Income on dairy farms in the Netherlands to record high due to milk price

Published Dec 19, 2022

Tridge summary

In 2022, agricultural revenues are expected to see a significant increase of 222,000 euros from the previous year, largely due to higher milk and livestock prices. Despite these increased revenues, total costs are also on the rise, reaching 105,000 euros more than last year, attributed mainly to elevated feed, fertilizer, energy prices, and material costs for maintenance and replacement. The cost of animal feed has surged by 36%, fertilizer by 230%, fuel by over 47%, and electricity costs are about to double. Milk production per farm is also expected to grow by 4% to over 1 million kilos, leading to an increased demand for feed and fertilizer, which further escalates the costs.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Total revenues will increase by 222,000 euros in 2022 compared to the previous year due to higher milk and livestock prices. The total costs will increase by 105,000 euros due to higher feed, fertilizer and energy prices, reports Wageningen Economic Research. The material costs such as those of machines, tools and buildings are also increasing, partly due to higher maintenance costs. Due to the good earnings, overdue maintenance may be committed and replacement investments made. More milk Milk production per farm will increase by 37,000 kilos in 2022, or 4 percent, compared to 2021. This brings the production to more than 1 million kilos per farm. The increase in production is the result of a 3 percent increase in the number of dairy cows per farm and a 1 percent increase in milk production per cow. More than half of the cost increase is due to animal feed and fertilizer. The costs of the purchased animal feed rose by 36 percent, of which 5 percent was due to a higher amount of ...

Source: Nieuwe Oogst