The prices of bovine milk in Germany, during October 2022, exceed production costs by a coefficient of 1.25

Published 2023년 2월 17일

Tridge summary

The Office for Rural Sociology and Agriculture (BAL) in Germany has released quarterly cost studies indicating that production costs for milk were covered for the first time since the study's inception in July 2022, with a price of 59.33 cents per kg in October 2022. This is a significant development towards achieving long-term cost coverage in the dairy sector, a crucial element for the sustainability and stability of agricultural production. The European Milk Board is advocating for political support to ensure a crisis-free dairy market, emphasizing the importance of stable producer prices for the next generation of farmers. The price/cost ratio in October 2022 showed a 125% coverage, highlighting the potential for a more stable market if these conditions can be sustained.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Long-term cost coverage is a basic requirement for stable production. According to the updated quarterly cost study of the Office for Rural Sociology and Agriculture (BAL), production costs in Germany for October 2022 amounted to 47.51 cents per kg, while the average price of milk in the exploitation in the same period was 59.33 cents per kg. This means that the costs were covered during this period. As can be seen from the evolution of milk production costs in recent years, cost coverage was achieved only a few months earlier, in July 2022, for the first time since the study existed. The trend had already become apparent in April 2022. Since then, producer prices have continued to rise, reaching almost 60 cents in October 2022. Long-term cost coverage and the reforms necessary to achieve it are essential for a sustainable and stable agriculture. For this reason, from the European Milk Board, they demand that politicians, now more than ever, create the framework conditions for a ...
Source: Castilla

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