Rabobank predicts a decline in the profitability of dairy farming in Europe

Published 2022년 3월 13일

Tridge summary

Rabobank predicts that dairy farming costs will increase at a faster rate than revenues, largely due to high milk prices helping to offset rising costs. The average milk price in Europe is expected to rise further due to limited raw milk supply globally. The rising costs are slowing down production, and while manufacturers have so far been able to cope with the increased cost of feed and energy, the benefits from high milk prices are less than expected for farmers. The situation varies for different agribusinesses, and the use of domestic roughage and organic fertilizers can help reduce costs, although European legislation currently does not support large-scale implementation of organic fertilizers.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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. 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 ...
Source: Agroxxi

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