Rabobank predicts a decline in the profitability of dairy farming in Europe
Dairy
East Timor
Published Mar 14, 2022
Tridge summary
Analysts at Rabobank believe dairy farming costs will rise faster than revenues. High milk prices are now helping farmers offset rising costs, according to nieuweoogst.nl.
Original content
In addition, the average price of milk in Europe is expected to continue rising in the coming months. This is due to the limited supply of raw milk worldwide. If earlier the increase in the cost of raw materials led to an increase in milk production, then this year the situation is different. “This is due to the higher costs that dairy farmers around the world have to face,” says Rabobank manager Marin Dekkers. "That in turn slows down production." So far, manufacturers have been able to cope with the rising cost of feed and energy. However, due to high costs, the benefits that farmers receive from high milk prices are much less than expected. However, the increase in costs has affected different agribusinesses in different ways. “Companies that keep dairy cattle, combined with a relatively large volume of feed purchases and contract work, benefit less from higher prices,” commented Marin ...
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