 19%

homegrown feed 35 38 37 33 40 44 44 39 39 36 36 4% 4%

purchased feed 74 87 79 74 86 95 103 96 94 92 94 17% 27%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 142 159 153 144 163 180 187 175 173 164 167 13% 18%



Contract work 24 30 30 32 36 38 40 42 39 38 39 41% 63%

Taxes 0 0 0 0 0 0 0 1 1 1 1 - -




Gross margin 83 121 86 78 80 79 68 65 12 12 14 -69% -83%


payments160 201 166 162 162 162 152 148 98 91 95 -36% -41%


margin 95% 94% 91% 92% 95% 92% 92% 88% 82% 81% -11%


margin 97% 98% 96% 97% 98% 97% 97% 96% 91% 91% -4%

Depreciation 104 119 112 109 108 105 107 105 100 94 -11%

Wages 13 14 18 18 21 22 24 26 21 21 54%

Rent 10 11 11 11 11 13 12 14 14 14 25%

Interest 18 20 16 13 14 14 13 12 12 12 -34%


Net margin -63 -43 -71 -73 -73 -74 -88 -91 -135 -129 -101%


payments15 36 9 12 9 9 -4 -9 -49 -49

-278%







-6%


economic margin 0% 0% 0% 0% 0% 1% 0% 0% 0% 1% 435%


economic margin 0% 1% 0% 0% 0% 2% 1% 1% 0% 1% 145%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 46 534 56 452 55 806 58 281 66 212 85 931 85 065 93 341 86 043 81 399 64%




Depreciation 13 427 15 545 16 210 16 833 17 374 17 570 17 435 18 818 18 941 17 433 22%



Wages 1 693 1 841 2 568 2 892 3 391 3 727 3 970 4 723 4 070 4 027 110%

Rent 1 421 1 542 1 706 1 831 1 938 2 228 2 076 2 566 2 705 2 617 69%

Interest 2 279 2 616 2 330 1 970 2 223 2 328 2 092 2 005 2 126 2 242 -12%

Balance invest. subs. and taxes 652 844 959 1 017 1 025 1 014 1 011 1 157 1 118 1 034 35%





(RFL) 6 833 10 880 8 117 11 008 11 330 14 093 11 960 11 836 5 541 6 299 -8%


160 201

166 162 162 162 152 148

98 91

95

0

100

200

300

400

500

600

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



438

518

470 460 493

518 525 526

460 447 456

423 481 461 448

484 508 529 535 509 496

361

15

36

9 12 9 9

-4 -9

-49 -49

-60

-50

-40

-30

-20

-10

0

10

20

30

40

50

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






438

518

470 460 493

518 525 526

460 447 456

647

704 677

648 663 670 698 711

683 677

361

-209

-186

-206

-188

-170

-152

-173 -185

-223 -230

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



104 119 112 109 108 105 107 105 100 94

177

196 180

170 159 152 158 158 151 165

46

26 35

29 20

9 11 18 23 16

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-300

-250

-200

-150

-100

-50

0

50

100

150

200

250

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data SE

Sweden Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-



Forage area - ha 70 71 82 78 87 100 102 105 108 112 45%

Dairy cows - LU 52 54 66 58 63 76 78 78 81 84 41%

Rented UAA - % 59% 59% 58% 59% 61% 62% 61% 61% 62% 63% 6%

Total labour - AWU 2.1 2.1 2.3 2.1 2.2 2.5 2.5 2.5 2.5 2.6 17%

Family labour - % 76% 76% 72% 74% 74% 68% 69% 68% 68% 68% -9%


Milk yield - kg/cow 8 361 8 436 8 098 8 352 8 542 8 469 8 578 8 817 9 101 9 039 8 822 8% 6%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 322 359 272 356 386 373 410 397 330 324 408 10% 26%

Coupled payments (incl. Art.69) 0 0 0 0 7 9 9 8 18 19 19 24836% -


Production costs

Feed 107 128 103 105 130 140 143 155 133 129 134 23% 25%

homegrown feed 26 32 26 23 31 32 33 42 31 30 31 23% 20%

purchased feed 81 96 78 83 99 109 110 113 102 98 102 23% 27%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 132 153 134 144 171 184 184 198 170 163 169 27% 28%



Contract work 36 35 19 23 25 26 27 27 24 24 25 -17% -31%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%




Gross margin 89 101 56 109 103 79 111 83 60 62 138 -17% 55%


payments89 101 57 109 109 88 120 91 78 81 157 2% 77%


margin 90% 93% 80% 89% 89% 84% 91% 86% 86% 84% -3%


margin 96% 95% 91% 95% 94% 94% 98% 94% 94% 95% 0%

Depreciation 47 41 41 50 55 57 57 62 51 49 26%

Wages 25 25 27 29 31 35 36 35 31 32 27%

Rent 12 11 11 14 15 16 17 17 15 15 37%

Interest 17 21 15 15 23 25 24 16 12 12 -25%


Net margin -13 3 -37 1 -21 -55 -22 -47 -48 -46 -206%


payments-13 3 -37 1 -14 -46 -13 -39 -30 -27

-110%







1%


economic margin 1% 6% 1% 5% 3% 0% 3% 1% 1% 1% -58%


economic margin 3% 11% 1% 12% 8% 1% 7% 1% 4% 4% -38%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 102 857 116 805 98 227 121 822 146 592 166 074 178 415 173 145 157 198 167 407 57%




Depreciation 13 979 12 667 13 383 15 756 18 428 20 914 20 841 22 519 21 659 21 286 64%



Wages 7 529 7 822 8 726 9 097 10 141 13 037 13 165 12 686 12 825 13 270 61%

Rent 3 865 3 560 3 726 4 386 5 140 6 110 6 387 6 380 6 190 6 538 71%

Interest 5 045 6 399 4 894 4 578 7 564 9 355 8 813 5 551 4 880 5 213 -4%

Balance invest. subs. and taxes 0 0 340 0 0 0 0 0 0 240 -30%





(RFL) 9 798 19 248 3 933 15 891 14 077 5 552 12 308 7 906 12 239 18 104 16%


89 101

57

109 109 88

120 91 78 81

157

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



322

359

273

356

393 382

419 405

348 343

427

335 356 310

355 407 428 432 444

378 370

270

-13

3

-37

1

-14

-46

-13

-39

-30 -27

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






322

359

273

356

393 382

419 405

348 343

427

459 463

400

463

515 527 539 549

461 450

270

-137

-103

-127

-107

-122

-145

-120

-145

-113 -107

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



47 41 41 50 55 57 57 62 51 49

109 104 85

101 102

96 97 95

80 78

16 3

5

7 6 4 10 10

3 2

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-200

-150

-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data UK

United Kingdom Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000

500-

<1000200-<500 200-<500

-



Forage area - ha 94 92 101 99 101 105 107 106 107 109 12%

Dairy cows - LU 112 109 116 117 119 125 129 131 133 130 17%

Rented UAA - % 41% 39% 43% 44% 40% 41% 42% 43% 42% 42% 3%

Total labour - AWU 2.5 2.5 2.6 2.6 2.6 2.8 2.7 2.8 2.8 2.7 10%

Family labour - % 65% 66% 63% 64% 63% 60% 60% 60% 59% 61% -7%


Milk yield - kg/cow 7 066 7 013 7 013 7 425 7 432 7 239 7 368 7 324 7 296 7 152 7 458 3% 6%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 315 311 262 286 315 341 373 385 307 285 348 10% 10%



Production costs

Feed 97 107 95 99 109 137 139 146 124 111 112 28% 16%

homegrown feed 22 24 22 22 24 28 27 34 32 28 28 36% 25%

purchased feed 74 83 72 78 85 110 112 112 92 84 84 25% 13%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 130 138 126 133 144 178 177 188 163 149 146 27% 13%



Contract work 15 16 14 14 15 16 18 20 17 17 15 17% -2%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -18% -76%




Gross margin 121 109 79 96 116 102 134 114 74 68 137 -17% 13%


payments121 109 79 96 116 102 134 114 74 69 137 -17% 14%


margin 99% 98% 94% 98% 99% 95% 98% 96% 88% 89% -6%


margin 100% 99% 97% 99% 100% 98% 100% 97% 91% 93% -5%

Depreciation 28 29 27 30 31 36 37 39 36 31 25%

Wages 22 20 20 20 21 25 25 26 25 24 19%

Rent 9 8 8 8 8 9 9 11 10 10 26%

Interest 11 9 5 5 6 7 7 8 7 7 -13%


Net margin 50 44 19 33 50 25 57 31 -4 -3 -78%


payments50 44 19 33 50 25 57 31 -4 -3

-78%




Net economic margin -20 -8 -28 -13 8 -21 11 -22 -59 -53 -140%


coupled payments-20 -8 -28 -13 8 -21 11 -22 -59 -52

-139%


economic margin 26% 37% 19% 27% 49% 27% 49% 32% 11% 10% -35%


economic margin 41% 48% 33% 39% 64% 40% 65% 40% 19% 19% -37%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 129 114 130 444 117 441 135 024 146 998 154 889 171 433 173 729 150 221 142 179 24%




Depreciation 11 462 11 289 11 491 13 244 13 787 15 439 15 880 16 533 16 210 14 285 37%



Wages 9 194 8 150 8 680 8 878 9 335 10 850 10 680 10 912 11 257 10 862 27%

Rent 3 870 3 023 3 216 3 532 3 381 3 671 3 987 4 506 4 599 4 551 35%

Interest 4 484 3 361 2 086 2 083 2 650 2 935 3 066 3 221 3 059 3 184 -5%

Balance invest. subs. and taxes 638 589 1 432 535 875 1 040 909 1 336 410 386 -20%





(RFL) 21 917 22 935 16 815 23 284 31 685 20 801 31 667 20 151 5 388 12 063 -39%


121 109

79 96

116 102

134 114

74 69

137

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



315 311

262 286

315 341

373 385

307 285

348

265 267 243 253 265

315 317 353

311 288

211

50

44

19

33

50

25

57

31

-4 -3

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






315 311

262 286

315 341

373 385

307 285

348

335 318

290 299 307

361 362

407

366

337

211 -20

-8

-28

-13

8

-21

11

-22

-59

-52

-70

-60

-50

-40

-30

-20

-10

0

10

20

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



28 29 27 30 31 36 37 39 36 31

48 43

37 38 38

41 38 43

40 39

22

9

10 8 5

5 7

10 15

10

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-100

-50

0

50

100

150

0

10 000

20 000

30 000

40 000

50 000

60 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data CZ

Czech Republic Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007


<500

200-

<500

200-

<500

200-

<500

200-

<500200-<500

200-

<500200-<500 100-<200

-



Forage area - ha 209 217 234 250 252 216 234 220 303 265 19%

Dairy cows - LU 108 113 127 136 138 119 125 125 172 154 30%

Rented UAA - % 90% 90% 89% 90% 89% 88% 86% 85% 85% 84% -5%

Total labour - AWU 14.0 13.9 15.1 16.6 16.0 13.6 14.2 13.8 18.7 15.7 12%

Family labour - % 10% 9% 8% 8% 8% 10% 10% 10% 7% 9% -6%


Milk yield - kg/cow 6 288 6 402 6 479 6 621 6 814 7 095 7 062 7 396 7 716 7 699 8 171 19% 30%

Milk production - t 677 721 825 899 942 842 881 924 1 327 1 188 1 267 55% 87%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 301 331 241 294 335 310 333 336 287 258 304 1% 1%



Production costs

Feed 102 111 93 101 112 110 115 144 144 143 137 40% 33%

homegrown feed 43 52 46 48 54 54 56 84 82 80 76 74% 77%

purchased feed 59 59 47 54 59 56 58 60 63 63 60 12% 2%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 124 136 116 125 138 137 141 169 168 167 160 34% 29%



Contract work 14 16 11 12 11 9 9 8 6 6 5 -51% -61%

Taxes 1 1 1 1 1 1 1 0 0 0 0 -63% -74%




Gross margin 72 72 29 56 74 60 66 56 28 7 66 -47% -9%


payments72 72 29 70 88 68 74 69 45 24 82 -20% 14%


margin 93% 90% 72% 87% 94% 89% 92% 92% 79% 73% -4%


margin 95% 91% 74% 92% 96% 93% 90% 89% 80% 66% -9%

Depreciation 32 37 34 38 38 36 43 41 41 39 17%

Wages 83 95 79 95 96 88 92 86 83 77 -5%

Rent 7 8 8 10 10 9 11 12 13 13 68%

Interest 4 6 5 6 6 6 7 6 5 5 0%


Net margin -55 -75 -97 -94 -76 -78 -86 -88 -114 -127 -45%


payments-55 -75 -97 -80 -62 -71 -79 -75 -96 -110

-24%







-2%


economic margin 11% 8% 4% 4% 9% 10% 9% 8% 8% 4% -11%


economic margin 7% 5% 2% 2% 5% 7% 4% 4% 3% 2% -27%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 32 287 37 994 30 153 35 618 44 241 43 258 44 994 52 451 48 931 48 292 49%




Depreciation 3 037 3 733 3 685 3 981 4 402 4 500 5 326 5 619 6 172 6 306 73%



Wages 8 127 9 977 8 791 10 189 11 330 11 109 11 416 12 075 12 629 12 732 39%

Rent 667 886 848 1 098 1 209 1 130 1 350 1 643 2 016 2 190 144%

Interest 407 615 533 645 709 769 894 780 693 737 42%

Balance invest. subs. and taxes 377 256 381 797 996 783 541 911 1 223 0 110%

Farm net income (FNI) 3 731 2 264 256 2 551 5 218 3 802 4 601 7 989 3 621 3 412 140%


Own capital unpaid cost 24 853 55 35 053 23 472 11 316 150 4 297 4 560 2 886 687 -86%


(RFL) 14 655 17 656 8 879 17 083 24 504 18 927 18 586 23 605 27 885 20 720 75%


72 72

29

70 88

68 74 69 45

24 82

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



301

331

241

309

348

317 341 349

305

275

320

356 406

338 388

410 388

419 423 401 385

238

-55

-75

-97

-80

-62

-71

-79 -75

-96

-110

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






301 331

241

309

348

317 341 349

305 275

320

394 419

375

417 431

403

437 440 412

397

238

-93 -87

-134

-108

-83 -85

-97 -91

-107

-122

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



32 37 34 38 38 36 43 41 41 39

12

13

11

11 13 14

14 13 9

12

26 0

26

17 8

0

4 3

1 0

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

0

5 000

10 000

15 000

20 000

25 000

30 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data EE

Estonia Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200-

Farms represented 1 338 1 356 1 048 1 219 1 174 860 999 901 1 128 982 -20%


Forage area - ha 146 145 173 169 178 229 199 203 154 174 14%

Dairy cows - LU 61 61 78 77 81 105 103 108 84 99 45%

Rented UAA - % 66% 61% 62% 64% 64% 65% 62% 61% 59% 63% -3%

Total labour - AWU 5.9 5.5 6.5 5.5 5.8 6.9 6.6 6.6 5.0 5.4 -5%

Family labour - % 25% 25% 21% 21% 19% 14% 14% 15% 19% 16% -30%


Milk yield - kg/cow 6 798 7 288 7 308 7 323 7 445 7 806 8 132 8 372 8 582 8 981 9 161 21% 35%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 265 282 207 269 313 294 331 325 232 233 307 5% 16%



Production costs

Feed 98 109 80 93 114 120 131 132 115 116 115 27% 18%

homegrown feed 50 58 49 45 50 54 58 65 50 52 51 6% 3%

purchased feed 48 51 31 48 64 66 72 68 66 64 64 52% 33%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 114 129 96 114 136 143 154 154 134 135 134 25% 18%



Contract work 9 12 6 13 15 15 16 15 12 17 17 65% 87%

Taxes 0 0 0 0 0 0 1 0 1 1 1 372% 443%




Gross margin 91 81 56 80 92 65 85 81 34 30 106 -36% 17%


payments91 81 56 82 94 67 87 83 36 32 109 -33% 20%


margin 83% 80% 77% 92% 84% 81% 85% 88% 73% 70% -4%


margin 94% 91% 95% 97% 96% 90% 93% 94% 83% 76% -9%

Depreciation 29 37 37 38 40 38 41 42 37 38 14%

Wages 53 62 56 58 61 60 65 68 54 55 4%

Rent 2 3 3 5 5 5 6 7 6 7 143%

Interest 9 13 14 8 9 8 7 8 6 6 -46%


Net margin -3 -33 -54 -29 -23 -46 -34 -43 -68 -77 -109%


payments-3 -33 -54 -27 -21 -44 -32 -41 -66 -74

-102%







-41%


economic margin 11% 9% 2% 9% 12% 8% 11% 7% 1% 1% -59%


economic margin 21% 17% 1% 12% 24% 16% 18% 11% 1% 0% -69%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 34 426 39 706 34 559 45 392 54 848 64 582 71 955 74 504 66 405 68 164 92%




Depreciation 3 416 4 713 5 121 5 547 6 327 7 146 7 857 8 325 8 814 9 295 100%



Wages 6 127 7 773 7 713 8 363 9 494 11 507 12 585 13 803 13 159 13 857 89%

Rent 290 336 465 688 724 947 1 267 1 461 1 529 1 895 348%

Interest 1 036 1 681 1 935 1 247 1 399 1 502 1 364 1 509 1 379 1 438 -7%

Balance invest. subs. and taxes 397 2 401 1 761 1 200 2 204 3 098 1 646 106 303 305 -84%

Farm net income (FNI) 7 416 6 161 1 640 7 577 10 224 9 198 7 067 1 651 149 -6 181 -129%


Own capital unpaid cost 8 339 10 11 273 3 418 366 1 278 2 738 15 800 14 313 19 803 154%


(RFL) 9 059 13 409 4 097 15 451 21 994 29 408 24 874 8 552 -1 782 -15 702 -134%


91 81

56

82 94

67 87 83

36 32

109

0

50

100

150

200

250

300

350

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



265 282

207

271

315 296

332 327

234 235

310

268 315

261 297

337 340 364 368

300 310

201

-3

-33

-54

-27

-21

-44

-32

-41

-66

-74

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






265 282

207

271

315 296

332 327

234 235

310

306

336

293 318

351 351 377

392

325 334

201

-40

-54

-86

-47

-36

-55

-45

-65

-91

-99

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



29 37 37 38 40 38 41 42 37 38

19

21 15 15

14 10

11 12

14 11

19

0 17 5 0

1

2

12

11 13

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

150

-20 000

-15 000

-10 000

-5 000

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data HU

Hungary Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 100-<200 100-<200 100-<200 100-<200 40-<100 100-<200 100-<200 100-<200 100-<200 100-<200-



Forage area - ha 76 54 40 62 92 54 49 51 45 38 -21%

Dairy cows - LU 71 52 32 56 76 47 43 50 45 41 -12%

Rented UAA - % 88% 85% 75% 85% 89% 83% 84% 88% 81% 83% 2%

Total labour - AWU 7.2 5.3 3.0 5.0 7.1 4.1 3.9 4.5 3.8 3.2 -26%

Family labour - % 12% 18% 32% 19% 15% 21% 24% 20% 24% 29% 19%


Milk yield - kg/cow 6 934 6 750 6 556 7 073 7 148 7 139 6 797 7 218 7 079 7 087 7 079 6% 2%

Milk production - t 490 349 209 395 544 334 296 361 317 289 289 -8% -41%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 292 335 231 265 309 305 332 354 281 262 325 4% 11%



Production costs

Feed 100 118 106 116 146 160 157 181 165 170 131 59% 31%

homegrown feed 43 42 36 33 45 53 48 79 78 74 57 90% 33%

purchased feed 57 76 70 82 101 108 109 102 86 96 74 40% 30%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 168 170 121 134 170 195 190 211 192 203 160 32% -5%



Contract work 9 12 10 9 8 7 10 12 10 10 8 3% -4%

Taxes 3 3 2 2 4 2 4 4 3 3 3 43% 7%




Gross margin 41 64 34 43 40 25 38 40 5 -19 88 -81% 114%


payments41 64 34 59 68 46 65 66 45 21 127 -6% 211%


margin 84% 89% 66% 58% 81% 77% 80% 86% 75% 82% 2%


margin 94% 89% 80% 87% 87% 71% 84% 75% 73% 54% -23%

Depreciation 22 24 21 25 29 26 31 29 27 22 17%

Wages 63 66 51 56 61 57 67 73 62 55 5%

Rent 12 13 10 16 18 15 18 18 15 13 35%

Interest 10 12 8 7 11 9 8 5 3 3 -65%


Net margin -66 -51 -57 -60 -78 -83 -85 -85 -102 -112 -73%


payments-66 -51 -57 -45 -50 -62 -58 -59 -62 -73

-12%







-18%


economic margin 5% 23% 2% 8% 19% 11% 11% 15% 12% 12% 29%


economic margin 6% 20% 4% 20% 8% 13% 9% 11% 7% 8% -14%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 44 759 46 404 31 358 40 293 51 126 50 634 49 451 52 974 48 831 49 091 23%




Depreciation 3 186 3 080 2 572 3 480 4 449 3 967 4 247 4 034 4 280 3 700 36%



Wages 9 238 8 677 6 001 7 621 9 126 8 878 9 168 10 075 9 532 9 011 20%

Rent 1 598 1 603 1 254 2 170 2 661 2 446 2 486 2 548 2 293 2 231 59%

Interest 1 540 1 617 887 994 1 601 1 453 1 068 742 455 452 -59%

Balance invest. subs. and taxes 192 445 697 566 810 445 430 1 514 723 -7 67%





(RFL) 9 468 10 152 6 169 15 141 22 820 21 330 15 365 22 097 18 432 21 754 142%


41 64

34

59 68 46

65 66 45

21

127

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



292

335

231

280

337 326

359 379

321 302

365

358 386

288 325

387 388 417 439

383 375

237

-66

-51

-57

-45

-50

-62 -58 -59

-62

-73

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






292

335

231

280

337 326

359 379

321 302

365

377 404

322 343

404 406

451 473

414 404

237

-84

-69

-91

-63 -67

-81

-91 -94 -93

-102

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



22 24 21 25 29 26 31 29 27 22

8

14

19 11

9 13

18 14

15

18

11

4

15 7

8 6

16 20

16

11

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-120

-100

-80

-60

-40

-20

0

20

40

60

80

0

5 000

10 000

15 000

20 000

25 000

30 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data LT

Lithuania Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-



Forage area - ha 21 22 24 23 22 23 25 23 23 23 2%

Dairy cows - LU 10 11 14 12 11 11 12 11 12 11 -3%

Rented UAA - % 53% 52% 60% 55% 51% 51% 46% 45% 44% 45% -19%

Total labour - AWU 1.9 1.8 2.0 1.9 1.8 1.8 1.8 1.8 1.8 1.7 -7%

Family labour - % 85% 84% 74% 82% 81% 84% 84% 83% 84% 85% 3%


Milk yield - kg/cow 5 134 5 103 5 408 5 437 5 482 5 482 5 618 5 779 5 710 5 840 5 522 11% 8%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 241 241 195 247 276 258 304 275 214 214 297 4% 24%



Production costs

Feed 59 66 65 64 71 72 80 82 81 76 78 27% 33%

homegrown feed 37 41 43 41 41 46 47 52 48 47 48 21% 29%

purchased feed 21 25 22 23 30 26 33 30 33 29 30 37% 41%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 69 74 74 73 86 88 100 99 98 96 99 36% 44%



Contract work 3 2 1 1 1 2 1 2 4 2 3 33% -17%

Taxes 0 0 1 0 0 0 0 0 0 0 0 -94% -93%




Gross margin 123 112 75 119 130 111 139 108 58 58 138 -28% 13%


payments123 112 75 119 130 111 139 117 88 101 182 -1% 48%


margin 100% 95% 91% 94% 94% 88% 87% 95% 87% 88% -6%


margin 100% 98% 97% 98% 98% 97% 97% 96% 95% 97% -2%

Depreciation 31 38 39 49 53 57 62 69 59 79 93%

Wages 12 15 20 16 17 13 16 21 18 18 20%

Rent 4 4 5 5 5 5 6 6 7 8 59%

Interest 5 6 7 4 4 4 4 4 3 3 -47%


Net margin 71 48 5 45 50 32 51 8 -29 -50 -157%


payments71 48 5 45 50 32 51 17 2 -7

-91%







-119%


economic margin 17% 13% 2% 10% 13% 10% 11% 5% 2% 2% -70%


economic margin 50% 45% 6% 44% 48% 46% 49% 22% 10% 11% -57%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 12 773 14 835 15 051 16 109 17 795 17 612 19 603 17 919 16 521 16 061 18%



Decoupled payments 952 1 327 1 731 1 927 2 052 2 245 2 612 2 112 2 427 2 648 79%

Depreciation 1 554 2 099 2 523 2 839 3 062 3 304 3 523 3 896 3 656 4 861 101%



Wages 640 937 1 470 951 1 028 839 949 1 201 1 168 1 171 16%

Rent 199 265 335 309 313 320 369 383 444 506 67%

Interest 225 333 436 232 229 234 197 195 153 199 -45%

Balance invest. subs. and taxes 620 862 1 750 1 681 1 101 1 229 449 864 781 1 679 3%





(RFL) 3 706 4 944 2 650 4 924 5 202 4 501 4 406 3 169 2 855 3 445 -16%


123 112

75

119 130 111

139 117

88 101

182

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



241 241

195

247

276 258

304 284

244 257

341

170 193 190 202

227 227 253 267

242 264

159

71

48

5

45 50

32

51

17

2

-7

-20

-10

0

10

20

30

40

50

60

70

80

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






241 241

195

247

276 258

304 284

244 257

341

267 281

298 301 309 319

361 386

362

408

159

-26

-40

-103

-54

-33

-61 -57

-102

-118

-151

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



31 38 39 49 53 57 62 69 59 79

77

89 62 76 75 81

90 101

104

126

20 0 45 24 8

11

18

18 16

18

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-200

-150

-100

-50

0

50

100

150

200

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data LV

Latvia Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-

Farms represented 8 503 8 554 8 382 9 657 8 966 8 205 8 470 8 924 8 614 8 209 1%


Forage area - ha 39 41 42 40 42 45 44 42 41 40 1%

Dairy cows - LU 14 15 16 15 16 17 18 17 17 18 16%

Rented UAA - % 42% 41% 44% 43% 44% 45% 45% 46% 45% 43% 6%

Total labour - AWU 2.3 2.2 2.1 2.1 2.2 2.3 2.3 2.2 2.1 2.1 -4%

Family labour - % 71% 69% 67% 72% 69% 66% 65% 65% 64% 64% -6%


Milk yield - kg/cow 5 234 5 253 5 374 5 504 5 549 5 853 5 939 6 283 6 132 6 453 6 296 19% 20%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 263 263 182 236 279 269 293 276 215 214 305 -1% 16%



Production costs

Feed 92 94 73 81 97 106 113 106 95 92 90 13% -3%

homegrown feed 52 50 42 43 46 50 53 51 49 47 46 1% -13%

purchased feed 40 44 31 38 51 56 60 54 47 45 44 28% 11%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 111 115 89 99 116 126 137 127 113 113 111 12% -1%



Contract work 6 7 6 6 6 6 6 6 4 4 4 -27% -29%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%




Gross margin 73 60 22 54 69 52 60 54 23 34 127 -29% 73%


payments82 71 51 66 83 75 84 93 62 57 150 4% 83%


margin 87% 81% 82% 84% 80% 75% 78% 83% 79% 77% -5%


margin 92% 87% 89% 92% 91% 92% 90% 95% 91% 89% 3%

Depreciation 42 47 44 42 45 42 47 45 41 39 -6%

Wages 22 29 26 25 29 31 35 37 33 31 31%

Rent 2 2 2 2 3 3 3 4 3 3 82%

Interest 8 10 7 5 6 5 5 4 3 3 -59%


Net margin -1 -28 -58 -20 -13 -30 -30 -36 -58 -43 -58%


payments8 -16 -28 -8 1 -6 -6 3 -19 -20

5%







10%


economic margin 5% 5% 0% 1% 4% 3% 3% 3% 1% 1% -57%


economic margin 17% 17% 0% 4% 20% 15% 14% 14% 4% 8% -25%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 14 790 15 869 13 986 15 989 19 029 21 021 22 724 21 835 20 912 21 564 44%




Depreciation 2 066 2 457 2 736 2 428 2 689 2 847 3 172 3 053 3 231 3 456 34%



Wages 1 178 1 659 1 669 1 451 1 821 2 223 2 497 2 644 2 750 2 841 83%

Rent 89 114 137 149 186 201 254 267 283 309 153%

Interest 397 495 454 281 346 324 319 245 268 282 -41%




Own capital unpaid cost 1 002 2 2 665 3 197 566 798 1 497 966 672 641 -38%


(RFL) 4 220 4 498 2 225 2 541 4 416 3 444 3 523 4 728 5 106 6 537 50%


82 71

51 66

83 75 84 93

62 57

150

0

50

100

150

200

250

300

350

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



272 275

212

248

294 293

317 315

254 236

328

264 291

240 256 293 299

324 312 273 256

178

8

-16

-28

-8

1

-6 -6

3

-19 -20

-30

-25

-20

-15

-10

-5

0

5

10

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






272 275

212

248

294 293 317 315

254 236

328

349

376

333

363 373 371

408 399

349 328

178 -77

-101

-122 -115

-79 -78

-90 -83

-96 -91

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



42 47 44 42 45 42 47 45 41 39

71

85

65 68 74

64 70 78

71 67

14

0

28 38 6 8

14 9

5 5

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

150

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data MT

Malta Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 -

Farms represented 117 109 102 104 107 101 114 106 128 114 6%


Forage area - ha 5 5 5 4 4 4 4 4 3 4 -32%

Dairy cows - LU 67 71 63 60 56 57 56 58 50 60 -17%

Rented UAA - % 84% 85% 84% 85% 86% 85% 86% 86% 86% 87% 3%

Total labour - AWU 2.6 2.5 2.5 2.5 2.4 2.4 2.6 2.4 2.1 2.3 -11%

Family labour - % 90% 86% 85% 87% 86% 85% 76% 85% 84% 81% -4%


Milk yield - kg/cow 5 783 5 839 5 564 6 198 6 664 6 947 6 649 6 817 6 671 6 916 6 213 19% 7%

Milk production - t 387 417 349 369 371 395 373 393 331 414 394 -1% 2%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 358 449 436 406 463 475 499 459 450 448 495 9% 38%

Coupled payments (incl. Art.69) 34 19 17 7 0 0 0 0 34 31 32 -7% -4%


Production costs

Feed 248 278 283 272 304 307 322 295 298 288 310 9% 25%

homegrown feed 4 3 5 2 2 2 3 11 11 6 7 139% 87%

purchased feed 244 274 278 270 302 305 319 284 288 282 303 7% 24%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 265 295 297 291 328 328 341 316 324 307 330 10% 24%

Machinery and building upkeep 13 19 18 16 18 14 14 13 15 14 14 -16% 10%


Contract work 2 2 2 2 2 2 2 2 2 2 2 11% 32%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%




Gross margin 48 101 82 59 77 87 100 88 70 88 109 6% 128%


payments82 120 99 67 77 87 100 88 104 118 142 3% 73%


margin 85% 91% 79% 69% 83% 82% 90% 79% 77% 86% -5%


margin 91% 92% 85% 77% 84% 84% 96% 87% 88% 91% -1%

Depreciation 15 16 35 21 21 21 22 24 28 27 19%

Wages 7 11 12 10 10 10 14 10 10 12 8%

Rent 1 1 1 1 1 1 2 9 1 2 240%

Interest 4 4 7 6 6 6 5 5 6 4 -1%


Net margin 21 69 27 21 39 49 56 40 25 43 -7%


payments54 88 44 29 39 49 56 40 59 74

-7%




Net economic margin -82 11 -68 -63 -43 -19 -31 -39 -33 -11 40%


coupled payments-48 30 -50 -56 -43 -19 -31 -39 1 19

73%


economic margin 8% 40% 23% 21% 24% 33% 27% 27% 24% 40% 28%


economic margin 12% 60% 36% 37% 40% 49% 39% 40% 46% 54% 29%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 71 488 98 024 78 568 75 126 89 859 95 214 92 276 90 911 86 494 91 922 9%



Decoupled payments 3 304 4 827 6 206 4 654 6 912 7 732 6 999 8 428 283 255 -37%

Depreciation 2 895 3 354 5 687 3 832 3 928 4 183 3 997 4 601 5 543 5 571 32%



Wages 1 356 2 153 2 067 1 734 1 918 2 001 3 006 1 899 1 869 2 330 9%

Rent 274 190 196 224 263 279 338 1 726 280 343 256%

Interest 695 757 1 240 1 087 1 147 1 043 852 958 1 032 883 7%

Balance invest. subs. and taxes 0 1 702 0 8 619 4 506 2 850 1 737 1 777 5 933 347 373%





(RFL) 6 175 16 179 3 729 7 183 7 347 7 606 5 165 6 486 10 075 7 015 -10%


82 120 99

67 77 87 100 88

104 118 142

0

100

200

300

400

500

600

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



391

468 453

414

463 475 499

459 484 479

527

337 379

409 385 424 427 443 419 425 405 386

54

88

44

29

39

49

56

40

59

74

0

10

20

30

40

50

60

70

80

90

100

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






391

468 453

414

463 475 499

459 484 479

527 439 438

503 470

507 495 530

498 483

460

386

-48

30

-50 -56

-43

-19

-31

-39

1

19

-60

-50

-40

-30

-20

-10

0

10

20

30

40

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



15 16 35

21 21 21 22 24 28 27

60 57

67

63 61 59 57

59 56 55

43

1

28

22 21 9

30 20

3 0

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-80

-60

-40

-20

0

20

40

60

80

100

120

140

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data PL

Poland Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000

2000-

<3000 -



Forage area - ha 11 11 11 12 13 13 13 13 14 15 27%

Dairy cows - LU 13 13 14 15 16 16 17 17 18 18 29%

Rented UAA - % 27% 31% 29% 29% 29% 28% 28% 28% 28% 29% -2%

Total labour - AWU 1.8 1.8 1.8 1.8 1.9 1.9 1.9 1.8 1.9 1.9 1%

Family labour - % 95% 94% 95% 94% 94% 96% 96% 96% 96% 96% 2%


Milk yield - kg/cow 5 043 5 145 5 173 5 176 5 266 5 479 5 364 5 412 5 563 5 741 6 072 9% 20%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 279 289 206 260 286 277 309 312 263 245 294 6% 5%



Production costs

Feed 88 100 70 81 96 100 103 101 94 89 85 11% -2%

homegrown feed 55 61 43 47 55 56 57 56 51 47 45 -3% -18%

purchased feed 33 39 27 34 41 44 45 45 43 42 41 33% 24%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -100%


Specific costs 104 117 83 95 111 116 120 117 108 102 98 8% -6%



Contract work 6 8 6 7 6 6 7 9 8 7 7 21% 23%

Taxes 0 0 0 0 0 0 0 0 1 1 1 398% 578%




Gross margin 129 114 77 113 122 108 132 137 103 97 152 5% 18%


payments129 114 77 114 123 109 133 138 116 109 164 13% 27%


margin 97% 92% 89% 97% 96% 90% 93% 95% 95% 95% 3%


margin 99% 97% 96% 99% 99% 97% 97% 98% 98% 99% 1%

Depreciation 35 44 39 41 39 40 47 49 45 40 14%

Wages 5 9 5 7 6 4 4 4 4 4 -35%

Rent 2 3 2 3 3 3 3 4 4 3 46%

Interest 3 3 3 3 3 4 4 3 3 3 5%


Net margin 85 56 27 60 71 58 73 76 48 46 1%


payments85 56 27 61 72 59 75 78 61 58

17%







-2%


economic margin 22% 16% 8% 12% 22% 20% 17% 16% 12% 13% -13%


economic margin 50% 39% 24% 34% 47% 46% 41% 39% 30% 31% -11%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 16 626 17 614 12 900 17 035 20 550 20 205 21 576 21 924 20 197 20 228 32%




Depreciation 2 135 2 681 2 392 2 693 2 848 2 930 3 375 3 478 3 725 3 613 50%



Wages 307 607 358 474 480 273 295 305 339 432 -15%

Rent 143 175 138 172 210 212 231 284 295 301 93%

Interest 144 185 181 199 206 273 271 241 248 230 41%

Balance invest. subs. and taxes -173 -14 -2 111 37 89 176 142 142 144 327%





(RFL) 2 948 3 027 1 877 3 465 4 540 4 012 3 599 3 187 2 398 2 953 9%


129

114

77

114 123 109

133 138

116 109

164

0

50

100

150

200

250

300

350

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



279 289

206

261

287 278

310 314

276 257

306

194 233

179 201 215 219 235 236

216 199

142

85

56

27

61

72

59

75 78

61 58

0

10

20

30

40

50

60

70

80

90

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






279 289

206

261

287 278

310 314

276 257

306

300

335

272

309 306 305

350 362

324

298

142

-21

-46

-66

-48

-20

-27

-40

-48 -48

-40

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



35 44 39 41 39 40 47 49 45 40

62

82

74 79

71 71

80 85 72

67

44

21

20

29

21 16

35 41

36

31

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-100

-50

0

50

100

150

0

2 000

4 000

6 000

8 000

10 000

12 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data SK

Slovakia Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 40-<100 40-<100 40-<100 100-<200 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100-

Farms represented 424 458 341 461 430 437 352 358 301 249 -26%


Forage area - ha 785 773 633 820 788 690 734 722 655 672 -6%

Dairy cows - LU 212 217 189 232 217 194 222 211 205 215 2%

Rented UAA - % 99% 98% 98% 97% 98% 97% 97% 95% 94% 92% -5%

Total labour - AWU 35.6 37.3 27.1 33.1 29.6 26.5 31.4 29.2 26.2 27.0 -18%

Family labour - % 3% 3% 5% 2% 2% 3% 2% 2% 3% 2% -31%


Milk yield - kg/cow 5 852 5 858 5 770 5 618 5 732 6 133 6 303 6 568 6 780 7 150 7 029 17% 20%

Milk production - t 1 238 1 271 1 088 1 303 1 242 1 187 1 397 1 389 1 393 1 536 1 542 20% 25%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 301 312 224 286 334 315 339 356 281 267 296 8% -2%



Production costs

Feed 116 143 111 126 153 148 153 188 169 165 160 41% 38%

homegrown feed 62 76 62 74 95 80 79 119 109 103 100 67% 62%

purchased feed 54 68 50 52 58 67 74 69 60 62 60 12% 11%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 139 166 143 163 190 188 183 223 193 191 186 36% 34%

Machinery and building upkeep 15 19 22 27 24 24 22 21 17 15 16 -5% 3%


Contract work 14 17 19 19 29 29 26 15 13 10 10 -24% -28%

Taxes 2 2 1 2 1 2 2 1 1 1 1 -38% -44%




Gross margin 76 13 -56 -40 -14 -24 21 16 -2 -1 33 -60% -56%


payments76 13 -56 -29 -1 -10 36 46 34 36 70 263% -8%


margin 88% 59% 40% 46% 52% 46% 64% 73% 69% 73% 16%


margin 95% 63% 25% 36% 48% 43% 73% 80% 69% 65% 17%

Depreciation 132 58 74 94 77 60 57 56 49 45 -43%

Wages 97 110 109 130 120 115 124 123 106 101 4%

Rent 6 7 8 10 10 9 11 12 11 9 46%

Interest 7 9 10 11 10 9 6 6 5 4 -39%


Net margin -166 -171 -258 -285 -230 -218 -177 -181 -173 -159 14%


payments-166 -171 -258 -275 -217 -203 -162 -151 -137 -123

31%







33%


economic margin 10% 4% 0% 4% 3% 0% 0% 6% 8% 2% 14%


economic margin 7% 1% 0% 1% 0% 0% 0% 4% 2% 1% -4%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 24 125 24 507 20 332 24 142 33 249 31 516 34 142 39 373 38 317 41 890 73%




Depreciation 9 899 4 076 5 980 6 712 6 525 5 162 4 863 5 193 5 431 5 749 -18%



Wages 7 287 7 831 8 671 9 182 9 958 9 997 10 433 11 170 11 394 12 621 48%

Rent 452 508 672 725 853 826 908 1 126 1 206 1 180 115%

Interest 523 649 794 757 855 806 501 570 561 511 -16%


Farm net income (FNI) -3 322 -2 163 -7 467 -4 702 -2 688 -4 915 -1 607 -350 2 030 5 606 156%


Own capital unpaid cost . . . . . . . . . . .


(RFL). . . . . . . . . . .

%spe.farms with positive RFL . . . . . . . . . . .

76

13

-56

-29 -1 -10

36 46 34 36 70

-100

-50

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



301 312

224

297

347 330

354 386

317 304 332

467 483 483

571 564 533 516 537 454 427

263

-166 -171

-258 -275

-217 -203

-162 -151

-137 -123

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






301 312

224

297

347 330

354 386

317 304 332

508 487 497

583 568 538 524

551

462 433

263 -208

-175

-272 -286

-221 -208

-170 -165

-144 -129

-350

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



132

58 74

94 77

60 57 56 49 45

3

3

5

3

3

4 3 3

3 4

39

1

9

9

1

1 5 10

4 3

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-350

-300

-250

-200

-150

-100

-50

0

50

100

-10 000

-5 000

0

5 000

10 000

15 000

20 000

25 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016



Gross margin with coupled payments Net margin with coupled payments

Net economic margin with coupled payments


EU dairy farms report based on 2016 FADN data SI

Slovenia Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 100-<200 100-<200 100-<200 100-<200-



Forage area - ha 13 11 14 16 16 16 15 14 15 16 17%

Dairy cows - LU 13 12 16 18 19 18 16 16 17 19 25%

Rented UAA - % 40% 38% 43% 44% 43% 43% 42% 40% 40% 41% 0%

Total labour - AWU 1.9 1.8 2.0 2.1 2.1 2.0 1.9 1.8 1.8 1.8 -6%

Family labour - % 99% 99% 99% 99% 99% 98% 99% 100% 99% 100% 1%


Milk yield - kg/cow 5 469 5 247 5 368 5 427 5 519 5 590 5 249 5 123 5 365 5 595 5 687 0% 4%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 277 321 263 271 310 309 328 354 292 258 308 5% 11%



Production costs

Feed 73 94 84 80 100 104 114 124 133 123 118 51% 61%

homegrown feed 19 26 28 25 31 35 36 48 63 62 60 137% 207%

purchased feed 54 68 57 55 69 69 78 76 70 61 58 16% 8%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 97 119 109 104 125 133 142 152 165 151 146 44% 50%



Contract work 5 7 6 6 8 7 8 10 8 8 8 46% 69%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%




Gross margin 117 119 84 89 103 95 98 106 45 35 91 -42% -22%


payments117 119 84 94 109 100 104 111 58 46 102 -33% -12%


margin 94% 95% 86% 92% 91% 93% 88% 93% 78% 69% -13%


margin 98% 97% 96% 97% 97% 96% 95% 97% 82% 83% -10%

Depreciation 72 82 78 82 82 88 100 103 95 91 25%

Wages 2 2 2 1 2 2 2 1 1 0 -66%

Rent 4 5 5 6 6 6 7 7 6 5 19%

Interest 2 3 2 2 2 3 3 3 3 5 44%


Net margin 37 27 -3 -3 12 -3 -13 -8 -59 -66 -319%


payments37 27 -3 3 17 2 -8 -2 -47 -55

-272%







-33%


economic margin 4% 8% 1% 2% 6% 3% 0% 3% 2% 1% -57%


economic margin 14% 28% 5% 8% 15% 7% 5% 7% 6% 1% -70%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 20 459 21 169 22 514 24 675 28 930 29 950 27 353 28 567 29 297 30 815 38%




Depreciation 4 028 4 129 4 979 5 472 5 844 6 591 6 573 7 030 7 394 8 158 72%



Wages 96 78 105 88 103 152 120 33 49 45 -55%

Rent 219 252 337 401 394 430 463 442 438 458 65%

Interest 120 140 134 144 164 221 166 175 283 443 129%

Balance invest. subs. and taxes 110 416 191 1 136 1 129 758 413 255 2 409 -121 255%



Own capital unpaid cost 3 892 72 3 485 2 195 3 359 3 776 4 805 4 107 3 562 2 130 32%


(RFL) 1 397 3 155 924 2 425 2 323 1 909 795 2 016 1 806 1 814 3%


117 119

84 94 109 100 104

111

58 46

102

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



277

321

263 276

315 314 334

359

304

269

319

240

293 266 273

298 313 342

362 351 324

217

37

27

-3 3

17

2

-8 -2

-47

-55 -60

-40

-20

0

20

40

60

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






277

321

263 276

315 314 334

359

304

269

319

414 414 435

419 427 455

522 532

497

438

217 -138

-93

-173

-143

-112

-141

-188

-173

-193

-169

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



72 82 78 82 82 88 100 103 95 91

107 119 117 113

84 94

109 112 100

91

67 1

53 32

46 49

71 59

45

24

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-250

-200

-150

-100

-50

0

50

100

150

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data BG

Bulgaria Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007


<500

200-

<500

200-

<500

200-

<500

200-

<500200-<500

100-

<200200-<500 200-<500

-



Forage area - ha 3 5 9 8 8 6 8 9 7 7 32%

Dairy cows - LU 7 9 13 12 13 13 15 16 16 14 56%

Rented UAA - % 63% 72% 79% 81% 82% 83% 81% 79% 77% 84% 13%

Total labour - AWU 1.8 2.0 2.3 2.1 2.2 2.1 2.1 2.0 2.1 1.9 -3%

Family labour - % 80% 68% 61% 64% 67% 66% 61% 63% 70% 74% -1%

Milk per ha fodder area - t/ha 8.9 6.3 5.4 4.9 5.1 6.3 5.4 5.9 6.2 6.1 -12%

Milk yield - kg/cow 3 852 3 780 3 584 3 143 3 137 3 004 3 092 3 105 3 029 2 877 3 000 -20% -22%



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 254 276 245 270 311 309 329 316 299 290 307 17% 21%



Production costs

Feed 104 116 107 124 147 154 154 159 162 151 133 45% 28%

homegrown feed 27 25 25 25 38 37 40 62 50 44 38 102% 43%

purchased feed 77 91 82 99 109 117 114 97 113 108 95 27% 23%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 114 127 119 136 160 167 165 176 179 164 145 44% 27%



Contract work 10 9 11 6 8 7 6 6 4 5 5 -49% -49%

Taxes 0 0 1 1 1 2 2 1 0 1 1 -14% 259%

Other direct inputs 7 12 18 13 15 25 30 14 11 11 8 -6% 16%



Gross margin 102 100 68 84 93 73 89 80 72 78 120 -15% 17%


payments106 119 78 91 103 96 113 106 99 105 144 2% 36%


margin 96% 81% 75% 83% 84% 83% 85% 85% 75% 82% -4%


margin 96% 89% 85% 90% 91% 86% 88% 88% 83% 86% -5%

Depreciation 15 16 17 18 22 28 31 31 38 35 120%

Wages 15 26 29 33 32 33 35 32 32 28 32%

Rent 4 5 6 7 9 12 14 16 15 14 194%

Interest 2 5 5 4 6 7 9 6 5 4 19%


Net margin 67 47 11 22 25 -6 1 -5 -18 -3 -121%


payments70 67 22 29 35 17 26 20 10 24

-66%






coupled payments-14 6 -44 -48 -53 -67 -57 -54 -82 -98

-350%


economic margin 30% 35% 12% 14% 14% 14% 14% 15% 11% 7% -58%


economic margin 49% 51% 29% 31% 35% 28% 31% 28% 27% 27% -37%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 5 822 7 077 7 791 7 591 8 830 9 136 10 728 12 541 10 654 8 860 55%


Balance subsidies and taxes 320 1 014 1 176 1 421 1 469 1 742 2 301 3 175 3 396 2 374 256%

Decoupled payments 169 222 366 401 495 516 744 806 885 877 239%

Depreciation 318 393 485 498 566 730 910 1 111 1 291 1 029 187%


External factors 444 880 1 169 1 128 1 251 1 424 1 733 2 021 1 812 1 436 111%

Wages 317 611 837 818 820 864 1 030 1 158 1 061 846 74%

Rent 84 142 195 203 281 356 453 657 575 467 304%

Interest 43 127 137 107 150 204 250 206 176 123 64%




Own capital unpaid cost 413 18 697 442 320 362 677 1 263 770 622 135%


(RFL) 1 192 2 204 1 130 2 344 2 095 2 166 2 895 4 299 3 191 1 990 109%


106 119

78 91 103 96

113 106 99 105 144

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



258

295

255 277

321 332

353 341

326 317 331

188 228 234 248

286 315 328 321 316

293

187

70 67

22

29

35

17

26

20

10

24

0

10

20

30

40

50

60

70

80

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






258

295

255 277

321 332

353 341

326 317 331

272 289

300

325

374

399 410

395 408 415

187

-14

6

-44 -48

-53

-67

-57 -54

-82

-98

-120

-100

-80

-60

-40

-20

0

20

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



15 16 17 18 22 28 31 31 38 35

68 60 52

66 80

75 70 54

76 107

16 0 14

10

8 9 13

21

16

15

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-150

-100

-50

0

50

100

150

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data RO

Romania Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms 100-<200 200-<500 200-<500500-

<1000

500-

<1000

500-

<1000

500-

<1000200-<500 200-<500

500-

<1000 -



Forage area - ha 2 2 2 2 2 2 3 3 3 2 13%

Dairy cows - LU 4 4 4 4 4 4 4 4 4 4 -5%

Rented UAA - % 23% 18% 18% 21% 17% 20% 22% 21% 30% 28% 33%

Total labour - AWU 1.8 1.8 1.6 1.4 1.3 1.2 1.1 1.0 1.0 1.0 -41%

Family labour - % 96% 94% 95% 95% 96% 96% 95% 97% 97% 98% 2%

Milk per ha fodder area - t/ha 6.8 6.2 7.5 6.0 5.7 5.4 4.9 4.5 5.6 5.2 -25%

Milk yield - kg/cow 3 774 3 561 3 736 3 499 3 514 3 278 3 374 3 479 3 260 3 227 3 382 -10% -10%

Milk production - t 14 15 15 14 14 12 13 12 14 12 13 -14% -9%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price 316 318 274 299 323 305 327 331 292 310 302 3% -4%



Production costs

Feed 72 73 57 58 59 58 56 86 85 91 98 30% 36%

homegrown feed 29 28 25 29 32 30 28 58 49 54 57 95% 101%

purchased feed 44 45 32 28 28 28 28 28 36 38 40 -14% -7%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 92 89 74 73 72 63 61 94 95 101 107 14% 16%



Contract work 9 12 11 13 15 15 15 14 12 13 13 25% 41%

Taxes 1 1 1 1 1 1 2 2 2 2 2 240% 161%




Gross margin 183 180 154 171 196 184 208 173 133 146 137 -13% -25%


payments194 191 160 172 196 184 208 187 146 178 167 -6% -14%


margin 96% 98% 98% 96% 99% 100% 100% 96% 80% 94% -7%


margin 97% 97% 97% 96% 99% 100% 100% 98% 84% 96% -4%

Depreciation 26 29 33 31 34 37 40 36 45 55 55%

Wages 9 9 10 10 11 10 11 7 6 4 -35%

Rent 3 2 2 3 2 3 3 4 4 4 84%

Interest 2 2 1 1 1 1 1 0 0 0 -78%


Net margin 145 139 109 127 149 133 153 126 76 84 -27%


payments155 150 114 127 149 133 153 139 90 116

-18%







-97%


economic margin 19% 26% 18% 15% 14% 14% 17% 12% 10% 9% -50%


economic margin 32% 40% 29% 29% 30% 32% 38% 26% 20% 25% -30%





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output 3 958 4 805 4 677 5 967 6 403 5 993 6 786 6 745 6 752 6 987 52%


Balance subsidies and taxes 437 574 474 611 716 691 740 658 445 1 231 57%

Decoupled payments 104 151 181 252 347 392 483 498 345 583 227%

Depreciation 319 423 522 546 575 651 738 640 931 1 073 109%



Wages 102 125 153 177 184 167 189 137 141 88 -3%

Rent 31 26 29 49 44 53 60 71 95 81 185%

Interest 20 21 12 14 10 9 10 5 7 6 -67%




Own capital unpaid cost 641 108 600 366 408 658 540 697 908 1 087 100%


(RFL) 648 1 388 1 006 1 832 2 179 2 075 2 828 2 773 1 490 2 427 120%


194 191

160 172

196 184 208

187

146

178

167

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Opera

ting c

osts

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t



327 329

279 299

323 305

327 344

306

342 332

172 179 165 172 174 173 174 205 216 226

165

155 150

114

127

149

133

153

139

90

116

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

EUR/t






327 329

279 299

323 305

327 344

306

342 332

439

374 384 399

439 428 419

483 485

539

165

-112

-45

-104 -99

-115 -122

-92

-139

-179

-197

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e



26 29 33 31 34 37 40 36 45 55

217 189 183

208 243 221 218 241 228

262

50

7 36

19

21 34 27

37 41

51

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EUR/t



-250

-200

-150

-100

-50

0

50

100

150

200

250

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data HR

Croatia Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend*

Trend

2017/

2007

Sample farms - - - - - -

200-<500 200-<500 100-<200 100-<200-

Farms represented - - - - - - 8 892 9 309 6 669 7 693 -

% production from specialised farms - - - - - - 86% 81% 74% 81% -

Forage area - ha - - - - - - 11 10 14 12 -

Dairy cows - LU - - - - - - 13 12 14 13 -

Rented UAA - % - - - - - - 52% 46% 48% 46% -

Total labour - AWU - - - - - - 2.2 2.1 2.0 2.1 -

Family labour - % - - - - - - 85% 90% 85% 90% -

Milk per ha fodder area - t/ha - - - - - - 5.5 5.0 4.7 5.2 -

Milk yield - kg/cow - - - - - - 4 634 4 319 4 595 4 667 4 297 - -

Milk production - t - - - - - - 62 52 66 62 60 - -


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Revenues

Price - - - - - - 334 337 325 304 327 - -

Coupled payments (incl. Art.69) - - - - - - 19 21 47 52 54 - -

Total revenues from milk - - - - - - 353 358 372 356 380 - -

Production costs

Feed - - - - - - 130 214 212 205 197 - -

homegrown feed - - - - - - 89 170 161 152 146 - -

purchased feed - - - - - - 42 44 51 53 51 - -

Herd renewal purchases - - - - - - 1 4 3 1 1 - -

Milk levy - - - - - - 0 0 0 0 0 - -

Other specific costs - - - - - - 21 20 18 22 22 - -

Specific costs - - - - - - 153 237 233 228 220 - -

Machinery and building upkeep - - - - - - 12 11 10 13 13 - -

Energy (fuel, electricity) - - - - - - 32 29 26 25 25 - -

Contract work - - - - - - 5 6 6 6 7 - -

Taxes - - - - - - 8 10 12 12 12 - -

Other direct inputs - - - - - - 12 9 11 11 11 - -

Non specific costs - - - - - - 68 65 65 67 69 - -

Total operating costs - - - - - - 221 302 298 295 289 - -

Gross margin - - - - - - 113 34 27 9 38 - -


payments- - - - - - 132 56 74 61 91 - -


margin - - - - - - 78% 69% 63% 73% -


margin - - - - - - 90% 73% 76% 75% -

Depreciation - - - - - - 51 50 48 48 -

Wages - - - - - - 23 14 17 17 -

Rent - - - - - - 8 5 7 7 -

Interest - - - - - - 6 4 3 3 -

External factors - - - - - - 37 23 27 26 -

Net margin - - - - - - 26 -39 -48 -66 -


payments- - - - - - 45 -18 -1 -14

-

Family labour costs - - - - - - 120 106 86 188 -

Own capital unpaid cost - - - - - - 27 44 43 47 -

Imputed family factors - - - - - - 148 149 129 235 -

Net economic margin - - - - - - -122 -188 -177 -301 -


coupled payments- - - - - - -103 -167 -130 -249

-


economic margin - - - - - - 6% 3% 6% 1% -


economic margin - - - - - - 30% 15% 16% 4% -





2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e

Three

years

average

trend

Trend

2017/

2007

Total output - - - - - - 19 013 17 104 22 095 20 350 -

Intermediate consumptions - - - - - - 12 908 11 556 15 194 14 735 -

Balance subsidies and taxes - - - - - - 4 012 3 907 4 337 4 613 -

Decoupled payments - - - - - - 3 674 3 479 2 891 2 694 -

Depreciation - - - - - - 2 314 1 999 2 492 2 367 -

Farm Net Value Added (FNVA) - - - - - - 7 803 7 456 8 747 7 861 -

External factors - - - - - - 1 670 850 1 296 1 233 -

Wages - - - - - - 1 022 497 796 748 -

Rent - - - - - - 366 217 344 336 -

Interest - - - - - - 283 137 157 150 -

Balance invest. subs. and taxes - - - - - - 0 0 0 197 -

Farm net income (FNI) - - - - - - 6 132 6 606 7 450 6 826 -


Own capital unpaid cost - - - - - - 1 509 1 974 2 675 2 605 -


(RFL) - - - - - - 2 223 2 647 3 280 2 644 -

%spe.farms with positive RFL - - - - - - 71% 83% 77% 81% -

132

56 74 61

91

0

50

100

150

200

250

300

350

400

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

2013 2014 2015 2016 2017e

EUR/t



353 358 372

356

380

308

376 373 370

289

45

-18

-1

-14

-30

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016 2017e

EUR/t






353 358 372 356 380

456

525 502

605

289

-103

-167

-130

-249

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

2013 2014 2015 2016 2017e



51 50 48 48

120

106 86

188

27

44 43

47

0

50

100

150

200

250

300

350

2013 2014 2015 2016

EUR/t



-300

-250

-200

-150

-100

-50

0

50

100

150

200

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2013 2014 2015 2016







EU dairy farms report based on 2016 FADN data BE RG

Belgium 2016 Milk specialised farms


Vlaanderen Wallonie Belgium

Sample farms 40-<100 200-<500 200-<500

Farms represented 3 198 2 236 5 435

% production from specialised farms 89% 83% 87%

Forage area - ha 39 66 50

Dairy cows - LU 67 74 70

Rented UAA - % 73% 73% 73%

Total labour - AWU 1.81 1.90 1.84

Family labour - % 98% 97% 97%

Milk per ha fodder area - t/ha 13.9 7.4 10.4

Milk yield - kg/cow 8 186.5 6 571.0 7 482.5

Milk production - t 548.7 486.5 523.1



Revenues

Price 274 294 282

Coupled payments (incl. Art.69) 0 6 2

Total revenues from milk 274 301 284

Production costs

Feed 101 97 99

homegrown feed 25 22 23

purchased feed 76 75 76

Herd renewal purchases 2 1 1

Milk levy 0 0 0

Other specific costs 27 22 25

Specific costs 130 120 126

Machinery and building upkeep 10 17 13

Energy (fuel, electricity) 12 14 13

Contract work 20 24 21

Taxes 1 0 1

Other direct inputs 11 16 13

Non specific costs 55 71 61

Total operating costs 184 190 187

Gross margin 89 104 95


payments 89 110 97


margin 93% 97% 95%


margin98% 98% 98%

Depreciation 37 51 42

Wages 1 3 2

Rent 14 17 15

Interest 10 13 11

External factors 24 33 28

Net margin 29 20 26


payments 29 26 28

Family labour costs 62 72 66

Own capital unpaid cost 1 1 1

Imputed family factors 63 73 66

Net economic margin -34 -52 -41


coupled payments -34 -46 -39


economic margin15% 15% 15%








Total output 117 945 101 446 110 959

Intermediate consumptions 78 095 69 665 74 526

Balance subsidies and taxes 11 587 16 685 13 746

Decoupled payments 8 727 12 126 10 166

Depreciation 15 785 17 290 16 422

Farm Net Value Added (FNVA) 35 652 31 176 33 757

External factors 10 443 11 668 10 962

Wages 315 944 581

Rent 6 112 6 144 6 125

Interest 4 016 4 580 4 255

Balance invest. subs. and taxes 468 2 687 1 407

Farm net income (FNI) 25 676 22 194 24 202




(RFL)25 809 22 662 24 487

%spe.farms with positive RFL 89% 89% 89%

89 110

97

0

50

100

150

200

250

300

350

Revenues Operating costs Revenues Operating costs Revenues Operating costs


EUR/t


Price Coupled payments (incl. Art.69) Feed

Other specific costs Non specific costs Gross margin with coupled payments

274

301 284

245 274

256

29

26

28

25

26

26

27

27

28

28

29

29

30

0

50

100

150

200

250

300

350


EUR/t


Total revenues from milk

Operating costs + depreciation + external factors

Net margin with coupled payments




274

301 284

308

347 323

-34

-46

-39

-50

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

0

50

100

150

200

250

300

350

400


EUR/t



37 51

42

62

72

66

1

1

1

0

20

40

60

80

100

120

140

160

180


EUR/t



-60

-40

-20

0

20

40

60

80

100

120

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000







EU dairy farms report based on 2016 FADN data DE RG

Germany 2016 Milk specialised farms


Schleswig-

Holstein

Niedersach

sen

Nordrhein-

WestfalenHessen

Rheinland-

Pfalz

Baden-

Wurttember

g

Bayern SaarlandBrandenbur

g

Mecklenburg-

VorpommernSachsen

Sachsen-

AnhaltThueringen Germany

Sample farms 200-<500 200-<500 200-<500 100-<200 100-<200 200-<500 500-<1000 15-<40 40-<100 40-<100 100-<200 40-<100 40-<100 3000-<5000

Farms represented 3 957 8 394 4 664 2 289 1 598 6 417 28 833 150 359 482 737 372 267 58 520

% production from specialised farms 97% 97% 97% 95% 95% 97% 97% 92% 79% 81% 78% 75% 63% 92%

Forage area - ha 86 74 56 60 71 44 33 91 459 223 203 327 282 57

Dairy cows - LU 100 95 79 59 66 51 39 72 342 262 224 297 275 66

Rented UAA - % 56% 60% 67% 70% 71% 65% 55% 66% 72% 65% 77% 81% 86% 64%

Total labour - AWU 2.13 2.01 1.88 1.86 2.02 1.60 1.52 1.97 16.79 7.97 11.62 12.71 14.14 2.10

Family labour - % 69% 77% 75% 80% 80% 90% 95% 86% 3% 19% 11% 11% 8% 69%

Milk per ha fodder area - t/ha 8.9 10.2 11.8 7.1 7.2 7.9 7.9 5.4 6.4 10.2 9.7 8.0 8.7 8.8

Milk yield - kg/cow 7 591 7 935 8 262 7 255 7 719 6 908 6 699 6 911 8 556 8 656 8 807 8 817 8 895 7 574

Milk production - t 761 754 656 428 510 350 264 496 2 926 2 268 1 970 2 615 2 444 502


Schleswig-

Holstein

Niedersach

sen

Nordrhein-

WestfalenHessen

Rheinland-

Pfalz

Baden-

Wurttember

g


g

Mecklenburg-

VorpommernSachsen

Sachsen-


Revenues

Price 273 260 277 280 274 296 302 264 265 248 246 258 247 276

EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total revenues from milk 273 260 277 280 274 296 302 264 265 248 246 258 247 276

Production costs

Feed 92 103 98 100 103 103 100 113 115 104 106 115 125 102

homegrown feed 29 20 20 34 35 34 32 52 38 32 34 33 50 29

purchased feed 63 83 78 67 68 69 69 62 77 72 72 82 74 73

Herd renewal purchases 3 4 5 3 1 0 1 3 5 1 2 3 8 3

Milk levy 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Other specific costs 40 26 27 26 28 26 30 27 28 34 34 32 30 29

Specific costs 135 133 130 129 132 129 131 143 149 139 142 150 163 134

Machinery and building upkeep 20 18 21 22 21 26 26 25 22 19 20 23 21 22

Energy (fuel, electricity) 20 18 21 28 26 26 26 29 26 22 24 24 26 23

Contract work 27 23 26 19 18 19 18 20 14 17 6 12 12 20

Taxes 1 1 0 0 1 0 1 1 4 2 2 4 2 1

Other direct inputs 19 20 23 28 28 33 34 31 23 22 24 21 26 26

Non specific costs 88 81 91 98 94 104 105 106 90 82 75 85 88 92

Total operating costs 223 214 221 228 226 233 236 249 239 221 217 235 251 226

Gross margin 51 46 56 52 48 62 66 15 26 27 29 23 -4 50


payments 51 46 56 52 48 62 66 15 26 27 29 23 -4 50


margin 95% 95% 95% 96% 91% 89% 94% 94% 96% 86% 94% 90% 88% 94%


margin94% 90% 92% 87% 88% 88% 90% 72% 83% 89% 78% 70% 45% 88%

Depreciation 28 34 35 49 49 55 61 57 44 34 41 43 48 44

Wages 16 12 13 15 11 8 5 11 82 50 70 66 77 20

Rent 24 21 25 14 16 19 15 13 21 20 16 23 17 20

Interest 11 11 8 10 7 7 6 9 10 16 6 10 7 9


Net margin -28 -31 -25 -35 -36 -27 -22 -75 -131 -93 -105 -119 -154 -43

Net margin with coupled payments-28 -31 -25 -35 -36 -27 -22 -75 -131 -93 -105 -119 -154 -43

Family labour costs 41 47 42 64 53 82 98 72 4 16 15 12 11 56


Imputed family factors 50 53 49 68 56 88 106 76 7 20 16 13 11 62

Net economic margin -78 -84 -75 -103 -92 -115 -127 -150 -138 -113 -120 -132 -164 -105

Net economic margin with coupled

payments -78 -84 -75 -103 -92 -115 -127 -150 -138 -113 -120 -132 -164 -105


economic margin2% 2% 3% 0% 1% 2% 2% 0% 0% 0% 0% 0% 0% 2%


economic margin3% 3% 5% 1% 2% 5% 3% 0% 0% 0% 0% 0% 0% 3%





Schleswig-

Holstein

Niedersach

sen

Nordrhein-

WestfalenHessen

Rheinland-

Pfalz

Baden-

Wurttember

g


g

Mecklenburg-

VorpommernSachsen

Sachsen-


Total output 158 329 147 033 150 038 104 930 107 920 108 527 91 465 112 746 105 424 134 808 97 873 114 798 105 089 114 043

Intermediate consumptions 106 925 102 615 102 523 73 422 76 615 71 281 57 228 88 168 74 502 100 395 66 720 80 634 77 668 76 810

Balance subsidies and taxes 18 582 18 289 18 340 18 620 16 504 17 630 16 688 23 507 20 116 16 729 15 473 18 142 24 815 17 704

Decoupled payments 14 725 12 911 11 662 12 517 13 145 10 584 8 982 16 564 14 087 14 917 10 462 15 089 11 844 11 353

Depreciation 14 130 16 743 16 877 16 214 17 062 17 493 15 825 21 123 14 800 15 625 13 727 16 437 17 081 15 968

Farm Net Value Added (FNVA) 55 855 45 965 48 978 33 913 30 748 37 384 35 099 26 961 36 237 35 517 32 899 35 868 35 156 38 969

External factors 25 708 21 935 21 937 12 410 11 964 11 235 7 112 12 223 38 061 40 815 32 291 38 394 36 549 18 587

Wages 7 670 5 762 6 335 4 593 3 945 2 695 1 326 4 128 27 761 23 839 24 853 25 569 27 712 8 417

Rent 12 566 10 913 12 026 4 733 5 653 6 274 4 131 4 702 6 987 9 888 5 518 9 137 6 430 7 125

Interest 5 472 5 261 3 576 3 083 2 367 2 266 1 656 3 394 3 312 7 088 1 920 3 688 2 407 3 044

Balance invest. subs. and taxes -1 526 -2 122 -1 581 -752 -253 -1 294 -1 169 -1 193 155 -182 663 1 069 703 -958

Farm net income (FNI) 28 621 21 908 25 460 20 752 18 531 24 855 26 818 13 545 -1 668 -5 480 1 271 -1 457 -691 19 424


Own capital unpaid cost 7 200 4 046 4 964 1 680 1 270 1 954 2 013 1 475 37 666 7 719 2 645 4 355 1 187 3 018


(RFL)34 397 24 386 28 927 24 292 21 944 25 738 26 141 14 257 49 664 9 247 22 398 13 799 16 144 26 138

%spe.farms with positive RFL 85% 83% 85% 92% 80% 87% 94% 80% 54% 58% 69% 55% 64% 89%

51 46

56 52 48

62 66

15 26 27

29 23

-4

50

-50

0

50

100

150

200

250

300

350

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

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g c

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Reve

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Op

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Reve

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Op

era

tin

g c

osts

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g c

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era

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g c

osts

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g c

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g c

osts

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Op

era

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osts

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nues

Op

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SH NI NW HE RP BW BY SL BB MV SN ST TH Germany

EUR/t


Price EU coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments

273 260

277 280 274 296 302

264 265 248 246

258 247

276

301 291 302 316 310 323 324 339

396

341 351 377

400

319

-28 -31 -25

-35 -36 -27

-22

-75

-131

-93

-105

-119

-154

-43

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

Schle

sw

ig-

Hols

tein

Nie

ders

achsen

No

rdrh

ein

-W

estfa

len

Hessen

Rh

ein

lan

d-P

falz

Ba

den

-W

urt

tem

be

rg

Ba

ye

rn

Sa

arla

nd

Bra

nd

en

bu

rg

Me

ckle

nb

urg

-V

orp

om

me

rn

Sa

ch

se

n

Sa

ch

se

n-A

nha

lt

Th

uerin

gen

Germ

any

EUR/t






273 260 277 280 274

296 302

264 265 248 246 258 247

276

352 344 352 384

365

411 429

415 403

361 366 390

411 382

-78 -84

-75

-103 -92

-115 -127

-150 -138

-113 -120

-132

-164

-105

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

Schle

sw

ig-

Hols

tein

Nie

de

rsa

ch

sen

Nord

rhein

-W

estfa

len

He

sse

n

Rhein

land-

Pfa

lz

Ba

den

-W

urt

tem

be

rg

Ba

ye

rn

Sa

arla

nd

Bra

nd

en

bu

rg

Me

ckle

nb

urg

-V

orp

om

me

rn

Sa

ch

se

n

Sa

ch

se

n-

An

halt

Th

uering

en

Germ

any

EUR/t



28 34 35 49 49 55 61 57 44 34 41 43 48 44

41 47 42 64

53

82 98 72

4

16 15

12 11

56 9 6 7

4 3

5 7

3 3

3 1 1 0

6

0

50

100

150

200

250

Schle

sw

ig-

Hols

tein

Nie

de

rsa

ch

sen

No

rdrh

ein

-W

estfa

len

Hessen

Rh

ein

land

-P

falz

Ba

den-

Wurt

tem

berg

Ba

ye

rn

Sa

arla

nd

Bra

ndenburg

Meckle

nburg

-V

orp

om

mern

Sa

chsen

Sa

chsen-

An

halt

Th

uering

en

Germ

any

EUR/t



-200

-150

-100

-50

0

50

100

-10 000

0

10 000

20 000

30 000

40 000

50 000

60 000

Schle

sw

ig-H

ols

tein

Nie

ders

achsen

No

rdrh

ein

-Westf

ale

n

He

sse

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land-P

falz

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den

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ye

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arland

Bra

ndenburg

Meckle

nburg

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om

mern

Sa

chsen

Sa

ch

se

n-A

nha

lt

Thueringen

Germ

any







EU dairy farms report based on 2016 FADN data ES RG

Spain 2016 Milk specialised farms


Galicia Asturias Cantabria Pais Vasco Navarra Cataluna BalearesCastilla-

LeonAndalucia Spain

Sample farms 200-<500 100-<200 100-<200 40-<100 15-<40 40-<100 15-<40 15-<40 40-<100 500-<1000

Farms represented 8 370 1 788 1 500 313 142 654 179 1 304 816 15 780

% production from specialised farms 94% 91% 88% 93% 99% 97% 96% 98% 96% 95%

Forage area - ha 23 20 22 36 44 34 89 21 18 25

Dairy cows - LU 44 59 46 65 126 94 60 81 86 59

Rented UAA - % 24% 48% 78% 70% 80% 84% 75% 63% 37% 46%

Total labour - AWU 1.61 2.00 1.61 2.29 3.49 2.75 1.62 2.74 1.70 1.93

Family labour - % 86% 89% 92% 79% 54% 50% 76% 68% 89% 77%

Milk per ha fodder area - t/ha 14.9 16.2 12.7 16.4 29.9 24.1 3.8 23.3 26.8 16.5

Milk yield - kg/cow 8 124 5 593 6 092 9 191 10 553 9 149 5 867 7 028 6 799 7 684

Milk production - t 357 329 279 595 1 326 863 354 567 584 451



LeonAndalucia Spain

Revenues

Price 291 316 285 354 314 307 311 302 316 302

Coupled payments (incl. Art.69) 12 14 19 13 11 11 12 13 11 12

Total revenues from milk 303 330 305 367 325 318 323 315 327 314

Production costs

Feed 173 165 149 178 161 174 182 151 141 161

homegrown feed 42 13 3 8 23 36 58 22 2 27

purchased feed 131 152 146 170 138 138 124 130 139 134

Herd renewal purchases 4 0 0 3 1 0 0 0 1 2

Milk levy 0 0 0 0 0 0 0 0 0 0

Other specific costs 16 32 15 29 27 24 9 25 13 18

Specific costs 192 197 164 210 188 198 191 177 155 181

Machinery and building upkeep 8 16 16 17 17 28 16 16 12 12

Energy (fuel, electricity) 12 16 13 14 12 17 23 15 16 14

Contract work 23 11 6 5 6 15 6 6 1 14

Taxes 0 0 0 0 0 0 0 0 0 0

Other direct inputs 9 27 19 21 26 27 11 16 15 16

Non specific costs 52 70 54 57 60 88 56 53 43 56

Total operating costs 244 268 218 267 249 286 247 230 199 237

Gross margin 47 48 67 87 65 21 64 72 117 65


payments 59 63 86 100 76 32 76 85 128 77


margin 92% 88% 95% 98% 97% 74% 99% 90% 81% 91%


gross margin90% 80% 97% 100% 97% 73% 92% 95% 97% 90%

Depreciation 15 20 21 32 36 23 18 16 11 16

Wages 9 8 6 13 21 24 12 23 6 15

Rent 2 5 6 3 6 8 18 7 3 4

Interest 0 2 1 2 2 2 1 1 0 1

External factors 12 14 13 18 29 34 31 30 8 20

Net margin 21 14 33 37 0 -36 16 26 97 29


payments 33 28 52 50 11 -25 27 40 109 41

Family labour costs 49 72 56 44 17 22 37 62 37 44

Own capital unpaid cost 12 19 9 58 7 5 10 8 9 12

Imputed family factors 61 91 65 102 25 27 47 70 46 55

Net economic margin -41 -77 -32 -64 -25 -63 -31 -44 51 -26


coupled payments -28 -63 -13 -51 -14 -52 -19 -30 63 -14


economic margin13% 22% 22% 30% 23% 8% 37% 30% 74% 21%


net economic margin14% 20% 31% 44% 13% 18% 37% 42% 90% 32%






LeonAndalucia Spain

Total output 80 468 63 577 58 498 100 950 143 790 128 436 100 036 82 228 126 106 87 431

Intermediate consumptions 60 537 51 242 43 628 76 614 107 203 105 259 68 916 58 901 78 459 63 307

Balance subsidies and taxes 8 252 9 039 10 666 14 348 13 060 13 464 14 299 10 947 15 372 10 061

Decoupled payments 4 632 5 468 5 623 6 939 8 164 8 259 9 122 6 869 9 313 5 677

Depreciation 3 707 3 755 4 184 8 981 15 524 8 964 5 203 3 941 4 523 4 329

Farm Net Value Added (FNVA) 24 477 17 618 21 352 29 703 34 123 27 677 40 216 30 333 58 497 29 857

External factors 2 924 2 629 2 665 5 115 12 562 13 101 9 224 7 605 3 374 5 494

Wages 2 359 1 449 1 115 3 682 9 085 9 036 3 754 5 662 2 347 4 168

Rent 454 847 1 288 803 2 428 3 257 5 206 1 800 1 027 1 086

Interest 110 332 262 630 1 048 808 264 143 0 240

Balance invest. subs. and taxes 0 -17 -239 251 -35 162 -82 -21 -137 -20

Farm net income (FNI) 21 553 14 973 18 448 24 839 21 526 14 737 30 910 22 707 54 986 24 344




Labour (RFL)21 418 12 810 18 026 11 689 34 433 23 999 36 758 29 705 57 939 26 823

%spe.farms with positive RFL 97% 87% 90% 98% 81% 76% 96% 89% 80% 93%

59 63

86 100

76

32

76 85

128

77

0

50

100

150

200

250

300

350

400

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon Andalucia Spain

EUR/t



303

330

305

367

325 318 323 315

327 314

270 302

252

317 314 343

296 275

219

273

33 28

52 50

11

-25

27

40

109

41

-40

-20

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon

Andalucia Spain

EUR/t






303

330

305

367

325 318 323 315 327

314

331

393

318

418

339

370

343 345

264

328

-28

-63

-13

-51

-14

-52

-19

-30

63

-14

-80

-60

-40

-20

0

20

40

60

80

0

50

100

150

200

250

300

350

400

450


Andalucia Spain

EUR/t



15 20 21 32 36

23 18 16 11 16

49

72 56

44 17 22 37

62

37

44

12

19

9

58

7 5

10

8

9

12

0

20

40

60

80

100

120

140

160

Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon Andalucia Spain



-100

-50

0

50

100

150

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000


Andalucia Spain







EU dairy farms report based on 2016 FADN data FR RG (1)

France 2016 Milk specialised farms


Champagn

e-ArdennePicardie

Haute-

NormandieCentre

Basse-

NormandieBourgogne

Nord-Pas-

de-CalaisLorraine Alsace

Franche-

ComteFrance

Sample farms 40-<100 40-<100 40-<100 40-<100 100-<200 15-<40 40-<100 100-<200 40-<100 100-<2001000-<2000

Farms represented 1 279 1 863 1 573 743 6 307 715 2 770 2 807 715 3 632 57 793


Forage area - ha 116 63 72 75 79 94 48 109 66 102 75

Dairy cows - LU 68 70 66 78 66 66 59 67 65 54 59

Rented UAA - % 93% 96% 95% 92% 92% 97% 95% 87% 87% 84% 88%

Total labour - AWU 2.36 2.02 2.08 2.54 1.88 2.23 1.95 2.31 2.32 1.94 1.93

Family labour - % 81% 80% 78% 90% 87% 87% 85% 82% 78% 89% 87%

Milk per ha fodder area - t/ha 3.9 7.9 6.5 8.6 5.3 4.7 9.5 4.4 7.6 3.3 5.5

Milk yield - kg/cow 6 760 7 171 7 141 8 220 6 315 6 627 7 715 7 219 7 788 6 280 6 963



Champagn

e-ArdennePicardie

Haute-

NormandieCentre

Basse-

NormandieBourgogne

Nord-Pas-


Franche-

ComteFrance

Revenues

Price 303 297 315 307 323 318 291 297 310 423 316

Coupled payments (incl. Art.69) 4 4 4 4 5 5 4 5 4 8 5

Total revenues from milk 307 300 320 311 327 323 295 301 315 431 321

Production costs

Feed 96 114 111 110 96 128 105 107 115 120 101

homegrown feed 35 27 34 37 35 53 28 35 33 34 33

purchased feed 61 86 77 72 61 75 77 72 82 86 68

Herd renewal purchases 2 1 1 4 1 2 2 2 1 2 2

Milk levy 0 0 0 0 0 0 0 0 0 0 0

Other specific costs 11 12 13 11 12 15 12 12 14 18 12

Specific costs 109 127 125 124 109 145 119 120 130 140 116

Machinery and building upkeep 22 22 18 20 24 25 16 24 24 29 22

Energy (fuel, electricity) 19 16 18 20 18 22 15 19 18 21 18

Contract work 26 26 31 28 33 32 27 27 29 31 34

Taxes 3 3 4 3 3 3 3 3 3 3 3

Other direct inputs 43 38 32 38 42 46 35 42 41 55 42

Non specific costs 114 105 103 109 119 128 97 115 114 141 118

Total operating costs 223 232 229 233 228 272 216 236 245 281 234

Gross margin 80 64 87 74 95 46 76 61 66 142 82


payments 84 68 91 78 99 51 79 66 70 151 87


margin 100% 94% 96% 96% 97% 90% 96% 91% 83% 99% 95%


gross margin96% 98% 98% 97% 97% 93% 99% 93% 95% 98% 96%

Depreciation 77 63 69 56 62 64 61 63 67 99 65

Wages 12 9 12 6 8 8 8 10 12 8 8

Rent 26 28 29 17 27 25 22 19 23 31 21

Interest 8 8 12 10 11 12 8 8 5 9 9

External factors 46 45 52 33 47 45 38 37 40 49 38

Net margin -43 -44 -34 -14 -14 -63 -23 -39 -41 -6 -21


payments -39 -40 -30 -10 -9 -58 -20 -34 -37 3 -16

Family labour costs 71 44 45 56 54 60 45 48 47 78 58

Own capital unpaid cost 2 0 0 0 1 0 0 0 0 1 1

Imputed family factors 72 44 45 56 55 60 45 48 47 80 59

Net economic margin -116 -88 -79 -70 -69 -124 -69 -87 -89 -85 -80


coupled payments -111 -84 -75 -66 -64 -119 -65 -82 -85 -77 -75


economic margin2% 4% 0% 7% 5% 0% 7% 3% 0% 7% 6%


net economic margin1% 6% 0% 9% 8% 0% 8% 5% 0% 9% 7%





Champagn

e-ArdennePicardie

Haute-

NormandieCentre

Basse-

NormandieBourgogne

Nord-Pas-


Franche-

ComteFrance

Total output 103 629 133 229 130 521 117 753 107 103 102 921 114 674 108 994 111 415 99 845 103 719

Intermediate consumptions 81 295 105 704 93 273 90 338 75 946 88 555 86 124 88 331 84 588 66 758 77 097

Balance subsidies and taxes 23 788 20 607 16 622 18 975 15 855 22 815 14 072 23 171 16 161 20 726 17 990

Decoupled payments 17 778 18 651 16 326 15 547 13 592 18 119 13 950 16 867 14 140 12 932 13 451

Depreciation 26 224 27 801 28 761 21 518 20 923 20 819 24 402 23 423 23 201 23 676 21 393

Farm Net Value Added (FNVA) 19 898 20 331 25 110 24 872 26 090 16 361 18 220 20 410 19 787 30 138 23 219

External factors 16 270 20 677 21 784 12 738 15 528 14 688 14 869 13 740 14 868 11 632 12 661

Wages 4 406 4 369 4 700 2 194 2 671 2 563 2 925 3 657 4 479 2 016 2 580

Rent 9 194 12 932 12 084 6 892 9 094 8 175 8 819 7 079 8 553 7 507 7 098

Interest 2 670 3 375 4 999 3 652 3 763 3 950 3 124 3 004 1 836 2 110 2 983

Balance invest. subs. and taxes 599 168 898 0 1 247 1 510 235 313 1 039 204 757

Farm net income (FNI) 4 228 -178 4 224 12 134 11 808 3 183 3 587 6 983 5 958 18 709 11 314


Own capital unpaid cost 593 241 135 61 271 60 151 182 132 416 395


Labour (RFL)4 586 -462 5 288 13 367 13 335 3 599 4 061 8 355 7 542 20 538 12 557


84 68

91 78 99

51 79 66 70

151

87

0

50

100

150

200

250

300

350

400

450

500

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

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tin

g c

osts

Reve

nues

Op

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Op

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Op

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CG PI HT CN BN BG NP LE AA FC France

EUR/t




307 300 320 311

327 323 295 301 315

431

321

346 340 350 321 336

382

315 335 352

429

337 -39 -40

-30

-10 -9

-58

-20

-34 -37

3

-16

-70

-60

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

450

500

Cham

pagne-A

rdenne

Pic

ard

ie

Haute

-Norm

andie

Centr

e

Ba

sse-N

orm

andie

Bo

urg

ogne

Nord

-Pas-d

e-C

ala

is

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ain

e

Als

ace

Fra

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om

te

Fra

nce

EUR/t


Total revenues from milkOperating costs + depreciation + external factorsNet margin with coupled payments




307 300 320 311 327 323 295 301 315

431

321

419 384 395 377 392

442

360 383 399

508

396

-111

-84 -75

-66 -64

-119

-65

-82 -85 -77 -75

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

Cham

pagne-A

rdenne

Pic

ard

ie

Haute

-Norm

andie

Centr

e

Ba

sse-N

orm

andie

Bo

urg

ogne

Nord

-Pas-d

e-C

ala

is

Lorr

ain

e

Als

ace

Fra

nch

e-C

om

te

Fra

nce

EUR/t



77 63 69 56 62 64 61 63 67

99 65

71

44 45

56

54 60 45 48

47

78

58

2

0 0

0

1 0

0 0 0

1

1

0

50

100

150

200

250

Cham

pagn

e-A

rdenne

Pic

ard

ie

Haute

-N

orm

andie

Centr

e

Ba

sse-

Norm

andie

Bo

urg

og

ne

Nord

-Pas-

de-C

ala

is

Lorr

ain

e

Als

ace

Fra

nch

e-

Com

te

Fra

nce

EUR/t



-150

-100

-50

0

50

100

150

200

-5 000

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

Cham

pagne-A

rdenne

Pic

ard

ie

Haute

-Norm

andie

Centr

e

Ba

sse-N

orm

andie

Bo

urg

ogne

Nord

-Pas-d

e-C

ala

is

Lorr

ain

e

Als

ace

Fra

nch

e-C

om

te

Fra

nce

EUR/t of milk

EUR/WU Milk specialised farms - income per work unit and margins per tonne








Pays de la

LoireBretagne

Poitou-

CharentesAquitaine

Midi-

PyreneesLimousin Rhone-Alpes Auvergne

Languedoc-

RoussillonFrance

Sample farms 100-<200 100-<200 40-<100 40-<100 40-<100 15-<40 40-<100 100-<200 15-<40 1000-<2000

Farms represented 8 107 11 023 1 116 1 301 2 514 623 5 036 4 983 501 57 793


Forage area - ha 79 60 80 57 57 82 79 73 120 75

Dairy cows - LU 61 63 73 49 44 45 50 45 43 59

Rented UAA - % 91% 89% 97% 71% 59% 67% 86% 80% 76% 88%

Total labour - AWU 1.99 1.86 2.31 1.72 1.69 1.96 1.83 1.65 1.52 1.93

Family labour - % 89% 91% 80% 85% 92% 93% 87% 91% 100% 87%


Milk yield - kg/cow 7 186 7 379 7 662 7 481 6 843 6 657 6 634 5 861 5 518 6 963

Milk production - t 438 468 563 369 301 299 332 263 238 412


Pays de la

LoireBretagne

Poitou-

CharentesAquitaine

Midi-


Languedoc-

RoussillonFrance

Revenues

Price 308 294 283 316 301 291 387 308 311 316



Production costs

Feed 92 89 117 121 103 89 115 101 120 101

homegrown feed 33 33 34 35 37 36 34 31 41 33

purchased feed 59 56 83 87 66 53 81 70 80 68


Milk levy 0 0 0 0 0 0 0 0 0 0


Specific costs 103 101 132 139 118 106 134 119 142 116



Contract work 42 35 34 29 36 31 41 28 37 34

Taxes 3 2 2 2 2 2 3 2 2 3




Gross margin 90 80 46 55 49 71 103 65 39 82


payments 94 84 50 59 56 79 112 76 51 87


margin 98% 99% 93% 88% 79% 96% 96% 92% 87% 95%


gross margin96% 98% 85% 89% 79% 95% 97% 91% 88% 96%

Depreciation 55 56 51 56 63 59 88 84 82 65

Wages 6 5 10 11 6 5 9 8 0 8

Rent 19 17 20 17 18 14 21 18 14 21

Interest 10 9 8 8 7 6 9 8 10 9


Net margin 0 -6 -43 -38 -46 -14 -24 -53 -67 -21


payments 4 -2 -39 -34 -38 -6 -15 -42 -55 -16




Net economic margin -58 -64 -86 -101 -120 -88 -91 -138 -159 -80


coupled payments -53 -61 -82 -97 -112 -80 -83 -127 -147 -75


economic margin14% 7% 3% 0% 2% 1% 5% 1% 0% 6%







Pays de la

LoireBretagne

Poitou-

CharentesAquitaine

Midi-


Languedoc-

RoussillonFrance

Total output 108 308 109 904 115 689 95 838 74 276 68 534 95 128 69 976 73 123 103 719




Depreciation 19 334 20 891 21 189 17 058 15 643 14 671 21 547 19 194 19 892 21 393



Wages 2 319 1 893 4 128 3 504 1 503 1 133 2 512 1 769 0 2 580

Rent 6 522 6 297 8 447 5 382 4 653 3 351 5 385 4 232 3 411 7 098

Interest 3 375 3 270 3 120 2 456 1 887 1 507 2 200 1 886 2 334 2 983

Balance invest. subs. and taxes 14 646 726 0 612 2 092 2 715 991 1 769 757



Own capital unpaid cost 316 255 59 1 172 770 1 527 470 1 032 485 395


Labour (RFL)15 405 14 456 9 670 3 668 7 551 15 726 19 212 13 298 15 942 12 557


94 84

50 59 56

79

112

76

51

87 0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Op

era

tin

g c

osts

Revenues

Opera

ting c

osts

Re

ve

nu

es

Opera

ting c

osts

PL BT PT AQ MP LM RA AU LU France

EUR/t



312 298

287

321 308

298

396

318 323 321

308 301 327

355 347 304

411

361 378 337

4

-2

-39

-34

-38

-6

-15

-42

-55

-16

-60

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

450

Pays de laLoire

Bretagne Poitou-Charentes

Aquitaine Midi-Pyrenees Limousin Rhone-Alpes Auvergne Languedoc-Roussillon

France

EUR/t






312 298 287 321 308 298

396

318 323 321

366 359 369

418 421

378

479 446

470

396 -53

-61

-82

-97

-112

-80 -83

-127

-147

-75

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

Pays de laLoire



France



55 56 51 56 63 59

88 84 82 65

57 57 43 60

71 69

66 81 89

58

1 1 0

3 3

5

2 4 2

1

0

50

100

150

200

250

Pays de laLoire



France



-200

-150

-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

30 000

Pays de laLoire



France







EU dairy farms report based on 2016 FADN data IT RG (1)

Italy 2016 Milk specialised farms


Aosta Piemonte Lombardia Trentino Alto-Adige VenetoFriuli-

VeneziaLiguria

Emilia-

RomagnaItaly

Sample farms 40-<100 15-<40 40-<100 15-<40 100-<200 40-<100 40-<100 15-<40 40-<100 500-<1000

Farms represented 432 1 145 4 411 790 4 768 3 167 637 76 2 487 24 365


Forage area - ha 48 38 42 25 13 16 26 20 36 26

Dairy cows - LU 25 59 103 23 13 53 47 24 69 50

Rented UAA - % 82% 89% 81% 94% 32% 67% 63% 68% 46% 64%

Total labour - AWU 1.61 1.71 2.61 1.21 1.10 1.91 1.84 1.52 2.09 1.80

Family labour - % 86% 94% 75% 97% 99% 95% 97% 89% 64% 84%


Milk yield - kg/cow 2 507 6 280 8 082 6 469 6 837 7 389 6 481 5 622 7 188 7 101

Milk production - t 62 370 834 151 87 388 302 132 499 357



VeneziaLiguria

Emilia-

RomagnaItaly

Revenues

Price 555 371 424 446 525 395 346 404 466 422



Production costs

Feed 142 152 171 179 135 176 163 71 235 177

homegrown feed 1 35 51 34 6 52 78 3 107 58

purchased feed 141 118 119 146 128 124 85 67 129 119


Milk levy 0 0 0 0 0 0 0 0 0 0


Specific costs 177 170 188 205 170 196 179 92 251 195



Contract work 0 3 8 1 4 6 6 0 3 6

Taxes 17 3 6 5 32 3 5 2 0 6




Gross margin 260 161 179 169 236 139 99 266 162 168


payments 291 169 186 185 253 145 107 274 168 176


margin 94% 100% 97% 91% 92% 93% 82% 100% 95% 94%


gross margin97% 100% 99% 96% 98% 96% 99% 100% 98% 99%

Depreciation 120 29 11 55 92 31 43 33 14 23

Wages 57 3 23 4 3 7 3 16 34 19

Rent 32 9 17 12 4 10 9 3 12 12

Interest 2 0 0 2 7 1 3 0 0 1


Net margin 49 121 128 97 131 90 42 214 102 114


payments 81 129 136 112 148 96 50 223 108 121




Net economic margin -322 26 56 -51 -142 -29 -111 99 22 13


coupled payments -290 34 63 -35 -125 -23 -103 108 27 20


economic margin4% 51% 48% 15% 17% 24% 11% 56% 51% 33%








VeneziaLiguria

Emilia-

RomagnaItaly

Total output 34 671 121 193 177 498 76 388 60 275 106 268 93 261 56 654 160 991 116 240




Depreciation 6 716 8 219 4 195 8 548 9 205 7 369 9 640 4 727 4 638 5 783



Wages 2 844 1 062 8 622 586 283 1 736 787 1 933 10 420 4 627

Rent 1 711 2 919 6 571 1 820 353 2 339 2 008 504 3 463 3 033

Interest 93 1 0 264 695 155 710 0 112 178

Balance invest. subs. and taxes 67 453 7 62 1 943 181 262 0 0 300





Labour (RFL)16 218 57 415 91 978 31 509 18 896 37 405 32 424 33 680 94 210 52 251


291

169 186 185

253

145 107

274

168 176

0

100

200

300

400

500

600

700

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Aosta Piemonte Lombardia Trentino Alto-Adige Veneto Friuli-Venezia Liguria Emilia-Romagna

Italy

EUR/t



587

379

431 461

542

401

354

412

471

430

506

251 295

349 394

304 304

190

364 309

81

129 136

112

148

96

50

223

108 121

0

50

100

150

200

250

0

100

200

300

400

500

600

700

Ao

sta

Pie

monte

Lom

bard

ia

Tre

ntin

o

Alto-A

dig

e

Ve

neto

Friuli-

Venezia

Lig

uria

Em

ilia-

Rom

agna

Italy

EUR/t


Total revenues from milk Operating costs + depreciation + external factors





587

379 431

461

542

401 354

412 471

430

876

345 368

496

666

423 457

304

444 409

-290

34 63

-35

-125

-23

-103

108

27 20

-350

-300

-250

-200

-150

-100

-50

0

50

100

150

0

100

200

300

400

500

600

700

800

900

1 000

Ao

sta

Pie

monte

Lom

bard

ia

Tre

ntin

o

Alto-A

dig

e

Ve

neto

Friuli-

Venezia

Lig

uria

Em

ilia-R

om

agna

Italy

EUR/t



120

29 11 55

92 31 43 33 14 23

331

83 63

135

214

104 142

101 64 85

40

11 10

12

58

15

11

14 16 15

0

100

200

300

400

500

600

700

Ao

sta

Pie

monte

Lom

bard

ia

Tre

ntin

o

Alto-A

dig

e

Ve

neto

Friuli-

Venezia

Lig

uria

Em

ilia-

Rom

agna

Italy

EUR/t



-400

-300

-200

-100

0

100

200

300

400

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

Ao

sta

Pie

monte

Lom

bard

ia

Tre

ntin

o

Alto-A

dig

e

Ve

neto

Friuli-

Venezia

Lig

uria

Em

ilia-

Rom

agna

Italy










Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy

Sample farms 15-<40 15-<40 15-<40 15-<40 15-<40 15-<40 15-<40 15-<40 500-<1000

Farms represented 1 047 661 461 1 306 1 055 301 607 208 24 365

% production from specialised farms 85% 82% 82% 82% 100% 67% 77% 92% 93%

Forage area - ha 25 15 21 8 26 13 37 38 26

Dairy cows - LU 56 21 28 27 37 54 43 52 50

Rented UAA - % 61% 60% 77% 55% 33% 43% 57% 38% 64%

Total labour - AWU 1.93 1.53 1.53 1.29 1.94 1.58 1.84 1.93 1.80

Family labour - % 75% 93% 91% 89% 92% 84% 84% 88% 84%

Milk per ha fodder area - t/ha 14.1 7.5 7.6 16.2 10.1 17.5 5.8 9.9 13.9

Milk yield - kg/cow 6 187 5 212 5 653 4 774 7 192 4 530 5 025 7 141 7 101

Milk production - t 349 110 159 130 268 227 215 375 357



Revenues

Price 397 393 405 387 416 399 369 363 422

Coupled payments (incl. Art.69) 9 9 4 3 8 4 2 7 7

Total revenues from milk 405 402 409 390 423 403 371 370 430

Production costs

Feed 144 149 146 162 206 145 158 184 177

homegrown feed 43 51 55 68 66 42 47 94 58

purchased feed 101 98 92 93 139 102 111 90 119

Herd renewal purchases 0 0 0 0 0 1 0 0 2

Milk levy 0 0 0 0 0 0 0 0 0

Other specific costs 15 11 9 12 12 5 5 12 16

Specific costs 159 160 155 174 218 151 164 196 195

Machinery and building upkeep 9 4 5 9 8 4 4 4 9

Energy (fuel, electricity) 32 31 30 36 26 23 30 27 23

Contract work 2 2 2 4 2 1 0 7 6

Taxes 6 3 4 15 4 0 10 1 6

Other direct inputs 11 14 9 12 10 7 7 13 15

Non specific costs 60 54 49 76 51 36 51 52 59

Total operating costs 219 214 204 250 268 187 215 248 254

Gross margin 178 180 201 138 148 212 154 115 168


payments 187 188 205 141 155 216 156 122 176


margin 100% 76% 100% 96% 96% 96% 100% 97% 94%


margin100% 99% 100% 100% 100% 100% 100% 97% 99%

Depreciation 31 38 19 21 21 18 30 21 23

Wages 22 13 13 14 7 15 19 14 19

Rent 5 9 5 4 14 1 9 5 12

Interest 2 0 0 0 0 0 0 0 1

External factors 29 22 18 19 21 16 28 19 32

Net margin 118 120 164 98 106 178 96 75 114


payments 126 128 168 101 113 183 98 82 121

Family labour costs 67 150 110 90 94 74 99 76 85

Own capital unpaid cost 12 19 9 14 40 8 17 15 15

Imputed family factors 79 170 120 104 135 83 116 91 100

Net economic margin 38 -50 44 -6 -29 96 -19 -15 13


coupled payments 47 -41 49 -3 -21 100 -18 -9 20


economic margin38% 25% 50% 38% 29% 49% 25% 16% 33%


economic margin77% 46% 79% 52% 28% 72% 45% 31% 58%






Total output 108 279 45 319 60 644 60 932 78 255 83 384 69 300 99 232 116 240

Intermediate consumptions 58 252 21 408 30 267 30 988 46 530 34 241 36 881 58 715 64 727

Balance subsidies and taxes 10 637 5 084 8 328 3 305 5 962 6 650 3 436 10 697 9 555

Decoupled payments 7 846 2 978 4 213 3 723 3 331 3 349 4 538 7 383 6 864

Depreciation 7 971 4 289 2 592 2 998 3 378 3 644 4 751 4 838 5 783

Farm Net Value Added (FNVA) 52 693 24 707 36 113 30 250 34 309 52 150 31 103 46 376 55 286

External factors 7 147 2 151 2 389 2 302 3 383 3 545 4 860 4 014 7 837

Wages 5 442 1 249 1 731 1 674 1 170 3 383 3 392 2 884 4 627

Rent 1 294 902 659 628 2 146 162 1 468 1 130 3 033

Interest 411 0 0 0 66 0 0 0 178

Balance invest. subs. and taxes 0 0 1 0 76 0 0 246 300

Farm net income (FNI) 45 546 22 555 33 725 27 948 31 002 48 605 26 243 42 608 47 749


Own capital unpaid cost 3 991 2 259 1 436 2 130 7 019 1 996 3 164 3 783 4 598


(RFL)57 141 21 873 35 668 29 146 26 555 56 148 27 880 44 386 52 251

%spe.farms with positive RFL 84% 98% 100% 100% 100% 100% 100% 100% 94%

187 188 205

141 155

216

156 122

176

0

50

100

150

200

250

300

350

400

450

500

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs

Revenues

Opera

ting

costs


EUR/t




405 402 409 390

423 403

371 370

430

279 274 241

289 310

221 273 288 309

126 128

168

101

113

183

98

82

121

0

20

40

60

80

100

120

140

160

180

200

0

50

100

150

200

250

300

350

400

450

500


EUR/t






405 402 409 390

423 403

371 370

430 358

443

361

393

444

304

388 379

409

47

-41

49

-3

-21

100

-18 -9

20

-60

-40

-20

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

450

500




31 38 19 21 21 18

30 21 23

67

150

110 90 94

74

99

76

85

12

19

9

14

40

8

17

15

15

0

50

100

150

200

250


EUR/t



-100

-50

0

50

100

150

200

250

0

10 000

20 000

30 000

40 000

50 000

60 000








EU dairy farms report based on 2016 FADN data PT RG

Portugal 2016 Milk specialised farms


Norte e Centro Acores e Madeira Portugal

Sample farms 100-<200 100-<200 200-<500





Rented UAA - % 20% 61% 41%




Milk yield - kg/cow 8 069.2 6 877.5 7 651.5

Milk production - t 284 192 247



Revenues

Price 269 245 261



Production costs

Feed 190 112 166




Milk levy 0 0 0





Contract work 7 10 8

Taxes 3 2 2




Gross margin -1 74 23


payments 16 138 55


margin 66% 100% 80%


margin64% 100% 76%


Wages 17 4 13

Rent 2 15 6

Interest 1 1 1


Net margin -45 35 -19


payments -28 99 13




Net economic margin -96 -17 -70


coupled payments -79 47 -39










Total output 52 618 50 985 52 530



Decoupled payments 4 147 0 3 024

Depreciation 4 041 3 746 3 975


External factors 3 097 3 937 3 332

Wages 2 638 860 2 147

Rent 299 2 867 1 013

Interest 159 211 172

Balance invest. subs. and taxes 186 442 256



Own capital unpaid cost 2 608 2 539 2 644


(RFL)9 668 25 831 14 826


16

138

55

0

50

100

150

200

250

300

350



EUR/t


Price Coupled payments (incl. Art.69)

Feed Other specific costs

Non specific costs Gross margin with coupled payments

286

309 293

314

210

280

-28

99

13

-40

-20

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350


EUR/t








286 309

293

365

262

332

-79

47

-39

-100

-80

-60

-40

-20

0

20

40

60

0

50

100

150

200

250

300

350

400


EUR/t



24 19 23

40 40

40

11 12

12

0

10

20

30

40

50

60

70

80

90

100


EUR/t



-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000







EU dairy farms report based on 2016 FADN data FI RG

Finland 2016 Milk specialised farms


Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland

Sample farms 40-<100 40-<100 40-<100 40-<100 200-<500

Farms represented 2 037 2 601 1 700 1 939 8 276

% production from specialised farms 96% 96% 98% 99% 97%

Forage area - ha 38 41 45 51 43

Dairy cows - LU 35 32 40 35 35

Rented UAA - % 37% 37% 36% 38% 37%

Total labour - AWU 2.11 1.96 1.98 2.19 2.05

Family labour - % 86% 88% 87% 78% 85%

Milk per ha fodder area - t/ha 8.6 7.1 8.0 6.0 7.3

Milk yield - kg/cow 9 294 9 061 9 016 8 870 9 063

Milk production - t 322 292 358 307 316



Revenues

Price 360 367 370 372 367

Coupled payments (incl. Art.69) 59 76 71 116 80

Total revenues from milk 419 442 442 488 447

Production costs

Feed 114 130 117 151 128

homegrown feed 37 33 34 39 36

purchased feed 77 97 83 111 92

Herd renewal purchases 2 3 0 1 2

Milk levy 0 0 0 0 0

Other specific costs 35 37 32 34 35

Specific costs 151 169 150 186 164

Machinery and building upkeep 46 48 44 52 48

Energy (fuel, electricity) 30 33 26 37 32

Contract work 36 40 37 39 38

Taxes 1 1 1 2 1

Other direct inputs 66 83 65 77 73

Non specific costs 179 206 173 206 192

Total operating costs 330 375 323 392 355

Gross margin 29 -8 48 -20 12


payments 89 67 119 97 91


margin 82% 84% 81% 81% 82%


margin96% 86% 94% 90% 91%

Depreciation 95 84 89 110 94

Wages 19 18 14 34 21

Rent 16 11 18 10 14

Interest 10 11 13 15 12

External factors 45 40 45 60 47

Net margin -111 -132 -87 -189 -129


payments -51 -56 -15 -73 -49

Family labour costs 167 181 148 161 165

Own capital unpaid cost 20 11 21 11 16

Imputed family factors 187 192 169 172 181

Net economic margin -298 -323 -256 -361 -310


coupled payments -239 -248 -185 -245 -230


economic margin0% 0% 7% 0% 1%








Total output 80 511 76 692 95 829 76 481 81 586

Intermediate consumptions 71 855 74 874 85 437 76 991 76 914

Balance subsidies and taxes 30 695 29 228 37 792 35 940 33 048

Decoupled payments 6 286 4 819 6 085 5 365 5 590

Depreciation 18 237 14 737 19 234 18 421 17 473

Farm Net Value Added (FNVA) 21 113 16 308 28 950 17 009 20 248


Wages 3 764 3 058 3 281 6 047 4 036

Rent 3 110 1 930 4 130 1 741 2 623

Interest 1 895 1 923 2 807 2 528 2 247

Balance invest. subs. and taxes 1 097 702 1 583 934 1 037

Farm net income (FNI) 13 441 10 100 20 315 7 627 12 378




(RFL)10 920 9 118 17 790 7 506 10 981

%spe.farms with positive RFL 79% 73% 85% 72% 76%

89 67

119 97 91

0

100

200

300

400

500

600

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts


EUR/t



419 442 442

488

447

470 499 457

562 496

-51

-56

-15

-73

-49

-80

-70

-60

-50

-40

-30

-20

-10

0

0

100

200

300

400

500

600


EUR/t






419 442 442

488 447

658 690

626

734

677

-239 -248

-185

-245 -230

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

800


EUR/t



95 84 89 110 94

167 181 148

161

165

20 11 21

11 16

0

50

100

150

200

250

300

350

400


EUR/t



-300

-250

-200

-150

-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000







EU dairy farms report based on 2016 FADN data SE RG

Sweden 2016 Milk specialised farms


Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden

Sample farms 100-<200 100-<200 40-<100 200-<500

Farms represented 2 345 1 411 745 4 502

% production from specialised farms 98% 98% 98% 98%

Forage area - ha 102 123 121 112

Dairy cows - LU 88 92 59 84

Rented UAA - % 62% 58% 76% 63%

Total labour - AWU 2.71 2.51 2.52 2.61

Family labour - % 68% 68% 67% 68%

Milk per ha fodder area - t/ha 8.0 6.6 4.1 6.8

Milk yield - kg/cow 9 246 8 912 8 436 9 039

Milk production - t 814 817 495 762



Revenues

Price 334 308 321 324

Coupled payments (incl. Art.69) 10 11 92 19

Total revenues from milk 344 319 414 343

Production costs

Feed 126 131 135 129

homegrown feed 29 34 25 30

purchased feed 97 97 110 98

Herd renewal purchases 6 4 5 5

Milk levy 0 0 0 0

Other specific costs 28 27 37 29

Specific costs 160 162 177 163

Machinery and building upkeep 26 25 39 27

Energy (fuel, electricity) 21 20 36 22

Contract work 24 22 27 24

Taxes 0 0 0 0

Other direct inputs 24 23 48 26

Non specific costs 95 90 150 99

Total operating costs 255 252 327 262

Gross margin 78 56 -6 62


payments 88 67 86 81


margin 84% 80% 77% 81%


margin95% 98% 90% 95%

Depreciation 49 43 70 49

Wages 31 27 48 32

Rent 15 14 15 15

Interest 12 11 13 12

External factors 59 53 76 59

Net margin -30 -39 -152 -46


payments -20 -29 -59 -27

Family labour costs 75 69 120 78

Own capital unpaid cost 2 3 0 2

Imputed family factors 77 71 121 80

Net economic margin -107 -111 -272 -126


coupled payments -97 -100 -180 -107


economic margin2% 0% 0% 1%








Total output 171 691 186 192 117 032 167 708

Intermediate consumptions 127 067 143 777 112 917 130 127

Balance subsidies and taxes 24 780 30 071 55 152 31 286

Decoupled payments 11 706 13 619 12 543 12 443

Depreciation 22 060 21 551 18 106 21 324

Farm Net Value Added (FNVA) 47 343 50 934 41 160 47 543

External factors 26 185 25 923 19 312 25 066

Wages 13 575 13 219 12 295 13 293

Rent 7 052 7 071 3 776 6 550

Interest 5 558 5 634 3 240 5 222

Balance invest. subs. and taxes 188 357 191 240

Farm net income (FNI) 21 347 25 368 22 039 22 717


Own capital unpaid cost 1 165 2 111 139 1 292


(RFL)30 246 35 186 32 713 32 124

%spe.farms with positive RFL 75% 84% 87% 80%

88

67 86 81

0

50

100

150

200

250

300

350

400

450

Revenues Operating costs Revenues Operating costs Revenues Operating costs Revenues Operating costs


EUR/t





344 319

414

343

363 348

473

370

-20

-29

-59

-27

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

500


EUR/t






344 319

414

343

440 419

594

450

-97 -100

-180

-107

-200

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

700




49 43 70

49

75 69

120

78

2 3

0

2

0

50

100

150

200

250

300


EUR/t



-200

-150

-100

-50

0

50

100

150

0

10 000

20 000

30 000

40 000

50 000

60 000








EU dairy farms report based on 2016 FADN data UK RG

United Kingdom 2016 Milk specialised farms


England-North England-East England-West Wales Scotland Northern Ireland United Kingdom

Sample farms 40-<100 40-<100 100-<200 40-<100 40-<100 100-<200 200-<500

Farms represented 2 326 954 3 564 1 890 1 019 2 979 12 732

% production from specialised farms 98% 97% 96% 92% 98% 97% 96%

Forage area - ha 116 135 123 88 155 75 109

Dairy cows - LU 145 152 144 119 162 92 130

Rented UAA - % 54% 59% 43% 23% 30% 37% 42%

Total labour - AWU 2.80 3.95 3.06 2.24 3.21 1.85 2.69

Family labour - % 57% 41% 54% 72% 59% 84% 61%

Milk per ha fodder area - t/ha 9.4 8.9 8.2 9.3 7.6 8.5 8.6

Milk yield - kg/cow 7 496 7 825 6 998 6 831 7 199 6 892 7 152




Revenues

Price 285 312 307 264 270 251 285

Coupled payments (incl. Art.69) 0 0 0 0 0 0 0

Total revenues from milk 285 313 307 264 270 251 285

Production costs

Feed 106 131 114 108 108 104 111

homegrown feed 23 44 32 29 20 20 28

purchased feed 83 87 82 79 89 85 84

Herd renewal purchases 2 1 4 2 2 1 2

Milk levy 0 0 0 0 0 0 0

Other specific costs 37 37 39 36 31 25 35

Specific costs 146 170 158 146 141 131 149

Machinery and building upkeep 18 19 20 17 17 14 18

Energy (fuel, electricity) 12 14 13 13 12 13 13

Contract work 16 17 19 16 14 14 17

Taxes 0 0 0 0 0 0 0

Other direct inputs 19 28 23 21 16 13 20

Non specific costs 64 79 76 67 58 54 67

Total operating costs 210 248 233 213 199 184 216

Gross margin 75 64 73 51 71 67 68


payments 75 64 74 51 71 67 69


margin 89% 83% 88% 88% 86% 88% 88%


margin94% 91% 91% 90% 96% 97% 93%

Depreciation 25 29 28 30 45 38 31

Wages 24 40 29 17 22 8 24

Rent 10 15 11 5 6 11 10

Interest 6 7 8 7 7 6 7

External factors 40 63 49 29 35 25 41

Net margin 9 -28 -3 -8 -10 3 -3


payments 10 -28 -3 -7 -10 3 -3

Family labour costs 33 34 37 41 38 54 39


Imputed family factors 40 42 47 55 48 69 50

Net economic margin -31 -70 -50 -62 -58 -66 -53


coupled payments -30 -70 -49 -62 -58 -66 -52


economic margin17% 6% 13% 11% 6% 4% 10%


economic margin33% 7% 20% 23% 9% 5% 19%






Total output 151 849 144 364 146 064 137 294 144 556 124 270 142 046

Intermediate consumptions 109 944 105 129 105 865 106 317 105 663 94 224 104 581

Balance subsidies and taxes 10 939 11 480 11 576 10 999 13 247 13 830 11 880

Decoupled payments 9 283 9 863 9 881 9 929 11 368 13 317 10 453

Depreciation 12 588 12 109 12 299 13 876 23 691 16 475 14 272

Farm Net Value Added (FNVA) 40 256 38 607 39 475 28 100 28 449 27 402 35 073


Wages 11 768 16 269 12 980 7 972 11 728 3 633 10 852

Rent 5 083 6 306 4 833 2 455 2 771 4 839 4 546

Interest 2 920 2 995 3 654 3 164 3 643 2 446 3 181


Farm net income (FNI) 20 650 13 091 18 148 15 219 10 307 17 824 16 880




(RFL)29 930 22 328 25 673 11 479 8 230 13 110 19 669

%spe.farms with positive RFL 77% 73% 74% 63% 62% 77% 72%

75 64

74 51

71 67 69

0

50

100

150

200

250

300

350

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts


EUR/t



285

313 307

264 270 251

285

276

340 310

272 279 248

288

10

-28

-3

-7 -10

3

-3

-30

-25

-20

-15

-10

-5

0

5

10

15

0

50

100

150

200

250

300

350

400


EUR/t






285

313 307

264 270 251

285

316

383 357

326 328 317

337

-30

-70

-49

-62 -58

-66

-52

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450


EUR/t



25 29 28 30 45 38 31

33

34

37

41

38 54 39

7

9

9

14

10 15

10

0

20

40

60

80

100

120

140

160


EUR/t



-80

-60

-40

-20

0

20

40

60

80

100

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000








EU dairy farms report based on 2016 FADN data HU RG

Hungary 2016 Milk specialised farms


Észak-Magyarország Alfold Dunantul Hungary

Sample farms 15-<40 40-<100 15-<40 100-<200

Farms represented 417 2 806 1 028 4 250

% production from specialised farms 92% 61% 74% 68%

Forage area - ha 53 32 51 38

Dairy cows - LU 40 34 58 41

Rented UAA - % 81% 81% 86% 83%

Total labour - AWU 3.55 2.59 4.78 3.21

Family labour - % 24% 34% 23% 29%

Milk per ha fodder area - t/ha 6.0 7.0 8.8 7.4

Milk yield - kg/cow 7 785 6 575 7 718 7 087

Milk production - t 314 227 449 289



Revenues

Price 262 263 261 262

Coupled payments (incl. Art.69) 39 41 37 39

Total revenues from milk 301 304 299 302

Production costs

Feed 169 173 166 170

homegrown feed 75 70 80 74

purchased feed 93 103 86 96

Herd renewal purchases 2 1 2 1

Milk levy 0 0 0 0

Other specific costs 14 23 50 32

Specific costs 185 197 218 203

Machinery and building upkeep 15 16 18 16

Energy (fuel, electricity) 29 29 27 28

Contract work 6 9 12 10

Taxes 3 2 3 3

Other direct inputs 9 18 28 21

Non specific costs 62 74 87 78

Total operating costs 247 271 305 281

Gross margin 15 -8 -43 -19


payments 54 33 -6 21


margin 90% 70% 81% 74%


margin99% 67% 24% 54%

Depreciation 27 20 25 22

Wages 55 51 61 55

Rent 17 13 13 13

Interest 4 2 4 3

External factors 75 66 78 71

Net margin -87 -94 -145 -112


payments -48 -53 -108 -73

Family labour costs 13 21 14 18

Own capital unpaid cost 10 13 10 11

Imputed family factors 24 34 24 29

Net economic margin -110 -127 -170 -141


coupled payments -71 -86 -132 -102










Total output 44 078 46 213 54 752 49 108

Intermediate consumptions 33 490 36 340 46 180 39 616

Balance subsidies and taxes 12 592 13 946 13 695 13 725


Depreciation 3 834 3 216 4 370 3 702

Farm Net Value Added (FNVA) 19 345 20 603 17 897 19 516


Wages 7 911 7 895 10 973 9 014

Rent 2 480 2 108 2 334 2 232

Interest 522 287 674 452

Balance invest. subs. and taxes -13 -10 0 -7

Farm net income (FNI) 8 419 10 304 3 916 7 811


Own capital unpaid cost 6 745 5 768 7 474 6 346


(RFL)28 490 19 788 13 865 18 886

%spe.farms with positive RFL 98% 98% 93% 97%

54

33

-6

21

-50

0

50

100

150

200

250

300

350

Revenues Operating costs Revenues Operating costs Revenues Operating costs Revenues Operating costs


EUR/t



301 304 299 302

349 357 407

375

-48 -53

-108

-73

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450


EUR/t






301 304 299 302

372 390

431 404

-71

-86

-132

-102

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500


EUR/t



27 20 25 22

13

21

14 18

10 13

10 11

0

20

40

60

80

100

120

140


EUR/t



-150

-100

-50

0

50

100

0

5 000

10 000

15 000

20 000

25 000

30 000







EU dairy farms report based on 2016 FADN data PL RG

Poland 2016 Milk specialised farms


Pomorze and MazuryWielkopolska and

Slask

Mazowsze and

Podlasie

Malopolska and

PogorzePoland

Sample farms 200-<500 500-<1000 1000-<2000 200-<500 3000-<5000

Farms represented 9 070 12 426 58 311 8 286 88 094

% production from specialised farms 81% 63% 89% 64% 80%

Forage area - ha 23 17 13 11 15

Dairy cows - LU 23 23 17 13 18

Rented UAA - % 21% 35% 27% 42% 29%

Total labour - AWU 1.97 2.04 1.81 1.92 1.87

Family labour - % 93% 86% 98% 97% 96%

Milk per ha fodder area - t/ha 5.7 9.0 7.2 6.0 7.1

Milk yield - kg/cow 5 774 6 478 5 588 5 135 5 741

Milk production - t 132 149 95 66 104



Slask

Mazowsze and

Podlasie

Malopolska and

PogorzePoland

Revenues

Price 241 246 246 238 245

Coupled payments (incl. Art.69) 12 10 13 15 12

Total revenues from milk 253 255 259 253 257

Production costs

Feed 81 98 88 80 89

homegrown feed 42 46 47 53 47

purchased feed 39 52 41 27 42

Herd renewal purchases 3 2 3 2 3

Milk levy 0 0 0 0 0

Other specific costs 10 13 10 10 10

Specific costs 94 113 101 92 102

Machinery and building upkeep 15 12 13 14 13

Energy (fuel, electricity) 19 18 17 20 18

Contract work 8 8 7 7 7

Taxes 1 1 1 1 1

Other direct inputs 9 8 7 8 7

Non specific costs 52 47 44 49 46

Total operating costs 146 160 145 141 148

Gross margin 95 85 101 97 97


payments 106 95 114 112 109


margin 95% 96% 91% 96% 93%


margin98% 99% 99% 98% 99%

Depreciation 39 34 42 48 40

Wages 5 13 2 3 4

Rent 3 3 4 3 3

Interest 4 2 2 2 3


Net margin 44 33 52 40 46


payments 55 43 65 55 58

Family labour costs 76 64 64 91 67

Own capital unpaid cost 29 28 33 30 31

Imputed family factors 105 91 98 121 99

Net economic margin -61 -59 -46 -81 -53


coupled payments -49 -49 -33 -66 -40










Slask

Mazowsze and

Podlasie

Malopolska and

PogorzePoland

Total output 23 906 28 695 18 755 12 471 20 229

Intermediate consumptions 14 144 18 497 11 137 7 132 12 205

Balance subsidies and taxes 5 337 4 766 4 060 3 252 4 227

Decoupled payments 3 485 2 995 2 506 1 870 2 625

Depreciation 4 165 4 207 3 519 2 693 3 614

Farm Net Value Added (FNVA) 10 934 10 758 8 158 5 897 8 638


Wages 515 1 804 133 140 432

Rent 307 397 292 200 301

Interest 436 294 194 132 230

Balance invest. subs. and taxes 188 175 123 184 144

Farm net income (FNI) 9 863 8 439 7 662 5 609 7 819




(RFL)7 453 6 144 4 942 4 004 5 282

%spe.farms with positive RFL 89% 81% 77% 89% 80%

106 95

114 112 109

0

50

100

150

200

250

300

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Pomorze and Mazury Wielkopolska and Slask Mazowsze and Podlasie Malopolska and Pogorze Poland

EUR/t





253 255 259 253 257

197 213 195 198 199

55

43

65

55 58

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300


EUR/t






253 255 259 253 257

302 304 292

319 298

-49 -49

-33

-66

-40

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350


EUR/t



39 34 42 48 40

76 64 64

91

67

29 28 33

30

31

0

20

40

60

80

100

120

140

160

180

200


EUR/t



-80

-60

-40

-20

0

20

40

60

80

100

120

140

0

2 000

4 000

6 000

8 000

10 000

12 000


EUR/t of milk

EUR/WU






EU dairy farms report based on 2016 FADN data BG RG

Bulgaria 2016 Milk specialised farms


SeverozapadenSeveren

tsentralenSeveroiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria

Sample farms 15-<40 15-<40 15-<40 15-<40 40-<100 40-<100 200-<500

Farms represented 1 555 1 824 1 709 2 331 6 948 2 428 16 796

% production from specialised farms 84% 78% 74% 82% 87% 93% 85%

Forage area - ha 8 7 7 6 4 12 7

Dairy cows - LU 19 15 16 11 11 22 14

Rented UAA - % 73% 83% 82% 91% 77% 91% 84%

Total labour - AWU 2.53 1.83 1.95 1.90 1.77 2.19 1.95

Family labour - % 60% 71% 70% 88% 82% 57% 74%

Milk per ha fodder area - t/ha 4.3 5.8 3.8 4.6 5.0 3.4 4.4

Milk yield - kg/cow 2 358 3 266 2 794 2 943 2 677 3 259 2 877

Milk production - t 44 48 46 32 28 70 40




Revenues

Price 271 282 267 358 277 297 290

Coupled payments (incl. Art.69) 36 21 26 35 29 21 27

Total revenues from milk 308 304 292 394 306 318 317

Production costs

Feed 121 130 151 94 171 177 151

homegrown feed 37 69 64 18 37 42 44

purchased feed 83 60 86 75 133 136 108

Herd renewal purchases 0 1 0 0 1 2 1

Milk levy 0 0 0 0 0 0 0

Other specific costs 15 7 11 8 13 14 12

Specific costs 136 138 162 102 185 193 164

Machinery and building upkeep 6 10 8 10 9 10 9

Energy (fuel, electricity) 25 20 21 29 20 23 22

Contract work 9 6 4 9 6 2 5

Taxes 0 0 0 0 1 1 1

Other direct inputs 18 11 14 10 11 6 11

Non specific costs 58 47 48 57 47 40 48

Total operating costs 194 185 209 159 232 233 212

Gross margin 78 97 57 200 45 64 78


payments 114 118 83 235 74 85 105


margin 62% 74% 80% 99% 67% 75% 75%


margin91% 82% 90% 97% 84% 80% 86%

Depreciation 75 35 36 29 21 39 35

Wages 36 28 25 21 27 30 28

Rent 10 23 27 15 9 12 14

Interest 2 2 7 1 2 6 4


Net margin -45 9 -37 134 -14 -23 -3


payments -8 31 -12 170 15 -2 24

Family labour costs 107 105 112 167 131 51 107


Imputed family factors 129 125 129 182 148 59 122

Net economic margin -173 -116 -166 -47 -163 -83 -125


coupled payments -137 -95 -140 -12 -133 -62 -98


economic margin7% 9% 4% 15% 3% 7% 7%


economic margin25% 30% 24% 37% 16% 34% 27%







Total output 7 071 11 343 10 270 8 870 6 583 13 061 8 843

Intermediate consumptions 4 456 6 822 6 726 4 268 5 096 9 142 5 890


Decoupled payments 729 1 268 1 108 1 004 403 1 592 875

Depreciation 1 586 1 370 1 355 745 466 1 746 1 027

Farm Net Value Added (FNVA) 3 181 6 449 4 773 5 994 2 719 5 782 4 295

External factors 1 295 2 179 2 371 875 846 2 329 1 433

Wages 969 1 060 978 521 625 1 326 844

Rent 280 1 010 1 109 335 184 629 466

Interest 0 0 0 0 0 0 0

Balance invest. subs. and taxes 40 26 6 -8 18 9 15

Farm net income (FNI) 1 926 4 297 2 408 5 111 1 890 3 461 2 877




(RFL)1 945 3 900 2 580 5 378 1 570 3 298 2 764

%spe.farms with positive RFL 79% 65% 96% 96% 82% 94% 85%

114 118 83

235

74 85

105

0

50

100

150

200

250

300

350

400

450

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria

EUR/t



308 304 292

394

306 318 317

316 273

304

224

291 321

293

-8

31

-12

170

15

-2

24

-40

-20

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

350

400

450


EUR/t






308 304 292

394

306 318 317

445

398

433 406

439

380

415

-137

-95

-140

-12

-133

-62

-98

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500


EUR/t



75

35 36 29 21 39 35

107

105 112 167

131 51

107

22

20 17

14

17

8

15

0

50

100

150

200

250

300


EUR/t



-200

-150

-100

-50

0

50

100

150

200

250

300

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000








EU dairy farms report based on 2016 FADN data RO RG

Romania 2016 Milk specialised farms

e: estimate



Nord-Est Sud-Est Sud-MunteniaSud-Vest-

OlteniaVest Nord-Vest Centru Romania

Sample farms 40-<100 100-<200 15-<40 40-<100 40-<100 100-<200 100-<200 500-<1000

Farms represented 53 464 31 601 7 754 18 379 9 306 41 918 22 795 185 220

% production from specialised farms 67% 84% 45% 80% 57% 74% 82% 71%

Forage area - ha 2 2 1 2 3 3 4 2

Dairy cows - LU 3 4 4 4 4 4 5 4

Rented UAA - % 28% 41% 24% 7% 34% 19% 37% 28%

Total labour - AWU 0.77 0.94 0.72 1.31 1.04 1.05 1.10 0.97

Family labour - % 99% 97% 97% 100% 99% 98% 95% 98%

Milk per ha fodder area - t/ha 5.6 3.5 9.3 4.7 3.6 3.6 3.1 4.0

Milk yield - kg/cow 3 546 3 147 3 826 2 542 3 209 3 340 3 032 3 227

Milk production - t 10 12 16 10 14 12 15 12




Revenues

Price 312 302 317 496 264 274 281 310

Coupled payments (incl. Art.69) 24 9 97 15 28 36 52 32

Total revenues from milk 336 311 414 511 292 310 333 342

Production costs

Feed 90 93 53 109 91 95 90 91

homegrown feed 64 46 30 50 64 51 56 54

purchased feed 26 47 23 59 28 44 35 38

Herd renewal purchases 1 0 0 0 2 0 4 1

Milk levy 0 0 0 0 0 0 0 0

Other specific costs 6 11 14 14 8 7 7 8

Specific costs 96 103 68 122 101 102 101 101

Machinery and building upkeep 4 12 12 12 13 13 15 11

Energy (fuel, electricity) 15 27 22 72 28 34 29 30

Contract work 19 15 6 22 11 7 11 13

Taxes 1 3 0 3 2 2 2 2

Other direct inputs 5 10 5 8 13 7 9 8

Non specific costs 44 66 45 117 67 62 65 63

Total operating costs 140 170 112 239 168 165 166 164

Gross margin 172 132 205 257 96 109 115 146


payments 196 141 302 272 124 145 167 178


margin 97% 64% 100% 100% 75% 74% 62% 80%


margin97% 91% 100% 98% 93% 96% 97% 96%

Depreciation 54 38 44 142 49 44 47 55

Wages 1 5 5 0 1 6 9 4

Rent 3 4 3 2 5 2 7 4

Interest 0 0 0 0 0 1 0 0


Net margin 113 85 153 114 41 56 52 84


payments 137 94 250 128 68 92 104 116

Family labour costs 239 248 139 598 207 272 179 262


Imputed family factors 286 294 175 684 257 322 231 313

Net economic margin -173 -209 -22 -570 -216 -266 -178 -229


coupled payments -149 -200 75 -555 -189 -230 -127 -197


economic margin10% 10% 50% 1% 11% 1% 9% 9%


economic margin22% 23% 63% 5% 40% 9% 35% 25%







Total output 7 135 6 548 13 132 7 004 6 771 6 153 7 314 6 957

Intermediate consumptions 3 231 3 610 4 716 3 906 3 776 3 260 3 831 3 544



Depreciation 976 766 1 607 1 686 1 245 894 1 116 1 068

Farm Net Value Added (FNVA) 4 505 2 903 9 625 1 849 3 355 3 118 4 061 3 571


Wages 32 104 136 0 36 121 197 88

Rent 78 84 156 24 118 45 168 81

Interest 1 6 1 0 2 14 7 6


Farm net income (FNI) 4 394 2 709 9 638 1 825 3 199 2 938 3 689 3 406


Own capital unpaid cost 1 002 930 1 426 1 056 1 312 1 070 1 305 1 082


(RFL)3 392 1 728 8 385 766 1 689 1 922 2 179 2 295

%spe.farms with positive RFL 83% 61% 99% 71% 50% 68% 69% 72%

196

141

302 272

124 145

167 178

0

100

200

300

400

500

600

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Revenues

Opera

ting c

osts

Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania

EUR/t



336 311

414

511

292 310

333 342

199 217 164

224 218 229 226

137

94

250

128

68

92 104

116

0

50

100

150

200

250

300

0

100

200

300

400

500

600


EUR/t






336 311

414

511

292 310

333 342

485 511

340

481

540

460

539

-149

-200

75

-555

-189 -230

-127

-197

-600

-500

-400

-300

-200

-100

0

100

200

0

100

200

300

400

500

600


EUR/t



54 38 44 142

49 44 47 55

239 248 139

598

207 272

179 262

47 46

36

86

51

50

52

51

0

100

200

300

400

500

600

700

800

900


EUR/t



-600

-500

-400

-300

-200

-100

0

100

200

300

400

0

2 000

4 000

6 000

8 000

10 000

12 000








EU dairy farms report based on 2016 FADN data HR RG

Croatia 2016


Jadranska Hrvatska (Adriatic Croatia)Kontinentalna Hrvatska (Continental

Croatia)Croatia

Sample farms 15-<40 100-<200 100-<200





Rented UAA - % 70% 44% 46%




Milk yield - kg/cow 3 570 4 743 4 667

Milk production - t 20 69 62



Croatia)Croatia

Revenues

Price 466 295 304



Production costs

Feed 222 204 205




Milk levy 0 0 0





Contract work 3 7 6

Taxes 12 12 12




Gross margin 130 2 9

Gross margin with coupled payments166 55 61

%spe.farms with positive gross margin 72% 63% 64%%milk production with positive gross

margin80% 74% 75%


Wages 7 17 17

Rent 5 7 7

Interest 3 3 3


Net margin -3 -70 -66

Net margin with coupled payments32 -16 -14




Net economic margin -598 -286 -301Net economic margin with coupled

payments -563 -233 -249

%spe.farms with positive net economic

margin2% 1% 1%







Croatia)Croatia

Total output 10 435 22 341 20 334



Decoupled payments 1 104 3 014 2 692

Depreciation 1 713 2 498 2 366



Wages 89 880 747

Rent 82 387 335

Interest 39 172 149

Balance invest. subs. and taxes 0 237 197



Own capital unpaid cost 1 450 2 868 2 603

Remuneration of Family Labour (RFL) 2 816 5 182 4 745


166

55 61

0

100

200

300

400

500

600


Jadranska Hrvatska Kontinentalna Hrvatska Croatia

EUR/t



501

348 356

469

365 370

32

-16 -14

-20

-10

0

10

20

30

40

0

100

200

300

400

500

600


EUR/t







501

348 356

1 064

581 605

-563

-233 -249

-600

-500

-400

-300

-200

-100

0

0

200

400

600

800

1 000

1 200


EUR/t



118 45 48

498

172 188

97

44 47

0

100

200

300

400

500

600

700

800

Jadranska Hrvatska (Adriatic Croatia) Kontinentalna Hrvatska (Continental Croatia) Croatia

EUR/t



-600

-500

-400

-300

-200

-100

0

100

200

300

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

Jadranska Hrvatska (Adriatic Croatia) Kontinentalna Hrvatska (ContinentalCroatia)

Croatia






European Commission

EU dairy farms report based on 2016 FADN data

Disclaimer:This publication does not necessarily reflect the official opinion of the European Union. Neither the European Union insti-tutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.

Contact:European CommissionDG Agriculture & Rural Development,Farm economicsE-mail: [email protected]: http://ec.europa.eu/agriculture/rica/index.cfm

This report provides an overview of costs of production, margins and income of specialised milk farms in the EU. The analysis is based on 2016 FADN data.

European CommissionDirectorate-General for Agriculture and Rural Development

http://ec.europa.eu/agriculture

EU DAIRY FARMS REPORT - European Commission · EU Dairy farms report based on 2016 FADN data 5 The...

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