EU dairy farms report 2012 - European...

EU dairy farms EU dairy farms report 2012 report 2012 based on FADN databased on FADN data

Europe Direct is a service to help you find answers to your questions about the European Union.Freephone number (*): 00 800 6 7 8 9 10 11(*) Certain mobile phone operators do not allow access to 00 800 numbers or these calls may be billed. More information on the European Union is available on the Internet (http://europa.eu).Cataloguing data can be found at the end of this publication.

© European Union, 2013. Reproduction is authorised, provided the source is acknowledged as ‘European Commission — EU FADN’, save where otherwise stated. Where prior permission must be obtained for reproduction, such permission shall cancel the above-mentioned general permission and shall clearly indicate any restrictions on use. When data/information are adapted or modified by the user, this shall be explicitly stated at a suitably prominent place in the work.

© cover photo: Alexander Bartovič

The text of this publication is for information purposes only and is not legally binding.

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

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT Directorate L. Economic analysis, perspectives and evaluations L.3. Microeconomic analysis of EU agricultural holdings

Brussels, April 2013

EU DAIRY FARMS REPORT 2012

Executive summary

This annual report provides an overview of EU dairy farms based on the latest available data from the

Farm Accountancy Data Network (FADN) for 2009.1 It provides trends in milk margin per tonne and in

income per work unit from 2001 to 2009, as well as estimates of milk gross margins for 2010 and 2011.

Since 2009 was the year of the milk crisis, its main focus is the analysis of the effects of the crisis.

The sample of milk specialised farms for 2009 represented 73 % of dairy cows and 78 % of milk

production in the 27 EU Member States (EU-27).

The price in 2009 was 17 % less than the average milk price in 2007 — a very good year. This, together

with only a small decline in cost of production, prompted the ‘milk crisis’. At EU-27 level, gross margin2

fell by 37 % from a peak in 2007 to 94 EUR/t (euros per tonne). It is estimated that gross margin should

return to its 2007 level by 2011. The impact of the crisis was felt differently in the respective EU groups

(see the graph below) due to variations in the fall in milk prices and in the way the groups adapted to the

situation.

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

The 10 countries that joined the EU in 2004 (EU-10) experienced the sharpest decline in gross margin (to

69 EUR/t — 43 % less than in 2007) due to a more severe cut in milk prices (-24 %), which could not be

fully offset by the decrease in operating costs (-10 %). In the 15 Member States that belonged to the EU

1 Report based on 2010 data will be available soon.

2 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.

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t

Trend in milk gross margin

EU-15 EU-10 EU-2 EU-27

EU Dairy farms report 2012

2

before 2004 (EU-15), the decrease in prices was less pronounced (-17 %), but the milk gross margin,

which was 36 % less than in 2007, fell below 100 EUR/t, its lowest level in the decade. In Bulgaria and

Romania (EU-2), the impact of the crisis seems to have been less severe, due largely to a more

proportional decrease in milk prices and feed costs. All in all, the proportion of specialised farms in the

EU-27 with a positive gross margin fell from 98 % in 2007 to 92 % in 2009.

This situation naturally had an impact on the income of milk specialised farms. After years of continuous

increase, average Farm Net Value Added per Annual Work Unit (FNVA/AWU) in the EU-27 decreased

to 16 333 EUR/AWU on average, 25 % lower than in 2007. Dairy specialised farms generally provide

higher incomes per AWU than other types of farming, but this was no longer the case in 2009 — for the

first time in years, their average income did not rank in the top three types of farming, although it

remained above the total average. As with gross margins, the income level varied among the EU groups,

with income being three to seven times higher in the EU-15 than in the EU-10 or EU-2, mainly due to

huge differences in farms size (see charts below).

Source: EU FADN — DG AGRI, ESTAT (HICP index EUR 2001).

The evolution of income also differed in the respective EU groups. After years of continuous increase in

the EU-10 and EU-15, income fell between 2007 and 2009 following the fall in margins (see graphs

below). The decrease was more marked in the EU-10 (43 % less than in 2007), owing to the drop in

margins and a decrease in average milk production on specialised farms, which was not offset by the

increase in direct payments and subsidies. However, these payments, even though they represented only

20 % of the total receipts in EU-10 in 2009, made up 73 % of the FNWA/AWU (at 5 558 EUR/AWU). In

the EU-15, direct payments and subsidies (of which 70 % were decoupled payments) were also a

crucial part of support income, as they represented 56 % of the FNVA/AWU, which in 2009 fell back to

its 2001 level in nominal terms (26 591 EUR/AWU). The situation was quite different in the EU-2 where,

in spite of the drop in prices, income increased in 2009, thanks to an increase in apparent labour

productivity (the average number of cows per farm increased in parallel with a decrease in the average

labour force per farm).

However, better prices are likely to lead to a recovery in the margins in 2010 and 2011 (to 2007 levels in

the EU-15, and above them in the EU-10 and EU-2), and therefore an increase in income.

0

20

40

60

80

100

120

140

160

2001 2002 2003 2004 2005 2006 2007 2008 2009

Index 2001 = 100

Income trend in nominal and real terms - EU milk specialised farms

EU 15 FNVA/AWU nominal EU 15 FNVA/AWU real EU 10 FNVA/AWU nominal

EU 10 FNVA/AWU real EU 2 FNVA/AWU nominal EU 2 FNVA/AWU real


3

Source:

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

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

report.


4

Table of contents

1. INTRODUCTION ....................................................................................................... 6

2. MILK SPECIALISED FARMS IN THE EU .............................................................. 6

3. ANALYSIS OF MILK MARGINS ............................................................................ 9

3.1. Breakdown by EU group ................................................................................. 10

3.1.1. EU-27 ................................................................................................ 10

3.1.2. EU-15 ................................................................................................ 12

3.1.3. EU-10 ................................................................................................ 14

3.1.4. EU-2 .................................................................................................. 16

3.2. National level .................................................................................................. 17

3.2.1. EU-15 Member States ....................................................................... 17

3.2.2. EU-10 Member States ....................................................................... 19

3.2.3. EU-2 Member States ......................................................................... 22

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

4.1. Breakdown by EU groups ............................................................................... 24

4.1.1. EU-27 ................................................................................................ 24

4.1.2. EU-15 ................................................................................................ 28

4.1.3. EU-10 ................................................................................................ 29

4.1.4. EU-2 .................................................................................................. 31

4.2. National level .................................................................................................. 32

4.2.1. EU-15 Member States ....................................................................... 32

4.2.2. EU-10 Member States ....................................................................... 35

4.2.3. EU-2 Member States ......................................................................... 35


5

Box 1: The Farm Accountancy Data Network (FADN)

The FADN3 is a European system of sample surveys that take place each year and 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 as to cover the most relevant part of the agricultural activity of each EU Member State, i.e.

at least 90 % of the Standard Gross Margin and 90 % of Utilised Agricultural Area covered in

the Farm Structure Survey (FSS, Eurostat). For 2009, the sample consists of approximately

78 000 holdings in the EU-27, which represent 5.4 million farms (39 %) out of a total of some

14 million farms included in the FSS.

The survey is intended to provide representative data in three dimensions: by region,

economic size and type of farming. 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.

The most recent FADN data available for this report are for the 2009 accounting year; this is

because of the time needed to collect, check and correct the data of all the EU Member States.

The next edition of this report, using FADN data till 2010, is scheduled for later this year.

3For more information on FADN: http://ec.europa.eu/agriculture/rica/index.cfm .

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


6

1. INTRODUCTION

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

data, i.e. for 2009. Cost of production and gross margins for 2010 and 2011 are also

estimated. The main feature of the five-year period 2007-2011 has been the high level of

volatility in agriculture in general, and in the milk sector in particular. In 2007, producers

experienced a sharp increase in milk prices alongside a general boom in agricultural prices.

Input prices followed suit, albeit with a time lag and to a different extent. Producer prices then

fell dramatically in mid-2008 while input prices remained quite high, prompting the 2009

milk crisis. Milk prices recovered in 2010 and 2011.

This report provides an analysis of the economic situation of EU dairy farms, focusing on the

impact of the 2009 milk crisis. Chapter 2 describes the sample of milk specialised farms on

which the results presented in this report are based. The third section provides an analysis of

milk margin by EU group and Member State. The fourth section is dedicated to income

analysis at EU and national level. Detailed data by EU group, Member State and region are

provided in the Annex, together with explanations on the methodology.

2. MILK SPECIALISED FARMS IN THE EU

This study is based on farms mainly oriented towards milk production.4

In the FADN 2009, the sample is made up of 12 890 farms, representing 508 611 farms in the

EU-27; 55 % are in the EU-15, 22 % in the EU-10 and 24 % in the EU-2.

While the coverage of the sector is very high in most EU-15 Member States, it is generally

lower in other Member States. Farms in these Member States, particularly large farms in

Slovakia and the Czech Republic, diversify their activities a lot, so the proportion of

specialised farms is not high. The share of the sector covered by specialised farms in the

FADN is more than 80 % in the EU-15 and around 50 % in the EU-2 and EU-10. There are

big differences in coverage among Member States: only 17 % of milk production in Slovakia

and 19 % in the Czech Republic, but full production in Ireland and Finland.5 Globally, the

FADN sample covers 73 % of the dairy cows, and the margin and production costs are

valid for 78 % of EU-27 milk production.6

There are large differences among milk farms across the EU (Table 1). Farms in the EU-15

are in general much larger and have higher yields than in the EU-10 and EU-2. Milk

specialised farms in the EU-15 have 52 dairy cows on average, with a milk yield of

6 991 kg/cow, producing 364 t of milk per year, whereas in the EU-10 they have 17 dairy

cows, with a yield of 5 577 kg/cow, and produce 97 t of milk per year. Farm size is even lower

in the EU-2 where farms have 7 dairy cows on average, with a yield of 3 877 kg/cow, and

produce 27 t of milk per year. These data reflect the diversity of milk farm structures in the

EU-27, which are linked to the differences in natural potential and also in the social,

economic and regulatory context. In particular, the different national policies on milk quota

4 The main criteria used to define specialised milk farms is a share of milk sector higher than 50 % of the total output and coupled

subsidies (see methodology in Annex I). It enables reliable estimates of cost of production and margins to be obtained.

5 There is an overrepresentation in some Member States mainly because the representation was based on the last information available

when preparing the report — the Eurostat Farm Structure Survey 2007.

6 See also Table 2 and 3 in Annex I. The results for Cyprus are not displayed because the sample is too small.


7

management are very likely to have had an impact on the level of restructuring within each

Member State.

Table 1: Structural information on milk specialised farms by Member State (2009)

Average specialised milk farms

FADN 2009 Forage area —

ha

Dairy cows —

LU

Total labour —

AWU

Share of family

labour — %

Milk yield — kg/cow

Milk production

/farm — tonnes

Milk output- €/tonne

Share of milk

production – as % of

sector

Belgium 41 54 1.64 98 % 6910 371 254 67 %

Denmark 95 123 2.23 53 % 8278 1020 302 91 %

Germany 49 51 1.92 77 % 7387 380 273 78 %

Greece 8 59 2.37 73 % 5713 336 387 58 %

Spain 19 38 1.56 94 % 6886 264 297 96 %

France 61 47 1.75 93 % 6501 308 297 78 %

Ireland 54 58 1.60 88 % 5126 297 229 106 %

Italy 24 44 1.87 81 % 6548 286 382 81 %

Luxembourg 67 45 1.64 92 % 7290 330 265 64 %

The Netherlands 45 76 1.66 92 % 7881 603 282 95 %

Austria 28 20 1.68 98 % 6616 133 299 63 %

Portugal 15 25 1.65 86 % 7052 179 281 64 %

Finland 31 25 2.01 91 % 8447 210 391 115 %

Sweden 75 57 2.08 76 % 8048 462 274 99 %

The United Kingdom 100 117 2.56 63 % 7116 836 263 95 %

EU 15 47 52 1.84 84 % 6991 364 291 85 %

Cyprus . . . . . . . .

The Czech Republic 149 81 8.39 20 % 6532 528 244 19 %

Estonia 146 63 5.32 26 % 7199 451 206 89 %

Hungary 42 37 3.16 34 % 6645 248 235 50 %

Lithuania 31 18 2.02 80 % 5344 96 191 44 %

Latvia 43 16 2.07 69 % 5435 89 184 64 %

Malta 6 68 2.56 86 % 5457 369 435 88 %

Poland 13 15 1.87 95 % 5340 80 207 54 %

Slovakia 618 207 28.71 4 % 5877 1215 233 17 %

Slovenia 14 15 2.03 99 % 5245 77 262 66 %

EU 10 20 17 2.08 83 % 5577 97 214 48 %

Bulgaria 8 12 2.12 64 % 3696 45 234 52 %

Romania 3 6 1.76 89 % 3917 25 282 57 %

EU2 4 7 1.79 87 % 3877 27 274 56 %

EU27 31 34 1.88 85 % 6686 227 284 78 %

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

sample.


8

Box 2: Impact of the volatility of milk prices on the results: the case of Spain

When comparing results from one year to another, the sample, or ‘population’ of milk

specialised farms for which results are provided, may vary.

The main factor of change in the observed population is the specialisation rate, i.e. the share

of milk output and subsidies in total output and coupled subsidies. The milk output (quantity

of milk x price of milk) is sensitive to the relative price of milk and other products of the

farm. When agricultural prices are stable, so is the specialisation rate. But in the last few

years, the volatility of milk and other agricultural prices has meant that a farm which was

considered specialised in a given year could not belong to the ‘population’ of observed farms

the next year, and vice versa. For example, in 2007, milk prices were very high, and the share

of milk output and subsidies of total output and coupled subsidies may have increased if the

output of the other activities of the farms remained stable or decreased. This in turn means

that many more farms would qualify as ‘specialised dairy farms’.

This happened in Spain for example. In 2007, farms smaller than 8 ESU7 (small farms)

represented 25 % of all milk specialised farms, whereas their share was around 10 % in a

‘normal year’ and 0 % in 2009, while the share of farms of other size classes remained more

or less stable. This naturally had an impact on the average results: for example, the average

number of dairy cows per farm decreased from around 37 in previous years to 31 in 2007. As

these small farms represent a very small proportion of the total production of milk by

specialised farms (3 % in 2007, around 2 % in a ‘normal’ year), this had an impact on the

average milk production per farm — average milk production on specialised farms in Spain

was 217 t in 2007, against 264 t in 2009. If small farms had been excluded from the sample,

the average milk production per farm would have been 280 t per farm in 2007, and the trend

between 2007 and 2009 more in line with that at macro level. Consequently, a direct

comparison of the 2007 and 2009 results for Spain is not fully suitable. It should be noted that

due to different agricultural situations, volatility has greater consequences for the EU-10,

making comparisons over time more difficult for this EU group and for some of its Member

States.

Solutions to mitigate such effects will be explored in the next editions of this report.

Besides, it should be noted that technical changes in selection plans (e.g. clustering rules) can

sometimes also have an impact on the global picture. That was the case in Hungary, for

example.

7 ESU: Economic size unit. See FADN website.


9

3. ANALYSIS OF MILK MARGINS

This chapter highlights the main results for revenues, costs and margins of dairy activity,

which are presented in terms of current euros per tonne (EUR/t) of milk produced. It focuses

on the impact of the crisis on dairy activity, by comparing, where possible (see Box 3), the

results for 2007 with those for 2009.8 The tables in Annex II show the detailed results by EU

group, Member State and region.

Three different margin indicators are studied.9 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, interest paid). The net economic margin allows assessment of 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 3 and detailed in Annex I.

Box 3: 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 relating to the farm as a whole. Hence, the

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

the cost of production by 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 milk cost of production and margins

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 enable a comparison to be made 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 2010 and 2011 are

estimated on the basis of milk prices, milk yield indices and input price indices. It is assumed

that 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).

8 Due to very good prices for milk, 2007 may not be the most reliable base year for comparison; however, it is the first one for which we

have data at EU-27 level, thus allowing comparisons to be made between EU groups.

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


10

3.1. Breakdown by EU group

3.1.1. EU-27

The milk gross margin fell by 37 % between 2007 and 2009 due to a 17 % decrease in milk

prices, but the margin is expected to recover by 2011 thanks to higher milk prices

compensating for an increase in operating costs.

At EU-27 level, the operating costs for milk production consist mainly of feed costs (around

50 % of operating costs, two-thirds of which are for purchased feed and 1/3 for home-grown

feed) together with energy, machinery and building upkeep and contract work, each

representing a little less than 10 % of operating costs. Since the decoupling of direct support,

revenues from milk have depended mostly on the price and the quantity produced. In the short

term, gross margin is therefore mainly influenced by the milk price and feed costs.

Between 2007 and 2009, the average price for milk fell by 17 % owing to an increase in

production while operating costs per tonne remained stable.10

As a consequence, the average

milk gross margin fell by 37 % to 94 EUR/t (Figure 1). However, thanks to higher milk

prices, which more than compensated for the increase in operating costs, 2010 and 2011 saw a

recovery in gross margin, which is expected to return to its 2007 level in 2011. In 2007, 98 %

of milk specialised farms had a positive gross margin. By 2009, this figure has fallen by 6

percentage points, but should have almost recovered by 2011 (97 % of specialised dairy

farms).

Following the fall in gross margin, the average net margin (gross margin minus depreciation

and external factors, both of which remained mostly unchanged) fell sevenfold between 2007

and 2009 to 9 EUR/t. After deducting opportunity costs for family labour and capital, we

obtain the net economic margin, which plunged from -23 EUR/t to -85 EUR/t between these

two years. As long as imputed family labour costs remained stable, the opportunity costs for

own capital doubled, mostly due to a steep increase in the real interest rate.11

Yet the main

driver here too is the decrease in milk price. The negative net economic margin means that

on average farmers do not obtain what could be considered an adequate remuneration

for their own labour and capital. In 2009, only 13 % of EU-27 specialised dairy farms

had a positive net economic margin (29 % in a good year such as 2007). Given the trend in

gross margin, net economic margin should improve in 2010 and 2011.

10 Operating costs were lower than in 2008, thanks to lower feed costs, but not low enough to compensate for the fall in the milk price.

11 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. In contrast to previous years, inflation in most Members States,

especially in the EU-10, fell considerably, even approaching zero in 2009. As a consequence, the real interest rate rose considerably

that year, causing own capital unpaid costs to rise abruptly. These costs are only estimates, however, and should be interpreted with

caution.


11

Figure 1: Trend in milk cost of production and margins, EU-27

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


12

3.1.2. EU-15

Trends in the EU-15 were similar to those in the EU-27.

In 2009, the average gross margin in the EU-15 fell below 100 EUR/t to 95 EUR/t, its

lowest level in a decade (see Figure 5), and 36 % lower than in 2007. In the EU-27, the

decrease in milk prices between these two years (-17 % to 291 EUR/t) was the main driver of

this drop, since operating costs per tonne remained fairly stable. The impact on specialised

farms was noticeable, with the percentage of farms with a positive gross margin falling from

98 % to 93 %. Here again, thanks to an increase in milk prices, the average milk gross margin

in the EU-15 is expected to recover to its level of 2007 by 2011.

Given that depreciation and external factor costs per tonne remained stable, net margin also

fell abruptly in 2009 (following the fall in gross margin) to 7 EUR/t with coupled payments.

This was by far the lowest level in the decade. Due to the rise in the real interest rate,

opportunity costs for own capital increased abruptly in 2009 (Figure 4) whereas opportunity

costs for family labour per tonne remained nearly unchanged. Indeed, apparent labour

productivity (milk production per AWU) kept on increasing in 2009 (Figure 2), which offset

the limited gain in imputed wage for family labour (Figure 3). As a result, net economic

margin fell too, and in 2009 only 10 % of EU-15 specialised dairy farms had a positive net

economic margin (28 % in a good year such as 2007).

Figure 2: Apparent labour productivity

Figure 3: Imputed wage for family labour


Figure 4: Opportunity costs for own capital and real interest rate

Source: EU FADN — DG AGRI.


13




14

3.1.3. EU-10

The EU-10 were more severely hit by the milk crisis despite a cut in their operating costs,

but the increase in prices is expected to bring the gross margin in 2011 to its highest level

since 2004.

The EU-10 were more severely hit by the milk crisis than the EU-15. Milk prices (214 €/t

in 2009) decreased on average by 24 % compared to 2007, causing gross margin per tonne to

fall to 69 EUR/t (Figure 6), despite a genuine cut in the operating costs per tonne (mainly

feed costs), as the average milk production per farm decreased on specialised farms (from 102

to 97 t/farm). In 2009, 87 % of EU-10 specialised dairy farms had a positive gross margin.12

However, thanks to improving milk prices, gross margin is expected to recover as from 2010,

to reach its highest level since 2004 in 2011 of 133 EUR/t on average.



12 Because of the milk price volatility between 2007 and 2009, and due to the farm structure in the EU-10, a direct comparison of 2007

and 2009 may not be fully possible, as in some EU-10 Member States, the population of ‘specialised dairy farms’ has changed (see

Box 2). For example, the average production per farm increased (from 59 to 62 t/farm) when all the farms (specialised and non-

specialised) are taken into consideration.


15

In line with the trend in gross margin, net margin also dropped dramatically (to 2 EUR/t)

between 2007 and 2009, while external factor costs per tonne remained stable and

depreciation increased very slightly. Whereas most costs were cut between 2007 and 2009,

opportunity costs for family labour continued to increase, primarily because of the growth in

imputed wage — yet they were lower in 2009 than in 2008 (Figure 8). Apparent labour

productivity of unpaid worker appears to have decreased a little in 2009 (Figure 7), due to the

decrease in the average number of cows per farm, and the increase in the labour force.

However, this slight decrease in milk produced per FWU could be attributed to the change in

the population of ‘specialised dairy farms’ (see Box 2), and should be interpreted with

caution. The opportunity costs for own capital increased too, together with the real interest

rate (Figure 9). As a result, net economic margin followed the same trend as other margin

indicators, reaching -85 EUR/t in 2009, the same level as in the EU-15.

Figure 7: Apparent labour productivity

Figure 8: Imputed wage for family labour


Figure 9: Opportunity cost for own capital and real interest rate



16

3.1.4. EU-2

The EU-2 was also affected by the crisis but to a lesser extent thanks to a significant

increase in production.

Milk prices, despite a fall, remained high, while operating costs per tonne, which were already

low, decreased. As a result, the average gross margin in the EU-2 for 2009 was 147 EUR/t

(Figure 10), which is significantly higher than in the other EU groups, and 94 % of EU-2

specialised dairy farms had a positive gross margin. Depreciation increased slightly but

remained quite low compared to the other EU groups, and external factor costs per tonne

remained stable. This meant that the net margin, despite narrowing following the fall in gross

margin, remained very high, at 91 EUR/t. The net economic margin, however, fell steeply in

2009, even though family labour costs fell quite considerably due to an increase in apparent

labour productivity. Indeed milk production per FWU may have increased steeply between

2007 and 2009, thanks to a parallel rise in the average number of dairy cows and decline in

the number of FWU. This increase in productivity more than compensated for the increase in

imputed wage (+13 %). Yet these family labour costs remain extremely high compared to

the other EU groups, due to the small average size of the herd.



13 In view of the problems recording the labour force in Romania for 2008, and its weight in the EU-2 aggregate, results for this year are

(temporarily) not displayed. Generally speaking, as Bulgaria and Romania are still in the process of implementing their sample,

comparisons over time may not be fully reliable. However, results are becoming increasingly representative.


17

3.2. National level

The 2009 milk crisis was felt differently across the EU. This section analyses the effects of

the crisis, based on trends in costs and margins in the Member States provided in Annex II.

3.2.1. EU-15 Member States

Ireland was the EU-15 Member State most affected by the crisis, with a fall of 63 % in the

gross margin and 16 % in the number of specialised dairy farms with a positive gross margin

compared to 2007. Following a 29 % fall in milk price (the biggest in the EU-15, and the

lowest milk price), and stable operating costs, the Irish average gross margin fell to 58 EUR/t.

The situation was worse only in Sweden, where the average gross margin was 53 EUR/t and

where only 80 % of the specialised dairy farms had a positive gross margin in 2009, despite a

less dramatic decrease in prices (-15 %). However, because of high feed costs, Sweden

generally has quite a low gross margin compared to the EU-15 average. By contrast, the gross

margin in Italy remained the highest of the EU-15 (196 EUR/t), thanks to high value added

products with high prices and limited costs. The average gross margin remained high in

Finland (162 EUR/t), despite having the highest costs in the EU-15, owing to the very high

milk price, which increased, and significant coupled national aid.

Between these two extremes, Member States can be split into three groups with respect to the

impact of the crisis on their gross margins. In Denmark, Luxembourg, the Netherlands,

Germany and Belgium, the fall in gross margin between 2007 and 2009 was around 50 %. In

Sweden, Spain, France, the United Kingdom and Austria, the decrease was between 25 % and

40 %, while Portugal fared rather well with a decrease of 11 %. This was mostly driven by the

fall in milk prices, except in the case of Denmark, where the fall in price was fairly limited (-

10 %), but where there was a huge increase in operating costs (+19 %), possibly due to the

increase in forage area (+18 %). Germany and France, the two major EU producers

(combined production of 37 % of EU-27), had an average gross margin of 81 EUR/t, which

was below the EU-27 average of 95 EUR/t. It is worth noting, however, that German data

correspond to the campaign year (July 2009 to June 2010) whereas the data for the other

Member States is for the calendar year (January to December 2009). Therefore, the effects of

the fall in prices in 2009 have already been incorporated in the German results for the

accounting year 2008, while the 2009 results already take into account the recovery in milk

prices that took place in 2010.

Not surprisingly, the average net margin also fell. It was particularly low (-114 EUR/t) in

Denmark, due to very high financial charges14

and high wages — family labour force

represents only 53 % of the total labour force in Denmark. Net margin was positive in only

seven Member States in 2009 due to the fall in prices (see Figure 11).

14 Substantial investment has taken place in Denmark over the last decade, and the average debt per farm is high. Together with the

Netherlands, it usually has the highest average interest costs. In Denmark, however, the financial charges are also very high due to the

choice of instruments for financing the modernisation, which proved to be ‘toxic’ in light of the financial crisis: they increased steeply

in 2008, reaching 86 EUR/t in 2009. (For more information see, for example, ‘Les modèles laitiers du nord de l’Union européenne à

l’épreuve de la volatilité’, Institut de l’élevage, 2012).


18

Figure 11: Milk cost of production and margins in the EU-15 Member States, 2009


19


After deduction of all costs (imputed own factors), the resulting average net economic

margin was positive only in Italy (8 EUR/t). Net economic margin was particularly negative

in Finland (-229 EUR/t), due to very high family labour costs of 214 EUR/t (high level of

wages). Opportunity costs for own capital15

were high in Austria (74 EUR/t) and Ireland

(71 EUR/t), however they pay relatively little in interest charges. By contrast, they were very

low in Belgium (13 EUR/t), France (13 EUR/t), Denmark (8 EUR/t), Sweden (6 EUR/t), and

the United Kingdom (10 EUR/t). In the United Kingdom, interest charges are also quite low,

which could indicate a reduced level of investment in the dairy activity.

According to the estimates, the situation in terms of gross margins should have greatly

improved in most EU-15 Member States by 2011, with the exception of Portugal and Sweden

where the improvement in milk prices may not fully offset higher feed and energy costs.


The situation in the EU-10 Member States was different. In Malta, there was virtually no

crisis as, on average, the gross margin increased by 13 % between 2007 and 2009 to reach

96 EUR/t, just above the EU-27 average. Indeed, the price paid to milk producers increased

steeply in 2008, and despite a slight decrease in 2009, it remained very high (435 EUR/t),

which more than offset the increase in operating costs. In other EU-10 Member States, where

it is more difficult to make comparisons between 2007 and 2009, the situation was less

favourable. It was particularly bad in Slovakia, where the average gross margin was negative

(-81 EUR/t), due in part to very high other direct input costs.16

In Latvia and Slovenia, where

falls in milk prices were respectively the greatest (-31 %) and least (-5 %), the decrease in

15 The opportunity cost for own capital corresponds to the interest the farmer would get from putting the money in the bank instead of

investing in agriculture.

16 Slovakian milk specialised farms are few and very big (on average 207 dairy cows and 618 ha of fodder area); they rely heavily on paid

labour and very little on unpaid labour (they are cooperatives or companies), and may produce a significant amount of other products

(they are not very specialised). Therefore it is difficult to allocate non-specific costs properly and the Slovakian estimates should be

interpreted with caution. Besides, it seems that there was a break in the time series (from 2008) with regards to the registration of other

farming overheads, which may account for a significant part of the change.


20

gross margin with coupled payments was almost the same (-36 % and -32 % respectively). In

Latvia (-68 %), the situation would have been much worse without the grant of national

coupled aid. It seems that in most EU-10 Member States, specialised farms decreased

their milk production and cut their operating costs per tonne, but this was not enough to

compensate for the marked drop in the milk price. As a result, the gross margin was

halved in the Czech Republic and Hungary, which also had low gross margins (34 and 28

EUR/t). The decrease was slightly less in Poland (the main EU-10 producer), Lithuania (both

80 EUR/t) and Estonia (56 EUR/t). In Lithuania, the percentage of farms with a positive gross

margin remained very high (95 %), which was not the case in the other Member States.

However, according to estimates, all EU-10 Member States should have more than

recovered to their 2007 levels by 2011 in terms of gross margin (except Poland, where only

gross margin is expected to recover).

In line with the trend in gross margin, net margins decreased in all EU-10 countries with the

exception of Malta. In 2009, net margins (without coupled payments) were positive in only

three EU-10 countries: Lithuania, Malta and Poland. They ranged between 40 EUR/t (Malta)

and -318 EUR/t (Slovakia), where depreciation and wages constituted very high costs.

Generally speaking, depreciation in the EU-10 Member States stands at around the EU-27

average (46 EUR/t), but is highest in the very large farms of Slovakia (84 EUR/t) and the very

small farms of Slovenia (86 EUR/t). Such a high level in Slovenia may be surprising, but it is

nearly the same level as in neighbouring Austria.

Slovenia’s ranking dropped in terms of net economic margin (-219 EUR/t), due to significant

imputed family labour costs. Family labour represents 99 % of the labour force in Slovenia,

which is quite unusual in the EU-10 Member States. In 2009, the average net economic

margin was negative in all EU-10 Member States.



21



22


Bulgaria and Romania fared quite differently, due to different structures in terms of cost of

production. Romanian milk specialised farms receive a fairly high price for milk

(282 EUR/t),17

supplemented by coupled national aid (9 EUR/t), which brings their milk

revenues up to the EU-15 average. At the same time, their average operating costs are among

the lowest in the EU-27 (on the same level as Poland, with feed, in particular, being cheaper

in Romania). Due to these factors, Romanian milk specialised farms had an excellent gross

margin (165 EUR/t in 2009, second only to Italy in the EU-27), despite the decrease in the

milk price. The percentage of specialised farms with a positive gross margin remained at

97 %, probably thanks to a 9 % cut in operating costs. By contrast, in Bulgaria, operating costs

(mainly other direct inputs) increased, which caused the gross margin to go down to

60 EUR/t, while the percentage of farms with a positive gross margin fell by 23 percentage

points (to 74 %).

The gap between Bulgarian and Romanian net margins is similar to that between gross

margins (the difference between the two is around 100 EUR/t). Bulgarian net margins are

only positive thanks to national coupled payments (8 EUR/t).

However, due to the presence of many very small farms in the sample, the opportunity costs

for family labour and own capital are much higher in Romania (155 EUR/t) than in Bulgaria

(66 EUR/t), and therefore the difference in net economic margin between these two

countries is much lower (13 EUR/t). As in most of the other Member States, net economic

margin was negative in these two countries.

17 For various reasons, milk prices in Romania are currently under further review. Producers around Bucharest appear to get extremely

high prices (around 600 EUR/t), and there also seem to be two prices for milk, which is possibly linked to the production of high

quality (buffalo?) milk in some regions. Besides, Romanian non-specialised milk farms receive a much lower price for their milk. One

explanation could be the considerable difference in the quality of the milk provided by specialised and non-specialised farms in this

country.


23




24

4. INCOME ANALYSIS

As shown above, on average, the margins of the dairy activity on dairy specialised farms

dropped in 2009. This chapter focuses on the effects on the income of dairy specialised farms

at the level of the whole farm, therefore also incorporating the results of other activities that

may be carried on the farm. The following income indicators are studied:

– Farm Net Value Added (FNVA) equals total output (total production value), plus direct

payments minus intermediate consumption and depreciation. It represents the amount

available to remunerate all fixed production factors (land, labour and capital), either owned

by the farm or external.

– Farm Net Income (FNI) equals FNVA minus external factors, plus balance on subsidies

and taxes on investments. It is the amount available to remunerate family factors (labour,

land and capital).

– Remuneration of Family Labour (RFL) is calculated only for family farms.18

It equals FNI

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

remunerate family labour.

These indicators are expressed per Annual Work Unit (AWU), for FNVA and FNI, or per

Family Work Unit (FWU) for RFL, to take account of the differences in the labour force

remunerated on the holding. All income indicators are calculated before deduction of income

taxes and expressed in current euros unless otherwise stated. Detailed tables are presented in

Annex II.

4.1. Breakdown by EU groups

4.1.1. EU-27

In 2009, contrary to previous years, the average income of dairy specialised farms did not

rank in the top three types of farming.

In line with the negative trend in the margin indicators (Figure 14), income indicators for milk

specialised farms in the EU-27 fell between 2007 and 2009. Farm net value added decreased

by 25 % to 16 333 EUR/AWU, farm net income decreased by 38 %, while the remuneration of

family labour was halved (7 389 EUR/FWU on average).

18 For the purpose of this report, ‘family farms’ are defined as farms employing an unpaid labour force, which usually corresponds to a

family labour force.


25

Figure 14: Trend in income of milk specialised farms, EU-27


Figure 15 shows the great differences in income between the EU groups. Compared to 2008,

the gap in the FNVA/AWU widened between the EU-15 and EU-10, whereas it narrowed

between the EU-12 and the EU-2, where the FNVA/AWU remains eight times lower than in

the EU-15.

Figure 15: Income of milk specialised farms by EU group, 2009


As illustrated by Figure 16, the differences in income between the EU groups have more to do

with differences in farm size than in margin per tonne. Since the decoupling of direct


26

payments, these are no longer included in the gross margin but are part of income. Due to the

drop in milk revenues, the share of direct payments and subsidies (first and second pillars, EU

and national) in the FNVA/AWU increased. The proportion of direct payments in 2009 was,

on average, 56 % in the EU-15, 72 % in the EU-10 and 25 % in the EU-2, where direct support

is still being phased in.

Figure 16: FNVA/AWU and some variables by EU group, 2009


In 2009, milk specialised farms still showed results above the EU-27 total average across all

types of farming, despite the drop in their income. Yet, contrary to the previous years, they

were no longer in the top three of types of farming for income (Figure 17). They ranked

fourth after Granivores, Wine and Horticulture farms for FNVA/AWU, and fourth also for

FNI/AWU after Granivores, Wine and Other grazing livestock farms. However, they plunged

to sixth position for RFL/FWU, putting them just above the EU-27 average at 7 389

EUR/FWU. Therefore on average for the EU-27, in 2009, milk specialised farms were worse

off in terms of income than other types of farming.


27

Figure 17: Comparison of the income of milk farms with other farms, EU-27, 2009



28

4.1.2. EU-15

In real terms, in 2009, the income of milk specialised farms of EU-15 fell below its 2001

level.

In the EU-15, the income of milk specialised farms increased significantly between 2001 and

2007 in both nominal and real terms (Figure 19). In 2008 income was still above the 2006

figure (in both in nominal and real terms), but in 2009 it plunged to its 2001 level in nominal

terms (26 591 EUR/AWU) and 14 points below it in real terms.

Figure 18: Income trends in nominal and real terms, EU-15


This steep drop had a more pronounced effect on the remuneration of family labour than on

other income indicators (Figure 19), partly due to the increase in the imputed remuneration of

own capital (see footnote 11). The percentage of farms with a positive remuneration of family

labour fell from 93 % in 2007 to 73 % in 2009. Following the decoupling of direct payments

and subsidies, the trend in margin has mirrored the trend in income.


29



4.1.3. EU-10

In the EU-10, the income of milk specialised farms in 2009 fell below the 2004 level, even

in nominal terms.

The income of milk specialised farms in the EU-10 similarly experienced a steep drop from

2007 onwards (Figure 21), falling back to its 2004 level in nominal terms and to 80 % of its

2004 level in real terms.


30

Figure 20: Income trends in nominal and real terms, EU-10


In the EU-10, the decrease in total output was the same as the decrease in milk revenues due

to a decline in production. The fall in the FNVA/AWU (-43 %) between 2007 and 2009

mirrored the drop in the gross margin per tonne, despite an increase in decoupled payments,

which were essential to support income (Figure 21). Farm net income and remuneration of

family labour were also halved between 2007 and 2009, while remuneration of family labour

was positive in 76 % of farms.

Figure 21: Trends in income of milk specialised farms, EU-10


31


4.1.4. EU-2

In contrast to the other EU groups, income in the EU-2 increased between 2007 and 2009

despite the drop in margins. This is mainly due to a decrease in the labour force coupled

with an increase in production, but these results should be interpreted with caution.

Income in the EU-2 remained quite stable (even increasing by 10 % in nominal terms)

between 2007 and 2009, mostly thanks to a decrease in the labour force coupled with an

increase in production (Figure 22 and detailed tables in Annex II). However, due to the large

number of small to very small farms in the Romanian sample, and in view of the weight of

this sample in the EU-2 aggregate, these results should be interpreted with caution.




32

4.2. National level


Figure 23 shows the average income indicators of milk specialised farms by Member State in

the EU-15 in 2009. Farm net value added per AWU ranged from 14 123 EUR/AWU in

Portugal to 40 258 EUR/AWU in Italy. If, in most cases, the fall in gross margin was

transmitted directly to the FNVA/AWU, the ranking in terms of the FNVA/AWU did not

necessarily match the ranking in terms of gross margin. For example, in the United Kingdom,

the gross margin was among the lowest in the EU-15, but the FNVA/AWU was among the

highest, thanks to the large herd size (117 cows on average). Yet herd size is not always the

explanation: Belgian farms fare better than German ones with a similar average number of

dairy cows, thanks to lower costs.

Farmers in all countries adapted to the low milk prices by maintaining the milk yield nearly

unchanged between 2007 and 2009. However, this did not prevent a continuous structural

adjustment as the quantity of milk produced per AWU increased in all Member States (except

in Italy, Ireland and United-Kingdom) due to the increase in the average numbers of dairy

cows or of labour force per farm. Nearly everywhere, intermediate costs and depreciation

increased while market receipts decreased due to the fall in milk prices. As a consequence the

FNVA/AWU went down in all Member States except Finland, the only country where milk

prices increased. Direct payments and subsidies helped to support income in this situation.

They represented between 8 % and 36 % of the total receipts of milk farms in Member States

in 2009, compensating for the huge drop in market income, which was negative even in

Luxemburg and in Finland.

As regards farm net income, Italy retained its first place with 34 928 EUR/AWU, while

Denmark, which had almost the same FNVA/AWU, fell to last place (-36 653 EUR/AWU),

due to high wages (47 % of the labour force is paid labour force) and high financial costs. As

these two elements increased significantly between 2007 and 2009 (+19 % and +27 %

respectively), Denmark was also the country that suffered most between these two years, with

a drop in FNI/AWU of 254 %. Given the margin results above, Ireland, on the other hand,

fared better in terms of FNI/AWU, thanks to a very positive balance on investments, subsidies

and taxes due to it fulfilling cross-compliance obligations for farm waste management

facilities.

However, in terms of the remuneration of family labour, this was positive for only 49 % of

Irish family farms in 2009 and, on average, it was very low: 3 022 EUR/FWU. It was also

much lower than the EU-15 average in France and Germany (5 832 EUR/FWU and

8 597 EUR/AWU respectively), even though the German results took into account the 2010

recovery in milk prices, due to the difference between the German accounting year and that of

the other Member States,19

resulting in a ‘delay’ in the trend (see 3.2.1). For the first time

since 2001, Denmark was not the only EU-15 country with a negative average remuneration

of family labour. This was also the case in Luxembourg and the Netherlands. Both these

countries had very high opportunity costs for own capital, something which is normal for the

Netherlands and due to the real interest rate trend in Luxembourg.

19 The accounting year 2009 coincides with the calendar year in most Member States but in Germany it started on 1 July 2009 and ended

on 30 June 2010. This period incorporates the beginning of the recovery from the milk crisis.


33

Figure 23: Income indicators for milk farms in the EU-15 Member States, 200920


20 On the green graph showing gross margin and FNVA/AWU, only the total level (FNVA/AWU) is comparable between countries, as in

some Member States (LU, FI), the total amount of direct payments and subsidies per AWU is actually higher than the FNVA/AWU.


34



21 On the green graph showing gross margin and FNVA/AWU, only the total level (FNVA/AWU) is comparable between countries, as in

some Member States (CZ, LV, SK, SI), the total amount of direct payments and subsidies per AWU is actually higher than the

FNVA/AWU.


35


Figure 24 shows the average income indicators of milk specialised farms by Member State in

the EU-10 in 2009. In most of them, the decrease in the FNVA/AWU between 2007 and 2009

has been less pronounced than the decrease in dairy gross margin, thanks to an increase in

decoupled payments, and to the fact that, on average, the drop in milk revenues did not

translate to a corresponding drop in the farm total output. Nevertheless, this was not the case

in Malta, which faced an increase in intermediate consumption, already very high, or in

Poland, where the fall in milk revenues was reflected in total output, or in Slovenia. In all of

the EU-10 Member States, direct payments and subsidies represented more than 50 % of the

FNVA/AWU, and even accounted for more than 100 % of it in four of them (the Czech

Republic, Latvia, Slovakia and Slovenia). In Poland, the main EU-10 producer, the ratio of

direct payments to FNVA stood at 59 %, around the EU-15 average.

In 2009, the external factors increased in almost all EU-10 Member States. Once deducted

from the FNVA/AWU, the resulting FNI/AWU ranged from -12 674 EUR/AWU in Slovakia

(wages paid) to +13 859 EUR/AWU in Malta. Lithuania, with 7 671 EUR/AWU, fared rather

well, due to its fairly low reliance on an external labour force, and the substantial balance on

investment subsidies and taxes.

The remuneration of family labour was quite low, although it remained positive, in all EU-

10 Member States except for Slovenia, due to the low FNI/AWU and the rise in opportunity

costs for capital (real interest rate).


In 2009, the situation of Bulgaria and Romania was quite different (Figure 25). Indeed, in

Bulgaria, the value of income indicators for specialised dairy farms decreased between 2007

and 2009, whereas they increased in Romania, due to the decrease in the labour force and the

increase in standard output. Despite higher direct payments and subsidies in Bulgaria, all the

income indicators were better in Romania than in Bulgaria, because of lower intermediate

consumption and external factors. However, they remained below those of the EU-10

Member States. This may be related to differences in farm size (averaging 7 dairy cows in the

EU-2 compared with 52 in the EU-15 and 17 in the EU-10) and in direct payments and

subsidies (the EU part of direct payments has not yet been fully phased in).


36




37

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 referring to

the farm as a whole.22

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 as

regards the model for milk).

– 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 breakdown overleaf.

22 It is difficult for the accountant or the farmer to assess the share of water or electricity or fertilisers to

allocate to each activity, especially for mixed farms.


38

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


39

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

Different ratios are used:

– Dairy livestock units23

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 output24

plus linked subsidies

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

into account to enable the results to be compared over time since, from 2004 onwards,

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 to

market price support in beef production). The total output (TO, denominator) is also

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

the purchase costs for milk herd renewal (see below).

As the milk levy25

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

costs of milk production.

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 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 countries — 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

23 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).

24 Output after deduction of forage crops farm use.

25 In the previous model design, the milk levy was deducted from subsidies on the revenues side.


40

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 key26

Seed costs

% area of fodder crops (144), other forage crops (145) and

temporary grass (147)

in the total Utilised Agricultural Area (UAA)

- after exclusion of fallow lands (146), areas leased to others (149),

meadows (150) and rough grazing (151)

Fertiliser costs

% area of fodder crops (144), other forage crops (145), temporary

grass (147) and meadows (150)

in the total UAA

- after exclusion of fallow lands (146), areas leased to others (149)

and rough grazing (151)

Crop protection costs

% area of fodder crops (144) and other forage crops (145)

in the total UAA

- after exclusion of fallow lands (146), temporary grass (147), areas

leased to others (149), meadows (150) and rough grazing (151)

– 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 production.27

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

26 Codes refer to product or cost codes in the farm return (Commission Regulations Nos 2237/77 and

868/2008).

27 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.


41

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

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

practice, some Member States did not record it in the initial years after its introduction.28

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 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.

Another disparity in recording by Member States concerns depreciation of the milk

quota, which is applied in some Member States and not in others (in part because of

differences in milk quota management). Moreover, for the most recent accounting years,

specific instructions were given to Member States that depreciation of quotas should not be

entered in the FADN table related to capital.29

This means that depreciation is not taken into

account in the calculation of income. In order to be consistent with this principle and to

allow comparability over time and among Member States, our estimates apply a rule of non-

depreciation of milk quota. Note that the cost of buying or renting milk quota is covered

(where it is not self-financed) by interest and rent paid.

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),

– 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 dairy payments (11.81EUR/t of quota in 2004, 23.65EUR/t in 2005, 35.50EUR/t

in 2006 before decoupling; the actual implementation date of the payments depends

on the Member State) and Article 69 payments for dairy (used in Spain);

– Any national dairy payments.

28 Milk herd renewal purchases cannot be estimated for Greece, Italy (2000-2005), Ireland (2000),

Finland (2000), Sweden (2000).

29 Document RI/CC 1256: Deprecation of quota should NOT be entered in Table G (Land and buildings,

deadstock, circulating capital), but may be entered in Table L.


42

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;

– 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.

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): 41 Specialist dairying, 43

Cattle dairying, rearing and fattening combined, 71 Mixed livestock, mainly dairying,

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

farming types 43, 71 and 81 (and not only 41) in the sample so as to cover a larger

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

– A specialisation rate30

greater than 50 %.

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

farms producing buffaloes’ 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 keys,31

some precautions are

necessary in order to prevent problems with estimates:

30 Specialisation rate: the share of milk output and subsidies in total output and coupled subsidies (forage

farm use deducted).


43

– Total output and total output plus subsidies should be strictly positive.

– Total output plus subsidies should be greater than milk output plus subsidies.

– Total output should be greater than milk output.32

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 the so-called ‘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 average of the individual ratio by farm).

31 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.

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


44

Methodology 2

Estimation of 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 database33

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

It is commonly acknowledged that the number of hours of 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).34

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

remuneration for family labour is. Farmers may indeed agree to be remunerated less than

they would be according to 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 farming.35

– 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

33 If there are not enough farms (fewer than 20) with paid labour at regional level, the national average is

taken into account.

34 A constraining factor of the estimation method is that if a farmer receiving a salary would probably

work less.

35 If there are not enough farms (fewer than 20) 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).


45

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 LT interest rate

(which means that the calculated rate of interest paid is lower than the LT 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 rate.36

The correction is made by subtracting the inflation rate37

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 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)

36 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.

37 The inflation rate is based on the Eurostat annual average rate of change in Harmonised Indices of

Consumer Prices (HICPs) — available from 1997. 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 cost of capital, mainly in the EU-10. 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.


46

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

FADN 2009 Eurostat cattle

survey 2009

Coverage FADN/FSS

Number of dairy cows

Non-specialised milk farms

Specialised milk farms

Total Non-

specialised milk farms


Total

Belgium 194 010 289 481 483 490 517 700 37% 56% 93%

Denmark 20 103 527 166 547 269 574 000 4% 92% 95%

Germany 782 527 3 097 026 3 879 552 4 169 300 19% 74% 93%

Greece . 76 486 77 173 128 000 . 60% 60%

Spain 34 581 873 740 908 321 828 300 4% 105% 110%

France 924 823 2 812 819 3 737 643 3 748 000 25% 75% 100%

Ireland 89 516 1 030 101 1 119 617 1 022 400 9% 101% 110%

Italy 170 412 1 413 162 1 583 575 1 878 400 9% 75% 84%

Luxembourg 12 958 24 951 37 909 45 900 28% 54% 83%

The Netherlands 72 963 1 423 050 1 496 013 1 562 000 5% 91% 96%

Austria 213 852 308 232 522 084 533 000 40% 58% 98%

Portugal 6 933 182 479 189 412 255 400 3% 71% 74%

Finland . 316 859 318 680 285 800 . 111% 112%

Sweden 16 795 359 285 376 080 354 200 5% 101% 106%

The United Kingdom 77 901 1 823 115 1 901 016 1 864 000 4% 98% 102%

EU 15 2 619 882 14 557 953 17 177 835 17 766 500 15% 82% 97%

Cyprus . . . 23 200 . . .

The Czech Republic 268 425 79 649 348 074 383 800 70% 21% 91%

Estonia 11 961 82 675 94 636 96 700 12% 85% 98%

Hungary 141 558 132 233 273 791 248 000 57% 53% 110%

Lithuania 95 076 145 838 240 913 374 600 25% 39% 64%

Latvia 38 406 96 790 135 196 165 500 23% 58% 82%

Malta . 6 410 6 410 6 900 . 93% 93%

Poland 764 875 1 255 264 2 020 138 2 584 700 30% 49% 78%

Slovakia 97 369 27 135 124 504 162 500 60% 17% 77%

Slovenia 36 609 79 172 115 781 113 100 32% 70% 102%

EU 10 1 457 449 1 912 105 3 369 554 4 159 000 35% 46% 81%

Bulgaria 22 527 150 107 172 633 296 800 8% 51% 58%

Romania 528 778 678 892 1 207 670 1 419 000 37% 48% 85%

EU 2 551 304 828 999 1 380 303 1 715 800 32% 48% 80%

EU 27 4 628 635 17 299 056 21 927 691 23 641 400 20% 73% 93%

Source: EU FADN 2009, Eurostat cattle survey 2009, treatment DG AGRI.


47

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

FADN 2009 Eurostat

2009 Coverage FADN/FSS

Milk production (in 1000 tonnes)

Non-specialised milk farms


Total Non-

specialised milk farms


Total

Belgium 1 209 2 000 3 209 2 996 40% 67% 107%

Denmark 151 4 364 4 514 4 814 3% 91% 94%

Germany 5 588 22 877 28 465 29 199 19% 78% 97%

Greece . 437 438 753 . 58% 58%

Spain 185 6 017 6 202 6 251 3% 96% 99%

France 5 974 18 287 24 261 23 333 26% 78% 104%

Ireland 389 5 280 5 669 4 967 8% 106% 114%

Italy 760 9 253 10 013 11 364 7% 81% 88%

Luxembourg 88 182 270 284 31% 64% 95%

The Netherlands 540 11 215 11 755 11 791 5% 95% 100%

Austria 1 208 2 039 3 248 3 230 37% 63% 101%

Portugal 22 1 287 1 308 1 999 1% 64% 65%

Finland . 2 677 2 692 2 332 . 115% 115%

Sweden 111 2 892 3 003 2 933 4% 99% 102%

The United Kingdom 465 12 974 13 438 13 596 3% 95% 99%

EU 15 16 690 101 780 118 487 119 841 14% 85% 99%

Cyprus . . . 152 . . .

The Czech Republic 1 780 520 2 301 2 781 64% 19% 83%

Estonia 76 595 672 671 11% 89% 100%

Hungary 930 879 1 808 1 758 53% 50% 103%

Lithuania 457 779 1 236 1 787 26% 44% 69%

Latvia 183 526 709 828 22% 64% 86%

Malta . 35 35 40 . 88% 88%

Poland 3 183 6 703 9 886 12 447 26% 54% 79%

Slovakia 562 159 721 957 59% 17% 75%

Slovenia 135 415 550 626 22% 66% 88%

EU 10 7 307 10 612 17 919 22 046 33% 48% 81%

Bulgaria 59 555 614 1 073 6% 52% 57%

Romania 1 720 2 659 4 379 4 654 37% 57% 94%

EU 2 1 779 3 214 4 993 5 727 31% 56% 87%

EU 27 25 776 115 605 141 398 147 614 17% 78% 96%

Source: EU FADN 2009, Eurostat production statistics 2009, treatment DG AGRI.


48

Table 4: Share of milk production by Member State in the FADN 2009

Member State Share of milk production 2009

Belgium 2%

Denmark 3%

Germany 20%

Greece 0%

Spain 4%

France 17%

Ireland 4%

Italy 7%

Luxembourg 0%

The Netherlands 8%

Austria 2%

Portugal 1%

Finland 2%

Sweden 2%

The United Kingdom 9%

EU 15 84%

Cyprus 0%

The Czech Republic 2%

Estonia 0%

Hungary 1%

Lithuania 1%

Latvia 1%

Malta 0%

Poland 7%

Slovakia 1%

Slovenia 0%

EU 10 13%

Bulgaria 0%

Romania 3%

EU 2 4%

EU 27 100%

Source: EU FADN — DG AGRI.


49

ANNEX II

Results by EU-group, Member State and region.

EU Dairy farms report 2012 Annex II EU 27

EU 27 Milk specialised farms

e: estimate*: trend between the average of the first three available years and the average of the last available three yearsSTRUCTURAL INFORMATION

2007 2008 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

Sample farms 12 744 12 791 12 890 1%Farms represented 559 265 534 925 508 611 -9%% production from specialised farms 82% 83% 82% -1%Forage area - ha 29 31 31 8%Dairy cows - LU 31 33 34 10%Rented UAA - % 58% 58% 57% 0%Total labour - AWU 1,96 1,84 1,88 -4%Family labour - % 85% 83% 85% -1%Milk per ha fodder area - t/ha 7,1 7,1 7,2 1%Milk yield - kg/cow 6 699 6 671 6 686 6 896 7 068 6%Milk production - t 207 223 227 235 240 16%

MILK MARGINS in EUR/t of milk (nominal)

2007 2008 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

RevenuesPrice 343 342 284 325 354 3%EU coupled payments (incl. Art.69) 0 0 0 0 0 -20%National aids 2 2 2 2 2 -5%Total revenues from milk 344 344 286 327 356 3%Production costs Feed 93 104 90 89 101 9%

homegrown feed 27 30 26 25 28 2%puchased feed 66 74 64 64 74 12%

Herd renewal purchases 3 3 3 3 3 -7%Milk levy 1 1 0 0 0 -53%Other specific costs 21 22 21 21 21 3%Specific costs 118 130 115 113 126 7%Machinery and building upkeep 20 20 18 18 18 -7%Energy (fuel, electricity) 18 20 18 19 21 18%Contract work 17 18 17 17 17 1%Taxes 1 1 1 1 1 17%Other direct inputs 22 22 22 22 22 -2%Non specific costs 78 82 77 77 80 2%Total operating costs 196 212 192 191 206 5%Gross margin 147 131 92 135 148 1%Gross margin with coupled payments 149 133 94 137 150 1%%spe.farms with positive gross margin 98% 96% 92% 96% 97%

-1%%milk production with positive gross margin 99% 98% 96% 98% 99%

0%

Depreciation 44 47 46 3%Wages 13 14 13 -1%Rent 13 12 12 -7%Interest 14 16 14 1%External factors 40 42 39 -2%Net margin 62 42 7 -89%Net margin with coupled payments 64 43 9 -86%

Family labour costs 70 71 69 -1%Own capital unpaid cost 17 13 25 47%Imputed family factors 87 84 94 9%Net economic margin -24 -42 -87 -258%Net economic margin with coupled payments -23 -40 -85 -275%%spe.farms with positive net economic margin 29% 26% 13%

-16%%milk production with positive net economic margin 44% 33% 18%

-26%

Source: EU FADN DG AGRI, model of the allocation of costs for milk. 50


EU 27 Milk specialised farmsINCOME in EUR/AWU (nominal)

2007 2008 2009 Trend 2009/2007

Total output 50 479 57 709 48 693 -4%Intermediate consumptions 29 761 36 902 33 767 13%Balance subsidies and taxes 8 206 9 294 9 110 11%

Decoupled payments 5 431 6 107 6 027 11%Depreciation 6 497 7 761 7 703 19%Farm Net Value Added (FNVA) 22 427 22 339 16 333 -25%

External factors 5 827 6 967 6 509 12%Wages 1 990 2 347 2 249 13%

Rent 1 919 2 064 2 061 7%Interest 1 919 2 556 2 199 15%

Balance invest. subs. and taxes -76 1 396 619%Farm net income (FNI) 16 524 15 373 10 220 -38%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 873 2 554 4 966 73%Remuneration of Family Labour (RFL) 15 968 15 715 7 389 -54%

%spe.farms with positive RFL 92% 89% 74% -17%

Milk specialised farms - gross margin

149133

94

137150

0

50

100

150

200

250

300

350

400

Revenues Operatingcosts





2007 2008 2009 2010e 2011e

EUR/t

Price EU coupled payments (incl. Art.69)National aids FeedOther specific costs Non specific costsGross margin with coupled payments

Milk specialised farms - net margin

344 344

286

280 301 277

64

43

9

0

50

100

150

200

250

300

350

400

2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

Total revenues from milk

Operating costs + depreciation + external factors

Net margin with coupled payments




Milk specialised farms - net economic margin

344 344

286

367385 371

-23

-40

-850

50

100

150

200

250

300

350

400

450

2007 2008 2009

EUR/t

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

Total revenues from milkTotal costsNet economic margin with coupled payments

Milk specialised farms - non-operating costs

44 47 46

70 71 69

17 13 25

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009

EUR/t

Depreciation WagesRent InterestFamily labour costs Own capital unpaid cost

Milk specialised farms - income per work unit and margins per tonne

0

5 000

10 000

15 000

20 000

25 000

2007 2008 2009

EUR/WU

-100

-50

0

50

100

150

200EUR/t of milk

Farm Net Value Added (FNVA)Farm net income (FNI)Remuneration of Family Labour (RFL)Gross margin with coupled paymentsNet margin with coupled paymentsNet economic margin with coupled payments





2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 10 465 9 975 9 119 8 890 9 352 9 161 9 432 9 019 8 983 -7%Farms represented 385 248 326 514 321 271 295 763 307 595 280 004 288 424 287 941 279 568 -17%% production from specialised farms 86% 83% 83% 83% 86% 86% 87% 87% 86% 3%Forage area - ha 38 40 41 43 44 46 46 46 47 17%Dairy cows - LU 41 44 46 47 48 51 51 52 52 17%Rented UAA - % 56% 57% 57% 58% 58% 60% 60% 61% 61% 4%Total labour - AWU 1,77 1,78 1,80 1,81 1,84 1,89 1,87 1,85 1,84 4%Family labour - % 89% 88% 87% 87% 86% 85% 84% 85% 84% -4%Milk per ha fodder area - t/ha 7,0 7,2 7,3 7,3 7,4 7,6 7,7 7,7 7,7 8%Milk yield - kg/cow 6 407 6 527 6 629 6 715 6 814 6 978 7 009 7 009 6 991 7 206 7 390 10% 5%Milk production - t 265 289 305 318 325 353 355 362 364 375 385 31% 9%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 336 318 311 308 301 296 349 348 291 332 360 2% 3%EU coupled payments (incl. Art.69) 0 0 0 11 12 5 0 0 0 0 0 - -20%National aids 3 3 3 3 2 2 2 2 2 2 2 -23% 3%Total revenues from milk 338 320 313 321 314 304 350 349 293 334 361 2% 3%Production costs Feed 85 83 86 84 81 82 94 105 93 91 104 13% 10%

homegrown feed 24 23 23 23 23 23 26 27 25 23 26 5% 1%puchased feed 61 60 63 61 58 59 69 78 68 68 78 16% 13%

Herd renewal purchases 2 2 2 2 2 3 3 3 3 3 3 42% -6%Milk levy 0 0 1 1 1 0 1 1 0 0 0 -40% -53%Other specific costs 21 19 19 19 20 20 21 23 23 23 22 15% 4%Specific costs 109 105 108 107 104 106 120 132 119 117 129 14% 8%Machinery and building upkeep 19 19 17 18 19 19 20 21 19 19 19 2% -7%Energy (fuel, electricity) 14 13 13 14 16 17 18 19 17 19 21 42% 18%Contract work 16 16 15 16 16 17 18 19 18 18 18 16% 1%Taxes 2 2 2 1 1 1 1 2 2 2 2 -8% 19%Other direct inputs 21 22 22 23 23 23 24 24 24 23 23 7% -3%Non specific costs 72 71 69 72 75 77 81 85 80 80 83 14% 2%Total operating costs 181 176 177 179 179 182 201 217 198 197 212 14% 5%Gross margin 155 142 135 129 122 114 148 131 93 134 148 -13% 0%Gross margin with coupled payments 157 144 136 142 135 121 149 132 95 136 149 -13% 0%

%spe.farms with positive gross margin 99% 99% 98% 99% 98% 98% 98% 97% 93% 97% 97% -3%

-1%%milk production with positive gross margin 99% 100% 99% 99% 99% 99% 99% 98% 97% 99% 99% -1% 0%

Depreciation 43 42 41 43 43 45 46 48 47 12%Wages 12 11 11 10 12 12 13 13 13 15%Rent 15 15 15 14 14 14 14 13 13 -7%Interest 15 15 14 13 13 13 15 18 15 9%External factors 41 41 39 38 39 40 42 44 41 5%Net margin 71 60 54 49 40 29 60 39 5 -44%

Net margin with coupled payments 73 62 56 62 53 36 61 41 7 -43%

Family labour costs 84 76 73 73 71 68 69 70 68 -11%Own capital unpaid cost 26 25 21 21 16 17 17 13 25 -24%Imputed family factors 110 101 94 94 87 85 86 84 93 -14%Net economic margin -39 -42 -40 -45 -47 -56 -26 -44 -88 -31%Net economic margin with coupled payments -37 -39 -38 -32 -33 -49 -25 -43 -86 -34%

%spe.farms with positive net economic margin 25% 24% 21% 21% 20% 15% 28% 22% 10% -4%

%milk production with positive net economic margin 37% 34% 33% 32% 28% 24% 42% 31% 17% -5%




2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*

Total output 66 445 68 455 69 886 72 408 72 927 77 562 91 072 93 349 80 646 29%Intermediate consumptions 38 053 40 059 41 809 43 750 44 419 48 639 53 970 60 027 56 061 42%Balance subsidies and taxes 7 113 7 925 8 339 10 492 13 144 15 147 14 820 14 838 14 817 90%

Decoupled payments 0 0 0 0 5 005 9 825 10 467 10 496 10 310 -Depreciation 9 005 9 556 9 826 10 565 10 710 11 723 11 939 12 776 12 811 32%Farm Net Value Added (FNVA) 26 499 26 766 26 589 28 584 30 942 32 346 39 983 35 384 26 591 46%

External factors 8 556 9 204 9 252 9 213 9 408 10 254 10 867 11 538 11 033 24%Wages 2 431 2 461 2 600 2 531 2 958 3 227 3 379 3 393 3 442 36%

Rent 3 059 3 477 3 490 3 516 3 418 3 713 3 747 3 638 3 682 10%Interest 3 067 3 267 3 162 3 166 3 032 3 314 3 741 4 507 3 908 28%

Balance invest. subs. and taxes 81 -93 -155 -126 -29 30 -198 -127 587 257%Farm net income (FNI) 18 024 17 469 17 183 19 246 21 504 22 122 28 918 23 720 16 145 31%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 6 044 6 458 5 757 5 848 4 482 5 071 5 134 4 088 8 086 -5%Remuneration of Family Labour (RFL) 14 275 13 405 14 087 16 080 20 614 20 994 28 682 24 000 11 418 53%

%spe.farms with positive RFL 85% 83% 83% 86% 90% 88% 93% 87% 73% 0%


149

157144 136 142 135 121

149 13295

136

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t

Price EU coupled payments (incl. Art.69) National aids

Feed Other specific costs Non specific costs

Gross margin with coupled payments


338320 313 321 314 304

350 349

293

265 258 257 259 261 267 289 309 286

73

6256

62

53

36

61

41

7

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

80

Total revenues from milk Operating costs + depreciation + external factors






338320 313 321 314 304

350 349

293

375360 351 353 348 353

375392 379

-37 -39 -38-32 -33

-49

-25

-43

-86

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

Total revenues from milk Total costs Net economic margin with coupled payments


43 42 41 43 43 45 46 48 47

84 76 73 73 71 68 69 70 68

2625 21 21 16 17 17 13 25

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost


0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150

200EUR/t of milk

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





2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 2 569 3 158 3 152 2 955 3 349 3 394 9%Farms represented 91 995 111 446 111 586 97 516 108 232 109 467 0%% production from specialised farms 54% 61% 63% 56% 60% 59% -1%Forage area - ha 18 19 22 22 22 20 10%Dairy cows - LU 18 17 18 18 18 17 4%Rented UAA - % 50% 46% 49% 46% 47% 45% -2%Total labour - AWU 2,11 2,11 2,19 2,14 2,13 2,08 -1%Family labour - % 83% 82% 80% 81% 81% 83% 0%Milk per ha fodder area - t/ha 5,0 4,6 4,4 4,5 4,6 4,8 -1%Milk yield - kg/cow 5 193 5 366 5 530 5 566 5 588 5 577 5 618 5 892 6% 6%Milk production - t 91 89 98 102 102 97 98 103 7% 1%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 219 242 246 283 296 214 265 293 9% 4%EU coupled payments (incl. Art.69) 0 0 1 0 0 0 0 0 - -National aids 3 3 7 1 1 2 2 2 -62% 143%Total revenues from milk 222 245 253 283 297 215 266 295 8% 4%Production costs Feed 68 69 73 89 101 75 75 86 13% -3%

homegrown feed 32 38 38 44 51 39 38 44 12% 0%puchased feed 35 32 35 45 50 36 37 43 14% -6%

Herd renewal purchases 3 3 3 3 3 2 2 2 -40% -39%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 12 11 14 14 14 13 13 12 3% -9%Specific costs 82 84 89 106 118 90 89 101 9% -5%Machinery and building upkeep 11 13 14 16 17 14 14 15 12% -8%Energy (fuel, electricity) 17 20 22 22 28 23 25 26 25% 22%Contract work 6 6 6 7 8 7 7 7 23% 11%Taxes 0 0 0 0 0 0 0 0 -3% 2%Other direct inputs 9 10 11 11 14 12 12 13 23% 11%Non specific costs 43 50 54 56 67 57 59 61 21% 10%Total operating costs 125 134 143 162 185 146 148 162 14% 0%Gross margin 94 108 103 121 110 67 117 131 4% 9%Gross margin with coupled payments 97 111 111 122 111 69 118 133 0% 9%

%spe.farms with positive gross margin 98% 97% 98% 97% 92% 87% 94% 94% -6% -3%

%milk production with positive gross margin 98% 99% 98% 98% 95% 92% 97% 97% -3% -1%

Depreciation 30 33 36 37 43 41 23%Wages 12 15 18 18 22 17 28%Rent 2 3 3 4 4 4 41%Interest 3 3 4 4 5 5 45%External factors 18 21 25 26 32 26 32%Net margin 46 54 43 58 36 1 -34%

Net margin with coupled payments 49 58 50 59 36 2 -38%

Family labour costs 39 46 45 51 66 62 38%Own capital unpaid cost 16 19 22 18 13 25 -3%Imputed family factors 55 64 67 69 79 87 26%Net economic margin -9 -10 -24 -11 -43 -86 -225%Net economic margin with coupled payments -5 -7 -17 -10 -42 -85 -376%

%spe.farms with positive net economic margin 34% 32% 27% 34% 20% 8% -10%

%milk production with positive net economic margin 52% 51% 45% 53% 39% 19% -12%




2004 2005 2006 2007 2008 2009

Three years

average trend*

Total output 14 070 15 166 16 752 20 906 21 881 16 060 28%Intermediate consumptions 8 419 8 769 10 134 12 151 14 293 11 753 40%Balance subsidies and taxes 1 989 2 133 3 366 3 584 4 124 4 034 57%

Decoupled payments 522 720 969 1 229 1 518 1 765 104%Depreciation 1 917 2 033 2 357 2 620 2 998 2 783 33%Farm Net Value Added (FNVA) 5 722 6 497 7 626 9 720 8 715 5 558 12%

External factors 1 199 1 339 1 687 1 901 2 304 1 870 44%Wages 829 985 1 244 1 339 1 628 1 256 38%

Rent 151 165 208 258 298 260 56%Interest 219 188 234 303 378 355 61%

Balance invest. subs. and taxes 100 -8 47 108 292 330 428%Farm net income (FNI) 4 622 5 150 5 986 7 927 6 702 4 018 18%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 1 247 1 380 1 846 1 537 1 147 2 020 5%Remuneration of Family Labour (RFL) 4 286 4 661 5 736 7 896 6 949 3 466 25%

%spe.farms with positive RFL 86% 87% 90% 93% 89% 76% -1%


97 111 111122

111

69

118

133

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t

Price EU coupled payments (incl. Art.69)

National aids Feed

Other specific costs Non specific costs



222245 253

283297

215

173 188 203225 213

148

49

58

50

59

36

20

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

Total revenues from milkOperating costs + depreciation + external factorsNet margin with coupled payments





222245 253

283297

215

228252

270293

339

300

-5 -7

-17

-10

-42

-850

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009

EUR/t

-90

-80

-70

-60

-50

-40

-30

-20

-10

0



30 33 36 37 43 41

3946

45 51

666216

1922

18

13 25

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008 2009



0

2 000

4 000

6 000

8 000

10 000

12 000

2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150EUR/t of milk








2007 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

Sample farms 357 513 44%Farms represented 173 325 119 575 -31%% production from specialised farms 75% 64% -10%Forage area - ha 4 4 -3%Dairy cows - LU 5 7 29%Rented UAA - % 49% 41% -8%Total labour - AWU 2,00 1,79 -11%Family labour - % 90% 87% -3%Milk per ha fodder area - t/ha 4,1 4,7 16%Milk yield - kg/cow 4 030 3 877 4 404 4 130 2%Milk production - t 22 27 31 29 32%


2007 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

RevenuesPrice 332 274 320 376 13%EU coupled payments (incl. Art.69) 0 0 0 0 -National aids 15 9 8 9 -44%Total revenues from milk 347 283 328 385 11%Production costs Feed 75 66 63 84 12%

homegrown feed 25 25 23 31 26%puchased feed 51 42 39 53 5%

Herd renewal purchases 1 3 3 3 292%Milk levy 0 0 0 0 -Other specific costs 19 18 17 18 -4%Specific costs 95 87 82 106 11%Machinery and building upkeep 9 10 9 11 15%Energy (fuel, electricity) 21 19 20 25 19%Contract work 12 10 9 10 -18%Taxes 1 1 1 1 -30%Other direct inputs 6 9 8 9 58%Non specific costs 49 49 47 55 12%Total operating costs 144 136 129 160 12%Gross margin 188 138 191 216 15%Gross margin with coupled payments 203 147 199 225 10%

%spe.farms with positive gross margin 97% 94% 97% 96% -1%

%milk production with positive gross margin 96% 92% 95% 95% -1%

Depreciation 24 29 22%Wages 16 21 29%Rent 5 4 -34%Interest 5 3 -39%External factors 26 27 4%Net margin 138 82 -41%Net margin with coupled payments 153 91 -41%

Family labour costs 141 108 -23%Own capital unpaid cost 15 31 113%Imputed family factors 155 140 -10%Net economic margin -17 -58 -234%Net economic margin with coupled payments -2 -49 -2335%

%spe.farms with positive net economic margin 28% 25% -3%

%milk production with positive net economic margin 53% 42% -11%




2007 2009 Trend 2009/2007

Total output 5 339 6 628 24%Intermediate consumptions 2 821 3 614 28%Balance subsidies and taxes 733 797 9%

Decoupled payments 147 271 84%Depreciation 392 665 70%Farm Net Value Added (FNVA) 2 858 3 145 -65%

External factors 375 574 53%Wages 229 440 92%

Rent 83 79 -4%Interest 64 55 -14%

Balance invest. subs. and taxes 2 7 330%Farm net income (FNI) 2 484 2 578 4%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 268 823 207%Remuneration of Family Labour (RFL) 1 695 2 011 19%

%spe.farms with positive RFL 89% 77% -12%


203

147

199225

0

50

100

150

200

250

300

350

400

450





2007 2009 2010e 2011e

EUR/t



347

283

194

0

153

91

0

50

100

150

200

250

300

350

400

2007 2009

EUR/t

0

20

40

60

80

100

120

140

160

180








347

283

349

0

-2

-49

0

50

100

150

200

250

300

350

400

2007 2009

EUR/t

-60

-50

-40

-30

-20

-10

0



24 29

141108

1531

0

50

100

150

200

250

2007 2009

EUR/t



0

500

1 000

1 500

2 000

2 500

3 000

3 500

2007 2009

EUR/WU

-100

-50

0

50

100

150

200

250EUR/t of milk



EU Dairy farms report 2012 Annex II BE

Belgium Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 298 276 251 241 247 219 251 238 214 -15%Farms represented 7 765 7 374 7 050 6 207 6 528 5 613 6 685 6 103 5 397 -18%% production from specialised farms 68% 68% 65% 63% 67% 64% 72% 69% 62% 1%Forage area - ha 36 38 39 36 38 39 39 42 41 7%Dairy cows - LU 48 49 50 47 48 51 50 53 54 7%Rented UAA - % 75% 75% 76% 74% 75% 75% 74% 74% 74% -1%Total labour - AWU 1,53 1,55 1,55 1,58 1,59 1,57 1,57 1,66 1,64 5%Family labour - % 99% 99% 98% 98% 99% 99% 99% 99% 98% 0%Milk per ha fodder area - t/ha 7,7 7,9 8,0 8,2 8,0 8,2 8,6 8,4 9,1 11%Milk yield - kg/cow 5 873 6 123 6 240 6 297 6 366 6 323 6 756 6 680 6 910 7 175 7 368 18% 9%Milk production - t 279 301 314 298 308 322 340 352 371 385 395 29% 16%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 328 304 303 309 294 293 349 333 254 327 356 0% 2%EU coupled payments (incl. Art.69) 0 0 0 12 24 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - #DIV/0!Total revenues from milk 328 303 299 320 316 293 349 333 254 327 356 1% 2%Production costs Feed 72 72 69 71 65 69 77 92 74 58 66 -7% -15%

homegrown feed 26 27 25 27 26 26 28 32 26 24 27 -1% -6%puchased feed 46 45 44 44 39 43 49 60 47 34 39 -11% -21%

Herd renewal purchases 2 2 2 2 2 3 4 3 3 3 3 96% -15%Milk levy 0 1 3 0 3 0 0 0 0 0 0 - -Other specific costs 16 17 17 21 21 21 21 22 20 20 20 21% -4%Specific costs 89 91 92 95 91 93 102 118 97 82 89 -1% -13%Machinery and building upkeep 15 15 14 14 15 14 15 15 14 15 15 0% 5%Energy (fuel, electricity) 10 9 9 10 12 13 13 16 13 15 18 63% 38%Contract work 15 16 15 17 18 18 19 22 19 19 19 23% -3%Taxes 1 1 1 1 1 1 1 1 1 1 1 -1% -7%Other direct inputs 9 9 9 11 10 11 11 12 11 11 11 23% -2%Non specific costs 50 50 48 54 56 56 59 65 58 61 64 23% 8%Total operating costs 139 141 140 149 147 149 161 183 155 143 153 7% -5%Gross margin 189 163 163 160 148 144 188 150 99 185 203 -5% 8%Gross margin with coupled payments 189 162 160 171 169 144 188 150 99 185 203 -5% 8%

%spe.farms with positive gross margin 100% 100% 100% 100% 100% 99% 100% 98% 97% 100% 100% -1% 0%

%milk production with positive gross margin 100% 100% 100% 100% 100% 100% 100% 100% 98% 100% 100% -1% 0%

Depreciation 34 34 34 38 39 40 44 49 47 38%Wages 1 1 1 1 1 1 1 1 1 -21%Rent 14 14 14 16 17 16 15 15 14 3%Interest 22 20 19 19 17 16 16 17 16 -19%External factors 37 35 35 36 35 33 32 33 31 -10%Net margin 118 94 94 86 73 71 111 68 21 -35%


Family labour costs 88 86 84 92 88 84 82 87 77 -5%Own capital unpaid cost 6 8 6 6 3 4 7 1 13 1%Imputed family factors 94 94 90 98 91 88 89 88 90 -4%Net economic margin 24 0 4 -12 -18 -17 22 -20 -70 -339%Net economic margin with coupled payments 24 0 0 0 3 -17 22 -20 -69 -382%





Belgium Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*



External factors 9 098 9 266 9 753 9 496 9 384 9 263 9 392 9 282 9 484 0%Wages 245 255 360 339 240 232 156 212 306 -21%

Rent 3 576 3 740 4 055 4 152 4 608 4 529 4 484 4 401 4 262 16%Interest 5 278 5 272 5 338 5 004 4 536 4 501 4 752 4 670 4 916 -10%

Balance invest. subs. and taxes -876 -802 -373 -970 -1 026 -1 189 -1 141 -1 453 -267 -39%Farm net income (FNI) 32 270 28 188 31 051 28 270 31 230 34 337 45 033 32 247 21 765 8%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 1 563 2 182 1 713 1 629 783 1 157 2 086 307 4 007 17%Remuneration of Family Labour (RFL) 31 148 26 424 29 941 27 208 30 848 33 661 43 266 32 283 18 152 7%

%spe.farms with positive RFL 99% 96% 99% 95% 99% 99% 100% 95% 88% -3%


203189

162 160171 169

144

188150

99

185

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





328303 299

320 316293

349333

254

210 209 209 223 221 222 237265

234

118

94 9198 94

71

111

68

21

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

20

40

60

80

100

120

140





Belgium Milk specialised farms


328303 299

320 316293

349333

254

304 304 299321 312 311

326353

32424

0 0 0 3

-17

22

-20

-69

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-80

-60

-40

-20

0

20

40



34 34 34 38 39 40 44 49 47

88 86 8492 88 84 82

8777

6 8 66 3 4 7

113

0

20

40

60

80

100

120

140

160

180

200

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

10 000

20 000

30 000

40 000

50 000

60 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150

200

250EUR/t of milk





EU Dairy farms report 2012 Annex II DK

Denmark Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 434 438 399 344 379 364 372 389 487 -2%Farms represented 9 218 6 554 6 500 5 393 5 287 4 611 4 460 4 657 4 279 -40%% production from specialised farms 93% 95% 94% 96% 96% 96% 95% 97% 97% 2%Forage area - ha 46 58 60 67 63 76 81 85 95 59%Dairy cows - LU 65 84 84 93 98 113 119 118 123 55%Rented UAA - % 26% 30% 30% 30% 20% 30% 27% 26% 27% -2%Total labour - AWU 1,71 1,94 1,89 1,96 1,98 2,16 2,20 2,21 2,23 20%Family labour - % 72% 65% 66% 63% 63% 60% 59% 56% 53% -12%Milk per ha fodder area - t/ha 9,9 10,7 10,8 11,0 12,6 12,4 12,1 11,4 10,7 9%Milk yield - kg/cow 7 043 7 392 7 720 7 935 8 096 8 407 8 268 8 272 8 278 8 458 8 318 13% 1%Milk production - t 456 619 648 742 795 950 984 978 1 020 1 042 1 025 79% 4%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 349 344 332 311 309 299 333 387 302 350 391 2% 17%EU coupled payments (incl. Art.69) 0 0 0 11 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 348 344 330 320 308 299 332 386 302 350 391 2% 18%Production costs Feed 99 99 92 90 86 85 91 118 108 99 121 13% 32%


Herd renewal purchases 1 1 2 6 6 6 0 6 4 4 4 187% #DIV/0!Milk levy 2 0 2 3 0 0 2 0 0 0 0 -97% -98%Other specific costs 23 23 24 24 24 26 28 31 31 30 31 32% 11%Specific costs 125 124 120 123 116 117 121 155 143 133 156 17% 29%Machinery and building upkeep 24 23 21 20 22 21 22 27 28 28 29 23% 29%Energy (fuel, electricity) 9 8 8 8 11 11 11 14 13 14 17 73% 53%Contract work 26 26 26 26 26 25 27 32 33 33 36 31% 31%Taxes 1 1 1 1 1 1 1 1 1 1 1 11% 25%Other direct inputs 17 16 16 15 16 14 15 17 18 19 20 17% 31%Non specific costs 76 74 73 71 76 72 76 91 93 95 102 30% 34%Total operating costs 201 197 193 194 193 189 198 247 236 228 259 22% 31%Gross margin 149 147 139 117 116 110 136 140 66 123 132 -26% -3%Gross margin with coupled payments 147 146 137 126 116 110 134 140 66 123 132 -26% -1%

%spe.farms with positive gross margin 100% 100% 99% 99% 97% 96% 99% 96% 88% 95% 95% -7% -4%

%milk production with positive gross margin 100% 100% 100% 100% 99% 99% 100% 99% 94% 98% 98% -3% -1%

Depreciation 41 39 37 38 39 37 39 45 46 10%Wages 20 22 21 21 23 23 25 30 32 36%Rent 10 12 12 13 11 17 15 15 15 37%Interest 64 61 55 52 52 49 65 120 86 52%External factors 93 95 88 86 85 89 106 165 134 46%Net margin 14 12 14 -6 -8 -16 -9 -70 -114 -584%

Net margin with coupled payments 13 12 12 2 -8 -16 -11 -70 -114 -644%


%spe.farms with positive net economic margin 4% 6% 6% - 3% 3% 7% 4% - -

%milk production with positive net economic margin 5% 9% 9% - 5% 5% 9% 5% - -



Denmark Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*




Rent 3 560 5 323 5 604 6 771 5 446 9 742 9 311 8 367 8 903 83%Interest 22 651 25 645 24 731 26 219 25 770 28 007 38 592 66 763 49 078 111%

Balance invest. subs. and taxes 343 324 248 219 158 155 111 57 38 -78%Farm net income (FNI) 7 499 7 865 9 234 6 589 15 260 19 047 23 875 -13 411 -36 653 -206%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 5 959 5 275 6 052 12 205 16 426 15 719 8 721 3 262 9 016 21%Remuneration of Family Labour (RFL) 4 474 6 755 8 015 -1 787 7 734 16 203 32 063 -27 145 -78 126 -480%



132

147 146 137 126 116 110134 140

66

123

0

50

100

150

200

250

300

350

400

450

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





348 344 330 320 308 299332

386

302

335 332 319 318 317 315 343

456416

13 12 122

-8-16

-11

-70

-114

0

50

100

150

200

250

300

350

400

450

500

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-140

-120

-100

-80

-60

-40

-20

0

20





Denmark Milk specialised farms


348 344 330 320 308 299332

386

302

423400 387 385 392 378

398

507469

-75

-56 -56-66

-83 -79-66

-121

-1670

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-180

-160

-140

-120

-100

-80

-60

-40

-20

0



41 39 37 38 39 37 39 45 46

76 6060 53 54 47

47

48

4511

88 15 21 16

8

3

8

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009



-100 000

-80 000

-60 000

-40 000

-20 000

0

20 000

40 000

60 000

80 000

100 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-200

-150

-100

-50

0

50

100

150

200

EUR/t of milk





EU Dairy farms report 2012 Annex II DE

Germany Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 1 986 1 929 1 823 1 765 1 883 1 836 1 934 1 812 2 039 1%Farms represented 76 521 69 589 67 224 62 955 66 641 61 979 65 232 60 906 60 196 -13%% production from specialised farms 81% 77% 75% 74% 80% 82% 85% 80% 80% 4%Forage area - ha 40 41 42 43 45 48 48 48 49 17%Dairy cows - LU 43 44 45 46 48 50 50 51 51 15%Rented UAA - % 64% 63% 64% 63% 66% 67% 67% 66% 65% 2%Total labour - AWU 1,86 1,80 1,82 1,79 1,93 1,95 1,95 1,95 1,92 6%Family labour - % 84% 83% 82% 84% 78% 77% 76% 76% 77% -7%Milk per ha fodder area - t/ha 7,0 7,2 7,2 7,3 7,3 7,6 7,5 7,7 7,8 8%Milk yield - kg/cow 6 506 6 640 6 769 6 890 6 976 7 243 7 190 7 297 7 387 7 465 7 628 13% 6%Milk production - t 277 294 306 319 331 361 359 369 380 384 392 32% 9%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 340 310 299 297 290 295 382 306 273 350 353 3% -8%EU coupled payments (incl. Art.69) 0 0 0 11 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 339 310 298 305 289 295 380 306 273 350 353 3% -7%Production costs Feed 74 74 76 71 70 75 94 92 77 98 100 23% 7%

homegrown feed 27 26 26 25 26 28 33 32 26 30 31 8% -6%puchased feed 47 47 50 46 44 47 61 60 51 68 69 31% 13%

Herd renewal purchases 2 3 2 2 2 2 2 2 2 2 2 -6% -8%Milk levy 1 0 2 2 1 0 2 0 0 0 0 -96% -97%Other specific costs 22 21 21 22 22 22 24 25 23 23 22 8% -4%Specific costs 99 97 102 97 95 99 122 119 102 123 125 18% 3%Machinery and building upkeep 24 22 20 21 22 23 26 23 21 21 21 -4% -19%Energy (fuel, electricity) 19 19 19 21 24 24 27 27 24 27 28 40% 6%Contract work 14 14 13 14 14 15 17 17 17 17 17 26% -4%Taxes 2 2 2 2 2 2 2 2 2 2 2 -3% -7%Other direct inputs 30 27 27 27 29 27 29 27 26 26 25 -9% -12%Non specific costs 89 83 81 84 91 90 102 96 90 92 94 9% -8%Total operating costs 188 181 183 181 186 189 223 215 192 215 219 14% -2%Gross margin 152 129 117 116 104 106 158 91 81 135 134 -12% -16%Gross margin with coupled payments 151 129 115 124 103 106 157 91 81 135 134 -12% -15%



Depreciation 52 47 45 44 45 45 49 48 47 0%Wages 14 12 13 11 17 16 18 18 16 34%Rent 22 22 21 20 20 20 20 17 17 -17%Interest 11 11 11 10 10 10 10 9 10 -11%External factors 47 45 44 41 47 46 48 45 42 -1%Net margin 53 37 27 31 13 14 61 -2 -7 -57%

Net margin with coupled payments 52 37 26 40 11 14 59 -2 -8 -57%

Family labour costs 72 62 58 53 52 49 52 48 48 -23%Own capital unpaid cost 37 33 30 22 18 22 16 19 31 -35%Imputed family factors 109 95 88 75 70 70 68 67 80 -27%Net economic margin -56 -58 -61 -44 -57 -56 -7 -69 -87 7%Net economic margin with coupled payments -57 -58 -63 -35 -58 -56 -9 -69 -87 7%

%spe.farms with positive net economic margin 15% 12% 10% 16% 11% 10% 36% 8% 6% 4%

%milk production with positive net economic margin 26% 23% 20% 30% 20% 20% 53% 15% 12% 3%



Germany Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*




Rent 4 747 5 196 5 163 5 231 5 110 5 424 5 306 4 784 4 736 -2%Interest 2 332 2 619 2 635 2 610 2 432 2 598 2 512 2 545 2 771 3%

Balance invest. subs. and taxes -876 -883 -778 -789 -826 -1 008 -1 335 -1 284 -715 -31%Farm net income (FNI) 15 233 13 987 12 344 17 030 17 773 20 700 30 975 14 651 14 411 44%




134

151129 115 124

103 106

157

91 81

135

0

50

100

150

200

250

300

350

400

450

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





339310 298 305

289 295

380

306273

287 272 272 265 278 280321 309

281

52

37

26

40

11 14

59

-2-8

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-20

-10

0

10

20

30

40

50

60

70





Germany Milk specialised farms


339310 298 305

289 295

380

306273

396368 360

340 347 351

389 375360

-57 -58-63

-35

-58 -56

-9

-69

-87

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0



52 47 45 44 45 45 49 48 47

7262 58

53 52 4952 48 48

37

3330

22 18 22 16 19 31

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II EL

Greece Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 23 18 - - - 19 - - 15 -27%Farms represented 1 957 1 611 - - - 2 324 - - 1 302 -27%% production from specialised farms 71% 72% - - - 90% - - 100% 28%Forage area - ha 2 2 - - - 4 - - 8 394%Dairy cows - LU 23 28 - - - 31 - - 59 128%Rented UAA - % 49% 50% - - - 55% - - 72% 23%Total labour - AWU 1,54 1,75 - - - 1,77 - - 2,37 44%Family labour - % 89% 82% - - - 77% - - 73% -13%Milk per ha fodder area - t/ha 27,5 25,0 - - - 33,4 - - 39,8 52%Milk yield - kg/cow 4 560 4 969 - - - 5 174 - - 5 713 5 016 5 656 15% -Milk production - t 106 141 - - - 160 - - 336 295 332 160% -


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 317 332 - - - 329 - - 387 383 443 25% -EU coupled payments (incl. Art.69) 0 0 - - - 20 - - 0 0 0 - -National aids 0 0 - - - 0 - - 0 0 0 - -Total revenues from milk 317 332 - - - 349 - - 387 383 443 25% -Production costs Feed 172 171 - - - 266 - - 176 207 205 14% -

homegrown feed 17 16 - - - 20 - - 17 20 19 13% -puchased feed 155 155 - - - 246 - - 159 187 186 14% -

Herd renewal purchases 0 0 - - - 1 - - 0 0 0 - -Milk levy 0 0 - - - 0 - - 0 0 0 - -Other specific costs 9 9 - - - 11 - - 7 9 8 -11% -Specific costs 181 180 - - - 279 - - 184 216 213 13% -Machinery and building upkeep 2 3 - - - 3 - - 2 3 2 -6% -Energy (fuel, electricity) 5 8 - - - 10 - - 11 16 17 119% -Contract work 7 6 - - - 9 - - 7 8 7 23% -Taxes 0 0 - - - 3 - - 0 0 0 243% -Other direct inputs 2 2 - - - 4 - - 4 5 4 76% -Non specific costs 17 19 - - - 28 - - 25 32 31 62% -Total operating costs 198 199 - - - 307 - - 208 248 244 18% -Gross margin 119 132 - - - 22 - - 179 135 199 36% -Gross margin with coupled payments 119 132 - - - 42 - - 179 135 199 36% -

%spe.farms with positive gross margin 97% 100% - - - 70% - - - - - - -

%milk production with positive gross margin 96% 100% - - - 67% - - - - - - -

Depreciation 25 23 - - - 23 - - 18 -25%Wages 5 7 - - - 10 - - 9 40%Rent 4 3 - - - 6 - - 7 103%Interest 2 3 - - - 2 - - 0 -98%External factors 11 14 - - - 18 - - 16 32%Net margin 83 96 - - - -19 - - 145 62%

Net margin with coupled payments 83 96 - - - 1 - - 145 62%

Family labour costs 49 41 - - - 42 - - 31 -31%Own capital unpaid cost 10 7 - - - 9 - - 21 147%Imputed family factors 59 48 - - - 50 - - 52 -3%Net economic margin 25 48 - - - -69 - - 94 158%Net economic margin with coupled payments 25 48 - - - -50 - - 94 158%

%spe.farms with positive net economic margin 57% - - - - - - - - -

%milk production with positive net economic margin 70% - - - - - - - - -



Greece Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*

Total output 30 987 36 039 - - - 44 962 - - 74 855 123%Intermediate consumptions 19 531 23 567 - - - 37 501 - - 43 071 100%Balance subsidies and taxes 1 984 4 098 - - - 8 090 - - 8 043 165%

Decoupled payments 0 0 - - - 4 380 - - 5 262 -Depreciation 2 497 2 544 - - - 2 968 - - 3 305 31%Farm Net Value Added (FNVA) 10 943 14 026 - - - 12 583 - - 36 522 157%

External factors 1 125 1 530 - - - 2 282 - - 2 915 120%Wages 535 845 - - - 1 209 - - 1 529 122%

Rent 416 424 - - - 876 - - 1 377 228%Interest 173 261 - - - 198 - - 9 -96%

Balance invest. subs. and taxes -58 0 - - - 7 395 - - 0 100%Farm net income (FNI) 9 760 12 496 - - - 17 696 - - 33 608 202%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 1 177 1 032 - - - 1 486 - - 5 398 389%Remuneration of Family Labour (RFL) 9 807 14 300 - - - 21 601 - - 40 957 240%

%spe.farms with positive RFL 82% 100% - - - 91% - - - -


199119 132

42

179

135

0

50

100

150

200

250

300

350

400

450

500

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





317 332

0 0 0

349

0 0

387

233 236

#N/A #N/A #N/A

348

#N/A #N/A

242

8396

1

145

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

20

40

60

80

100

120

140

160





Greece Milk specialised farms


317332

0 0 0

349

0 0

387

292 284

#N/A #N/A #N/A

398

#N/A #N/A

294

25

48

-50

94

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-60

-40

-20

0

20

40

60

80

100

120



25 23

0 0 0

23

0 0

18

49 41

0 0 0

42

0 0

31

10

7

0 0 0

9

0 0

21

0

10

20

30

40

50

60

70

80

90

100

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II ES

Spain Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 1 415 1 041 1 042 964 993 1 061 1 171 952 935 -13%Farms represented 36 753 24 269 24 478 23 284 26 248 21 891 25 767 21 564 22 777 -18%% production from specialised farms 96% 93% 93% 93% 92% 91% 93% 96% 97% 1%Forage area - ha 12 16 16 18 18 19 16 18 19 24%Dairy cows - LU 26 33 33 37 36 37 31 43 38 23%Rented UAA - % 37% 31% 35% 42% 35% 39% 37% 41% 40% 5%Total labour - AWU 1,42 1,50 1,56 1,55 1,48 1,61 1,49 1,70 1,56 6%Family labour - % 96% 94% 94% 95% 96% 95% 95% 94% 94% -1%Milk per ha fodder area - t/ha 10,8 11,0 10,3 10,4 11,1 11,7 12,3 15,0 12,7 25%Milk yield - kg/cow 5 689 5 913 5 854 6 046 6 223 6 648 6 928 7 011 6 886 6 862 7 418 21% 7%Milk production - t 150 193 191 222 227 244 217 302 264 263 285 52% 31%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 318 307 305 313 307 299 353 381 297 299 318 -2% -10%EU coupled payments (incl. Art.69) 0 0 0 11 21 1 1 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 318 307 305 324 328 300 353 380 297 299 318 -2% -10%Production costs Feed 107 116 112 106 105 100 110 136 116 118 127 8% 16%

homegrown feed 15 10 10 8 9 10 9 9 8 7 8 -35% -16%puchased feed 93 106 102 98 96 90 101 127 109 111 119 13% 18%

Herd renewal purchases 2 5 3 3 2 3 4 6 8 9 9 132% 129%Milk levy 0 0 0 0 0 0 0 0 0 0 0 -96% -98%Other specific costs 17 14 14 16 16 18 20 22 19 19 17 20% -12%Specific costs 127 135 129 125 124 121 133 164 143 145 153 13% 15%Machinery and building upkeep 9 8 9 8 7 9 10 13 11 11 11 29% 10%Energy (fuel, electricity) 11 9 9 9 10 11 11 14 12 14 16 43% 39%Contract work 3 4 4 5 5 5 5 7 6 6 6 80% 25%Taxes 0 0 0 0 0 0 0 0 0 0 0 240% 173%Other direct inputs 5 7 7 7 7 6 10 9 9 9 10 44% -6%Non specific costs 28 28 29 28 30 31 36 42 38 42 42 44% 17%Total operating costs 154 163 158 153 153 151 169 206 181 187 195 18% 15%Gross margin 164 144 147 160 153 147 183 174 116 112 123 -23% -33%Gross margin with coupled payments 164 144 147 170 175 148 184 174 116 112 123 -23% -33%



Depreciation 18 14 15 12 13 17 18 18 17 13%Wages 4 4 5 4 3 4 5 5 5 8%Rent 3 4 3 4 3 4 4 4 4 9%Interest 3 2 2 2 1 1 2 2 2 -27%External factors 10 10 10 9 7 9 10 10 10 0%Net margin 136 119 122 138 133 122 156 146 88 4%

Net margin with coupled payments 136 119 122 149 154 122 156 146 88 4%

Family labour costs 69 66 66 73 56 63 74 69 80 11%Own capital unpaid cost 12 13 10 10 6 6 13 8 21 22%Imputed family factors 80 79 76 83 62 70 87 78 101 13%Net economic margin 55 40 46 55 71 52 69 68 -12 -12%Net economic margin with coupled payments 55 40 46 65 92 53 70 68 -12 -12%





Spain Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 0 83 4 779 4 366 5 982 5 328 -Depreciation 2 367 2 287 2 232 2 099 2 443 3 101 3 009 3 639 3 396 46%Farm Net Value Added (FNVA) 21 654 24 223 22 802 29 133 33 207 31 365 34 112 41 505 28 866 304%

External factors 1 286 1 688 1 606 1 635 1 427 1 579 1 692 2 162 2 049 29%Wages 505 703 731 677 580 678 784 1 001 923 40%

Rent 458 651 528 671 598 648 602 832 809 37%Interest 323 335 347 286 249 253 306 330 316 -5%

Balance invest. subs. and taxes -52 -41 -114 -350 -218 184 -40 -14 84 114%Farm net income (FNI) 20 317 22 495 21 082 27 149 31 562 29 970 32 380 39 329 26 901 54%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 1 635 2 256 1 629 1 895 1 194 1 301 2 332 1 944 4 557 60%Remuneration of Family Labour (RFL) 19 428 21 746 20 722 26 536 31 747 30 183 31 635 39 511 23 797 53%



123

164144 147

170 175148

184 174

116 112

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





318 307 305324 328

300

353380

297

182 188 183 175 174 177 197235 209

136

119 122

149 154

122

156146

88

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

20

40

60

80

100

120

140

160

180





Spain Milk specialised farms


318 307 305324 328

300

353380

297263 266 259 258236 247

284312 309

55

4046

65

92

53

70 68

-120

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-20

0

20

40

60

80

100



18 14 15 12 13 17 18 18 17

6966 66 73

5663

74 6980

1213 10 10

6

6

138

21

0

20

40

60

80

100

120

140

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II FR

France Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 1 374 1 355 1 227 1 207 1 141 1 160 1 173 1 283 1 214 -7%Farms represented 73 040 67 693 65 569 61 218 61 582 58 820 59 517 62 771 59 335 -12%% production from specialised farms 73% 74% 72% 72% 73% 75% 74% 79% 75% 3%Forage area - ha 49 51 52 55 54 59 59 60 61 18%Dairy cows - LU 39 41 41 43 43 45 46 47 47 15%Rented UAA - % 83% 84% 85% 85% 86% 88% 88% 88% 89% 4%Total labour - AWU 1,63 1,65 1,71 1,72 1,73 1,80 1,76 1,75 1,75 5%Family labour - % 95% 94% 94% 94% 94% 93% 93% 93% 93% -1%Milk per ha fodder area - t/ha 4,8 5,0 4,8 4,9 5,1 5,0 5,1 5,1 5,1 5%Milk yield - kg/cow 5 979 6 143 6 148 6 253 6 492 6 450 6 512 6 552 6 501 6 750 7 159 12% 10%Milk production - t 235 253 253 266 276 292 300 307 308 320 339 31% 13%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 329 321 317 310 302 291 320 349 297 307 331 -3% 3%EU coupled payments (incl. Art.69) 0 0 0 12 22 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 329 321 317 321 324 291 320 349 296 307 331 -3% 3%Production costs Feed 83 79 81 80 76 78 85 99 93 85 93 12% 10%

homegrown feed 36 34 34 33 32 32 33 36 36 32 34 -2% 3%puchased feed 47 44 46 47 44 46 52 64 57 54 59 23% 14%

Herd renewal purchases 2 2 1 2 2 2 3 3 2 2 2 34% -23%Milk levy 0 0 1 1 0 0 0 0 0 0 0 -21% 40%Other specific costs 16 11 12 12 12 12 12 14 13 13 12 -2% 1%Specific costs 101 92 95 94 90 93 100 116 109 101 108 11% 8%Machinery and building upkeep 18 18 19 19 20 20 20 22 21 20 20 11% -2%Energy (fuel, electricity) 14 10 11 12 13 14 14 18 14 16 17 36% 19%Contract work 25 25 26 26 26 27 28 30 30 29 28 14% 0%Taxes 2 3 3 3 3 2 2 3 3 3 3 -3% 5%Other direct inputs 28 35 35 35 34 35 37 39 38 37 36 12% -4%Non specific costs 87 92 94 95 96 100 102 112 106 104 103 15% 1%Total operating costs 188 184 188 190 187 193 202 228 215 205 211 13% 4%Gross margin 141 137 129 121 116 99 118 121 82 102 120 -25% 2%Gross margin with coupled payments 141 137 128 132 138 98 118 121 81 102 120 -25% 2%



Depreciation 52 52 54 57 56 62 62 67 68 25%Wages 4 4 4 4 4 5 5 5 5 31%Rent 18 18 18 18 18 19 19 20 20 8%Interest 11 10 10 10 9 10 10 11 11 4%External factors 32 32 32 32 32 34 34 36 37 9%Net margin 57 53 42 32 28 3 22 19 -23 -88%

Net margin with coupled payments 57 53 42 43 50 2 22 18 -23 -89%

Family labour costs 84 67 73 71 70 70 69 70 70 -7%Own capital unpaid cost 10 8 5 4 4 5 8 3 13 3%Imputed family factors 94 75 78 75 74 75 77 73 83 -6%Net economic margin -37 -22 -36 -43 -46 -73 -55 -55 -106 -127%Net economic margin with coupled payments -37 -22 -37 -32 -24 -73 -55 -55 -106 -125%





France Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*



External factors 7 205 7 605 7 426 7 737 7 927 8 496 8 755 9 361 9 797 26%Wages 799 875 883 893 999 1 240 1 226 1 292 1 291 49%

Rent 4 038 4 299 4 182 4 454 4 564 4 821 4 893 5 189 5 473 24%Interest 2 368 2 431 2 361 2 390 2 364 2 436 2 637 2 880 3 033 19%

Balance invest. subs. and taxes 825 911 954 809 909 1 066 1 125 1 065 1 078 22%Farm net income (FNI) 15 854 16 522 14 876 15 520 17 364 16 728 21 718 19 599 8 698 6%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 155 2 000 1 153 1 084 955 1 262 2 171 819 3 500 22%Remuneration of Family Labour (RFL) 14 543 15 580 14 666 15 366 17 590 16 765 21 134 20 239 5 832 5%



120

141137 128 132 138

98118 121

81102

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





329 321 317 321 324291

320349

296

272 268 275 278 275 288 298330 319

5753

42 4350

2

2218

-230

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-30

-20

-10

0

10

20

30

40

50

60

70





France Milk specialised farms


329 321 317 321 324291

320349

296

366344 353 354 348

364 375403 402

-37

-22

-37-32

-24

-73

-55 -55

-106

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-120

-100

-80

-60

-40

-20

0



52 52 54 57 56 62 62 67 68

8467

73 71 7070 69

70 70

10

85 4 4

5 8 313

0

20

40

60

80

100

120

140

160

180

200

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-150

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II IE

Ireland Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 481 403 419 384 394 366 357 348 304 -23%Farms represented 25 602 21 952 22 223 19 240 20 247 18 362 18 558 18 726 17 771 -21%% production from specialised farms 93% 89% 91% 89% 94% 95% 97% 96% 93% 5%Forage area - ha 44 46 47 47 50 51 54 55 54 19%Dairy cows - LU 42 46 47 49 50 53 55 56 58 26%Rented UAA - % 19% 19% 19% 19% 19% 19% 20% 21% 23% 2%Total labour - AWU 1,55 1,57 1,53 1,57 1,57 1,59 1,60 1,62 1,60 4%Family labour - % 89% 89% 88% 88% 88% 87% 87% 86% 88% -2%Milk per ha fodder area - t/ha 4,9 5,1 5,3 5,5 5,3 5,7 5,5 5,5 5,5 8%Milk yield - kg/cow 5 172 5 111 5 257 5 373 5 268 5 457 5 439 5 317 5 126 5 496 5 555 4% 2%Milk production - t 218 233 247 262 265 289 300 300 297 319 322 34% 7%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 306 283 269 271 265 258 323 331 229 285 318 -3% -2%EU coupled payments (incl. Art.69) 0 0 0 11 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - #DIV/0!Total revenues from milk 305 281 269 280 262 258 322 329 229 285 318 -3% -1%Production costs Feed 70 72 70 66 67 75 78 98 84 74 86 15% 10%


Herd renewal purchases 5 7 9 8 7 8 10 8 7 7 7 -1% -33%Milk levy 0 2 1 1 3 0 1 2 0 0 0 - -Other specific costs 19 19 17 22 22 22 24 26 27 25 25 38% 3%Specific costs 95 101 96 98 100 105 113 133 118 106 117 17% 4%Machinery and building upkeep 21 18 16 16 17 17 18 18 15 14 14 -20% -23%Energy (fuel, electricity) 8 8 7 8 9 10 11 13 12 13 15 69% 32%Contract work 16 13 12 12 13 13 15 15 14 13 13 -3% -13%Taxes 0 0 0 1 1 0 1 1 1 1 1 28% -1%Other direct inputs 7 7 6 6 6 6 8 9 11 11 11 63% 30%Non specific costs 52 47 41 42 46 46 53 56 53 51 53 12% 0%Total operating costs 147 147 138 140 146 151 166 189 171 157 170 15% 3%Gross margin 159 135 132 132 119 107 157 142 58 128 148 -22% -6%Gross margin with coupled payments 159 134 131 141 115 107 157 140 58 128 148 -21% -6%



Depreciation 26 25 21 34 35 39 44 50 29 73%Wages 8 8 9 9 10 10 11 13 11 41%Rent 11 10 10 9 8 8 9 9 9 -12%Interest 8 8 7 6 6 6 8 10 8 15%External factors 28 26 25 24 25 25 28 32 28 12%Net margin 106 84 86 74 59 44 85 59 0 -47%


Family labour costs 70 68 67 69 77 77 77 83 75 14%Own capital unpaid cost 48 40 34 38 35 35 40 35 71 19%Imputed family factors 118 108 102 107 113 112 117 117 145 16%Net economic margin -13 -24 -16 -34 -54 -68 -32 -58 -145 -352%Net economic margin with coupled payments -13 -25 -16 -25 -58 -68 -33 -60 -145 -334%

%spe.farms with positive net economic margin 37% 28% 33% 22% 14% 7% 25% 14% - -

%milk production with positive net economic margin 53% 41% 47% 32% 20% 15% 36% 24% - -



Ireland Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*




Rent 2 316 2 201 2 295 2 110 2 017 2 101 2 316 2 331 2 413 4%Interest 1 686 1 621 1 558 1 468 1 496 1 616 1 932 2 514 2 013 33%

Balance invest. subs. and taxes 106 232 -421 -523 -745 -944 -802 -284 6 889 7052%Farm net income (FNI) 21 979 19 965 24 108 25 027 25 826 23 267 33 478 27 344 21 282 24%




148

159

134 131141

115 107

157140

58

128

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





305281

269 280262 258

322 329

229

200 198 183 198 206 214238

271229

105

83 85 83

55

43

84

58

10

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

20

40

60

80

100

120





Ireland Milk specialised farms


305281 269 280

262 258

322 329

229

318 306285

305319 326

355389

374-13

-25-16

-25

-58-68

-33

-60

-145

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-160

-140

-120

-100

-80

-60

-40

-20

0



26 25 21 34 35 39 44 5029

70 68 6769 77 77

7783

75

4840

3438

35 3540

3571

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-200

-150

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II IT

Italy Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 1 691 1 839 1 242 1 352 1 536 1 399 1 451 1 121 1 056 -24%Farms represented 40 561 34 903 35 980 31 873 33 054 30 801 31 399 30 695 32 353 -15%% production from specialised farms 93% 93% 93% 96% 96% 95% 93% 95% 92% 0%Forage area - ha 22 22 22 24 25 25 26 25 24 14%Dairy cows - LU 36 36 43 44 44 47 48 47 44 20%Rented UAA - % 58% 58% 53% 59% 57% 57% 58% 60% 57% 2%Total labour - AWU 2,00 1,94 2,00 2,09 2,09 2,10 2,17 1,86 1,87 -1%Family labour - % 88% 92% 84% 86% 87% 85% 84% 84% 81% -5%Milk per ha fodder area - t/ha 10,5 10,5 12,5 11,6 11,6 12,8 12,5 12,7 12,0 11%Milk yield - kg/cow 6 442 6 431 6 490 6 604 6 699 6 841 6 994 6 739 6 548 7 066 6 968 6% 0%Milk production - t 232 229 280 289 296 322 333 315 286 309 304 21% -9%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 400 399 385 381 366 360 385 398 382 423 480 9% 25%EU coupled payments (incl. Art.69) 0 0 0 11 21 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 399 399 382 391 385 360 385 398 382 423 480 9% 25%Production costs Feed 117 115 136 137 124 108 124 117 115 111 125 -5% 1%

homegrown feed 14 17 16 18 17 19 21 20 18 17 19 16% -11%puchased feed 103 98 119 119 107 89 103 97 97 94 106 -8% 3%

Herd renewal purchases 0 0 0 0 0 3 2 1 2 2 2 - -2%Milk levy 0 0 2 2 1 0 0 0 0 0 0 - -Other specific costs 22 12 12 12 14 13 13 23 17 16 17 10% 28%Specific costs 140 128 150 150 139 124 140 140 135 129 145 -2% 4%Machinery and building upkeep 8 7 6 7 7 8 8 9 6 6 6 -17% -20%Energy (fuel, electricity) 20 15 16 16 18 19 19 18 22 22 25 35% 33%Contract work 4 4 4 4 4 4 4 3 4 4 4 -5% -8%Taxes 9 6 4 2 2 2 2 5 6 5 6 -9% 138%Other direct inputs 14 11 12 16 14 13 14 10 13 13 13 5% -8%Non specific costs 55 43 42 45 45 47 47 46 51 49 54 10% 14%Total operating costs 195 170 192 195 184 171 187 186 186 178 198 1% 6%Gross margin 205 229 193 187 182 189 199 212 196 244 282 15% 42%Gross margin with coupled payments 204 228 191 197 202 189 199 212 196 244 282 16% 42%

%spe.farms with positive gross margin 97% 100% 97% 97% 98% 99% 99% 99% 98% 98% 99% 0% 0%

%milk production with positive gross margin 97% 100% 97% 98% 99% 99% 100% 100% 99% 100% 100% 2% 0%

Depreciation 41 42 37 41 43 39 39 37 40 -4%Wages 19 12 15 14 14 14 15 14 18 3%Rent 9 10 9 10 10 10 11 9 9 6%Interest 3 3 2 2 2 2 2 1 1 -49%External factors 30 25 25 26 25 26 28 24 29 -1%Net margin 133 161 130 120 114 124 131 151 128 -3%


Family labour costs 116 135 97 99 96 89 83 85 88 -27%Own capital unpaid cost 28 26 19 22 18 20 24 12 32 -6%Imputed family factors 145 161 116 121 114 109 107 98 120 -23%Net economic margin -11 0 14 -1 -1 14 24 54 8 3089%Net economic margin with coupled payments -11 0 11 9 19 14 24 54 8 35521%





Italy Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*




Rent 1 362 1 561 1 604 1 677 1 793 1 931 2 218 1 991 1 897 35%Interest 431 386 285 371 273 355 357 168 194 -35%

Balance invest. subs. and taxes 985 723 -133 384 464 768 329 -174 345 -68%Farm net income (FNI) 23 287 26 942 26 149 26 460 30 069 34 692 35 937 42 267 34 928 48%




282204 228

191 197 202 189 199 212 196244

0

100

200

300

400

500

600

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





399 399382 391 385

360385 398

382

266 238 255 262 252 236 254 246 254

133

161

128 130 133124

131

151

128

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

20

40

60

80

100

120

140

160

180





Italy Milk specialised farms


399 399

382391

385

360

385

398

382

411

399

371

382

366

345

361

344

374

-11

0

11 9

1914

24

54

8

300

320

340

360

380

400

420

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-20

-10

0

10

20

30

40

50

60



41 42 37 41 43 39 39 37 40

116 135

97 99 96 89 83 8588

2826

19 22 1820 24

12

32

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-50

0

50

100

150

200

250EUR/t of milk





EU Dairy farms report 2012 Annex II LU

Luxembourg Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 217 237 205 204 239 222 227 231 194 -1%Farms represented 865 695 657 634 729 636 668 692 551 -14%% production from specialised farms 82% 77% 74% 71% 81% 76% 79% 81% 67% -2%Forage area - ha 62 62 63 62 65 68 69 67 67 9%Dairy cows - LU 41 42 43 41 41 43 43 44 45 5%Rented UAA - % 47% 48% 49% 47% 48% 49% 48% 49% 48% 0%Total labour - AWU 1,69 1,69 1,74 1,67 1,68 1,66 1,69 1,62 1,64 -3%Family labour - % 92% 91% 91% 92% 93% 92% 92% 93% 92% 1%Milk per ha fodder area - t/ha 4,6 4,8 4,9 4,8 4,7 4,7 4,5 4,7 4,9 0%Milk yield - kg/cow 6 829 6 975 7 207 7 178 7 386 7 324 7 255 7 184 7 290 7 566 7 741 8% 7%Milk production - t 283 294 308 294 306 318 315 315 330 343 351 16% 11%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 332 329 321 316 304 297 352 375 265 294 324 -10% -8%EU coupled payments (incl. Art.69) 0 0 0 11 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 330 324 318 324 301 295 349 372 264 294 324 -9% -7%Production costs Feed 64 65 64 65 61 62 64 73 68 65 77 9% 19%

homegrown feed 28 29 29 29 29 30 28 32 34 33 39 23% 39%puchased feed 36 36 35 36 32 32 37 41 34 32 38 -2% 3%

Herd renewal purchases 1 0 1 1 1 2 1 2 2 2 2 230% 32%Milk levy 2 5 3 3 3 2 2 2 1 1 1 -84% -75%Other specific costs 17 17 17 18 18 18 19 23 22 21 20 23% 7%Specific costs 83 88 86 87 83 84 87 100 92 89 99 9% 14%Machinery and building upkeep 20 23 22 22 24 22 25 26 24 24 25 13% 0%Energy (fuel, electricity) 14 12 12 14 18 19 18 23 17 20 22 57% 19%Contract work 15 16 14 16 15 16 17 19 18 18 18 20% 10%Taxes 1 1 1 1 1 1 2 2 1 1 1 27% -7%Other direct inputs 19 21 20 21 22 22 24 25 24 24 25 21% 5%Non specific costs 69 73 69 74 80 80 85 94 85 87 91 25% 7%Total operating costs 152 161 155 161 163 164 172 194 177 176 191 16% 11%Gross margin 180 169 166 155 140 132 179 181 88 119 133 -34% -26%Gross margin with coupled payments 178 164 163 163 137 131 177 178 87 118 133 -33% -25%



Depreciation 85 84 84 86 95 92 99 102 96 17%Wages 6 6 5 5 5 5 6 5 5 -5%Rent 18 18 18 17 19 19 19 19 17 -1%Interest 16 14 12 12 13 14 19 19 11 16%External factors 40 38 36 34 37 37 44 42 34 4%Net margin 54 47 46 35 9 2 36 36 -42 -79%



%spe.farms with positive net economic margin 22% 17% 29% 27% 14% 10% 17% 20% - -

%milk production with positive net economic margin 30% 24% 40% 37% 22% 17% 27% 29% - -



Luxembourg Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 0 13 049 15 407 15 140 15 273 14 644 -Depreciation 22 175 22 421 23 880 24 287 26 685 28 034 28 847 30 772 30 958 32%Farm Net Value Added (FNVA) 34 343 31 340 35 431 32 251 34 194 36 513 45 891 45 443 21 467 -8%


Rent 4 732 4 918 5 191 4 879 5 231 5 543 5 423 5 663 5 458 11%Interest 4 228 3 696 3 324 3 389 3 682 4 067 5 524 5 568 3 560 30%

Balance invest. subs. and taxes 267 -107 -818 951 2 293 2 950 4 125 2 825 4 691 1869%Farm net income (FNI) 24 210 21 058 24 497 23 613 26 173 28 226 37 308 35 484 15 385 26%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 8 968 9 806 5 024 2 172 920 4 011 7 759 3 951 18 328 26%Remuneration of Family Labour (RFL) 17 481 13 331 21 977 23 399 27 257 26 777 32 979 34 088 -1 614 24%



133

178164 163 163

137 131

177 178

87118

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





330 324 318 324301 295

349372

264

278 283 275 282 295 294 315 338307

52

41 43 42

61

34 34

-43

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-60

-40

-20

0

20

40

60





Luxembourg Milk specialised farms


330 324 318 324301 295

349372

264

367 377348 349 360 366

404419 428

-37

-53

-30-25

-59-71

-55-47

-163

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-180

-160

-140

-120

-100

-80

-60

-40

-20

0



85 84 84 86 95 92 99 102 96

58 61 57 6062 60

65 6968

31 3316 7

3 12

24 12 52

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009



-10 000

0

10 000

20 000

30 000

40 000

50 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-200

-150

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II NL

Netherlands Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 325 338 371 327 325 339 338 348 351 0%Farms represented 25 739 21 131 21 214 19 545 19 805 18 949 19 225 19 241 18 608 -16%% production from specialised farms 96% 96% 96% 95% 95% 96% 96% 95% 95% 0%Forage area - ha 37 40 41 43 43 44 44 44 45 13%Dairy cows - LU 62 67 69 71 71 73 72 74 76 12%Rented UAA - % 34% 37% 36% 36% 37% 37% 37% 36% 36% 1%Total labour - AWU 1,67 1,67 1,67 1,66 1,62 1,64 1,64 1,66 1,66 -1%Family labour - % 93% 91% 92% 93% 94% 93% 93% 93% 92% 1%Milk per ha fodder area - t/ha 12,2 12,3 12,6 12,5 12,6 12,7 12,6 13,1 13,3 5%Milk yield - kg/cow 7 300 7 388 7 460 7 535 7 609 7 793 7 787 7 819 7 881 8 212 8 226 10% 6%Milk production - t 453 495 518 535 539 565 558 580 603 628 629 27% 13%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 351 336 323 313 307 301 358 367 282 331 388 -1% 8%EU coupled payments (incl. Art.69) 0 0 0 12 23 34 0 0 0 0 0 - #DIV/0!National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 350 335 322 323 330 334 356 363 279 329 386 -1% 8%Production costs Feed 66 67 67 65 61 64 74 94 80 76 98 27% 33%


Herd renewal purchases 1 1 2 1 1 2 3 3 2 2 2 16% -46%Milk levy 1 1 1 2 1 1 2 3 2 2 2 136% 29%Other specific costs 18 20 20 21 21 22 24 28 28 27 27 41% 12%Specific costs 86 89 90 89 83 89 103 129 111 107 129 32% 25%Machinery and building upkeep 21 23 21 22 23 23 24 26 22 21 22 -1% -11%Energy (fuel, electricity) 12 11 11 11 13 14 14 15 14 14 15 27% 11%Contract work 19 21 19 19 20 19 20 21 20 20 21 4% 4%Taxes 2 2 1 1 1 1 1 0 0 0 0 -76% -30%Other direct inputs 27 28 26 25 26 27 27 27 27 27 28 2% 4%Non specific costs 82 84 77 79 82 82 86 91 84 82 86 4% 1%Total operating costs 168 173 167 168 165 172 189 220 195 189 216 18% 14%Gross margin 183 163 156 146 143 129 169 146 87 142 173 -20% 2%Gross margin with coupled payments 182 162 155 156 165 162 167 143 84 140 170 -21% 2%



Depreciation 35 36 36 38 39 40 40 45 48 24%Wages 5 6 5 4 4 4 4 4 5 -14%Rent 17 18 17 16 14 14 15 15 14 -17%Interest 37 38 35 34 33 37 42 46 41 17%External factors 60 62 57 54 51 55 62 65 60 4%Net margin 88 65 63 53 53 33 67 37 -22 -62%







Netherlands Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*




Rent 5 732 6 815 6 663 6 464 5 885 5 913 6 075 6 225 6 353 -3%Interest 12 259 13 820 13 595 13 588 13 779 15 459 17 764 19 116 18 205 39%

Balance invest. subs. and taxes -1 852 -2 454 -1 794 -1 409 -207 -1 471 -1 538 -1 585 -680 38%Farm net income (FNI) 26 399 20 836 22 633 24 981 32 960 30 715 41 380 27 881 5 958 8%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 13 513 15 346 13 480 17 018 9 933 8 425 9 859 9 514 13 355 -23%Remuneration of Family Labour (RFL) 14 959 7 539 11 217 9 758 25 186 24 526 34 841 20 550 -6 894 44%



170

182162 155 156 165 162 167

143

84

140

0

50

100

150

200

250

300

350

400

450

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





350335 322 323 330 334

356 363

279

263 271 261 260 254 267 291330 304

87

64 61 63

7666 65

33

-24

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-40

-20

0

20

40

60

80

100





Netherlands Milk specialised farms


350335 322 323 330 334

356 363

279

395 390372 377

350 362386

433408

-45

-56-50 -54

-20-29 -30

-70

-129

0

50

100

150

200

250

300

350

400

450

500

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-140

-120

-100

-80

-60

-40

-20

0



35 36 36 38 39 40 40 45 48

92 81 79 78 73 76 7381 76

3938

33 3923 19 22

22 28

0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009



-20 000

-10 000

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-150

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II AT

Austria Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 517 455 408 471 553 553 515 654 537 24%Farms represented 21 180 16 576 14 784 14 551 17 496 15 658 15 191 19 452 15 279 -5%% production from specialised farms 62% 55% 50% 57% 63% 64% 60% 72% 63% 9%Forage area - ha 27 25 26 29 27 29 27 28 28 7%Dairy cows - LU 16 17 17 19 18 20 19 18 20 13%Rented UAA - % 23% 24% 27% 27% 27% 30% 30% 28% 30% 5%Total labour - AWU 1,85 1,81 1,65 1,71 1,69 1,72 1,67 1,67 1,68 -5%Family labour - % 99% 99% 98% 98% 98% 98% 98% 98% 98% -1%Milk per ha fodder area - t/ha 3,6 4,0 4,3 4,3 4,3 4,7 4,8 4,4 4,7 16%Milk yield - kg/cow 5 900 6 032 6 417 6 502 6 443 6 687 6 764 6 728 6 616 6 677 6 846 10% 1%Milk production - t 97 103 111 124 118 134 130 122 133 135 138 31% 6%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 335 328 293 293 290 294 333 392 299 329 365 4% 10%EU coupled payments (incl. Art.69) 0 0 0 10 20 30 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 335 328 293 303 311 324 327 386 297 327 363 3% 11%Production costs Feed 56 57 73 70 67 69 80 91 77 73 82 25% 2%


Herd renewal purchases 2 3 3 1 3 3 2 4 2 3 2 -2% 28%Milk levy 0 0 0 0 0 0 6 6 2 2 2 - -60%Other specific costs 30 35 23 20 19 19 20 22 21 22 22 -26% 8%Specific costs 88 94 99 92 88 91 108 122 103 99 108 11% 0%Machinery and building upkeep 25 25 20 21 22 22 22 26 23 24 24 1% 10%Energy (fuel, electricity) 16 15 15 16 19 19 19 24 21 23 25 47% 32%Contract work 11 12 11 12 13 13 13 15 15 16 15 35% 17%Taxes 0 0 0 0 0 0 0 0 0 0 0 -51% 10%Other direct inputs 26 26 36 35 38 36 38 44 40 43 42 41% 11%Non specific costs 79 79 82 84 92 90 92 110 99 105 107 29% 16%Total operating costs 167 174 181 175 180 181 199 231 202 205 215 19% 8%Gross margin 168 155 113 118 110 113 134 160 97 125 151 -14% 13%Gross margin with coupled payments 168 155 113 128 131 143 128 155 95 122 149 -16% 16%



Depreciation 77 75 80 83 87 87 75 84 87 6%Wages 2 2 2 2 2 2 2 2 2 2%Rent 6 6 6 7 7 7 7 7 7 17%Interest 11 10 8 9 9 9 10 13 10 8%External factors 19 18 16 17 18 18 18 22 19 11%Net margin 72 62 16 17 5 8 41 53 -10 -43%



%spe.farms with positive net economic margin 5% 5% - - - - 6% 9% - -

%milk production with positive net economic margin 9% 11% - - - - 11% 20% - -



Austria Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 0 2 047 2 240 4 338 4 247 4 400 -Depreciation 6 493 6 828 8 725 9 757 9 534 10 746 9 294 9 617 10 993 36%Farm Net Value Added (FNVA) 15 931 16 126 13 887 16 046 17 095 20 266 22 166 23 604 16 758 -5%

External factors 1 608 1 666 1 799 1 990 1 992 2 178 2 184 2 460 2 372 38%Wages 134 188 222 253 232 297 202 254 228 26%

Rent 510 540 660 753 763 849 800 807 911 47%Interest 964 937 917 985 997 1 032 1 182 1 399 1 233 35%

Balance invest. subs. and taxes -289 -570 -911 -1 009 -839 -774 -1 517 -44 -226 -1%Farm net income (FNI) 14 034 13 890 11 177 13 047 14 264 17 314 18 465 21 100 14 161 37%




149

168155

113128 131

143 128155

95122

0

50

100

150

200

250

300

350

400

450

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





335 328293 303 311 324 327

386

297

263 266 278 276 285 286 292338 309

72

62

16

28 25

38 35

48

-120

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-20

-10

0

10

20

30

40

50

60

70

80





Austria Milk specialised farms


335 328293 303 311 324 327

386

297

463 459 448 432 443 440 444

503 505

-129 -131

-154

-128 -132-116 -116 -117

-208

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-250

-200

-150

-100

-50

0



77 75 80 83 87 87 75 84 87

140 130 114 110121 110

109131 122

6062

57 4636 44

43

3474

0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-250

-200

-150

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II PT

Portugal Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 394 395 376 351 347 362 375 338 351 -9%Farms represented 10 255 9 774 9 130 7 487 6 318 5 986 6 424 6 576 7 185 -31%% production from specialised farms 97% 98% 97% 99% 97% 99% 99% 98% 98% 1%Forage area - ha 13 16 14 17 17 17 17 17 15 14%Dairy cows - LU 23 23 25 26 27 27 29 27 25 16%Rented UAA - % 43% 43% 43% 42% 41% 45% 46% 42% 39% -1%Total labour - AWU 1,70 1,74 1,73 1,74 1,85 1,83 1,98 1,79 1,65 5%Family labour - % 89% 90% 90% 90% 88% 87% 83% 85% 86% -5%Milk per ha fodder area - t/ha 10,2 9,0 10,2 9,4 10,6 10,2 11,5 10,9 11,8 16%Milk yield - kg/cow 5 960 6 144 6 062 6 230 6 527 6 526 6 842 6 956 7 052 7 107 7 144 17% 4%Milk production - t 136 141 150 161 179 178 198 190 179 181 181 27% -8%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 285 291 285 285 278 266 306 346 281 277 303 0% -1%EU coupled payments (incl. Art.69) 0 0 0 10 22 33 9 9 9 9 9 - -1%National aids 4 3 4 11 0 5 3 8 7 7 7 97% 121%Total revenues from milk 289 294 290 307 299 304 319 363 298 294 319 4% 0%Production costs Feed 108 103 104 107 104 101 118 136 118 117 136 17% 16%


Herd renewal purchases 8 3 4 3 5 5 9 3 4 4 4 -20% -59%Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -Other specific costs 23 21 24 22 20 22 23 22 23 23 23 3% -1%Specific costs 139 128 132 131 129 128 151 162 145 144 163 13% 8%Machinery and building upkeep 12 12 13 13 13 13 14 14 13 12 12 2% -11%Energy (fuel, electricity) 12 13 14 14 17 16 17 19 17 19 22 48% 30%Contract work 4 3 3 3 2 4 4 4 5 5 5 39% 27%Taxes 0 0 1 1 1 1 2 2 1 1 1 204% -42%Other direct inputs 7 8 7 7 8 7 8 7 7 7 7 -10% -13%Non specific costs 35 37 37 38 41 41 44 46 42 44 47 21% 6%Total operating costs 174 165 169 169 170 168 195 208 187 188 210 15% 8%Gross margin 111 126 117 116 108 97 112 138 94 90 93 -22% -17%Gross margin with coupled payments 115 129 121 137 130 135 124 155 110 106 109 -11% -12%


%milk production with positive gross margin 100% 99% 97% 99% 99% 99% 99% 100% 99% 98% 98% 0% -1%

Depreciation 33 30 30 29 30 31 31 27 26 -10%Wages 6 7 7 7 7 7 9 9 9 35%Rent 5 6 6 7 7 7 6 6 5 6%Interest 4 3 3 3 2 2 4 3 3 -8%External factors 16 15 15 16 15 15 19 18 17 15%Net margin 62 81 72 70 63 51 62 93 51 -4%

Net margin with coupled payments 66 83 76 92 85 89 75 110 68 12%

Family labour costs 56 62 56 57 49 46 47 48 52 -16%Own capital unpaid cost 5 7 5 7 7 6 8 9 19 121%Imputed family factors 61 69 61 65 55 52 55 57 72 -4%Net economic margin 2 12 10 6 8 -1 7 37 -20 -1%Net economic margin with coupled payments 6 14 15 27 29 37 20 54 -4 99%





Portugal Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 0 742 773 2 959 2 916 3 163 -Depreciation 3 104 2 946 3 060 3 228 3 257 3 451 3 558 3 245 3 263 11%Farm Net Value Added (FNVA) 8 734 10 340 10 426 12 456 12 452 13 409 14 260 17 934 14 123 150%

External factors 1 546 1 478 1 576 1 769 1 754 1 771 2 161 2 171 2 047 39%Wages 636 639 682 726 774 758 1 019 1 058 1 027 59%

Rent 529 579 604 769 779 833 731 807 704 31%Interest 381 260 291 274 200 180 411 307 317 11%

Balance invest. subs. and taxes 223 133 213 144 340 264 141 196 190 -7%Farm net income (FNI) 7 411 8 995 9 063 10 831 11 039 11 902 12 240 15 959 12 265 59%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 574 735 592 940 852 815 1 146 1 342 2 881 182%Remuneration of Family Labour (RFL) 7 719 9 309 9 505 11 149 11 671 12 877 13 601 17 464 11 351 60%



109

115 129 121137

130 135 124155

110 106

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





289 294 290307 299 304

319

363

298

223 210 214 215 215 215244 253 230

66

8376

9285

89

75

110

68

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

20

40

60

80

100

120





Portugal Milk specialised farms


289 294 290307 299 304

319

363

298283 279 275 279 270 266

299 309 301

6

14 15

27 29

37

20

54

-4

0

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-10

0

10

20

30

40

50

60



33 30 30 29 30 31 31 27 26

56 62 56 5749 46

4748 52

57

5 7

7 68

919

0

20

40

60

80

100

120

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-20

0

20

40

60

80

100

120

140

160

180EUR/t of milk





EU Dairy farms report 2012 Annex II FI

Finland Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 331 333 325 348 371 378 375 379 375 14%Farms represented 19 829 15 688 16 541 14 970 14 454 12 417 12 449 12 921 12 761 -27%% production from specialised farms 98% 99% 99% 99% 99% 99% 98% 99% 99% 0%Forage area - ha 24 26 26 27 29 30 31 30 31 20%Dairy cows - LU 19 21 21 22 25 24 24 24 25 19%Rented UAA - % 36% 37% 35% 36% 36% 35% 34% 34% 34% -2%Total labour - AWU 2,06 2,11 2,11 2,10 2,14 2,09 2,04 2,01 2,01 -4%Family labour - % 92% 92% 91% 91% 90% 90% 91% 91% 91% -1%Milk per ha fodder area - t/ha 6,3 6,5 6,4 6,7 7,0 6,8 6,8 6,8 6,9 6%Milk yield - kg/cow 7 795 7 978 8 031 8 189 8 319 8 400 8 579 8 483 8 447 8 516 8 606 7% 0%Milk production - t 151 167 169 183 204 206 207 204 210 211 214 31% 3%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 343 354 360 353 327 336 361 439 391 396 428 15% 19%EU coupled payments (incl. Art.69) 0 0 0 11 22 0 0 0 0 0 0 - -National aids 92 93 92 101 81 76 76 77 77 76 76 -17% 0%Total revenues from milk 434 446 452 465 430 412 437 516 468 473 504 8% 15%Production costs Feed 110 104 106 106 104 103 108 125 116 116 139 16% 28%


Herd renewal purchases 3 3 2 2 4 4 3 3 4 4 4 46% 10%Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -Other specific costs 29 29 29 30 29 29 30 31 34 33 33 15% 11%Specific costs 141 136 137 138 137 136 141 159 154 153 175 16% 24%Machinery and building upkeep 34 35 36 40 37 40 41 44 44 46 46 30% 14%Energy (fuel, electricity) 19 19 21 22 24 27 26 34 29 34 44 80% 67%Contract work 10 13 14 16 17 20 24 30 29 29 30 139% 24%Taxes 0 0 0 0 0 0 0 0 0 0 0 - -Other direct inputs 40 44 43 44 42 44 45 49 50 50 51 18% 12%Non specific costs 104 111 114 121 120 131 137 157 153 160 171 47% 25%Total operating costs 245 248 251 260 257 267 278 316 306 312 346 30% 24%Gross margin 97 106 109 93 70 69 83 123 85 84 82 -20% -1%Gross margin with coupled payments 189 199 201 206 174 145 159 200 162 161 158 -18% 0%



Depreciation 76 81 86 92 95 102 104 113 106 33%Wages 9 11 12 12 13 12 12 13 15 31%Rent 7 8 8 9 9 9 9 11 11 34%Interest 13 12 11 11 12 14 17 19 14 38%External factors 29 31 31 33 34 35 39 44 40 34%Net margin -8 -5 -8 -31 -59 -68 -59 -34 -61 -627%



%spe.farms with positive net economic margin - - - - - - - - - -

%milk production with positive net economic margin - - - - - - - - - -



Finland Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 0 67 6 159 6 068 6 193 6 158 -Depreciation 7 386 8 482 9 080 10 167 11 626 12 285 12 976 13 772 13 312 61%Farm Net Value Added (FNVA) 17 100 18 688 18 680 19 251 18 579 17 424 21 364 24 930 21 770 -27%

External factors 2 879 3 256 3 286 3 656 4 172 4 341 4 840 5 375 5 108 63%Wages 830 1 130 1 252 1 368 1 548 1 488 1 494 1 659 1 968 59%

Rent 742 866 867 1 047 1 125 1 158 1 216 1 406 1 394 62%Interest 1 307 1 260 1 167 1 241 1 499 1 694 2 130 2 311 1 746 66%

Balance invest. subs. and taxes 0 0 64 95 314 428 579 655 578 -Farm net income (FNI) 14 221 15 431 15 458 15 689 14 721 13 511 17 103 20 210 17 239 21%




158

189 199 201 206174 145 159

200162 161

0

100

200

300

400

500

600

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





434 446 452 465430 412

437

516468

350 359 368 384 386 404 420472 452

84 8784 81

45

816

43

16

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

80

90

100





Finland Milk specialised farms


434 446 452 465430 412 437

516468

555 564 579608

582620 644

714 698

-121 -118-127

-143-152

-208 -208-198

-229

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-250

-200

-150

-100

-50

0



76 81 86 92 95 102 104 113 106

186 183 187 189 170184 192

219 214

19 22 2336

2632 32

23 32

0

50

100

150

200

250

300

350

400

450

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250EUR/t of milk





EU Dairy farms report 2012 Annex II SE

Sweden Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 357 336 334 344 373 358 356 377 374 8%Farms represented 11 836 8 401 8 522 7 578 7 931 6 523 6 231 6 630 6 257 -34%% production from specialised farms 96% 93% 92% 95% 94% 96% 93% 97% 96% 2%Forage area - ha 55 65 66 71 69 77 71 71 75 17%Dairy cows - LU 39 46 45 47 45 53 53 55 57 27%Rented UAA - % 59% 60% 58% 54% 57% 61% 58% 59% 57% -1%Total labour - AWU 1,88 2,09 2,03 2,04 2,00 2,17 2,15 2,09 2,08 5%Family labour - % 81% 77% 78% 79% 80% 75% 76% 77% 76% -2%Milk per ha fodder area - t/ha 5,6 5,8 5,5 5,4 5,1 5,8 6,2 6,5 6,1 12%Milk yield - kg/cow 7 918 8 130 7 985 8 117 7 714 8 439 8 365 8 411 8 048 7 981 7 971 0% -5%Milk production - t 306 376 359 378 350 451 442 461 462 458 458 32% 3%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 324 326 340 331 325 294 323 361 274 352 397 3% 23%EU coupled payments (incl. Art.69) 0 0 0 11 16 23 0 0 0 0 0 - #DIV/0!National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 324 326 340 342 341 316 323 361 274 352 397 3% 23%Production costs Feed 103 103 99 101 96 92 107 128 103 98 109 2% 2%

homegrown feed 23 23 23 23 23 20 26 31 26 23 26 10% 3%puchased feed 80 80 76 77 73 72 81 97 78 74 83 -1% 2%

Herd renewal purchases 3 5 4 5 7 8 9 8 5 5 5 33% -43%Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -Other specific costs 15 16 16 18 18 17 16 18 26 27 27 70% 72%Specific costs 121 124 120 124 122 118 132 154 135 130 142 11% 7%Machinery and building upkeep 27 23 24 25 28 25 25 26 24 24 25 -1% 0%Energy (fuel, electricity) 20 20 22 23 27 24 23 26 22 24 26 18% 16%Contract work 28 28 28 31 35 33 36 36 19 20 21 -29% -43%Taxes 0 0 0 0 0 0 0 0 0 0 0 -83% -42%Other direct inputs 11 12 13 16 18 17 18 18 21 22 23 84% 29%Non specific costs 86 83 86 95 108 99 102 107 86 90 95 6% -7%Total operating costs 207 207 206 219 230 217 234 261 221 220 237 9% 1%Gross margin 116 119 134 112 94 77 89 100 53 132 160 -6% 80%Gross margin with coupled payments 116 119 134 123 110 100 89 100 53 132 160 -6% 80%



Depreciation 66 66 72 63 68 62 46 40 41 -38%Wages 20 25 23 25 26 29 25 25 24 9%Rent 11 12 11 10 11 13 12 11 10 -4%Interest 18 19 20 17 16 16 17 20 14 -9%External factors 49 56 54 53 53 58 54 56 48 0%Net margin 1 -3 8 -4 -27 -43 -12 4 -37 -916%

Net margin with coupled payments 1 -3 8 8 -11 -20 -12 4 -37 -913%


%spe.farms with positive net economic margin - - - - - - - 5% - -

%milk production with positive net economic margin - - - - - - - 11% - -



Sweden Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 0 7 123 8 166 12 132 12 450 11 609 -Depreciation 15 634 17 267 18 352 16 575 16 284 17 563 13 488 12 170 12 498 -26%Farm Net Value Added (FNVA) 18 922 22 283 22 366 21 982 24 607 26 277 33 543 41 376 21 895 69%


Rent 2 649 3 209 2 918 2 818 2 700 3 583 3 595 3 464 3 160 16%Interest 4 180 5 053 4 897 4 482 3 907 4 530 4 909 6 200 4 297 9%

Balance invest. subs. and taxes 144 63 10 0 95 38 0 0 367 69%Farm net income (FNI) 7 316 7 608 8 597 7 797 11 754 9 865 17 599 23 892 7 584 109%




160116 119134 123

110 100 89 100

53

132

0

50

100

150

200

250

300

350

400

450

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





324 326340 342 341

316 323

361

274

323 329 332 335 352 336 334 357311

1

-3

8 8

-11

-20

-12

4

-370

50

100

150

200

250

300

350

400

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10





Sweden Milk specialised farms


324 326 340 342 341316 323

361

274

453 444 452 470497

455 453 468

413

-130-118

-112

-128

-156

-138-130

-107

-139

0

100

200

300

400

500

600

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-180

-160

-140

-120

-100

-80

-60

-40

-20

0



66 66 72 63 68 62 46 40 41

120 101 110 118128

107109 107

96

1014

10 1817

1210

36

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-200

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II UK

United Kingdom Milk specialised farms


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 622 582 683 575 561 525 525 535 537 -15%Farms represented 24 128 20 304 20 101 19 065 19 782 15 434 15 509 15 477 15 517 -28%% production from specialised farms 95% 90% 92% 93% 96% 94% 95% 96% 97% 3%Forage area - ha 78 78 79 81 86 95 94 94 100 22%Dairy cows - LU 93 95 99 98 98 115 116 117 117 22%Rented UAA - % 36% 37% 37% 36% 39% 38% 40% 40% 45% 5%Total labour - AWU 2,24 2,23 2,27 2,26 2,36 2,52 2,51 2,53 2,56 13%Family labour - % 69% 70% 69% 69% 67% 64% 66% 65% 63% -5%Milk per ha fodder area - t/ha 7,9 8,2 8,7 8,3 8,0 8,6 8,8 8,8 8,4 5%Milk yield - kg/cow 6 592 6 720 6 972 6 855 7 002 7 091 7 093 7 078 7 116 7 374 7 636 9% 8%Milk production - t 613 641 687 669 683 815 826 830 836 866 897 34% 9%


2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 309 266 260 267 266 262 315 311 263 284 312 3% -1%EU coupled payments (incl. Art.69) 0 0 0 10 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 0 0 0 - -Total revenues from milk 309 266 260 277 266 262 315 311 263 284 312 3% -1%Production costs Feed 86 78 74 74 75 83 97 107 95 75 101 14% 4%


Herd renewal purchases 1 1 1 1 2 1 2 2 2 2 2 82% 1%Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -Other specific costs 28 27 25 27 27 29 31 30 29 32 31 15% 2%Specific costs 115 106 100 102 104 114 130 139 126 109 134 15% 3%Machinery and building upkeep 17 16 15 16 16 17 18 17 16 16 16 0% -8%Energy (fuel, electricity) 10 9 8 10 12 12 14 15 13 14 15 51% 11%Contract work 14 13 12 13 14 14 16 16 15 15 15 15% -2%Taxes 0 0 0 0 0 0 0 0 0 0 0 62% -20%Other direct inputs 14 14 16 18 19 18 18 15 14 14 14 -6% -24%Non specific costs 56 52 51 57 62 62 66 63 57 59 61 11% -7%Total operating costs 171 158 152 159 165 176 195 203 183 168 195 14% 0%Gross margin 138 108 108 108 101 86 120 109 80 116 117 -12% -2%Gross margin with coupled payments 138 108 108 118 101 86 120 109 80 116 117 -12% -2%


%milk production with positive gross margin 99% 99% 99% 99% 99% 98% 100% 100% 98% 100% 99% 0% 0%

Depreciation 29 26 25 26 26 28 28 29 27 6%Wages 22 20 19 19 22 22 22 20 20 1%Rent 12 12 13 11 10 9 9 8 8 -35%Interest 11 10 9 10 10 10 11 9 5 -16%External factors 46 42 41 40 42 42 42 37 32 -14%Net margin 63 41 42 42 33 17 49 43 20 -23%


Family labour costs 50 48 44 48 51 45 47 41 37 -12%Own capital unpaid cost 26 31 26 25 15 13 14 8 10 -61%Imputed family factors 76 79 69 73 66 58 61 49 47 -30%Net economic margin -13 -39 -27 -31 -33 -41 -12 -6 -27 43%Net economic margin with coupled payments -13 -39 -28 -21 -33 -41 -12 -6 -27 43%





United Kingdom Milk specialised farmsINCOME in EUR/AWU (nominal)

2001 2002 2003 2004 2005 2006 2007 2008 2009

Three years

average trend*



External factors 16 269 15 913 16 354 15 585 15 618 17 141 17 314 15 061 13 724 -5%Wages 8 023 7 553 7 683 7 413 8 317 9 225 9 054 8 363 8 404 11%

Rent 4 282 4 764 5 287 4 414 3 625 3 782 3 677 3 181 3 266 -29%Interest 3 965 3 595 3 385 3 758 3 677 4 134 4 584 3 517 2 054 -7%

Balance invest. subs. and taxes 1 641 111 199 266 334 610 636 649 1 401 38%Farm net income (FNI) 23 855 17 501 18 383 21 664 22 865 21 040 32 388 28 410 21 851 38%




117

138

108 108118

101 86120 109

80116

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t





309

266 260277 266 262

315 311

263

246 226 218 225 233 245 266 268243

63

41 42

52

33

17

49

43

20

0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70





United Kingdom Milk specialised farms


309

266 260277 266 262

315 311

263

322305

287 298 299 303327 318

290

-13

-39

-28

-21

-33

-41

-12

-6

-27

0

50

100

150

200

250

300

350

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/t

-45

-40

-35

-30

-25

-20

-15

-10

-5

0



29 26 25 26 26 28 28 29 27

5048 44 48 51 45 47

4137

2631

26 25 1513 14

810

0

20

40

60

80

100

120

140

160

2001 2002 2003 2004 2005 2006 2007 2008 2009



0

10 000

20 000

30 000

40 000

50 000

60 000

2001 2002 2003 2004 2005 2006 2007 2008 2009

EUR/WU

-60

-40

-20

0

20

40

60

80

100

120

140

160

EUR/t of milk





EU Dairy farms report 2012 Annex II CZ

Czech Republic Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 134 144 127 126 150 137 2%Farms represented 1 216 1 155 1 031 1 004 1 142 985 -8%% production from specialised farms 24% 27% 23% 28% 30% 23% 2%Forage area - ha 122 153 137 175 170 149 20%Dairy cows - LU 68 82 74 93 85 81 15%Rented UAA - % 89% 88% 86% 86% 88% 85% -1%Total labour - AWU 7,63 9,05 8,05 10,40 9,14 8,39 13%Family labour - % 23% 19% 22% 15% 17% 20% -4%Milk per ha fodder area - t/ha 3,6 3,4 3,5 3,5 3,3 3,5 -2%Milk yield - kg/cow 6 362 6 346 6 410 6 488 6 558 6 532 6 443 6 594 2% 2%Milk production - t 435 523 474 605 555 528 521 533 11% -12%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 250 274 274 301 330 244 304 352 13% 17%EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 - -Total revenues from milk 250 274 274 301 330 244 304 352 13% 17%Production costs Feed 74 79 80 93 105 87 84 94 14% 1%

homegrown feed 36 40 37 41 49 39 37 41 3% 1%puchased feed 38 39 43 53 56 48 48 53 24% 0%

Herd renewal purchases 2 2 2 1 2 2 2 2 27% 78%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 16 17 18 19 21 22 22 22 27% 15%Specific costs 92 97 100 113 128 111 108 118 16% 4%Machinery and building upkeep 19 21 23 26 29 22 23 23 7% -12%Energy (fuel, electricity) 24 28 33 36 45 39 44 47 51% 31%Contract work 9 10 14 15 18 12 12 11 7% -23%Taxes 1 1 1 1 1 1 1 1 -46% -42%Other direct inputs 24 26 25 31 35 26 26 26 4% -18%Non specific costs 77 88 95 109 128 99 105 108 20% -2%Total operating costs 169 185 196 223 255 210 213 226 18% 1%Gross margin 81 89 79 78 75 34 91 127 1% 62%Gross margin with coupled payments 81 89 79 78 75 34 91 127 1% 62%

%spe.farms with positive gross margin 96% 95% 88% 94% 88% 79% 95% 98% -3% 5%

%milk production with positive gross margin 98% 97% 92% 96% 90% 77% 96% 98% -5% 2%

Depreciation 23 28 31 35 41 40 41%Wages 56 67 65 82 90 77 32%Rent 4 5 5 6 8 7 51%Interest 3 3 4 4 7 5 55%External factors 63 76 74 92 105 89 35%Net margin -5 -15 -26 -49 -71 -95 -364%

Net margin with coupled payments -5 -15 -26 -49 -71 -95 -364%

Family labour costs 20 20 23 18 22 24 2%Own capital unpaid cost 11 10 10 7 0 27 7%Imputed family factors 31 30 33 25 22 51 3%Net economic margin -36 -45 -59 -74 -93 -146 -122%Net economic margin with coupled payments -36 -45 -59 -74 -93 -146 -122%

%spe.farms with positive net economic margin 14% 20% 13% 14% 11% - -

%milk production with positive net economic margin 19% 19% 17% 13% 8% - -



Czech Republic Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 1 233 1 803 2 226 2 568 3 451 3 767 86%Depreciation 2 159 2 607 2 987 3 320 3 927 3 896 44%Farm Net Value Added (FNVA) 9 227 10 317 10 750 12 743 13 472 9 666 9%

External factors 5 966 7 188 7 236 8 994 10 354 8 990 39%Wages 5 325 6 430 6 379 7 992 8 911 7 795 36%

Rent 353 452 501 589 791 705 60%Interest 287 306 355 413 653 490 64%

Balance invest. subs. and taxes 20 344 113 499 235 213 98%Farm net income (FNI) 3 280 3 473 3 628 4 248 3 353 889 -18%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 570 3 113 2 858 2 718 10 8 536 32%Remuneration of Family Labour (RFL) 7 147 11 423 11 874 16 697 17 537 6 731 35%



81 89 79 78 75

34

91

127

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



250274 274

301330

244

255289 300

350401

339

-5

-15

-26

-49

-71

-95

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009

EUR/t

-120

-100

-80

-60

-40

-20

0




Czech Republic Milk specialised farms


250274 274

301330

244

286319

334

375

423

390

-36-45

-59

-74

-93

-146

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009

EUR/t

-160

-140

-120

-100

-80

-60

-40

-20

0



23 28 31 35 41 40

20

20 23

18

22

24

11

10 10

7

0 27

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009



0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

2004 2005 2006 2007 2008 2009

EUR/WU

-200

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II EE

Estonia Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 188 188 177 151 146 133 -22%Farms represented 1 806 1 517 1 201 1 241 1 291 1 319 -15%% production from specialised farms 75% 87% 90% 86% 91% 89% 4%Forage area - ha 111 137 162 156 156 146 12%Dairy cows - LU 40 52 66 63 67 63 22%Rented UAA - % 67% 67% 68% 66% 62% 61% -4%Total labour - AWU 4,71 5,71 6,87 6,02 5,98 5,32 0%Family labour - % 36% 27% 23% 26% 23% 26% -4%Milk per ha fodder area - t/ha 2,0 2,3 2,6 2,7 3,1 3,1 28%Milk yield - kg/cow 5 691 6 040 6 578 6 761 7 261 7 199 7 266 7 472 20% 11%Milk production - t 227 314 434 428 485 451 455 468 41% 9%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007


homegrown feed 41 43 42 45 55 47 46 57 17% 25%puchased feed 31 36 42 46 53 32 32 41 -3% -10%

Herd renewal purchases 2 1 1 1 1 0 0 0 -71% -72%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 10 15 14 14 17 16 16 16 22% 13%Specific costs 84 95 99 107 126 95 94 114 9% 7%Machinery and building upkeep 11 15 14 16 16 13 13 14 1% -13%Energy (fuel, electricity) 23 27 27 25 32 25 28 31 8% 22%Contract work 6 10 7 7 9 7 7 7 -10% -7%Taxes 0 0 1 0 0 0 0 0 -54% 38%Other direct inputs 10 10 12 12 13 11 11 11 1% -9%Non specific costs 50 62 60 60 70 55 59 62 2% 4%Total operating costs 134 157 160 166 197 150 152 176 6% 6%Gross margin 102 89 78 96 89 56 119 140 17% 46%Gross margin with coupled payments 102 89 93 96 89 56 119 140 12% 46%



Depreciation 23 22 27 32 37 36 44%Wages 42 51 56 58 66 55 20%Rent 1 2 2 2 2 3 54%Interest 3 4 6 9 12 12 152%External factors 46 57 65 69 81 71 32%Net margin 33 9 -14 -5 -28 -50 -394%

Net margin with coupled payments 33 9 0 -5 -28 -50 -296%

Family labour costs 24 20 16 19 19 20 -3%Own capital unpaid cost 4 0 1 0 0 36 587%Imputed family factors 28 21 17 20 19 56 45%Net economic margin 5 -11 -31 -25 -47 -106 -384%Net economic margin with coupled payments 5 -11 -16 -25 -47 -106 -693%





Estonia Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 819 1 094 1 367 1 691 2 234 2 785 105%Depreciation 1 693 1 844 2 423 3 460 4 404 4 501 107%Farm Net Value Added (FNVA) 8 132 8 638 8 716 12 955 13 341 9 401 -47%


Rent 83 137 197 228 298 385 118%Interest 188 329 560 982 1 441 1 560 270%

Balance invest. subs. and taxes 528 290 276 430 2 134 1 981 316%Farm net income (FNI) 5 423 4 391 3 320 6 068 5 916 2 449 10%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 838 109 241 51 26 17 299 1363%Remuneration of Family Labour (RFL) 8 212 8 349 8 732 11 784 15 715 4 176 25%



10289 93 96 89

56

119

140

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



236 245 252 262286

206

203236 252 268

314

256

33

9

0-5

-28

-50

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

-60

-50

-40

-30

-20

-10

0

10

20

30

40




Estonia Milk specialised farms


236 245 252 262286

206

231257

268287

333313

5

-11-16

-25

-47

-106

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

-120

-100

-80

-60

-40

-20

0

20



23 22 27 32 37 36

2420

1619

1920

4 01

0

036

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008 2009



0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2004 2005 2006 2007 2008 2009

EUR/WU

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II HU

Hungary Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 81 80 83 74 81 93 2%Farms represented 3 573 1 646 2 120 2 140 2 028 3 539 5%% production from specialised farms 50% 48% 69% 45% 47% 49% -9%Forage area - ha 29 69 55 55 68 42 7%Dairy cows - LU 27 58 55 54 61 37 9%Rented UAA - % 77% 75% 82% 80% 79% 72% -1%Total labour - AWU 2,11 4,63 4,91 4,46 4,74 3,16 6%Family labour - % 25% 21% 18% 20% 22% 34% 4%Milk per ha fodder area - t/ha 5,4 5,0 6,4 6,3 5,8 5,8 6%Milk yield - kg/cow 6 315 6 577 6 871 6 946 6 846 6 645 6 608 6 421 0% -8%Milk production - t 169 383 376 375 416 248 247 240 -21% -36%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 258 272 246 293 323 235 285 337 11% 15%EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 - -National aids 7 14 30 0 0 0 0 0 -98% #DIV/0!Total revenues from milk 265 286 276 293 323 235 285 338 4% 15%Production costs Feed 114 109 87 128 144 113 125 153 26% 19%


Herd renewal purchases 2 1 1 2 1 0 0 0 -87% -91%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 21 19 18 23 14 15 16 16 -18% -28%Specific costs 137 129 106 153 158 128 141 169 18% 11%Machinery and building upkeep 10 12 13 14 14 12 12 13 6% -7%Energy (fuel, electricity) 24 28 31 27 35 28 33 38 19% 38%Contract work 11 9 9 12 15 13 13 14 35% 15%Taxes 4 3 3 3 3 2 2 2 -39% -31%Other direct inputs 22 18 18 20 23 25 26 27 31% 35%Non specific costs 71 70 74 76 89 79 85 93 20% 23%Total operating costs 207 199 180 229 248 207 226 263 19% 15%Gross margin 51 73 66 64 75 28 59 75 -15% 17%Gross margin with coupled payments 58 86 96 64 75 28 59 75 -32% 18%



Depreciation 21 27 23 21 22 23 -6%Wages 39 40 49 51 51 42 12%Rent 7 6 8 11 11 10 50%Interest 11 10 9 8 9 9 -11%External factors 58 56 67 71 72 61 13%Net margin -28 -11 -23 -28 -19 -57 -67%

Net margin with coupled payments -21 3 7 -28 -19 -56 -815%

Family labour costs 12 11 10 12 13 21 38%Own capital unpaid cost 5 8 17 1 6 15 -26%Imputed family factors 17 19 27 13 19 36 8%Net economic margin -45 -30 -51 -41 -38 -93 -37%Net economic margin with coupled payments -38 -16 -21 -41 -38 -93 -131%





Hungary Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 1 408 1 752 2 009 2 183 3 061 3 787 75%Depreciation 2 704 3 237 2 730 2 708 3 059 3 014 1%Farm Net Value Added (FNVA) 9 728 11 026 12 643 13 354 17 171 9 934 35%


Rent 945 802 932 1 483 1 532 1 320 62%Interest 1 446 1 229 1 075 1 080 1 252 1 209 -6%

Balance invest. subs. and taxes 37 508 257 62 492 769 65%Farm net income (FNI) 2 440 4 692 5 121 4 490 8 020 3 048 27%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 230 4 284 11 745 685 3 495 5 659 -46%Remuneration of Family Labour (RFL) 11 781 15 094 8 386 14 561 21 851 7 052 23%



5886

9664 75

28

59

75

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



265286 276

293323

235

286 283 269321 342

292

-21

37

-28

-19

-560

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009

EUR/t

-60

-50

-40

-30

-20

-10

0

10






265286 276

293323

235

303 302 296

334361

328

-38

-16-21

-41-38

-930

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009

EUR/t

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0



21 27 23 21 22 23

12 1110 12 13

2158

17 16 15

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

2004 2005 2006 2007 2008 2009

EUR/WU

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II LT

Lithuania Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 213 202 226 181 202 198 -9%Farms represented 4 475 6 088 12 991 9 306 10 344 8 108 18%% production from specialised farms 41% 59% 71% 56% 68% 63% 5%Forage area - ha 29 28 27 28 30 31 6%Dairy cows - LU 12 13 13 14 16 18 23%Rented UAA - % 60% 61% 55% 52% 55% 55% -5%Total labour - AWU 1,85 2,17 1,95 1,88 1,96 2,02 -2%Family labour - % 95% 79% 89% 87% 81% 80% -5%Milk per ha fodder area - t/ha 2,2 2,4 2,5 2,6 2,8 3,1 19%Milk yield - kg/cow 5 046 5 122 5 186 5 263 5 207 5 344 5 394 5 713 7% 9%Milk production - t 63 67 66 72 82 96 97 103 50% 43%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007



Herd renewal purchases 2 2 3 3 4 1 1 1 -72% -75%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 4 5 5 7 8 8 9 9 83% 35%Specific costs 51 59 62 62 75 65 66 72 18% 15%Machinery and building upkeep 7 11 11 12 13 11 11 12 17% 2%Energy (fuel, electricity) 17 21 21 20 26 20 23 26 16% 29%Contract work 2 2 2 4 2 1 1 1 -34% -61%Taxes 0 0 0 0 0 2 2 2 4529% 5855%Other direct inputs 7 9 12 14 15 13 14 16 53% 15%Non specific costs 33 44 46 50 55 47 50 58 26% 15%Total operating costs 84 103 108 112 130 112 116 129 21% 15%Gross margin 106 113 102 136 122 80 147 173 24% 27%Gross margin with coupled payments 114 124 114 136 122 80 147 173 13% 27%


%milk production with positive gross margin 100% 100% 99% 100% 99% 98% 100% 100% 0% 0%



Family labour costs 52 52 64 69 79 60 24%Own capital unpaid cost 11 5 4 1 0 44 134%Imputed family factors 63 57 67 71 79 104 36%Net economic margin 20 16 -9 18 -24 -88 -452%Net economic margin with coupled payments 28 27 3 18 -24 -88 -262%





Lithuania Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 726 823 1 005 1 127 1 526 1 870 77%Depreciation 857 1 161 1 405 1 659 2 281 2 912 100%Farm Net Value Added (FNVA) 6 909 6 709 5 978 9 011 8 711 6 785 -68%

External factors 332 953 738 1 032 1 879 1 642 125%Wages 109 619 298 480 1 125 783 133%

Rent 152 241 236 227 287 268 24%Interest 70 94 204 324 467 591 276%

Balance invest. subs. and taxes 172 764 2 227 739 1 048 2 528 36%Farm net income (FNI) 6 749 6 520 7 466 8 719 7 879 7 671 17%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 625 306 209 79 4 3 989 257%Remuneration of Family Labour (RFL) 6 525 7 671 8 175 9 665 9 718 5 910 13%



114 124 114136

122

80

147173

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



197

227 222

249 252

191

107143 152 160

196175

9184

70

89

56

17

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

80

90

100




Lithuania Milk specialised farms


197

227 222

249 252

191170

200220

231

276 27928 27

3

18

-24

-88

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009

EUR/t

-100

-80

-60

-40

-20

0

20

40



17 22 29 29 37 41

52

5264

69

7960

11

5

41

0 44

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008 2009



0

2 000

4 000

6 000

8 000

10 000

12 000

2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II LV

Latvia Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 198 279 319 323 342 321 24%Farms represented 4 231 4 883 7 498 6 610 7 477 5 919 20%% production from specialised farms 69% 75% 83% 71% 76% 74% -2%Forage area - ha 48 44 40 42 40 43 -5%Dairy cows - LU 18 17 15 14 14 16 -11%Rented UAA - % 46% 42% 42% 39% 36% 41% -4%Total labour - AWU 2,55 2,55 2,44 2,24 1,97 2,07 -17%Family labour - % 62% 63% 66% 72% 70% 69% 6%Milk per ha fodder area - t/ha 1,9 1,9 2,0 1,8 1,9 2,1 -1%Milk yield - kg/cow 4 928 5 079 5 221 5 270 5 393 5 435 5 499 5 571 8% 6%Milk production - t 91 84 79 76 75 89 90 91 6% 20%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 198 230 236 269 266 184 248 290 9% 8%EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 - -National aids 28 18 33 9 11 30 30 30 14% 239%Total revenues from milk 225 249 269 277 277 215 278 320 9% 15%Production costs Feed 62 69 77 89 90 69 66 88 8% -1%

homegrown feed 39 42 43 45 42 37 35 46 -5% 2%puchased feed 23 27 34 44 47 33 32 42 28% -3%

Herd renewal purchases 1 6 5 4 5 1 1 1 -69% -70%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 13 13 14 16 17 15 15 15 16% -5%Specific costs 75 88 95 109 111 86 83 105 6% -4%Machinery and building upkeep 16 22 22 24 25 19 17 18 -9% -24%Energy (fuel, electricity) 27 32 32 34 41 34 38 43 26% 26%Contract work 5 5 6 7 8 6 5 5 5% -23%Taxes 0 0 0 0 0 0 0 0 24% -12%Other direct inputs 20 10 12 15 16 14 12 13 -8% -18%Non specific costs 68 69 72 81 90 73 73 80 8% -2%Total operating costs 144 157 167 190 201 159 155 184 7% -3%Gross margin 54 73 68 78 66 25 92 106 14% 35%Gross margin with coupled payments 81 92 102 87 77 55 122 135 14% 55%



Depreciation 18 28 36 45 49 46 72%Wages 18 20 24 23 28 24 22%Rent 2 1 2 2 2 2 18%Interest 3 5 6 10 11 8 101%External factors 22 26 32 34 41 34 36%Net margin 13 20 0 -1 -24 -56 -346%

Net margin with coupled payments 41 38 34 8 -13 -25 -128%

Family labour costs 34 44 58 74 85 71 70%Own capital unpaid cost 0 0 0 0 0 30 4832%Imputed family factors 34 44 58 74 85 101 91%Net economic margin -21 -24 -58 -76 -109 -157 -231%Net economic margin with coupled payments 6 -6 -25 -67 -98 -126 -1102%





Latvia Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 459 536 604 752 1 072 1 338 98%Depreciation 964 1 344 1 646 2 166 2 579 2 817 91%Farm Net Value Added (FNVA) 5 412 5 260 6 645 6 181 6 388 5 404 -60%

External factors 1 150 1 273 1 520 1 647 2 182 2 100 50%Wages 901 978 1 166 1 114 1 522 1 482 35%

Rent 87 75 80 77 107 134 31%Interest 162 220 275 457 554 485 128%

Balance invest. subs. and taxes 429 1 164 909 1 466 963 393 13%Farm net income (FNI) 4 691 5 151 6 033 5 999 5 169 3 696 -6%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 30 5 16 8 5 2 657 5174%Remuneration of Family Labour (RFL) 6 156 6 933 7 883 7 573 7 114 2 666 -17%



81 92102 87

7755

122

135

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



225249

269 277 277

215

185211

235270 290

240

4138

34

8

-13

-250

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

-30

-20

-10

0

10

20

30

40

50




Latvia Milk specialised farms


225249

269 277 277

215

219

255

293

344

375

3416

-6

-25

-67

-98

-126

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009

EUR/t

-140

-120

-100

-80

-60

-40

-20

0

20



18 28 36 45 49 46

34

44

58

7485

71

0

0

0

0

030

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009



0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2004 2005 2006 2007 2008 2009

EUR/WU

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II MT

Malta Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 37 42 55 51 49 52 13%Farms represented 84 98 103 96 84 95 -4%% production from specialised farms 97% 99% 97% 99% 94% 100% 1%Forage area - ha 4 4 4 6 6 6 36%Dairy cows - LU 59 65 62 63 68 68 6%Rented UAA - % 90% 82% 86% 86% 85% 84% -1%Total labour - AWU 2,13 2,31 2,30 2,61 2,66 2,56 16%Family labour - % 94% 93% 93% 92% 89% 86% -5%Milk per ha fodder area - t/ha 57,5 67,1 64,9 54,6 56,8 59,6 -10%Milk yield - kg/cow 5 214 5 326 5 544 5 822 5 691 5 457 5 457 5 457 2% -6%Milk production - t 310 346 346 368 386 369 369 369 10% 0%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 354 332 333 360 452 435 540 603 55% 68%EU coupled payments (incl. Art.69) 3 7 12 0 0 0 0 0 - -National aids 0 32 40 34 19 17 17 17 - -49%Total revenues from milk 354 371 385 393 471 452 557 620 47% 58%Production costs Feed 210 223 220 247 276 285 290 351 42% 42%


Herd renewal purchases 2 5 10 6 2 0 0 0 -95% -95%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 7 6 10 12 17 13 14 15 83% 25%Specific costs 219 234 240 264 295 299 304 366 40% 39%Machinery and building upkeep 10 11 11 12 19 19 19 20 79% 56%Energy (fuel, electricity) 18 19 19 26 28 31 35 41 94% 59%Contract work 2 2 2 2 2 2 2 2 17% 26%Taxes 0 0 0 0 0 0 0 0 -52% 76%Other direct inputs 7 6 8 4 5 5 5 5 -27% 18%Non specific costs 37 39 39 44 54 57 62 68 63% 53%Total operating costs 256 272 279 309 349 356 366 434 43% 41%Gross margin 98 59 54 51 103 79 174 169 100% 230%Gross margin with coupled payments 98 98 106 85 122 96 191 186 56% 119%



Depreciation 13 11 12 16 18 20 44%Wages 4 4 4 6 9 11 136%Rent 4 8 2 1 1 1 -75%Interest 2 2 1 5 4 7 242%External factors 9 14 7 12 14 19 49%Net margin 75 34 35 24 71 40 -6%


Family labour costs 58 54 61 64 73 70 20%Own capital unpaid cost 16 16 15 38 1 27 43%Imputed family factors 74 70 75 103 74 97 25%Net economic margin 1 -36 -41 -79 -3 -58 -84%Net economic margin with coupled payments 1 3 11 -45 16 -41 -554%

%spe.farms with positive net economic margin 47% - - - 33% - -

%milk production with positive net economic margin 55% - - - 53% - -



Malta Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 3 102 4 213 6 344 -Depreciation 2 514 2 301 2 420 2 722 3 018 3 472 27%Farm Net Value Added (FNVA) 21 061 18 487 20 091 21 808 24 217 17 035 13%

External factors 1 819 2 538 1 450 1 944 2 396 3 176 29%Wages 736 742 735 972 1 492 1 796 93%

Rent 768 1 446 453 214 207 204 -77%Interest 314 349 262 757 697 1 175 184%

Balance invest. subs. and taxes 0 0 0 0 1 717 0 -Farm net income (FNI) 19 242 15 950 18 641 19 865 23 537 13 859 6%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 3 388 3 381 3 085 7 359 240 5 554 33%Remuneration of Family Labour (RFL) 16 354 13 318 16 432 14 426 25 214 11 044 10%



98 98 106 85122 96

191

186

0

100

200

300

400

500

600

700

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



354371 385 393

471452

279 297 298336

381 395

75 73

87

58

90

57

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

80

90

100




Malta Milk specialised farms


354 371 385 393

471452

353 367 373

438 455493

13

11

-45

16

-41

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009

EUR/t

-50

-40

-30

-20

-10

0

10

20



13 11 12 16 18 20

58 54 6164

7370

16 16 15

381

27

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009



0

5 000

10 000

15 000

20 000

25 000

30 000

2004 2005 2006 2007 2008 2009

EUR/WU

-60

-40

-20

0

20

40

60

80

100

120

140EUR/t of milk





EU Dairy farms report 2012 Annex II PL

Poland Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 1 465 1 950 1 866 1 798 2 105 2 206 16%Farms represented 67 806 88 430 80 549 71 629 80 362 83 850 0%% production from specialised farms 60% 70% 68% 63% 66% 68% 0%Forage area - ha 9 12 14 14 13 13 12%Dairy cows - LU 16 14 16 16 16 15 2%Rented UAA - % 28% 31% 33% 28% 30% 29% -2%Total labour - AWU 1,85 1,86 1,92 1,88 1,88 1,87 0%Family labour - % 96% 94% 92% 95% 94% 95% 1%Milk per ha fodder area - t/ha 8,2 6,0 6,2 6,2 6,4 6,2 -7%Milk yield - kg/cow 4 968 5 165 5 362 5 304 5 345 5 340 5 384 5 747 6% 8%Milk production - t 77 75 85 86 85 80 81 86 4% 0%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 202 234 246 284 293 207 256 276 8% -3%EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 - -National aids 0 0 0 0 0 0 0 0 - -Total revenues from milk 202 234 246 284 293 207 256 276 8% -3%Production costs Feed 56 63 69 85 97 68 66 76 11% -11%

homegrown feed 34 39 40 49 56 41 39 44 10% -10%puchased feed 23 23 29 36 40 27 27 31 14% -14%

Herd renewal purchases 4 4 3 3 3 2 2 2 -37% -34%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 8 9 13 12 14 11 11 10 2% -14%Specific costs 68 76 85 101 114 80 79 88 8% -12%Machinery and building upkeep 8 11 13 14 15 13 13 13 21% -8%Energy (fuel, electricity) 13 17 18 18 23 19 20 20 22% 14%Contract work 5 5 5 5 7 6 6 7 31% 31%Taxes 0 0 0 0 0 0 0 0 -2% 28%Other direct inputs 5 8 8 8 10 8 9 9 22% 15%Non specific costs 31 42 44 45 56 47 48 49 23% 9%Total operating costs 100 118 129 146 170 127 127 137 13% -6%Gross margin 103 117 117 139 123 80 129 138 3% 0%Gross margin with coupled payments 103 117 117 139 123 80 129 138 3% 0%





Family labour costs 39 50 46 56 77 71 51%Own capital unpaid cost 21 24 30 25 20 20 -11%Imputed family factors 59 73 77 81 97 91 29%Net economic margin 10 3 -4 14 -31 -61 -932%Net economic margin with coupled payments 10 3 -4 14 -31 -61 -932%





Poland Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 434 635 876 934 1 170 1 387 80%Depreciation 1 698 1 883 2 131 2 347 2 864 2 415 33%Farm Net Value Added (FNVA) 5 482 6 123 7 982 9 761 7 942 5 003 13%


Rent 67 99 122 152 187 146 68%Interest 142 129 149 189 229 193 45%

Balance invest. subs. and taxes -146 -263 -438 -185 -14 3 77%Farm net income (FNI) 5 007 5 316 6 768 8 975 7 064 4 368 19%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 1 345 1 462 2 163 1 817 1 434 1 292 -9%Remuneration of Family Labour (RFL) 3 853 4 174 5 216 7 579 6 042 3 357 28%

%spe.farms with positive RFL 86% 86% 89% 94% 88% 80% 0%


103 117 117139

123

80

129

138

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



202

234246

284 293

207

132159 173 189

227177

7076 73

95

66

30

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

80

90

100




Poland Milk specialised farms


202

234246

284 293

207192

232250

270

324

268

10

3-4

14

-31

-61

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

-70

-60

-50

-40

-30

-20

-10

0

10

20



27 32 32 35 44 40

3950 46 56

777121

24 3025

2020

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008 2009



0

2 000

4 000

6 000

8 000

10 000

12 000

2004 2005 2006 2007 2008 2009

EUR/WU

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II SK

Slovakia Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 42 33 60 33 39 28 -26%Farms represented 266 183 269 139 194 131 -35%% production from specialised farms 24% 18% 29% 19% 23% 22% -2%Forage area - ha 397 383 602 699 643 618 42%Dairy cows - LU 142 128 157 190 168 207 32%Rented UAA - % 98% 97% 99% 99% 99% 98% 1%Total labour - AWU 21,65 17,71 25,33 26,86 26,47 28,71 27%Family labour - % 4% 7% 4% 2% 4% 4% -1%Milk per ha fodder area - t/ha 1,8 2,1 1,5 1,5 1,4 1,8 -13%Milk yield - kg/cow 5 400 6 296 5 608 5 779 5 642 5 877 5 730 5 995 2% 4%Milk production - t 768 804 882 1 096 946 1 215 1 185 1 239 48% 13%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007



Herd renewal purchases 1 1 5 1 2 4 4 4 80% 315%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 43 28 20 18 20 31 32 31 2% 75%Specific costs 114 104 116 127 157 146 145 154 33% 21%Machinery and building upkeep 11 20 24 15 19 29 30 29 61% 98%Energy (fuel, electricity) 32 33 45 41 49 52 59 68 63% 65%Contract work 13 24 20 17 16 26 26 25 36% 46%Taxes 1 1 1 1 2 1 1 1 3% -14%Other direct inputs 16 15 36 17 48 59 60 58 168% 239%Non specific costs 73 93 126 92 135 167 177 182 80% 98%Total operating costs 187 197 242 219 292 314 321 335 55% 53%Gross margin 49 54 18 83 19 -81 -19 16 -168% -80%Gross margin with coupled payments 49 54 18 83 19 -81 -19 16 -168% -80%

%spe.farms with positive gross margin 70% 87% 79% 90% 60% - 55% 62% - -28%

%milk production with positive gross margin 76% 86% 73% 93% 63% - 44% 61% - -32%

Depreciation 69 50 151 135 61 84 4%Wages 53 62 105 102 130 127 64%Rent 9 12 14 7 10 10 -21%Interest 6 3 7 6 9 16 103%External factors 68 77 125 116 149 154 55%Net margin -88 -73 -258 -167 -190 -318 -61%

Net margin with coupled payments -88 -73 -258 -167 -190 -318 -61%


%spe.farms with positive net economic margin - - - - - - -

%milk production with positive net economic margin - - - - - - -



Slovakia Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 1 032 1 548 1 934 2 327 2 501 3 729 90%Depreciation 4 001 3 804 8 360 9 163 3 594 6 151 17%Farm Net Value Added (FNVA) 817 5 596 -1 758 5 133 6 500 -2 234 81%


Rent 482 870 724 472 575 752 -13%Interest 306 254 366 449 514 1 271 141%

Balance invest. subs. and taxes 0 0 217 327 445 706 -Farm net income (FNI) -3 006 -218 -8 436 -2 474 -1 946 -12 674 -47%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 4 6 959 837 69 534 2 016 8 095 921%Remuneration of Family Labour (RFL) 4 360 3 589 118 -22 955 3 889 768 -327%

%spe.farms with positive RFL 60% 71% 41% - - - -


49 5418

83

19

-81

-19

16

-150

-100

-50

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



236 251 260302 311

233324 324

519470 502

551

-88-73

-258

-167-190

-318

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009

EUR/t

-350

-300

-250

-200

-150

-100

-50

0




Slovakia Milk specialised farms


236 251 260302 311

233

327 335

524496 508

563

-91 -84

-264

-193 -197

-3300

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009

EUR/t

-350

-300

-250

-200

-150

-100

-50

0



6950

151 135

6184

3 5

5

3

5

6

0 6

123

2

5

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009



-25 000

-20 000

-15 000

-10 000

-5 000

0

5 000

10 000

2004 2005 2006 2007 2008 2009

EUR/WU

-400

-350

-300

-250

-200

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II SI

Slovenia Milk specialised farms


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

Sample farms 203 235 236 215 229 221 -1%Farms represented 8 350 7 266 5 726 5 235 5 173 5 421 -26%% production from specialised farms 89% 85% 79% 80% 81% 75% -5%Forage area - ha 12 12 13 14 14 14 13%Dairy cows - LU 12 13 14 15 16 15 18%Rented UAA - % 35% 41% 41% 44% 42% 42% 4%Total labour - AWU 2,14 2,00 2,13 1,97 2,04 2,03 -4%Family labour - % 99% 99% 98% 98% 99% 99% 0%Milk per ha fodder area - t/ha 5,2 5,7 5,9 6,1 6,1 5,6 6%Milk yield - kg/cow 5 212 5 414 5 422 5 655 5 451 5 245 5 488 5 542 1% -2%Milk production - t 62 70 78 87 88 77 80 81 13% -7%


2004 2005 2006 2007 2008 2009 2010e 2011e

Three years

average trend*

Trend 2011 /2007

RevenuesPrice 258 256 270 277 326 262 271 308 7% 11%EU coupled payments (incl. Art.69) 3 7 12 0 0 0 0 0 - -National aids 8 12 23 0 0 0 0 0 - -Total revenues from milk 268 276 305 277 326 262 271 308 -1% 11%Production costs Feed 74 67 74 76 100 84 79 98 21% 28%


Herd renewal purchases 4 3 3 4 4 4 3 3 0% -25%Milk levy 0 0 0 0 0 0 0 0 - -Other specific costs 20 20 21 20 20 22 21 21 7% 8%Specific costs 98 90 97 100 124 109 104 122 17% 22%Machinery and building upkeep 30 25 27 30 34 32 31 31 17% 6%Energy (fuel, electricity) 19 20 22 22 29 28 32 36 61% 67%Contract work 4 4 5 5 6 7 6 6 54% 20%Taxes 0 0 0 0 0 0 0 0 - -Other direct inputs 9 8 8 9 9 10 9 9 16% 8%Non specific costs 61 56 62 65 78 77 79 83 34% 28%Total operating costs 159 146 159 166 202 186 183 206 24% 24%Gross margin 99 110 111 111 124 75 89 102 -17% -8%Gross margin with coupled payments 109 129 146 111 124 75 89 102 -31% -8%



Depreciation 78 74 78 72 77 86 3%Wages 1 2 3 2 2 2 -5%Rent 2 3 4 5 6 6 67%Interest 4 3 4 3 3 2 -27%External factors 8 8 11 9 11 10 12%Net margin 13 28 22 30 36 -20 -29%

Net margin with coupled payments 24 47 57 30 36 -20 -65%






Slovenia Milk specialised farmsINCOME in EUR/AWU (nominal)

2004 2005 2006 2007 2008 2009

Three years

average trend*


Decoupled payments 0 0 0 2 818 2 780 2 567 -Depreciation 3 201 3 563 3 915 4 441 4 501 4 583 27%Farm Net Value Added (FNVA) 2 480 4 088 4 418 6 988 7 292 3 653 2%


Rent 90 143 204 277 324 308 108%Interest 156 154 182 156 189 120 -5%

Balance invest. subs. and taxes 1 492 466 -98 252 730 -10 -48%Farm net income (FNI) 3 670 4 174 3 805 6 691 7 403 3 114 48%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 841 1 179 1 230 947 88 3 250 32%Remuneration of Family Labour (RFL) 2 869 3 063 2 667 5 857 7 428 -89 53%



109129

146111 124

7589

102

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

2004 2005 2006 2007 2008 2009 2010e 2011e

EUR/t



268 276

305

277

326

262

245 228 248 247289 282

24

47

57

3036

-20

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009

EUR/t

-30

-20

-10

0

10

20

30

40

50

60

70




Slovenia Milk specialised farms


268 276305

277

326

262

381362

383 368397

481

-112

-87-78

-91

-72

-219

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009

EUR/t

-250

-200

-150

-100

-50

0



78 74 78 72 77 86

116 110 112 106 106140

20 24 2415 1

59

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009



-1 000

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2004 2005 2006 2007 2008 2009

EUR/WU

-250

-200

-150

-100

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II BG

Bulgaria Milk specialised farms


2007 2008 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

Sample farms 262 234 194 -26%Farms represented 19 174 15 844 12 249 -36%% production from specialised farms 93% 90% 90% -3%Forage area - ha 8 10 8 10%Dairy cows - LU 10 11 12 20%Rented UAA - % 78% 77% 81% 3%Total labour - AWU 2,02 2,11 2,12 5%Family labour - % 71% 64% 64% -8%Milk per ha fodder area - t/ha 3,9 3,5 3,8 -3%Milk yield - kg/cow 3 910 3 781 3 696 3 814 3 838 -2%Milk production - t 40 42 45 42 43 7%

MILK MARGINS in EUR/t of min EUR/t of milk (nominal)

2007 2008 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

RevenuesPrice 269 287 234 313 370 37%EU coupled payments (incl. Art.69) 0 0 0 0 0 -National aids 4 19 8 19 19 334%Total revenues from milk 274 306 241 332 389 42%Production costs Feed 109 120 113 122 130 19%

homegrown feed 22 19 24 20 21 -4%puchased feed 88 101 89 103 110 25%

Herd renewal purchases 1 2 0 2 2 297%Milk levy 0 0 0 0 0 -Other specific costs 10 9 10 9 9 -6%Specific costs 119 132 123 133 141 19%Machinery and building upkeep 6 11 7 11 11 81%Energy (fuel, electricity) 18 21 20 22 27 48%Contract work 8 9 10 9 10 28%Taxes 0 0 0 0 0 18%Other direct inputs 6 12 21 12 12 102%Non specific costs 39 53 58 56 61 58%Total operating costs 158 185 181 189 202 28%Gross margin 112 102 52 124 168 50%Gross margin with coupled payments 116 121 60 143 186 61%

%spe.farms with positive gross margin 97% 79% 74% 85% 92% -5%

%milk production with positive gross margin 96% 88% 85% 92% 95% -1%

Depreciation 14 15 15 9%Wages 19 29 27 44%Rent 4 7 6 51%Interest 2 6 5 150%External factors 25 42 39 55%Net margin 73 45 -2 -102%Net margin with coupled payments 77 64 6 -92%

Family labour costs 53 57 52 -2%Own capital unpaid cost 0 0 14 13379%Imputed family factors 53 57 66 25%Net economic margin 20 -11 -68 -445%Net economic margin with coupled payments 24 8 -60 -350%

%spe.farms with positive net economic margin 52% 40% 11% -41%

%milk production with positive net economic margin 64% 56% 23% -41%



Bulgaria Milk specialised farmsINCOME in EUR/AWU in EUR/AWU (nominal)

2007 2008 2009 Trend 2009/2007

Total output 7 467 8 120 7 343 -2%Intermediate consumptions 4 505 5 276 5 609 24%Balance subsidies and taxes 479 1 219 1 198 150%

Decoupled payments 252 280 382 52%Depreciation 369 409 438 19%Farm Net Value Added (FNVA) 3 072 3 654 2 493 105%

External factors 652 1 085 1 118 72%Wages 475 739 773 63%

Rent 119 174 191 61%Interest 58 172 154 164%

Balance invest. subs. and taxes 11 0 58 425%Farm net income (FNI) 2 431 2 569 1 433 -41%

Family farms only in EUR/FWU in EUR/FWU (nominal)Own capital unpaid cost 4 1 663 16421%Remuneration of Family Labour (RFL) 3 294 3 309 954 -71%

%spe.farms with positive RFL 94% 78% 54% -39%


116 121

60

143

186

0

50

100

150

200

250

300

350

400

450






2007 2008 2009 2010e 2011e

EUR/t



274

306

241

197242 235

77

64

60

50

100

150

200

250

300

350

2007 2008 2009

EUR/t

0

10

20

30

40

50

60

70

80

90






Bulgaria Milk specialised farms


274

306

241

250

299 30124

8

-60

0

50

100

150

200

250

300

350

2007 2008 2009

EUR/t

-70

-60

-50

-40

-30

-20

-10

0

10

20

30



14 15 15

53

5752

0

0 14

0

20

40

60

80

100

120

140

2007 2008 2009

EUR/t

Depreciation Wages Rent

Interest Family labour costs Own capital unpaid cost


0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2007 2008 2009

EUR/WU

-80

-60

-40

-20

0

20

40

60

80

100

120

140EUR/t of milk



EU Dairy farms report 2012 Annex II RO

Romania Milk specialised farms


2007 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

Sample farms 95 319 236%Farms represented 154 151 107 326 -30%% production from specialised farms 71% 61% -10%Forage area - ha 4 3 -5%Dairy cows - LU 5 6 33%Rented UAA - % 42% 32% -10%Total labour - AWU 2,00 1,76 -12%Family labour - % 92% 89% -2%Milk per ha fodder area - t/ha 4,1 5,0 20%Milk yield - kg/cow 4 062 3 917 4 554 4 214 4%Milk production - t 19 25 29 27 38%


2007 2009 2010e 2011e Trend 2009/2007

Trend 2011 /2007

RevenuesPrice 348 282 332 391 12%EU coupled payments (incl. Art.69) 0 0 0 0 -National aids 18 9 8 9 -52%Total revenues from milk 366 292 340 400 9%Production costs Feed 66 57 53 77 16%

homegrown feed 25 25 23 32 26%puchased feed 41 32 30 45 9%

Herd renewal purchases 1 4 3 4 328%Milk levy 0 0 0 0 -Other specific costs 22 19 18 20 -7%Specific costs 89 80 75 100 13%Machinery and building upkeep 10 11 10 11 12%Energy (fuel, electricity) 22 19 19 25 14%Contract work 13 10 8 9 -26%Taxes 1 1 1 1 -37%Other direct inputs 6 6 6 6 14%Non specific costs 51 47 44 52 3%Total operating costs 140 127 119 153 9%Gross margin 208 156 213 238 15%Gross margin with coupled payments 226 165 221 247 9%

%spe.farms with positive gross margin 97% 97% 99% 99% 2%

%milk production with positive gross margin 96% 93% 96% 96% 0%

Depreciation 27 32 21%Wages 15 19 26%Rent 6 3 -48%Interest 5 2 -57%External factors 26 24 -7%Net margin 155 99 -36%Net margin with coupled payments 173 108 -37%

Family labour costs 163 120 -26%Own capital unpaid cost 18 35 89%Imputed family factors 182 155 -15%Net economic margin -27 -56 -109%Net economic margin with coupled payments -9 -47 -437%

%spe.farms with positive net economic margin 25% 26% 1%

%milk production with positive net economic margin 50% 45% -4%



Romania Milk specialised farmsINCOME in EUR/AWU (nominal)

2007 2009 Trend 2009/2007

Total output 5 065 6 501 28%Intermediate consumptions 2 606 3 325 28%Balance subsidies and taxes 764 738 -3%

Decoupled payments 134 254 90%Depreciation 395 694 76%Farm Net Value Added (FNVA) 2 828 3 221 -78%

External factors 340 497 46%Wages 198 392 98%

Rent 78 63 -18%Interest 64 41 -36%

Balance invest. subs. and taxes 0 0 -112%Farm net income (FNI) 2 488 2 725 10%

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 294 840 186%Remuneration of Family Labour (RFL) 1 539 2 115 37%

%spe.farms with positive RFL 88% 79% -9%


226

165

221247

0

50

100

150

200

250

300

350

400

450





2007 2009 2010e 2011e

EUR/t



366

292

193

0

173

108

0

50

100

150

200

250

300

350

400

2007 2009

EUR/t

0

20

40

60

80

100

120

140

160

180

200






Romania Milk specialised farms


366

292

375

0

-9

-470

50

100

150

200

250

300

350

400

2007 2009

EUR/t

-50

-45

-40

-35

-30

-25

-20

-15

-10

-5

0



27 32

163120

18

35

0

50

100

150

200

250

2007 2009

EUR/t



0

500

1 000

1 500

2 000

2 500

3 000

3 500

2007 2009

EUR/WU

-100

-50

0

50

100

150

200

250EUR/t of milk



EU Dairy farms report 2012 Annex II BE RG

Belgium 2009 Milk specialised farms


Vlaanderen Wallonie Belgium

Sample farms 118 96 214Farms represented 3 283 2 114 5 397% production from specialised farms 67% 56% 62%Forage area - ha 31 56 41Dairy cows - LU 51 58 54Rented UAA - % 71% 76% 74%Total labour - AWU 1,67 1,59 1,64Family labour - % 99% 97% 98%Milk per ha fodder area - t/ha 12,0 6,5 9,1Milk yield - kg/cow 7 418 6 227 6 910Milk production - t 375 364 371

MILK MARGINS in EUR/t of milk (nominal)Vlaanderen Wallonie Belgium

RevenuesPrice 253 257 254EU coupled payments (incl. Art.69) 0 0 0National aids 0 0 0Total revenues from milk 253 257 254Production costs Feed 72 77 74

homegrown feed 27 26 26purchased feed 45 51 47

Herd renewal purchases 4 2 3Milk levy 0 0 0Other specific costs 20 20 20Specific costs 96 100 97Machinery and building upkeep 12 17 14Energy (fuel, electricity) 12 14 13Contract work 19 19 19Taxes 1 0 1Other direct inputs 11 12 11Non specific costs 55 62 58Total operating costs 151 162 155Gross margin 102 95 99Gross margin with coupled payments 102 95 99

%spe.farms with positive gross margin 99% 95% 97%

%milk production with positive gross margin 99% 97% 98%

Depreciation 46 50 47Wages 0 2 1Rent 12 16 14Interest 14 20 16External factors 27 39 31Net margin 29 6 21Net margin with coupled payments 29 6 21

Family labour costs 80 74 77Own capital unpaid cost 12 14 13Imputed family factors 92 88 90Net economic margin -62 -81 -70Net economic margin with coupled payments -62 -81 -69

%spe.farms with positive net economic margin 13% - 11%

%milk production with positive net economic margin 19% - 15%



Belgium 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Vlaanderen Wallonie BelgiumTotal output 77 583 77 107 77 339Intermediate consumptions 45 192 47 221 45 926Balance subsidies and taxes 12 099 18 428 14 492

Decoupled payments 10 825 11 430 11 046Depreciation 14 039 14 992 14 390Farm Net Value Added (FNVA) 30 451 33 322 31 516

External factors 8 115 11 739 9 484Wages 146 568 306

Rent 3 829 4 977 4 262Interest 4 140 6 193 4 916

Balance invest. subs. and taxes -1 316 1 443 -267Farm net income (FNI) 21 021 23 026 21 765

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 3 800 4 374 4 007Remuneration of Family Labour (RFL) 17 431 19 352 18 152

%spe.farms with positive RFL 87% 91% 88%


10295 99

0

50

100

150

200

250

300

Revenues Operating costs Revenues Operating costs Revenues Operating costs


EUR/t



253257

254

223

250

234

29

6

21

200

210

220

230

240

250

260


EUR/t

0

5

10

15

20

25

30

35




Belgium 2009 Milk specialised farms


253 257 254

315338

324

-62

-81

-69

0

50

100

150

200

250

300

350

400


EUR/t

-90

-80

-70

-60

-50

-40

-30

-20

-10

0



46 50 47

8074

77

1214

13

0

20

40

60

80

100

120

140

160

180

200




0

5 000

10 000

15 000

20 000

25 000

30 000

35 000


EUR/WU

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II DE RG

Germany 2009 Milk specialised farms


Schleswig-Holstein

Niedersachsen

Nordrhein-Westfalen Hessen Rheinland-

Pfalz

Baden-Wurttember

gBayern Saarland Brandenbur

g

Mecklenburg-

Vorpommern

Sachsen Sachsen-Anhalt Thueringen Germany

Sample farms 200 301 170 135 118 222 516 51 54 53 100 64 55 2 039Farms represented 4 271 9 082 4 894 2 536 1 911 6 411 28 707 191 329 439 830 370 224 60 196% production from specialised farm 89% 89% 88% 89% 91% 87% 87% 88% 49% 56% 55% 69% 41% 80%Forage area - ha 64 59 47 54 60 40 31 87 333 242 147 274 233 49Dairy cows - LU 70 64 60 48 52 43 34 63 228 225 147 265 198 51Rented UAA - % 55% 63% 67% 74% 68% 63% 55% 72% 80% 71% 81% 87% 90% 65%Total labour - AWU 1,83 1,84 1,74 1,79 1,74 1,61 1,53 2,18 10,45 7,49 8,54 10,81 10,46 1,92Family labour - % 78% 83% 82% 83% 90% 91% 97% 85% 9% 18% 15% 15% 15% 77%Milk per ha fodder area - t/ha 8,7 8,8 10,1 6,3 6,3 6,8 7,4 5,3 5,7 7,8 8,1 7,8 6,9 7,8Milk yield - kg/cow 8 011 8 071 7 976 6 944 7 258 6 375 6 606 7 351 8 317 8 362 8 127 8 036 8 113 7 387Milk production - t 561 517 476 336 379 273 225 461 1 899 1 881 1 191 2 127 1 604 380


Schleswig-Holstein

Niedersachsen


Pfalz

Baden-Wurttember


g

Mecklenburg-

Vorpommern


RevenuesPrice 259 266 275 279 275 290 286 273 257 255 256 260 268 273EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 0 0 0National aids 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total revenues from milk 259 266 275 279 275 290 286 273 257 255 256 260 268 273Production costs Feed 62 76 76 75 72 76 81 76 86 77 80 89 90 77

homegrown feed 21 20 19 29 24 28 32 30 25 26 30 23 32 26purchased feed 41 56 58 47 48 48 49 46 61 51 50 66 58 51

Herd renewal purchases 2 2 4 3 1 2 1 6 5 3 1 2 6 2Milk levy 0 0 0 0 0 0 0 1 0 0 0 0 0 0Other specific costs 33 22 23 23 22 23 22 27 19 32 14 21 12 23Specific costs 97 100 103 102 95 101 104 109 110 112 95 112 108 102Machinery and building upkeep 18 17 21 26 22 27 22 23 20 18 20 18 22 21Energy (fuel, electricity) 19 19 22 30 26 28 27 31 30 25 29 27 30 24Contract work 22 18 22 14 15 17 15 16 10 25 7 11 14 17Taxes 2 2 1 1 1 1 2 1 2 3 2 2 2 2Other direct inputs 18 19 23 28 26 34 29 26 31 22 36 22 35 26Non specific costs 80 77 90 99 91 107 95 97 93 93 94 79 103 90Total operating costs 177 177 193 200 186 208 199 206 204 205 189 191 211 192Gross margin 82 89 82 78 90 82 87 67 54 50 66 68 57 81Gross margin with coupled payments 82 89 82 78 90 82 87 67 54 50 66 68 57 81

%spe.farms with positive gross margin 98% 98% 95% 91% 92% 87% 95% 83% 88% 93% 92% 99% 93% 94%

%milk production with positive gross margin 99% 99% 98% 94% 98% 94% 96% 90% 95% 91% 98% 99% 91% 97%

Depreciation 29 33 38 57 50 59 64 56 41 34 44 37 52 47Wages 9 7 8 9 7 7 3 10 67 50 81 62 85 16Rent 19 19 23 15 15 17 14 12 14 12 12 18 14 17Interest 10 11 10 11 8 9 9 11 14 15 6 10 10 10External factors 37 37 40 35 30 33 26 33 95 76 99 90 109 42Net margin 16 18 4 -14 10 -10 -3 -22 -82 -61 -76 -59 -103 -7Net margin with coupled payments 16 18 4 -14 10 -10 -3 -22 -82 -61 -76 -59 -103 -8

Family labour costs 32 41 40 60 50 66 76 54 8 12 17 12 16 48Own capital unpaid cost 18 58 19 16 20 28 39 12 5 5 10 5 7 31Imputed family factors 51 99 59 76 70 94 115 66 14 18 26 17 23 80Net economic margin -35 -81 -55 -89 -60 -104 -118 -88 -96 -78 -102 -76 -126 -87Net economic margin with coupled payments -35 -81 -55 -89 -60 -104 -118 -88 -96 -78 -102 -76 -126 -87

%spe.farms with positive net economic margin 16% 14% 9% - - - 2% - - - - - - 6%

%milk production with positive net economic margin 25% 24% 16% - - - 4% - - - - - - 12%



Germany 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Schleswig-Holstein

Niedersachsen


Pfalz

Baden-Wurttember


g

Mecklenburg-

Vorpommern


Total output 113 246 101 848 101 923 73 539 81 483 69 029 63 413 80 996 76 007 96 958 63 245 81 671 66 999 78 765Intermediate consumptions 77 569 70 021 73 180 55 382 55 579 49 291 42 224 61 237 61 152 77 260 49 678 59 057 54 210 55 412Balance subsidies and taxes 21 046 18 714 20 120 19 650 17 882 16 046 15 473 20 757 22 554 21 216 15 982 20 811 18 878 17 643

Decoupled payments 19 053 15 428 15 611 13 559 13 386 10 922 9 488 16 870 17 486 18 443 12 829 17 743 12 522 12 929Depreciation 12 416 12 873 14 307 15 149 15 012 14 176 14 176 16 667 11 962 12 679 10 047 11 414 12 105 13 469Farm Net Value Added (FNVA) 44 308 37 667 34 556 22 659 28 774 21 608 22 485 23 850 25 446 28 234 19 502 32 011 19 562 27 528

External factors 16 181 14 391 14 712 9 527 8 954 7 800 5 699 9 916 28 306 29 050 23 469 28 411 25 700 12 401Wages 3 860 2 852 2 795 2 452 2 088 1 725 706 3 139 20 344 19 270 19 283 19 672 20 105 4 894

Rent 8 139 7 383 8 397 4 089 4 481 4 001 3 049 3 696 4 074 4 536 2 739 5 662 3 280 4 736Interest 4 182 4 156 3 519 2 987 2 385 2 073 1 945 3 080 3 889 5 244 1 447 3 078 2 315 2 771

Balance invest. subs. and taxes -1 537 -1 693 -1 677 32 -1 528 -927 -594 -1 252 446 -326 1 722 22 124 -715Farm net income (FNI) 26 589 21 583 18 167 13 164 18 292 12 881 16 191 12 682 -2 413 -1 142 -2 246 3 622 -6 014 14 411

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 9 974 26 516 8 472 4 982 6 690 7 348 8 918 4 172 17 641 11 405 14 235 9 664 11 631 11 455Remuneration of Family Labour (RFL) 24 024 -562 13 664 10 923 13 725 6 875 7 846 10 706 11 480 23 142 9 774 27 116 4 299 8 597

%spe.farms with positive RFL 87% 80% 75% 76% 77% 62% 75% 73% 44% 71% 53% 65% 53% 75%


66 68 5781

82 89 82 78 90 82 8767 54 50

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Schleswig-Holstein

NiedersachsenNordrhein-Westfalen

Hessen Rheinland-Pfalz

Baden-Wurttemberg

Bayern Saarland BrandenburgMecklenburg-Vorpommern

Sachsen Sachsen-Anhalt

Thueringen Germany

EUR/t

Price EU coupled payments (incl. Art.69) National aidsFeed Other specific costs Non specific costsGross margin with coupled payments


259 266 275 279 275290 286

273257 255 256 260 268 273

243 248 271 292265

300 289 295340 316 332 319

371

281

16 18

4

-14

10

-10-3

-22

-82

-61

-76

-59

-103

-8

0

50

100

150

200

250

300

350

400

Sch

lesw

ig-

Hol

stei

n

Nie

ders

achs

en

Nor

drhe

in-

Wes

tfale

n

Hes

sen

Rhe

inla

nd-

Pfa

lz

Bad

en-

Wur

ttem

berg

Bay

ern

Saa

rland

Bra

nden

burg

Mec

klen

burg

-V

orpo

mm

ern

Sac

hsen

Sac

hsen

-A

nhal

t

Thue

ringe

n

Ger

man

y

EUR/t

-120

-100

-80

-60

-40

-20

0

20

40





Germany 2009 Milk specialised farms


259 266 275 279 275 290 286 273 257 255 256 260 268 273

294

347330

368335

394 404

361 353333

358336

394360

-35

-81

-55

-89

-60

-104

-118

-88-96

-78

-102

-76

-126

-87

0

50

100

150

200

250

300

350

400

450

Sch

lesw

ig-

Hol

stei

n

Nie

ders

achs

en

Nor

drhe

in-

Wes

tfale

n

Hes

sen

Rhe

inla

nd-

Pfa

lz

Bad

en-

Wur

ttem

berg

Bay

ern

Saa

rland

Bra

nden

burg

Mec

klen

burg

-V

orpo

mm

ern

Sac

hsen

Sac

hsen

-A

nhal

t

Thue

ringe

n

Ger

man

y

EUR/t

-140

-120

-100

-80

-60

-40

-20

0



29 33 3857 50 59 64 56 41 34 44 37 52 47

32 41 40

6050

66 7654

8

12

1712

16

4818

5819

1620

2839

12 55

105

7

31

0

50

100

150

200

250

Sch

lesw

ig-

Hol

stei

n

Nie

ders

achs

en

Nor

drhe

in-

Wes

tfale

n

Hes

sen

Rhe

inla

nd-

Pfa

lz

Bad

en-

Wur

ttem

berg

Bay

ern

Saa

rland

Bra

nden

burg

Mec

klen

burg

-V

orpo

mm

ern

Sac

hsen

Sac

hsen

-A

nhal

t

Thue

ringe

n

Ger

man

y



-10 000

0

10 000

20 000

30 000

40 000

50 000

Sch

lesw

ig-

Hol

stei

n

Nie

ders

achs

en

Nor

drhe

in-

Wes

tfale

n

Hes

sen

Rhe

inla

nd-

Pfa

lz

Bad

en-

Wur

ttem

berg

Bay

ern

Saa

rland

Bra

nden

burg

Mec

klen

burg

-V

orpo

mm

ern

Sac

hsen

Sac

hsen

-A

nhal

t

Thue

ringe

n

Ger

man

y

EUR/WU

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II ES RG

Spain 2009 Milk specialised farms


Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon Andalucia Spain

Sample farms 266 152 135 78 44 49 23 27 137 935Farms represented 12 323 2 321 1 795 442 237 821 166 2 814 1 191 22 777% production from specialised farm 96% 100% 100% 100% 100% 97% 82% 95% 100% 97%Forage area - ha 17 19 31 30 26 37 76 11 11 19Dairy cows - LU 28 40 44 60 74 83 51 43 58 38Rented UAA - % 15% 48% 80% 61% 69% 56% 88% 51% 15% 40%Total labour - AWU 1,43 1,79 1,60 2,24 1,94 2,30 1,51 1,39 1,94 1,56Family labour - % 97% 99% 97% 88% 84% 70% 81% 94% 94% 94%Milk per ha fodder area - t/ha 11,2 12,7 8,4 17,4 22,3 20,0 4,3 21,6 21,8 12,7Milk yield - kg/cow 6 668 5 834 5 957 8 747 8 573 9 012 6 348 7 107 7 042 6 886Milk production - t 188 234 264 522 635 749 325 307 407 264



RevenuesPrice 281 325 324 320 313 301 293 299 290 297EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0National aids 0 0 0 0 0 0 0 0 0 0Total revenues from milk 281 325 324 320 313 301 293 299 290 297Production costs Feed 98 152 143 164 165 135 144 102 86 116

homegrown feed 11 6 3 3 5 11 24 4 1 8purchased feed 87 145 140 161 160 125 120 98 85 109

Herd renewal purchases 11 0 1 4 2 2 0 20 2 8Milk levy 0 0 0 0 0 0 0 0 0 0Other specific costs 16 24 19 25 31 34 14 14 13 19Specific costs 124 176 162 193 199 171 158 135 101 143Machinery and building upkeep 7 18 14 13 15 17 15 18 3 11Energy (fuel, electricity) 12 12 13 13 14 15 18 11 10 12Contract work 5 7 8 3 1 16 6 3 1 6Taxes 0 0 0 0 0 0 0 0 0 0Other direct inputs 4 10 11 17 18 18 8 11 6 9Non specific costs 28 47 47 45 50 66 47 45 21 38Total operating costs 152 223 210 239 248 237 205 180 122 181Gross margin 129 102 114 82 64 64 88 119 169 116Gross margin with coupled payments 129 102 114 82 64 64 88 119 169 116

%spe.farms with positive gross margin 99% 99% 97% 87% 97% 95% 95% 97% 100% 98%

%milk production with positive gross margin 99% 99% 99% 96% 94% 95% 99% 98% 100% 97%

Depreciation 16 23 19 42 33 29 17 6 8 17Wages 2 1 4 7 10 17 12 4 2 5Rent 2 6 8 3 4 8 33 5 1 4Interest 1 1 3 6 6 4 1 1 0 2External factors 5 8 14 17 20 29 45 10 3 10Net margin 108 71 80 23 11 6 25 103 157 88Net margin with coupled payments 108 71 80 23 11 6 25 103 157 88

Family labour costs 81 192 112 63 39 29 42 70 47 80Own capital unpaid cost 26 26 17 19 17 20 13 15 17 21Imputed family factors 107 217 130 82 56 48 55 85 64 101Net economic margin 2 -146 -49 -58 -45 -43 -30 18 92 -12Net economic margin with coupled payments 2 -146 -49 -58 -46 -43 -30 18 92 -12

%spe.farms with positive net economic margin 32% - 27% - - - - 59% 79% 35%

%milk production with positive net economic margin 54% - 31% - - - - 54% 95% 46%



Spain 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)


Total output 49 435 53 540 61 860 81 248 119 831 128 049 81 169 88 892 69 521 64 341Intermediate consumptions 28 636 40 087 42 278 63 625 97 463 106 457 60 646 48 022 31 201 40 548Balance subsidies and taxes 7 287 5 377 7 478 12 197 12 012 13 237 19 160 11 265 8 881 8 469

Decoupled payments 4 082 3 968 5 275 7 755 10 205 10 535 8 260 6 805 5 736 5 328Depreciation 2 513 3 322 3 545 10 803 12 368 10 540 4 415 1 635 1 977 3 396Farm Net Value Added (FNVA) 25 574 15 509 23 515 19 017 22 012 24 289 35 268 50 499 45 225 28 866

External factors 727 1 242 2 723 4 318 7 435 10 487 10 682 3 187 832 2 049Wages 371 217 672 1 932 3 531 6 098 2 824 1 248 556 923

Rent 250 830 1 541 803 1 594 2 917 7 666 1 588 276 809Interest 106 194 510 1 584 2 310 1 471 191 351 0 316

Balance invest. subs. and taxes -119 -228 91 2 538 7 047 1 382 -229 -361 -403 84Farm net income (FNI) 24 727 14 039 20 884 17 237 21 624 15 184 24 358 46 952 43 990 26 901

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 4 316 3 827 3 405 5 603 7 677 10 170 4 031 4 825 4 440 4 557Remuneration of Family Labour (RFL) 21 268 10 372 18 184 13 892 18 174 11 657 25 884 43 919 42 097 23 797



129

102114

8264 64

88

119

169

116

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g


EUR/t



281

325 324 320 313301 293 299 290 297

173

254 243

297 302 296268

196

133

209

108

7180

23

116

25

103

157

88

0

50

100

150

200

250

300

350


EUR/t

0

20

40

60

80

100

120

140

160

180





Spain 2009 Milk specialised farms


281

325 324 320 313 301 293 299 290 297280

471

373 379358

344323

281

198

309

2

-146

-49 -58-46 -43

-30

18

92

-12

0

50

100

150

200

250

300

350

400

450

500


EUR/t

-200

-150

-100

-50

0

50

100

150



16 23 1942 33 29 17 6 8 17

81

192

112 6339 29

42

7047

80

26

26

17

19

17 2013

15

17

21

0

50

100

150

200

250

300


EUR/tDepreciation Wages Rent Interest Family labour costs Own capital unpaid cost


0

10 000

20 000

30 000

40 000

50 000

60 000


EUR/WU

-200

-150

-100

-50

0

50

100

150

200

EUR/t of milk





EU Dairy farms report 2012 Annex II FR RG (1)

France 2009 Milk specialised farms


Champagne-Ardenne Picardie

Haute-Normandie Centre

Basse-Normandie Bourgogne

Nord-Pas-de-Calais Lorraine Alsace

Franche-Comte

Pays de la Loire Bretagne

Poitou-Charentes France

Sample farms 48 27 43 49 102 26 74 73 42 123 86 145 49 1 214Farms represented 1 312 1 010 1 534 998 7 647 673 2 174 2 447 982 3 754 6 616 11 833 1 428 59 335% production from specialised farm 56% 45% 57% 77% 87% 61% 60% 60% 88% 85% 67% 84% 75% 75%Forage area - ha 90 56 54 59 66 74 49 96 44 89 61 48 62 61Dairy cows - LU 52 60 49 58 53 59 52 52 45 45 48 48 61 47Rented UAA - % 91% 95% 87% 95% 92% 94% 93% 94% 92% 93% 92% 87% 92% 89%Total labour - AWU 1,99 1,64 1,68 2,18 1,77 2,21 1,91 2,00 1,68 1,61 1,87 1,74 2,26 1,75Family labour - % 89% 95% 85% 90% 91% 87% 85% 92% 89% 96% 97% 95% 84% 93%Milk per ha fodder area - t/ha 3,8 7,3 6,0 7,4 4,9 5,9 7,4 3,6 7,3 3,0 5,5 7,0 7,2 5,1Milk yield - kg/cow 6 626 6 696 6 544 7 663 6 173 7 338 6 889 6 722 7 199 6 014 7 034 6 960 7 292 6 501Milk production - t 344 404 324 448 325 431 357 350 324 269 334 334 448 308

MILK MARGINS in EUR/t of milk (nominal)Champagne-

Ardenne PicardieHaute-

Normandie CentreBasse-

Normandie BourgogneNord-Pas-de-Calais Lorraine Alsace

Franche-Comte



RevenuesPrice 279 277 296 286 298 301 306 291 305 362 289 273 278 297EU coupled payments (incl. Art.69 0 0 0 0 0 0 0 0 0 0 0 0 0 0National aids 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total revenues from milk 279 277 296 286 297 301 306 290 305 362 289 273 278 296Production costs Feed 84 102 103 109 95 109 95 93 105 101 84 78 109 93

homegrown feed 31 25 42 42 39 43 30 35 35 33 36 36 34 36purchased feed 54 77 62 68 56 65 66 58 70 68 48 42 75 57




Depreciation 67 63 65 63 64 64 67 71 66 91 56 63 52 68Wages 9 3 10 5 6 8 10 5 6 2 2 3 9 5Rent 23 24 28 16 29 20 22 19 21 28 18 17 18 20Interest 9 13 14 11 14 13 12 11 11 10 11 12 11 11External factors 40 40 52 32 49 41 44 35 38 41 31 32 38 37Net margin -25 -33 -36 -24 -32 -29 -23 -26 -20 1 2 -16 -31 -23Net margin with coupled payments -26 -33 -37 -24 -33 -29 -23 -26 -20 1 2 -17 -31 -23

Family labour costs 76 54 59 59 66 62 57 65 59 71 71 73 54 70Own capital unpaid cost 13 8 11 8 10 9 9 14 10 19 10 10 7 13Imputed family factors 90 62 70 67 76 71 66 78 69 91 81 83 61 83Net economic margin -115 -96 -106 -91 -108 -99 -89 -104 -89 -89 -78 -99 -92 -106Net economic margin with coupled payments -115 -96 -107 -91 -109 -100 -90 -105 -89 -90 -78 -100 -92 -106

%spe.farms with positive net economic margin - - - - - - - - - - - - - 2%

%milk production with positive net economic margin

- - - - - - - - - - - - - 2%



France 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Champagne-Ardenne Picardie

Haute-Normandie Centre

Basse-Normandie Bourgogne

Nord-Pas-de-Calais Lorraine Alsace

Franche-Comte





External factors 12 223 16 193 15 962 10 666 13 647 12 868 12 893 10 287 11 608 9 230 8 610 9 426 11 911 9 797Wages 2 646 1 318 2 870 1 892 1 679 2 545 2 642 1 514 1 855 554 525 922 2 878 1 291

Rent 6 822 9 883 8 880 5 247 7 952 6 347 6 507 5 578 6 479 6 313 5 016 4 963 5 591 5 473Interest 2 755 4 992 4 213 3 527 4 017 3 977 3 743 3 195 3 274 2 363 3 070 3 540 3 442 3 033

Balance invest. subs. and taxes 899 244 1 646 523 859 690 1 795 2 557 1 410 519 1 429 1 046 644 1 078Farm net income (FNI) 4 990 4 257 4 658 8 481 4 340 6 891 8 018 8 364 13 946 15 554 13 865 9 159 8 711 8 698

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 4 496 3 126 3 954 2 757 3 188 3 217 3 183 4 199 3 325 4 501 2 666 3 058 2 381 3 500Remuneration of Family Labour (RFL) 1 112 1 378 1 521 6 645 1 583 4 684 6 252 4 933 12 308 11 655 11 587 6 584 7 980 5 832



89 7960

8182

6981 71 81 76 88 80 84

133

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

gChampagne-

Picardie Haute-Normandie

Centre Basse-Normandie

Bourgogne Nord-Pas-de-

Lorraine Alsace Franche-Comte

Pays dela Loire

Bretagne Poitou-Charentes

France

EUR/t



279 277296 286 297 301 306

290305

362

289273 278

296

304 310 332 310 330 330 329 316 325361

287 290 309 319-26

-33-37

-24

-33-29

-23-26

-20

1 2

-17

-31

-23

0

50

100

150

200

250

300

350

400

Cha

mpa

gne-

Ard

enne

Pic

ardi

e

Hau

te-

Nor

man

die

Cen

tre

Bas

se-

Nor

man

die

Bou

rgog

ne

Nor

d-P

as-d

e-C

alai

s

Lorra

ine

Als

ace

Fran

che-

Com

te

Pay

s de

laLo

ire

Bre

tagn

e

Poi

tou-

Cha

rent

es

Fran

ce

EUR/t

-40

-35

-30

-25

-20

-15

-10

-5

0

5







279 277296 286 297 301 306 290 305

362

289 273 278296

394373

402377

406 401 396 395 394

452

367 373 370402

-115

-96-107

-91

-109-100

-90

-105

-89 -90-78

-100-92

-106

0

50

100

150

200

250

300

350

400

450

500

Cha

mpa

gne-

Ard

enne

Pic

ardi

e

Hau

te-

Nor

man

die

Cen

tre

Bas

se-

Nor

man

die

Bou

rgog

ne

Nor

d-P

as-d

e-C

alai

s

Lorra

ine

Als

ace

Fran

che-

Com

te

Pay

s de

laLo

ire

Bre

tagn

e

Poi

tou-

Cha

rent

es

Fran

ce

EUR/t

-140

-120

-100

-80

-60

-40

-20

0



67 63 65 63 64 64 67 71 6691

56 63 52 68

7654

59

59

6662 57 65 59

71

7173

54

70

13

811

8

109 9 14

10

19

1010

7

13

0

50

100

150

200

250

Cha

mpa

gne-

Ard

enne

Pic

ardi

e

Hau

te-

Nor

man

die

Cen

tre

Bas

se-

Nor

man

die

Bou

rgog

ne

Nor

d-P

as-d

e-C

alai

s

Lorra

ine

Als

ace

Fran

che-

Com

te

Pay

s de

laLo

ire

Bre

tagn

e

Poi

tou-

Cha

rent

es

Fran

ce



0

5 000

10 000

15 000

20 000

25 000

30 000

Cha

mpa

gne-

Ard

enne

Pic

ardi

e

Hau

te-

Nor

man

die

Cen

tre

Bas

se-

Nor

man

die

Bou

rgog

ne

Nor

d-P

as-d

e-C

alai

s

Lorra

ine

Als

ace

Fran

che-

Com

te

Pay

s de

laLo

ire

Bre

tagn

e

Poi

tou-

Cha

rent

es

Fran

ce

EUR/WU

-150

-100

-50

0

50

100

150EUR/t of milk








Aquitaine Midi-Pyrenees Limousin Rhones-Alpes Auvergne Languedoc-Roussillon France

Sample farms 42 41 20 97 104 16 1 214Farms represented 1 728 2 579 504 6 084 5 460 433 59 335% production from specialised farm 81% 86% 80% 86% 84% 90% 75%Forage area - ha 42 48 68 58 61 94 61Dairy cows - LU 45 46 46 37 40 33 47Rented UAA - % 85% 77% 68% 85% 80% 75% 89%Total labour - AWU 1,72 1,59 1,71 1,67 1,53 1,25 1,75Family labour - % 91% 97% 96% 93% 94% 94% 93%Milk per ha fodder area - t/ha 7,2 5,8 4,0 3,8 3,4 1,7 5,1Milk yield - kg/cow 6 708 6 081 5 826 5 851 5 203 4 859 6 501Milk production - t 302 278 270 219 208 158 308



RevenuesPrice 284 293 281 353 296 285 297EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0National aids 0 0 0 0 0 0 0Total revenues from milk 284 293 281 353 296 285 296Production costs Feed 120 107 89 104 92 115 93

homegrown feed 38 43 33 40 29 45 36purchased feed 81 64 55 64 63 70 57

Herd renewal purchases 2 3 0 5 5 3 2Milk levy 0 0 0 0 0 0 0Other specific costs 20 14 15 17 16 17 13Specific costs 142 124 104 126 113 135 109Machinery and building upkeep 27 21 21 26 25 27 21Energy (fuel, electricity) 16 17 15 17 16 21 14Contract work 31 30 27 34 22 29 30Taxes 2 2 2 3 3 2 3Other direct inputs 37 37 34 51 44 37 38Non specific costs 112 107 100 131 110 115 106Total operating costs 254 231 203 257 223 250 215Gross margin 30 62 78 96 73 35 82Gross margin with coupled payments 30 62 78 96 73 35 81

%spe.farms with positive gross margin 76% 85% 100% 92% 88% - 94%

%milk production with positive gross margin 76% 86% 100% 96% 93% - 96%

Depreciation 66 68 62 89 85 98 68Wages 7 2 2 7 4 4 5Rent 16 17 12 18 18 18 20Interest 11 9 12 9 7 8 11External factors 34 28 26 34 29 31 37Net margin -70 -34 -10 -27 -41 -94 -23Net margin with coupled payments -70 -34 -10 -27 -41 -94 -23

Family labour costs 82 76 72 98 67 98 70Own capital unpaid cost 10 16 16 21 24 35 13Imputed family factors 92 92 88 119 90 133 83Net economic margin -162 -126 -98 -146 -131 -227 -106Net economic margin with coupled payments -162 -126 -99 -146 -131 -227 -106

%spe.farms with positive net economic margin - - - - - - 2%

%milk production with positive net economic margin - - - - - - 2%



France 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)


Total output 65 740 66 119 60 920 61 012 54 751 49 726 75 527Intermediate consumptions 58 203 52 645 47 470 43 614 39 978 40 828 55 529Balance subsidies and taxes 14 556 14 405 12 790 13 632 14 926 17 974 15 348

Decoupled payments 11 232 9 764 7 747 6 873 6 925 5 498 11 516Depreciation 15 925 15 907 14 408 15 887 16 512 17 909 17 930Farm Net Value Added (FNVA) 6 168 11 972 11 832 15 144 13 188 8 964 17 417

External factors 8 518 6 714 5 833 6 189 5 592 5 844 9 797Wages 2 080 463 482 1 180 743 902 1 291

Rent 3 825 4 068 2 705 3 352 3 581 3 344 5 473Interest 2 613 2 183 2 646 1 656 1 268 1 598 3 033

Balance invest. subs. and taxes 907 1 556 251 1 003 590 92 1 078Farm net income (FNI) -1 444 6 815 6 250 9 958 8 185 3 211 8 698

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 679 3 899 3 757 4 005 4 833 6 751 3 500Remuneration of Family Labour (RFL) -4 265 3 127 2 756 6 676 3 863 -3 337 5 832

%spe.farms with positive RFL - 54% - 67% 60% - 66%


3062

7896

73

35

81

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Aquitaine Midi-Pyrenees Limousin Rhones-Alpes Auvergne Languedoc-Roussillon

France

EUR/t



284 293281

353

296285

296

353327

291

380336

379

319

-70

-34

-10

-27

-41

-94

-23

0

50

100

150

200

250

300

350

400


France

EUR/t

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0







284 293 281

353

296 285 296

446420

379

500

427

511

402

-162

-126

-99

-146-131

-227

-106

0

100

200

300

400

500

600


France

EUR/t

-250

-200

-150

-100

-50

0



66 68 6289 85 98

68

82 7672

98

67

98

70

10 1616

21

24

35

13

0

50

100

150

200

250

300


France



-10 000

-5 000

0

5 000

10 000

15 000

20 000


France

EUR/WU

-250

-200

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II IT RG (1)

Italy 2009 Milk specialised farms


Valle d'Aoste Piemonte Lombardia Trentino Alto-Adige Veneto

Friuli-Venezia

Emilia-Romagna Lazio Abruzzo Molise Campania Puglia Italy

Sample farms 107 40 135 33 75 123 82 182 49 30 33 27 40 1 056Farms represented 560 2 055 5 078 627 4 467 5 151 704 3 849 1 904 502 649 2 881 1 652 32 353% production from specialised farm 85% 68% 98% 99% 95% 90% 91% 96% 96% 82% 74% 90% 99% 92%Forage area - ha 51 47 26 39 12 16 18 31 23 23 16 9 28 24Dairy cows - LU 26 39 84 36 13 37 42 66 50 25 15 25 40 44Rented UAA - % 90% 80% 75% 90% 23% 47% 58% 50% 52% 80% 65% 26% 26% 57%Total labour - AWU 2,14 1,71 2,19 2,30 1,19 1,76 1,88 2,12 2,19 1,69 1,57 1,71 2,32 1,87Family labour - % 79% 96% 81% 84% 94% 91% 93% 58% 76% 93% 89% 81% 62% 81%Milk per ha fodder area - t/ha 1,5 5,7 22,4 4,9 6,3 15,5 15,4 14,3 10,4 6,2 4,4 16,7 10,7 12,0Milk yield - kg/cow 2 948 6 843 7 119 5 344 5 860 6 710 6 639 6 685 4 825 5 612 4 730 5 789 7 539 6 548Milk production - t 77 264 600 193 77 251 282 440 242 143 69 144 304 286

MILK MARGINS in EUR/t of milk (nominal)Valle

d'AostePiemonte Lombardia Trentino Alto-Adige Veneto Friuli-

VeneziaEmilia-

RomagnaLazio Abruzzo Molise Campania Puglia Italy

RevenuesPrice 531 364 366 407 432 350 352 423 414 513 419 403 343 382EU coupled payments (incl. Art.69 0 0 0 0 0 0 0 0 0 0 0 0 0 0National aids 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total revenues from milk 531 364 366 407 432 350 352 423 414 419 419 403 343 382Production costs Feed 114 112 92 129 129 108 113 152 114 88 112 122 168 115

homegrown feed 8 18 18 17 9 16 38 18 24 25 38 16 19 18puchased feed 106 94 74 113 120 92 75 134 90 64 74 106 149 97




Depreciation 127 48 30 117 138 45 56 16 49 53 89 36 39 40Wages 56 3 13 26 12 10 5 35 26 10 22 22 26 18Rent 22 10 8 9 8 8 7 17 6 7 4 3 4 9Interest 19 1 0 4 3 1 2 1 0 0 0 0 4 1External factors 97 13 22 40 22 19 15 53 33 17 26 25 34 29Net margin 55 111 158 15 22 113 93 124 161 197 113 154 40 128Net margin with coupled payments 55 111 158 15 22 113 93 124 161 197 113 154 40 128

Family labour costs 260 105 58 158 213 122 89 61 104 162 233 108 54 88Own capital unpaid cost 87 38 20 54 90 30 33 38 39 32 48 33 37 32Imputed family factors 347 143 77 212 303 152 122 98 142 193 281 141 91 120Net economic margin -292 -32 81 -197 -281 -39 -29 26 18 4 -168 13 -51 8Net economic margin with coupled payments -292 -32 81 -197 -281 -39 -29 26 18 4 -168 13 -51 8

%spe.farms with positive net economic margin 10% - 65% - - 14% 24% 46% 39% 34% - - - 28%

%milk production with positive net economic margin

22% - 86% - - 46% 46% 68% 65% 59% - - - 60%



Italy 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Valle d'Aoste

Piemonte Lombardia Trentino Alto-Adige Veneto Friuli-Venezia

Emilia-Romagna

Lazio Abruzzo Molise Campania Puglia Italy



External factors 4 746 2 696 7 466 4 100 1 664 3 378 3 099 14 975 4 434 1 808 1 527 2 468 5 642 5 676Wages 2 831 671 4 522 2 615 863 1 907 1 049 9 676 3 496 1 060 1 211 2 146 4 277 3 585

Rent 1 096 1 927 2 891 978 575 1 353 1 596 4 915 899 746 317 322 620 1 897Interest 819 98 53 506 226 118 454 384 40 2 0 0 745 194

Balance invest. subs. and taxes 1 926 -200 -286 -305 1 784 827 -757 -1 0 -110 -27 0 1 809 345Farm net income (FNI) 14 427 31 638 70 583 10 536 9 996 28 874 29 645 49 943 24 649 30 387 13 428 18 312 17 097 34 928

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 5 525 7 678 8 345 6 637 7 480 5 983 7 744 18 579 6 904 3 818 3 527 4 535 10 116 7 968Remuneration of Family Labour (RFL) 12 652 25 128 78 343 5 849 3 143 25 803 24 128 68 037 25 452 28 744 11 522 17 992 17 568 35 248



228 215

114

196

278

172209

172 182 177 163193

243 267

0

100

200

300

400

500

600

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Rev

enue

s

Ope

ratin

g

Valled'Aoste

Piemonte Lombardia Trentino Alto-Adige

Veneto Friuli-Venezia

Emilia-Romagna

Lazio Abruzzo Molise Campania Puglia Italy

EUR/t



531

364 366407

432

350 352

423 414 419 419 403

343382

476

253208

392 410

237 259 299254 222

307249

30325455

111

158

15 22

11393

124

161

197

113

154

40

128

0

100

200

300

400

500

600

Val

le d

'Aos

te

Pie

mon

te

Lom

bard

ia

Tren

tino

Alto

-Adi

ge

Ven

eto

Friu

li-V

enez

ia

Em

ilia-

Rom

agna

Lazi

o

Abr

uzzo

Mol

ise

Cam

pani

a

Pug

lia

Italy

EUR/t

0

50

100

150

200

250







531

364 366407 432

350 352423 414 419 419 403

343382

823

396

286

604

713

389 381 397 396 415

588

390 394 374

-292

-32

81

-197

-281

-39 -29

26 18 4

-168

13

-51

8

0

100

200

300

400

500

600

700

800

900V

alle

d'A

oste

Pie

mon

te

Lom

bard

ia

Tren

tino

Alto

-Adi

ge

Ven

eto

Friu

li-V

enez

ia

Em

ilia-

Rom

agna

Lazi

o

Abr

uzzo

Mol

ise

Cam

pani

a

Pug

lia

Italy

EUR/t

-350

-300

-250

-200

-150

-100

-50

0

50

100



12748 30

117 13845 56 16 49 53 89

36 39 40

260

10558

158213

122 89 61104 162

233

108 54 88

87

38

20

54

90

3033

38

3932

48

3337

32

0

100

200

300

400

500

600

Val

le d

'Aos

te

Pie

mon

te

Lom

bard

ia

Tren

tino

Alto

-Adi

ge

Ven

eto

Friu

li-V

enez

ia

Em

ilia-

Rom

agna

Lazi

o

Abr

uzzo

Mol

ise

Cam

pani

a

Pug

lia

Italy



0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

Val

le d

'Aos

te

Pie

mon

te

Lom

bard

ia

Tren

tino

Alto

-Adi

ge

Ven

eto

Friu

li-V

enez

ia

Em

ilia-

Rom

agna

Lazi

o

Abr

uzzo

Mol

ise

Cam

pani

a

Pug

lia

Italy

EUR/WU

-400

-300

-200

-100

0

100

200

300

400EUR/t of milk








Basilicata Sicilia Sardegna Italy

Sample farms 25 19 15 1 056Farms represented 540 622 502 32 353% production from specialised farms 80% 74% 99% 92%Forage area - ha 17 42 38 24Dairy cows - LU 20 37 48 44Rented UAA - % 38% 58% 32% 57%Total labour - AWU 1,54 2,42 2,54 1,87Family labour - % 86% 79% 83% 81%Milk per ha fodder area - t/ha 5,9 4,4 10,0 12,0Milk yield - kg/cow 5 212 5 047 7 913 6 548Milk production - t 102 186 382 286

MILK MARGINS in EUR/t of milk (nominal)Basilicata Sicilia Sardegna Italy

RevenuesPrice 387 402 355 382EU coupled payments (incl. Art.69) 0 0 0 0National aids 0 0 0 0Total revenues from milk 387 402 355 382Production costs Feed 124 93 76 115

homegrown feed 20 34 23 18puchased feed 104 59 52 97

Herd renewal purchases 1 0 0 2Milk levy 0 0 0 0Other specific costs 11 7 18 17Specific costs 136 100 94 135Machinery and building upkeep 5 3 3 6Energy (fuel, electricity) 27 29 18 22Contract work 3 2 6 4Taxes 1 3 1 6Other direct inputs 9 5 14 13Non specific costs 45 41 42 51Total operating costs 181 141 137 186Gross margin 206 261 218 196Gross margin with coupled payments 206 261 218 196

%spe.farms with positive gross margin 100% 100% 100% 98%

%milk production with positive gross margin 100% 100% 100% 99%

Depreciation 71 44 31 40Wages 16 27 13 18Rent 4 18 9 9Interest 0 0 0 1External factors 20 45 22 29Net margin 115 172 165 128Net margin with coupled payments 115 172 165 128

Family labour costs 120 135 91 88Own capital unpaid cost 40 34 27 32Imputed family factors 161 170 118 120Net economic margin -46 2 48 8Net economic margin with coupled payments -46 2 48 8

%spe.farms with positive net economic margin - - - 28%

%milk production with positive net economic margin - - - 60%



Italy 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Basilicata Sicilia Sardegna ItalyTotal output 38 941 48 040 74 635 83 025Intermediate consumptions 19 740 21 127 39 598 42 541Balance subsidies and taxes 4 138 3 214 7 205 7 565

Decoupled payments 3 723 3 059 6 759 6 260Depreciation 6 588 4 385 5 269 7 790Farm Net Value Added (FNVA) 16 752 25 741 36 974 40 258

External factors 1 777 4 680 3 834 5 676Wages 1 422 2 768 2 385 3 585

Rent 354 1 912 1 441 1 897Interest 0 0 8 194

Balance invest. subs. and taxes 0 0 0 345Farm net income (FNI) 14 975 21 062 33 139 34 928

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 4 285 4 339 5 545 7 968Remuneration of Family Labour (RFL) 13 043 22 301 34 364 35 248

%spe.farms with positive RFL 65% 100% - 86%


206261

218 196

0

50

100

150

200

250

300

350

400

450






EUR/t


National aids Feed




387 402

355382

272230

190254

115

172 165

128

0

50

100

150

200

250

300

350

400

450


EUR/t

0

20

40

60

80

100

120

140

160

180

200







387 402

355382

433399

307

374

-46

2

48

8

0

50

100

150

200

250

300

350

400

450

500


EUR/t

-60

-40

-20

0

20

40

60



7144 31 40

120 135

9188

4034

2732

0

50

100

150

200

250

300




0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000


EUR/WU

-100

-50

0

50

100

150

200

250

300EUR/t of milk





EU Dairy farms report 2012 Annex II PT RG

Portugal 2009 Milk specialised farms


Norte e Centro Acores Portugal

Sample farms 221 110 351Farms represented 4 413 2 570 7 185% production from specialised farms 99% 97% 98%Forage area - ha 10 22 15Dairy cows - LU 25 23 25Rented UAA - % 20% 65% 39%Total labour - AWU 1,86 1,26 1,65Family labour - % 84% 95% 86%Milk per ha fodder area - t/ha 19,2 6,2 11,8Milk yield - kg/cow 7 575 6 114 7 052Milk production - t 192 139 179

MILK MARGINS in EUR/t of milk (nominal)Norte e Centro Acores Portugal


homegrown feed 20 25 20puchased feed 108 58 98


%spe.farms with positive gross margin 86% 100% 91%

%milk production with positive gross margin 98% 100% 99%

Depreciation 30 18 26Wages 11 2 9Rent 2 14 5Interest 3 1 3External factors 16 17 17Net margin 38 84 51Net margin with coupled payments 38 144 68

Family labour costs 51 63 52Own capital unpaid cost 21 15 19Imputed family factors 72 78 72Net economic margin -34 7 -20Net economic margin with coupled payments -34 66 -4

%spe.farms with positive net economic margin 18% 42% 27%

%milk production with positive net economic margin 34% 63% 44%



Portugal 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Norte e Centro Acores PortugalTotal output 40 144 32 751 39 228Intermediate consumptions 30 770 18 563 28 305Balance subsidies and taxes 4 472 11 358 6 463

Decoupled payments 4 206 0 3 163Depreciation 3 503 2 414 3 263Farm Net Value Added (FNVA) 10 343 23 133 14 123

External factors 1 840 2 370 2 047Wages 1 198 297 1 027

Rent 276 1 876 704Interest 366 197 317

Balance invest. subs. and taxes 151 307 190Farm net income (FNI) 8 654 21 069 12 265

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 981 2 076 2 881Remuneration of Family Labour (RFL) 7 317 20 115 11 351

%spe.farms with positive RFL 80% 100% 88%


84

179

110

0

50

100

150

200

250

300

350



EUR/t



293305 298

256

161

230

38

144

68

0

50

100

150

200

250

300

350


EUR/t

0

20

40

60

80

100

120

140

160




Portugal 2009 Milk specialised farms


293305 298

327

239

301

-34

66

-4

0

50

100

150

200

250

300

350


EUR/t

-40

-20

0

20

40

60

80



3018 26

5163 52

21 15 19

0

20

40

60

80

100

120

140




0

5 000

10 000

15 000

20 000

25 000


EUR/WU

-50

0

50

100

150

200EUR/t of milk





EU Dairy farms report 2012 Annex II FI RG

Finland 2009 Milk specialised farms


Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland

Sample farms 87 101 103 84 375Farms represented 3 301 4 663 2 588 2 209 12 761% production from specialised farms 99% 99% 100% 99% 99%Forage area - ha 28 28 29 41 31Dairy cows - LU 25 23 27 26 25Rented UAA - % 33% 36% 33% 34% 34%Total labour - AWU 2,16 1,90 1,95 2,12 2,01Family labour - % 90% 91% 94% 87% 91%Milk per ha fodder area - t/ha 7,9 6,9 7,2 5,5 6,9Milk yield - kg/cow 8 686 8 562 7 965 8 466 8 447Milk production - t 221 194 212 223 210

MILK MARGINS in EUR/t of milk (nominal)Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland

RevenuesPrice 387 390 393 397 391EU coupled payments (incl. Art.69) 0 0 0 0 0National aids 40 79 78 127 77Total revenues from milk 428 469 471 524 468Production costs Feed 104 118 115 134 116

homegrown feed 38 38 38 38 38puchased feed 65 80 77 97 78

Herd renewal purchases 2 2 6 6 4Milk levy 0 0 0 0 0Other specific costs 36 35 31 33 34Specific costs 141 155 151 173 154Machinery and building upkeep 47 41 43 49 44Energy (fuel, electricity) 28 28 28 36 29Contract work 28 30 28 29 29Taxes 0 0 0 0 0Other direct inputs 45 50 49 57 50Non specific costs 148 150 148 170 153Total operating costs 289 305 299 344 306Gross margin 98 86 94 53 85Gross margin with coupled payments 138 165 172 180 162



Depreciation 98 97 117 120 106Wages 16 15 9 21 15Rent 11 11 14 7 11Interest 12 11 18 18 14External factors 39 37 40 46 40Net margin -39 -49 -63 -114 -61Net margin with coupled payments 1 30 15 14 16

Family labour costs 205 240 204 189 214Own capital unpaid cost 30 36 35 21 32Imputed family factors 236 277 240 209 245Net economic margin -275 -325 -303 -323 -306Net economic margin with coupled payments -235 -246 -225 -196 -229

%spe.farms with positive net economic margin - - - - -

%milk production with positive net economic margin - - - - -



Finland 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi FinlandTotal output 48 454 47 151 51 801 49 239 48 938Intermediate consumptions 38 983 38 950 41 799 45 477 40 817Balance subsidies and taxes 23 468 25 185 28 546 33 531 26 961

Decoupled payments 6 864 5 588 6 260 5 961 6 158Depreciation 12 356 11 679 15 693 15 094 13 312Farm Net Value Added (FNVA) 20 584 21 707 22 856 22 199 21 770

External factors 5 069 4 499 5 504 5 817 5 108Wages 2 085 1 880 1 295 2 652 1 968

Rent 1 477 1 314 1 874 882 1 394Interest 1 507 1 305 2 336 2 283 1 746

Balance invest. subs. and taxes 549 371 886 670 578Farm net income (FNI) 16 064 17 580 18 237 17 052 17 239

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 4 340 4 778 5 089 3 031 4 418Remuneration of Family Labour (RFL) 13 557 14 607 14 341 16 552 14 605

%spe.farms with positive RFL 85% 94% 89% 86% 89%


138 165 172 180162

0

100

200

300

400

500

600

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts


EUR/t


National aids Feed




428469 471

524

468

426 439 456511

452

1

30

15 1416

0

100

200

300

400

500

600


EUR/t

0

5

10

15

20

25

30

35





Finland 2009 Milk specialised farms


428469 471

524468

662715 696 720 698

-235-246

-225

-196

-229

0

100

200

300

400

500

600

700

800


EUR/t

-300

-250

-200

-150

-100

-50

0



98 97 117 120 106

205240 204 189 214

30

36 3521 32

0

50

100

150

200

250

300

350

400

450




0

5 000

10 000

15 000

20 000

25 000


EUR/WU

-300

-250

-200

-150

-100

-50

0

50

100

150

200

250EUR/t of milk





EU Dairy farms report 2012 Annex II SE RG

Sweden 2009 Milk specialised farms


Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden

Sample farms 168 126 80 374Farms represented 3 233 1 962 1 063 6 257% production from specialised farms 95% 98% 96% 96%Forage area - ha 68 83 83 75Dairy cows - LU 60 60 45 57Rented UAA - % 53% 54% 72% 57%Total labour - AWU 2,04 2,16 2,02 2,08Family labour - % 77% 74% 80% 76%Milk per ha fodder area - t/ha 7,0 6,0 4,2 6,1Milk yield - kg/cow 8 070 8 158 7 687 8 048Milk production - t 482 492 346 462



RevenuesPrice 276 262 299 274EU coupled payments (incl. Art.69) 0 0 1 0National aids 0 0 0 0Total revenues from milk 276 262 300 274Production costs Feed 103 101 112 103

homegrown feed 28 23 24 26puchased feed 74 79 89 78

Herd renewal purchases 4 5 8 5Milk levy 0 0 0 0Other specific costs 25 25 33 26Specific costs 132 131 154 135Machinery and building upkeep 23 22 28 24Energy (fuel, electricity) 22 21 30 22Contract work 21 16 19 19Taxes 0 0 0 0Other direct inputs 21 19 27 21Non specific costs 87 78 104 86Total operating costs 220 209 257 221Gross margin 56 53 42 53Gross margin with coupled payments 56 53 42 53

%spe.farms with positive gross margin 80% 83% 76% 80%

%milk production with positive gross margin 90% 91% 83% 89%

Depreciation 42 40 44 41Wages 22 26 24 24Rent 12 8 7 10Interest 15 13 12 14External factors 50 48 43 48Net margin -36 -35 -45 -37Net margin with coupled payments -36 -35 -44 -37

Family labour costs 93 91 123 96Own capital unpaid cost 7 7 3 6Imputed family factors 100 97 126 103Net economic margin -136 -132 -171 -139Net economic margin with coupled payments -136 -132 -171 -139

%spe.farms with positive net economic margin - - - -

%milk production with positive net economic margin - - - -



Sweden 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)


Total output 98 017 90 573 75 389 91 589Intermediate consumptions 82 408 77 655 72 398 78 981Balance subsidies and taxes 19 669 19 270 33 611 21 784

Decoupled payments 12 560 10 953 10 178 11 609Depreciation 13 372 12 131 10 749 12 498Farm Net Value Added (FNVA) 21 906 20 058 25 853 21 895

External factors 16 228 14 230 11 048 14 678Wages 7 250 7 704 6 301 7 221

Rent 4 039 2 496 1 822 3 160Interest 4 939 4 030 2 926 4 297

Balance invest. subs. and taxes 0 0 2 226 367Farm net income (FNI) 5 678 5 828 17 031 7 584

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 2 957 3 040 1 020 2 653Remuneration of Family Labour (RFL) 4 362 4 821 20 382 7 250

%spe.farms with positive RFL 62% 69% 86% 68%


56 53 4253

0

50

100

150

200

250

300

350





Slattbygdslan Skogs-ochmellanbygdslan

Lan i norra Sweden

EUR/t

Non specific costsOther specific costsFeedNational aidsEU coupled payments (incl. Art.69)PriceGross margin with coupled payments


276262

300274

312 297344

311

-36 -35

-44

-37

0

50

100

150

200

250

300

350

400


EUR/t

-50

-45

-40

-35

-30

-25

-20

-15

-10

-5

0





Sweden 2009 Milk specialised farms


276 262300

274

412394

470

413

-136 -132

-171

-139

0

50

100

150

200

250

300

350

400

450

500


EUR/t

-180

-160

-140

-120

-100

-80

-60

-40

-20

0



42 40 44 41

93 91123

96

7 7

3

6

0

50

100

150

200

250




0

5 000

10 000

15 000

20 000

25 000

30 000


EUR/WU

-200

-150

-100

-50

0

50

100EUR/t of milk





EU Dairy farms report 2012 Annex II UK RG

United Kingdom 2009 Milk specialised farms


England-North England-East England-West Wales Scotland Northern Ireland United Kingdom

Sample farms 89 68 137 89 44 110 537Farms represented 3 030 1 287 4 456 2 036 1 302 3 405 15 517% production from specialised farms 97% 90% 96% 100% 98% 98% 97%Forage area - ha 107 108 105 96 137 71 100Dairy cows - LU 130 127 127 111 139 86 117Rented UAA - % 57% 55% 49% 28% 26% 37% 45%Total labour - AWU 2,75 3,18 2,89 2,23 2,83 1,80 2,56Family labour - % 57% 46% 56% 77% 63% 89% 63%Milk per ha fodder area - t/ha 9,1 8,9 8,8 7,7 7,2 7,7 8,4Milk yield - kg/cow 7 526 7 583 7 296 6 658 7 108 6 317 7 116Milk production - t 977 964 926 738 991 545 836

MILK MARGINS in EUR/t of milk (nominal)England-North England-East England-West Wales Scotland Northern Ireland United Kingdom


homegrown feed 20 23 22 22 25 21 22puchased feed 75 75 70 63 81 79 73

Herd renewal purchases 3 3 3 1 1 1 2Milk levy 0 0 0 0 0 0 0Other specific costs 35 31 30 28 25 21 29Specific costs 133 133 125 114 132 120 126Machinery and building upkeep 14 18 17 15 17 13 16Energy (fuel, electricity) 11 13 12 13 13 14 13Contract work 15 18 17 13 9 12 15Taxes 0 0 0 0 0 0 0Other direct inputs 13 18 15 12 12 11 14Non specific costs 54 68 62 54 51 51 57Total operating costs 187 201 187 168 184 171 183Gross margin 73 75 97 79 80 56 80Gross margin with coupled payments 73 75 97 79 80 56 80

%spe.farms with positive gross margin 91% 87% 98% 98% 93% 93% 94%

%milk production with positive gross margin 96% 96% 100% 99% 97% 97% 98%

Depreciation 23 24 24 26 33 40 27Wages 22 31 24 12 19 6 20Rent 8 11 9 5 3 9 8Interest 3 7 5 6 3 6 5External factors 33 48 38 24 25 21 32Net margin 17 4 35 29 22 -5 20Net margin with coupled payments 17 4 35 29 22 -5 20


%spe.farms with positive net economic margin 25% 18% 31% 18% - - 19%

%milk production with positive net economic margin 38% 27% 46% 29% - - 32%



United Kingdom 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

England-North England-East England-West Wales Scotland Northern Ireland United KingdomTotal output 122 976 125 243 125 338 115 174 130 569 96 900 119 565Intermediate consumptions 92 309 94 286 87 687 85 804 95 121 77 494 88 096Balance subsidies and taxes 11 791 14 718 14 023 17 784 17 771 12 582 14 159

Decoupled payments 10 375 12 684 11 185 14 818 16 677 12 081 12 214Depreciation 10 320 9 861 10 137 11 003 15 904 14 612 11 455Farm Net Value Added (FNVA) 32 138 35 815 41 537 36 150 37 315 17 376 34 173

External factors 14 527 20 170 15 775 10 151 12 199 7 724 13 724Wages 9 708 12 863 10 036 5 110 9 320 2 204 8 404

Rent 3 359 4 814 3 573 2 234 1 362 3 404 3 266Interest 1 460 2 493 2 166 2 807 1 516 2 116 2 054

Balance invest. subs. and taxes 434 0 264 57 784 7 425 1 401Farm net income (FNI) 18 044 15 645 26 026 26 057 25 899 17 076 21 851

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 6 239 7 267 6 718 7 365 7 864 6 173 6 727Remuneration of Family Labour (RFL) 25 444 27 033 39 908 26 391 33 258 13 033 27 868

%spe.farms with positive RFL 85% 73% 87% 83% 80% 79% 82%


73 7597

79 8056

80

0

50

100

150

200

250

300

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts


EUR/t





260276 284

246263

227

263

243272

249217

241 232 243

17

4

35

29

22

-5

20

0

50

100

150

200

250

300


EUR/t

-10

-5

0

5

10

15

20

25

30

35

40





United Kingdom 2009 Milk specialised farms


260276 284

246263

227

263

280

310293

271287

302290

-20

-34

-9

-24 -24

-75

-27

0

50

100

150

200

250

300

350


EUR/t

-80

-70

-60

-50

-40

-30

-20

-10

0



23 24 24 26 33 4027

30

3035

4136

56

37

8

8 913 10

14

10

0

20

40

60

80

100

120

140




0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000


EUR/WU

-100

-80

-60

-40

-20

0

20

40

60

80

100

120EUR/t of milk





EU Dairy farms report 2012 Annex II HU RG



Eszak-Alfold Del-Alfold Hungary

Sample farms 20 20 93Farms represented 530 717 3 539% production from specialised farms 45% 81% 49%Forage area - ha 49 33 42Dairy cows - LU 47 36 37Rented UAA - % 72% 76% 72%Total labour - AWU 3,82 3,31 3,16Family labour - % 29% 30% 34%Milk per ha fodder area - t/ha 5,2 7,2 5,8Milk yield - kg/cow 6 254 6 713 6 645Milk production - t 294 240 248

MILK MARGINSEszak-Alfold Del-Alfold Hungary


homegrown feed 33 27 33purchased feed 80 78 81


%spe.farms with positive gross margin 87% - 70%

%milk production with positive gross margin 88% - 77%

Depreciation 24 18 23Wages 40 46 42Rent 8 9 10Interest 8 4 9External factors 56 59 61Net margin -40 -56 -57Net margin with coupled payments -38 -56 -56

Family labour costs 17 18 21Own capital unpaid cost 17 14 15Imputed family factors 34 32 36Net economic margin -74 -88 -93Net economic margin with coupled payments -72 -88 -93

%spe.farms with positive net economic margin - - -

%milk production with positive net economic margin - - -



Hungary Milk specialised farmsINCOME

Eszak-Alfold Del-Alfold HungaryTotal output 30 161 29 643 34 004Intermediate consumptions 24 890 24 157 29 001Balance subsidies and taxes 8 279 6 152 7 944

Decoupled payments 3 920 2 765 3 787Depreciation 3 021 2 157 3 014Farm Net Value Added (FNVA) 10 530 9 482 9 934

External factors 6 843 7 284 7 655Wages 4 838 5 740 5 126

Rent 1 052 1 020 1 320Interest 952 523 1 209

Balance invest. subs. and taxes 763 1 059 769Farm net income (FNI) 4 450 3 257 3 048

Family farms onlyOwn capital unpaid cost 7 282 5 452 5 659Remuneration of Family Labour (RFL) 4 139 787 7 052

%spe.farms with positive RFL - - 69%


42

2128

0

50

100

150

200

250



EUR/t


National aids Feed




233214

235

270 292-38

-56 -560

50

100

150

200

250

300

350


EUR/t

-60

-50

-40

-30

-20

-10

0







233214

235

302328

-72

-88-93

0

50

100

150

200

250

300

350


EUR/t

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0



24 18 23

17 1821

17 14

15

0

20

40

60

80

100

120

140




0

2 000

4 000

6 000

8 000

10 000

12 000


EUR/WU

-100

-80

-60

-40

-20

0

20

40

60EUR/t of milk





EU Dairy farms report 2012 Annex II PL RG

Poland 2009 Milk specialised farms


Pomorze and Mazury

Wielkopolska and Slask

Mazowsze and Podlasie

Malopolska and Pogorze Poland

Sample farms 338 429 1 237 202 2 206Farms represented 8 539 9 822 55 223 10 266 83 850% production from specialised farms 95% 95% 63% 63% 69%Forage area - ha 22 16 12 9 13Dairy cows - LU 20 21 14 9 15Rented UAA - % 27% 39% 26% 32% 29%Total labour - AWU 2,01 2,15 1,83 1,72 1,87Family labour - % 91% 81% 98% 98% 95%Milk per ha fodder area - t/ha 5,0 8,0 6,4 4,5 6,2Milk yield - kg/cow 5 482 6 297 5 148 4 592 5 340Milk production - t 109 131 74 40 80

MILK MARGINS in EUR/t of milk (nominal)Pomorze and

MazuryWielkopolska and

SlaskMazowsze and

PodlasieMalopolska and

Pogorze Poland

RevenuesPrice 200 213 208 203 207EU coupled payments (incl. Art.69) 0 0 0 0 0National aids 0 0 0 0 0Total revenues from milk 200 213 208 203 207Production costs Feed 58 78 67 67 68

homegrown feed 36 40 41 50 41purchased feed 22 39 25 17 27

Herd renewal purchases 1 2 3 2 2Milk levy 0 0 0 0 0Other specific costs 11 13 10 11 11Specific costs 70 93 79 80 80Machinery and building upkeep 13 11 13 15 13Energy (fuel, electricity) 20 20 18 23 19Contract work 7 8 6 5 6Taxes 0 0 0 0 0Other direct inputs 10 10 7 11 8Non specific costs 50 50 44 54 47Total operating costs 120 143 123 135 127Gross margin 80 71 85 69 80Gross margin with coupled payments 80 71 85 69 80



Depreciation 36 33 42 49 40Wages 8 13 1 3 5Rent 2 3 2 2 2Interest 4 3 3 3 3External factors 13 19 7 8 10Net margin 31 18 36 11 30Net margin with coupled payments 31 18 36 11 30

Family labour costs 78 51 71 115 71Own capital unpaid cost 15 17 23 23 20Imputed family factors 93 68 93 138 91Net economic margin -61 -49 -57 -127 -61Net economic margin with coupled payments -61 -49 -57 -127 -61

%spe.farms with positive net economic margin 7% 12% 11% 4% 10%

%milk production with positive net economic margin 23% 29% 29% 16% 27%



Poland 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)

Pomorze and Mazury

Wielkopolska and Slask

Mazowsze and Podlasie

Malopolska and Pogorze Poland

Total output 16 017 20 583 11 967 7 126 13 041Intermediate consumptions 10 194 14 538 7 663 4 897 8 564Balance subsidies and taxes 3 890 3 711 2 751 2 158 2 941

Decoupled payments 1 974 1 772 1 283 932 1 387Depreciation 2 773 3 074 2 346 1 645 2 415Farm Net Value Added (FNVA) 6 939 6 682 4 709 2 741 5 003

External factors 996 1 896 379 259 638Wages 575 1 380 64 86 300

Rent 128 259 137 76 146Interest 294 257 178 96 193

Balance invest. subs. and taxes -104 53 -2 71 3Farm net income (FNI) 5 839 4 839 4 328 2 553 4 368

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 1 241 1 882 1 287 762 1 292Remuneration of Family Labour (RFL) 5 254 4 597 3 113 1 816 3 357

%spe.farms with positive RFL 89% 84% 79% 76% 80%


8071

8569 80

0

50

100

150

200

250

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Pomorze and Mazury Wielkopolska andSlask

Mazowsze andPodlasie

Malopolska andPogorze

Poland

EUR/t

Non specific costsOther specific costsFeedNational aidsEU coupled payments (incl. Art.69)PriceGross margin with coupled payments


200213 208 203 207

169195

172192 177

31

18

36

11

30

0

50

100

150

200

250




Poland

EUR/t

0

5

10

15

20

25

30

35

40





Poland 2009 Milk specialised farms


200213 208 203 207

261 263 265

330

268

-61

-49-57

-127

-61

0

50

100

150

200

250

300

350




Poland

EUR/t

-140

-120

-100

-80

-60

-40

-20

0



36 33 42 49 40

7851 71

115

71

15

1723

23

20

0

50

100

150

200

250




Poland



0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000




Poland

EUR/WU

-150

-100

-50

0

50

100EUR/t of milk





EU Dairy farms report 2012 Annex II BG RG

Bulgaria 2009 Milk specialised farms


Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria

Sample farms 43 40 17 24 29 41 194Farms represented 2 420 1 734 1 731 716 1 690 3 959 12 249% production from specialised farms 81% 92% 77% 95% 97% 92% 90%Forage area - ha 13 13 3 13 12 4 8Dairy cows - LU 10 12 8 17 28 7 12Rented UAA - % 80% 90% 66% 81% 89% 68% 81%Total labour - AWU 1,94 1,82 2,08 3,91 3,19 1,59 2,12Family labour - % 69% 72% 79% 30% 39% 84% 64%Milk per ha fodder area - t/ha 2,5 3,6 6,1 2,5 4,9 5,1 3,8Milk yield - kg/cow 3 220 4 008 3 501 3 004 3 572 4 461 3 696Milk production - t 34 50 28 52 100 33 45




homegrown feed 26 31 27 13 26 19 24purchased feed 64 56 135 96 113 75 89

Herd renewal purchases 0 0 0 1 0 0 0Milk levy 0 0 0 0 0 0 0Other specific costs 11 7 12 9 11 9 10Specific costs 101 94 174 118 150 104 123Machinery and building upkeep 15 6 2 13 5 6 7Energy (fuel, electricity) 22 21 18 33 23 10 20Contract work 14 14 10 8 5 10 10Taxes 0 0 0 4 0 1 0Other direct inputs 11 44 27 13 19 16 21Non specific costs 63 85 57 71 52 43 58Total operating costs 164 179 232 189 202 146 181Gross margin 36 21 -7 120 71 61 52Gross margin with coupled payments 36 28 -3 127 85 68 60

%spe.farms with positive gross margin 66% 26% - 99% 100% 99% 74%

%milk production with positive gross margin 75% 57% - 95% 100% 97% 85%

Depreciation 13 13 18 32 11 16 15Wages 31 21 17 64 34 12 27Rent 7 12 4 10 6 3 6Interest 1 5 1 23 7 3 5External factors 39 39 22 97 47 18 39Net margin -17 -30 -47 -9 13 27 -2Net margin with coupled payments -17 -23 -43 -2 27 35 6


%spe.farms with positive net economic margin - - - - - 9% 11%

%milk production with positive net economic margin - - - - - 21% 23%



Bulgaria 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)


Total output 5 693 8 725 4 582 6 371 11 384 6 468 7 343Intermediate consumptions 4 496 7 938 4 423 4 029 8 246 4 423 5 609Balance subsidies and taxes 1 013 2 371 744 981 1 588 776 1 198

Decoupled payments 597 699 207 196 302 318 382Depreciation 333 442 332 601 454 491 438Farm Net Value Added (FNVA) 1 877 2 715 571 2 722 4 272 2 330 2 493

External factors 1 007 1 388 435 1 809 1 846 531 1 118Wages 785 775 337 1 224 1 318 350 773

Rent 189 428 84 183 251 88 191Interest 34 184 14 402 277 94 154

Balance invest. subs. and taxes 0 0 0 0 278 0 58Farm net income (FNI) 870 1 327 135 913 2 704 1 798 1 433

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 661 503 432 1 345 1 168 543 663Remuneration of Family Labour (RFL) 741 652 -261 537 2 493 1 325 954

%spe.farms with positive RFL 66% 21% - 92% 59% 60% 54%


3628

-3

127

85 68 60

-50

0

50

100

150

200

250

300

350

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts


EUR/t



200 207229

316287

215241

217 231272

318260

180235

-17-23

-43

-2

27

35

6

0

50

100

150

200

250

300

350


EUR/t

-50

-40

-30

-20

-10

0

10

20

30

40





Bulgaria 2009 Milk specialised farms


200 207229

316287

215241

306 292

418

368

292

254

301

-105

-85

-189

-52

-6

-39

-60

0

50

100

150

200

250

300

350

400

450


EUR/t

-200

-180

-160

-140

-120

-100

-80

-60

-40

-20

0



13 13 1832

11 16 15

7051

128

30

21 58

52

18

10

1821

1115

14

0

20

40

60

80

100

120

140

160

180

200




-500

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500


EUR/WU

-250

-200

-150

-100

-50

0

50

100

150EUR/t of milk





EU Dairy farms report 2012 Annex II RO RG

Romania 2009 Milk specialised farms


Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Bucarest Romania

Sample farms 43 43 53 29 - 64 67 - 319Farms represented 16 486 13 306 19 202 15 758 - 21 318 12 553 - 107 326% production from specialised farms 52% 69% 63% 68% - 47% 68% - 61%Forage area - ha 2 1 1 1 - 3 15 - 3Dairy cows - LU 5 7 5 4 - 6 12 - 6Rented UAA - % 7% 6% 19% 0% - 22% 61% - 32%Total labour - AWU 1,74 1,84 1,40 1,60 - 1,88 2,20 - 1,76Family labour - % 97% 96% 91% 93% - 91% 66% - 89%Milk per ha fodder area - t/ha 7,3 8,1 12,7 5,0 - 5,5 3,5 - 5,0Milk yield - kg/cow 3 170 3 991 4 089 3 174 - 3 838 4 580 - 3 917Milk production - t 17 29 20 12 - 23 56 - 25



RevenuesPrice 315 234 268 281 - 259 263 - 282EU coupled payments (incl. Art.69) 0 0 0 0 - 0 0 - 0National aids 38 5 1 0 - 24 1 - 9Total revenues from milk 353 239 269 281 - 283 264 - 292Production costs Feed 51 62 54 50 - 51 60 - 57

homegrown feed 24 7 17 32 - 27 35 - 25puchased feed 28 54 37 18 - 24 25 - 32

Herd renewal purchases 1 0 2 0 - 1 8 - 4Milk levy 0 0 0 0 - 0 0 - 0Other specific costs 8 13 7 6 - 17 37 - 19Specific costs 60 75 63 56 - 69 105 - 80Machinery and building upkeep 7 14 12 5 - 11 15 - 11Energy (fuel, electricity) 15 10 16 17 - 17 31 - 19Contract work 12 5 10 19 - 7 8 - 10Taxes 0 0 1 1 - 1 1 - 1Other direct inputs 4 5 6 4 - 7 8 - 6Non specific costs 39 34 45 46 - 42 63 - 47Total operating costs 99 109 108 102 - 112 168 - 127Gross margin 216 126 161 179 - 147 95 - 156Gross margin with coupled payments 254 131 161 179 - 171 96 - 165

%spe.farms with positive gross margin 100% 100% 93% 96% - 100% 88% - 97%

%milk production with positive gross margin 100% 99% 95% 98% - 92% 83% - 93%

Depreciation 41 23 50 66 - 24 18 - 32Wages 8 7 18 33 - 9 37 - 19Rent 2 0 3 0 - 3 6 - 3Interest 1 0 1 0 - 2 4 - 2External factors 11 7 21 34 - 14 47 - 24Net margin 164 96 90 80 - 110 31 - 99

Net margin with coupled payments 202 101 91 80 - 133 32 - 108

Family labour costs 134 167 157 190 - 99 51 - 120Own capital unpaid cost 47 26 53 25 - 31 26 - 35Imputed family factors 180 193 210 215 - 129 77 - 155Net economic margin -16 -97 -120 -135 - -20 -46 - -56Net economic margin with coupled payments 21 -92 -119 -135 - 4 -45 - -47

%spe.farms with positive net economic margin 29% 16% 16% - - 36% 29% - 26%

%milk production with positive net economic margin 51% 41% 24% - - 59% 45% - 45%



Romania 2009 Milk specialised farmsINCOME in EUR/AWU (nominal)


Total output 4 991 4 938 6 376 3 845 - 5 416 11 961 - 6 501Intermediate consumptions 2 021 2 547 3 135 1 829 - 2 701 7 713 - 3 325Balance subsidies and taxes 705 814 414 314 - 841 1 139 - 738

Decoupled payments 204 72 198 145 - 222 667 - 254Depreciation 624 454 1 080 850 - 440 682 - 694Farm Net Value Added (FNVA) 3 051 2 750 2 575 1 480 - 3 116 4 705 - 3 221

External factors 136 148 456 411 - 252 1 712 - 497Wages 92 144 384 408 - 167 1 339 - 392

Rent 31 4 59 0 - 47 238 - 63Interest 13 0 13 3 - 38 135 - 41

Balance invest. subs. and taxes 0 0 0 0 - 0 0 - 0Farm net income (FNI) 2 915 2 602 2 119 1 070 - 2 864 2 993 - 2 725

Family farms only in EUR/FWU (nominal)Own capital unpaid cost 729 553 1 300 345 - 633 1 562 - 840Remuneration of Family Labour (RFL) 2 054 2 167 1 576 805 - 2 466 2 850 - 2 115

%spe.farms with positive RFL 77% 73% 83% 58% - 91% 81% - 79%


254

131

161179 171

96

165

0

50

100

150

200

250

300

350

400

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts

Rev

enue

s

Ope

ratin

gco

sts


EUR/t Price EU coupled payments (incl. Art.69) National aids Feed Other specific costs Non specific costs Gross margin with coupled payments


353

239269 281

0

283264

0

292

151 138178 201

#N/A

150

232

#N/A

184

202

10191

80

133

32

108

0

50

100

150

200

250

300

350

400


EUR/t

0

50

100

150

200

250

Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments



Romania 2009 Milk specialised farms


353

239269 281

#N/A

283264

#N/A

292

331 331

388416

#N/A

279309

#N/A

338

21

-92

-119

-135

4

-45 -47

0

50

100

150

200

250

300

350

400

450


EUR/t

-160

-140

-120

-100

-80

-60

-40

-20

0

20

40



41 2350 66

024 18 0

32

134 167

157

190

0

99 51

0

120

47 26

53

25

0

3126

0

35

0

50

100

150

200

250

300

350

Nord Est Sud Est Sud Muntenia Sud Vest Oltenia Vest Nord Vest Centru Bucarest Romania



0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000


EUR/WU

-200

-150

-100

-50

0

50

100

150

200

250

300EUR/t of milk





European Commission

EU dairy farms – Report 2012based on FADN

Disclaimer:This publication does not necessarily reflect the official opinion of the European Union. Neither the European Union institutions 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,Microeconomic analysis of EU agricultural holdingsE-mail: [email protected]: http://ec.europa.eu/agriculture/rica/index.cfm

This report provides an overview of the EU dairy farms based on the latest data available from the Farm Accountancy Data Network (FADN). It analyses the trend in income, costs of production and milk margin until 2009 and provides estimates of the gross margin until 2011. .

European CommissionDirectorate-General for Agriculture and Rural Development

http://ec.europa.eu/agriculture

EU dairy farms report 2012 - European...

Documents

Transcript of EU dairy farms report 2012 - European...