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Agriculture and Rural Development
EU DAIRY FARMS REPORT BASED ON 2016 FADN DATA
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Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË — Tel. +3222991111
EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT Directorate C. Strategy, Simplification and Policy Analysis C.3. Farm economics
Brussels, November 2018
EU DAIRY FARMS REPORT BASED ON 2016 FADN DATA
Executive summary
This annual report provides an economic overview of EU milk specialised farms1 based on
the latest available data from the farm accountancy data network (FADN) for 2016.
It provides trends in milk margin per tonne and in income per annual work unit from 20072
to 2016, together with estimates of gross milk margins3 for 2017. The sample of milk
specialized farms in 2016 represented 85 % of dairy cows and 90 % of EU-28 milk
production.
Over the period 2007-2016, in terms of milk margins, dairy farms experienced 3 crises.
The first one in 2009 when the milk price dropped by 17 % year on year and margins
declined from 139 EUR/t of milk in 2007 to barely 89 EUR/t two years later. This was
followed by an improvement in 2010 and 2011 with margins reaching peak of 134 EUR/t.
The second crisis came in 2012 due to price decrease and costs increase. Consequently,
margins dropped but not to the level from 2009. By contrast, 2013 and 2014 were beneficial
years with raw milk prices going up to 383 EUR/t and margin of 130 EUR/t in both years.
After this rise, the third crisis started in 2015 and lasted until third quarter of 2016. Raw
milk prices went down and, as a result, margins too.
Source: EU FADN — DG AGRI, Model of the allocation of milk costs
1 The report concerns not only farms classified as 'milk' by typology i.e. TF 45 Specialist dairying, but also some farms belonging to TF 47
Cattle dairying, rearing and fattening combined, TF 73 Mixed livestock, mainly dairying and TF 83 Field crops – grazing livestock
combined, where milk production is significant. For details on farms selection for this report please see Annex 1, Methodology 1. 2 2013 for Croatia.
3 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.
EU Dairy farms report based on 2016 FADN data
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The impact of the most recent 2015-2016 crisis was different in respective EU groups of
countries. The margins of 13 MS which joined the EU during and after 2004 enlargement,
and which until 2014 were regularly below the EU average, were affected less severely.
Between 2014 and 2016 their margins fell by 23 % in this group. More pronounced decrease
experienced farms from EU-15 group where margins, in only 2 years period, fell by 40 %.
All in all, 2016 year saw the milk margins of 83 EUR/t which happened for the first time
since 2009 year. After 2014 milk price rise, in the following 2 years both, dairy cows herd
and milk production increased. This additionally coincided with decline in global import
demand (in particular from Russia and China) and had adverse impact on EU margin. The
proportion of specialized milk farms in EU-28 with a positive milk margin fell from 95 % to
90 % between 2014 and 2016.
The situation on global market changed again in 2017 due to decline in milk collection and
growing demand for dairy fats (notably butter) and cheese. As a consequence, milk
producers saw an increase in raw milk prices, leading to a significant improvement in
margins as well. According to the estimate, in 2017 margins went up to 137 EUR/t of milk,
which was higher level than in 2013-2014 years and similar to 2007.
The trend was similar in all the Member States even if levels of gross margin were
significantly different. However, the gap among Member States is large as it is displayed in
Annex II figures, with gross margin with coupled payments in 2016 ranging from 21 EUR/t
in Hungary to 178 EUR/t in Romania.
After continuous increase of input costs between 2009-2014, from 2015 onwards the
downward trend was observed. In 2015 the total operating costs for milk production
decreased by 8 % year on year, and in 2016 went down by another 2 % relative to previous
year. In 2017 input costs were expected to drop by another 3 % compared to 2016. It was
caused by decline in specific costs while overheads costs were little changed.
Source: EU FADN — DG AGRI, ESTAT (HICP index).
EU Dairy farms report based on 2016 FADN data
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The changing trend in milk margins from one year to another had also an impact on dairy
income, which followed similar path. In terms of farm net value added by annual work
unit (FNVA/AWU), 2013 and 2014 were positive with EU-28 dairy farms obtaining a
higher average FNVA/AWU than in 2007 (base year) in both, nominal and real terms. In the
following two years, 2015 and 2016 incomes deteriorated and in real terms were at the same
level (in 2015) or slightly higher (in 2016) than in 2007.
Overall, dairy specialized farms provided higher incomes per annual work unit than an
average EU-28 farm, however they were not in the top 3 best performing types of farming
in 2016. The FNVA/AWU in 2016 in the average farm was 19 511 EUR/AWU, whereas
specialized milk farms reached 20 506 EUR/AWU (after horticulture, wine and granivores
types of farms).
Income levels varied among the Member States. This can be explained by differences in
productivity, farm size, herd size and milk production levels. In terms in FNVA per labour
unit the gap is still large. Milk margin does not always correlate with income. Some
Member States with large margin were not those with high income. In Romania, even
though margin per tonne of milk was the highest in EU-28, the income was the smallest
(3 571 EUR/AWU) due to very small herd (only 4 LU of dairy cows on average) and milk
yield only 3 227 kg/cow. Similarly in Bulgaria, in spite of decent margin at 105 EUR/t
(26 % higher than EU average), income was barely 4 295 EUR/AWU, due to small milk
yield (2 877 kg/cow) and moderate herd size (14 LU of dairy cows). On the other side, the
highest income was in Denmark 64 330 EUR/AWU, even though margin was below the
average (63 EUR/t, which was 24 % less than EU-28 average). Denmark achieved the
highest milk yield of 9 504 kg/cow with very big dairy herd (160 LU of dairy cows) which
let it profit from economy of scale.
In 2017, due to positive trend in prices and costs decrease, it is expected that income would
increase in milk specialized farms compared to two preceding years.
Source: EU FADN — DG AGRI, Model of the allocation of milk costs
Whereas margins and income fluctuated over the analysed period of time, the direct
payments and subsidies played a crucial role in income remaining its stable component,
especially from 2009 onwards. In EU-N13 Member States direct payments were gradually
phased in which also affected positively income trends. In 2009 subsidies accounted for
EU Dairy farms report based on 2016 FADN data
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more than half of income (56 %) and their share fell below 40 % only in recovery 2013 and
2014 years (39 % and 37 % respectively). Importance of subsidies rose again in crisis years
2015 (46 %) and in 2016 (49 %).
Introduction of voluntary coupled support (VCS) in 2015 affected positively revenues
from milk4. In 2007-2009 coupled support was on average 2 EUR/t of milk, rose to 4 EUR/t
until 2014 and from 2015 remained unchanged at 7 EUR/t. However, the level of support is
significantly different by Member State. The highest coupled milk payments were received
in Finland (80 EUR/t of milk), followed by Croatia (52 EUR/t) and Lithuania (43 EUR/t).
Several MS (Denmark, Germany, Ireland, Luxembourg, the Netherlands and the United
Kingdom) did not support milk sector by VCS at all
EU average results conceal a wide range of situations at national and regional levels, as
illustrated further in the report.
4 In the model for cost of milk production coupled payments i.e. those linked to actual year's production, both, national and EU financed are
considered part of milk revenues
EU Dairy farms report based on 2016 FADN data
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Table of contents
Contents
1. INTRODUCTION ....................................................................................................... 9
2. DAIRY FARMS IN THE EU ..................................................................................... 9
3. ANALYSIS OF MILK MARGINS .......................................................................... 11
3.1. Introduction ..................................................................................................... 12
3.2. Distribution of gross margin ........................................................................... 15
3.3. National level .................................................................................................. 15
3.3.1. EU-15 Member States ....................................................................... 17
3.3.1. EU-N13 Member States .................................................................... 20
3.4. Regional level .................................................................................................. 23
4. INCOME ANALYSIS .............................................................................................. 24
4.1. Introduction ..................................................................................................... 25
4.2. Distribution of FNVA/AWU ........................................................................... 28
4.3. National level .................................................................................................. 28
4.3.1. EU-15 Member States ....................................................................... 30
4.3.1. EU-N13 Member States .................................................................... 31
4.4. Regional level .................................................................................................. 35
5. ANNEXES ................................................................................................................ 36
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Box 1: The Farm Accountancy Data Network (FADN)
The FADN5 is a European system of sample survey that is carried out each year to 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 that only the most relevant part of the agricultural activity in each EU Member State is
covered, i.e. at least 90 % of the standard output and 90 % of Utilised Agricultural Area
covered in the Farm Structure Survey (FSS, Eurostat). For 2015 and 2016, the FADN sample
consists of over 80 000 holdings in the EU-28, which represent almost 5 million farms out of a
total of some 10 million farms included in the FSS.
The survey provides representative data by: region, economic size and type of farming
activity.
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.
At the time of this report's publication, the most recent FADN data available were for 2016
accounting year6. These data were fully validated by the MS and by the European
Commission. The two years gap between most recent data and the presence stems from the
amount of time needed to collect, check and correct the accountancy data from all EU
Member States after closing the financial years in question.
There was a significant change in the FADN methodology entered into force in 2010 where
the revised EU-typology of farms (replacing standard gross margin by the standard output7)
was integrated into the FADN database. This report is the third edition of the dairy farms
report based on the ‘standard output’ database.
Another significant change in the FADN farm return (questionnaire for the collection of
FADN data) took place in accounting year 2014. This report is the first edition of the dairy
farms report based on the new farm return structure, which, as a consequence, had to create
certain variables and discontinue some others as well as adapt IT tools for analytical purposes.
As a disclaimer, you may see some differences in absolute values with previous editions of
this report. Therefore we invite you to focus on the trends as we have chosen to display data
before and after 2013 to gain a better insight into the time series.
5 For more information on FADN: http://ec.europa.eu/agriculture/rica/index.cfm .
6 In principle, 2016 FADN data cover for all Member States accounting data from 1st January 2016 to 31st December 2016. For Germany
it covers from 1st July 2016 to 30th June 2017. 7 See the FADN website for more information.
EU Dairy farms report based on 2016 FADN data
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1. INTRODUCTION
This report provides an economic overview of EU dairy farms based on the latest available
FADN data, for 2016. Cost of production and gross margins for 2017 are also estimated. The
main feature of the period covering 2007-2016 was the high level of volatility in agricultural
production in general, and in the dairy sector in particular, with both milk prices and input
prices being affected. After the 2009 crisis, producer prices recovered in 2010 and 2011,
dropped again in 2012 and rose in 2013-2014 above 2011 level. Raw milk prices fell again in
years 2015 and 2016 and recovered again from 2017.
This report also provides an analysis of the economic situation of EU dairy farms. Chapter 2
describes the sample of dairy farms on which the results presented in this report are based.
Chapter 3 provides an analysis of milk margin at EU and Member State level. Chapter 4 is
dedicated to income analysis at EU and national level. Detailed data for the EU, by Member
State and region are provided in Annex II, together with explanations on the methodology
(Annex I).
2. DAIRY FARMS IN THE EU
This study is based on farms mainly oriented towards milk production.8 Following changes in
the farm typology from accounting year 2010 onwards, this sample of dairy farms increased
substantially, particularly in Member States that joined the EU in 2004, 2007 and 20139. It
now includes to some extent10
farms which were not well covered previously, in particular
large farms in Slovakia and the Czech Republic that diversify their activities to a large extent.
Therefore, the coverage of the sector has therefore improved. In the FADN 2016, the sample
is made up of 14 718 farms, representing 595 383 farms in the EU-28.
The share of the milk production covered by dairy farms in the FADN is 90 % in the EU-28
with notable differences in coverage among Member States. There is a significant diversity of
dairy farms across the EU (Table 1). There are some Member States where dairy cows
achieve higher average yields compared to the EU average (7 021 kg/cow).
In terms of competitiveness, as it was said before, the 'dairy belt' countries (Germany, France,
Ireland, United Kingdom, the Netherlands and Denmark) in many aspects rate above the EU
average.
For example, in 2016 in terms of average yields most of these countries11
had higher average
yields (9 504 kg/cow for Denmark was the highest, followed by 8 222 kg/cow for the
Netherlands, 7 574 kg/cow for Germany, 7 152 kg/cow for United Kingdom and 6 963kg/cow
for France) than the EU average (7 021 kg/cow). ). However, very high milk yields were
recorded also in Finland and Sweden (respectively 9 063 and 9 039 kg/cow).
8 See Annex I.
9 Cyprus, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovakia and Slovenia joined the Union in 2004; Bulgaria
and Romania in 2007 and Croatia in 2013. 10
Provided that milk production is significant enough in the individual structure and actual output of the holdings. 11
5 637 kg/cow for Ireland is below the EU average but is still rated quite well compared to other Member States
EU Dairy farms report based on 2016 FADN data
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These data reflect the diversity of dairy farm structures in the EU-28, which are linked to the
differences in natural potential and also in the social, economic and regulatory context. In
some Member States, farms are much bigger on average. In terms of hectares of forage area,
farms in Slovakia and the Czech Republic have the biggest farms (with 672 and 265 ha in
average respectively). In terms of number of livestock units (LU), also Slovakia (with 215
LU) and Denmark (160 LU) followed by the Czech Republic (154 LU) and the United
Kingdom (130 LU) are those that have the highest number of dairy cows, well above the EU
average being established at 33 livestock units per farm on average.
By contrast, there are some Member States where farms are much smaller in size and yields
are well below the EU average. Lower yields are found in Bulgaria (with 2 877 kg/cow) and
in Romania (with 3 227 kg/cow) and in these Member States we also find smaller structures
(e.g. the average number of livestock units equals 4 in Romania and 14 in Bulgaria, with
average forage areas of 2 hectares in Romania and 7 hectares in Bulgaria).
Table 1: Structural information on dairy farms by Member State
Source: EU FADN, Eurostat production statistics, treatment by DG AGRI. '.': data are not displayed, fewer than 15 farms in
the sample.
FADN 2016Dairy cow s -
LU
Forage area
- ha
Total labour -
AWU
Share of
family
labour - %
Milk yield -
kg/cow
Milk
production
/farm - tons
Milk price -
€/ton
Share of milk
production -
%
Belgium 70 50 1.84 97% 7482 523 282 87%
Bulgaria 14 7 1.95 74% 2877 40 290 85%
Cyprus . . . . . . . .
The Czech Republic 154 265 15.71 9% 7699 1188 258 50%
Denmark 160 113 2.85 42% 9504 1524 323 93%
Germany 66 57 2.10 69% 7574 502 276 92%
Greece . . . . . . . .
Spain 59 25 1.93 77% 7684 451 302 95%
Estonia 99 174 5.40 16% 8981 887 233 94%
France 59 75 1.93 87% 6963 412 316 95%
Croatia 13 12 2.06 90% 4667 62 304 81%
Hungary 41 38 3.21 29% 7087 289 262 68%
Ireland 73 62 1.61 87% 5637 412 265 99%
Italy 50 26 1.80 84% 7101 357 422 93%
Lithuania 11 23 1.73 85% 5840 66 214 84%
Luxembourg 66 80 1.82 88% 7587 504 279 94%
Latvia 18 40 2.06 64% 6453 114 214 92%
Malta 60 4 2.29 81% 6916 414 448 100%
The Netherlands 90 50 1.70 90% 8222 742 333 97%
Austria 18 24 1.80 98% 6912 127 325 88%
Poland 18 15 1.87 96% 5741 104 245 80%
Portugal 32 17 1.71 79% 7651 247 261 91%
Romania 4 2 0.97 98% 3227 12 310 47%
Finland 35 43 2.05 85% 9063 316 367 97%
Sw eden 84 112 2.61 68% 9039 762 324 98%
Slovakia 215 672 27.04 2% 7150 1536 267 45%
Slovenia 19 16 1.80 100% 5595 105 258 90%
The United Kingdom 130 109 2.69 61% 7152 933 285 96%
EU 33 30 1.69 83% 7021 233 302 90%
Specialised milk farms
EU Dairy farms report based on 2016 FADN data
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3. ANALYSIS OF MILK MARGINS
This chapter highlights the main results for revenue, costs and margins of dairy activity. They
relate exclusively to the production of milk and milk products, without taking into account the
by-products (calves and cull dairy cows). They are expressed in terms of current euros per
tonne (EUR/t) of milk produced. The tables in Annex II show the detailed results for the EU,
by Member State and region.
Three different margin indicators are studied.12
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 and interest paid). The net economic margin assess 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 2 and detailed in Annex I.
Box 2: 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 related to the farm as a whole. Hence, the
direct contribution of each enterprise to the farm income is not available, which means that
the costs of production per 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 the cost of production and margins
for milk, 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 make it possible to compare 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 2017 are estimated on
the basis of milk prices, milk yield indices and input price indices. It is assumed that farm
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).
12 For a detailed definition of the margins and costs presented, please refer to the milk model description in Annex I.
EU Dairy farms report based on 2016 FADN data
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3.1. Introduction
Following the milk crisis of 2009, the period 2010-2013 was a recovery in the majority of
EU Member States. At EU level, 2014 even saw raw milk prices reaching a peak
(383 EUR/t (euros per tonne) on average) for the period 2007-2017. However, operating
costs per tonne did increase in parallel. All in all, margins recovered compared to 2009. By
contrast, dairy margins declined in years 2015 and 2016 following the declining trend in
milk prices. However, this trend did not last long as the situation started to improve in 2017,
due to the decline in milk collection and the growing demand for dairy fats and cheese.
At EU-28 level, the operating costs for milk production consist mainly of:
Feed costs (around 50 % of operating costs, 70 % of which are for purchased feed and
30 % for home grown feed), and
Energy, machinery and building upkeep, and contract work, each representing about
10% of operating costs.
Since the decoupling of direct support, revenues from milk13
have depended mostly on the
price and the quantity produced.14
In the short term, gross margin is therefore mainly
influenced by the raw milk price and feed costs.
Between 2007 and 2009, the average price for milk fell by 17 % while operating costs per
tonne remained stable. As a consequence, the average milk gross margin with coupled
payments fell to 89 EUR/t (Figure 3). Raw milk prices subsequently recovered, reaching their
highest level in 8 years in 2014. This more than compensated for the continuous increase in
operating costs, which also hit their highest point in December 2013. As a result, there was a
recovery in the gross margin, which reached 134 EUR/t with coupled payments in 2014.
However, in 2015 and particularly in 2016 margins went down, following the trend of dairy
prices, reaching record low level 83 EUR/t for the first time since 2009 year. They recovered
again in 2017 reaching similar levels to the period 2013-2014 (above 130 EUR/t).
The average net margin (gross margin minus depreciation and external factors, both of which
remained mostly unchanged) had the same trend. After a sharp decrease between 2007 and
2009, it recovered in 2010 and in 2014 reached 42 EUR/t with coupled payments. It went
down again in 2015 and 2016, although there were better prospects for the following year.
After deducting the estimated opportunity costs for family labour and capital, the net
economic margin was obtained, and also recovered between 2010-2014 to -46 EUR/t in 2014
with coupled payments (the highest figure was -35 EUR/t in 2011). Not only did it benefit
from the positive trend in other margins, but the opportunity costs for own capital were lower
as compared with 2009 following a decrease in the real interest rate15
, with the imputed
family labour costs remaining more or less stable. A negative net economic margin means
that, on average, farmers do not obtain what could be considered a sufficient wage for their
own labour and capital for the activity in question.16
Following relatively good results in
13 The decoupling also means that the link between milk margins and income of dairy producers is somewhat less obvious than in the
past. 14
Since the margins are presented per tonne of milk, the impact of the quantity produced is mostly visible in the income indicators. 15
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. It should be noted that opportunity costs for family labour and own
capital are only estimates, however, and should be interpreted with caution. 16
It is worth mentioning that the margins presented in this section relate exclusively to the production of milk. The ‘by-products’ (calves
and cull dairy cows) are not taken into consideration although they are accounted for in the income part.
EU Dairy farms report based on 2016 FADN data
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2014, the net economic margin deteriorated in the years 2015 and 2016 and is expected to
recover again after 2017. In 2016, it is estimated that 9 % of the EU-28 dairy farms achieved a
positive net economic margin, representing 15 % of the milk production of EU dairy farms.
In 2015 and 2016, the level of imputed costs for family factors (family labour and own
capital) went slightly down. Over this period, opportunity costs for family labour per tonne
also followed a downward trend, together with the share of family labour in the labour force,
while apparent labour productivity (milk production per AWU) has increased continually
since 2007 (Figure 1), which offsets the gain in imputed wage for family labour (Figure 2)17
.
As a result, net economic margin with coupled payments, although negative (-67 and -80
EUR/t in 2015 and in 2016 respectively), was still higher than in 2009 (-89 EUR/t).
Figure 1: Apparent labour productivity
Figure 2: Imputed wage for family labour
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
17 The increase in labour productivity decreases the cost of labour per tonne of milk, but increases the income of family workers.
Commission européenne/EuropeseCommissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË — Tel. +3222991111
Figure 3: Trend in cost of milk production and margins, EU-28
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk
EU Dairy farms report based on 2016 FADN data
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3.2. Distribution of gross margin
The results displayed until now are averages. In order to provide a better understanding, the
figure below shows the trend in the distribution of gross margin with coupled payments in the
EU-28. The average (mean) and the median are quite close, and the distribution is close to a
normal distribution. The inter-quartile range (Q3 – Q1) for the period 2007-2016 is between
approximately 46 EUR/t and 72 EUR/t in the last year. This gap has been fluctuating in the
analysed period with evident drops in recovery years for milk margins and increases in the
years when milk margins went down. The gap between the 5 % top-performing farms (PC95)
and the 5 % least-performing ones (PC5) shows similar trends, probably as a result of the
price volatility in the recent years and how this impacted on the subsequent performance of
the farms.
Figure 4: Trend in the weighted distribution of gross margin – EU-28
Source:EU FADN – DG AGRI
3.3. National level
This section focuses on the individual Member State performances between 2007 and 2016
based on trends in costs and margins provided in Annex II. Indeed, as seen in the previous
section, the EU averages conceal big differences between farms. Some are national (country-
specific), while others are regional (within individual Member States). See Annex II for a
better insight of regional data within the different EU Member States.
It is worth mentioning that in some countries (e.g. Romania), which have high average gross
margins (displayed with the +), the median gross margin is lower; this means that well over
the half of farms does not reach the average gross margin. By contrast, in other Member
States such as Croatia, we observe that the average is lower than the median meaning that in
this case over half of farms reach the average gross margin.
EU Dairy farms report based on 2016 FADN data
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In terms of Member States' competitiveness, the graph below shows that the most
competitive Member States in the dairy sector belong to the EU-15 group and are Belgium,
Denmark, Luxembourg, Ireland and the United Kingdom. These Member States not only have
a gross margin with coupled payments per tonne of milk close to or exceeding EU average,
but also have the smallest inter-quartile ranges, less than 60 EUR/tonne of milk. It shows that
differences between the agricultural holdings are not as big as in other, less competitive
Member States.
Figure 5: Weighted boxplot of gross margin with coupled payments per Member State
— 2016
Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The
mean is a global ratio. CYP and ELL data are not displayed for confidentiality reasons (minimum number of farms should be
15).
EU Dairy farms report based on 2016 FADN data
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Figure 6: Weighted boxplot of gross margin with coupled payments per Economic Size
Class (ESC) for EU-28 — 2016
Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The
mean is a global ratio.
If we consider all the Member States together, at the EU-28 level, in terms of
competitiveness of the different economic size classes (ESC), we can see that in 2016 the
first classes had the highest average gross margins compared to the economic size classes that
fall in the middle. The results of the first ESC (ESC1) are strongly related to the situation in
Romania, where gross margins with coupled payments were 178 EUR/t in 2016, well above
the EU average of 83 EUR/t, due to the special feature of its structures leading to very
competitive costs. However, the first classes (small farms) also had bigger differences among
holdings than the last classes (bigger farms), because the inter-quartile range showing the
differences between the highest and the lowest average gross margins was much larger (155
EUR/t).
The lowest results in terms of average are found in ESC6 where it almost overlapped with
median and in addition inter-quartile range was the smallest among analysed groups
(69 EUR/tonne). Both, median and mean showed downward tendency from the smallest
economic size group to the largest.
3.3.1. EU-15 Member States
The margins for Italy (176 EUR/t) were the highest in 2016 among EU-15, and this was due
to its high value added products generating high prices combined with limited costs per tonne
EU Dairy farms report based on 2016 FADN data
18
of milk. It was followed by Ireland (97 EUR/t), which had experienced a good recovery since
the 2009 crisis, and as in the case of Italy, it had low average operating costs, and Belgium
(also 97 EUR/t) where prices went down in 2015 and 2016 but were offset by operating costs
also going down in this period, especially farming overheads which were one of the lowest in
this group of countries.
Austria (94 EUR/t) recorded moderate drop of margin in 2016 where price decline was
followed by costs. In spite of the highest costs of production (355 EUR/t) with prevailing
share of farming overheads, Finland recorded margin at 91 EUR/t mainly due to higher than
in most of other MS milk price and the highest coupled payments, especially voluntary
coupled support which in 2015-2016 were at the level of above 80 EUR/t of milk.
France (87 EUR/t), the Netherlands (81 EUR/t) also recorded the decrease of gross margins
in 2015 and 2016 compared to two previous years, but they still performed well as they
succeeded to sustain operating costs.
Sweden (81 EUR/t), Spain (77 EUR/t) and Denmark (63 EUR/t) were the only MS in EU-15
to record increase in margin from 2015 to 2016 despite milk price going down. Sweden and
Spain continued to increase coupled payments and decrease operating costs, particularly
purchased feed. Denmark, however, noted decline of operating costs, in particular home-
grown feed.
By contrast, in the United Kingdom (69 EUR/t), Luxembourg (67 EUR/t) Portugal (55
EUR/t) and Germany (50 EUR/t) gross margins decreased more dramatically because the
loss of income linked to the downward trend in prices development could not satisfactory
compensate the operating costs which remained in rather stable level in 2015 and 2016 years.
Figure 7: Cost of milk production and margins in the EU-15 Member States, 2016
EU Dairy farms report based on 2016 FADN data
19
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
EU Dairy farms report based on 2016 FADN data
20
3.3.1. EU-N13 Member States
In 2016 gross margin figures in the EU-N13 Member States were on average lower than in the
EU-15 Member States. This happened in spite of relatively higher level of coupled payments
which were important revenue components.
As had happened in the EU-15, the situation in 2016, with milk prices dropping, had a
negative impact on the revenues and therefore, also on the dairy margins, with only four
Member States showing figures above 100 EUR/t, Romania (178 EUR/t), Poland (109
EUR/t), Bulgaria (105 EUR/t) and Lithuania (101 EUR/t).
The two Member States that joined the Union in 2007, Bulgaria (105 EUR/t) and Romania
(145 EUR/t) showed high gross margins among the EU-N13 group, mainly due to relatively
high milk prices reinforced by coupled payments. Particularly in Romania in 2016 farmers
could receive very high voluntary coupled support reaching 732.88 EUR per one head of
animal. However, subsidy was not evenly distributed among the dairy farms therefore on
average coupled support reached the level of 32 EUR/tonne of milk.
In the case of Poland, adjustment of operating costs to declining milk price over the period
played a major role.
In Lithuania (101 EUR/t) the average gross margin with coupled payments increased in 2016
in relation to 2015 due to an increase in coupled payments whereas milk price and total
operating costs remained at the same level. The opposite could be noticed for Latvia. In spite
of sustained milk price and milk operating costs even falling down, in 2016 non-market
coupled support decreased comparing to two previous years causing milk margin with
subsidies going down. The margins fell down also in Estonia (from 34 EUR/t in 2015 to 30
EUR/t in 2016). Even though milk price went up in 2016, the costs increased even more. The
coupled support was marginal, only 2 EUR/t of milk, the least in EU-N13.
In Slovakia18
(36 EUR/t) and Hungary (21 EUR/t ) total operating costs exceeded revenues
and positive margin was possible only thanks to coupled support.
In other EU-N13 Member States, the situation also worsened. The average gross margins with
coupled payments were 61 EUR/t in Croatia, 46 EUR/t in Slovenia, 24 EUR/t in Czech
Republic.
18 Slovakian (and, to a lesser extent, the Czech Republic) has only a few milk specialised farms. However these are very big (on average
215 dairy cows and 655 ha of fodder area in 2016); they rely heavily on paid labour and very little on unpaid labour (as they are cooperatives or companies), and may produce a significant amount of other products (which are not very specialised). Therefore it is
difficult to properly allocate non-specific costs properly and the Slovakian estimates should be interpreted with caution.
EU Dairy farms report based on 2016 FADN data
21
Figure 8: Cost of milk production and margins in the EU-N13 Member States, 2016
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
EU Dairy farms report based on 2016 FADN data
22
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
EU Dairy farms report based on 2016 FADN data
23
3.4. Regional level
As previously highlighted, there are also differences within Member States. The map below
shows the average gross margin per tonne with coupled payments by FADN regions.
The best performing regions are those with high average raw milk prices (e.g. in Italy), low
operating costs (e.g. Romania and Bulgaria), coupled support (e.g. in Finland) or higher
competitiveness (e.g. Ireland, France, Belgium, Germany and Poland). More detailed results
are available in Annex II.
Map 1: Average gross margin per tonne with coupled payments by FADN regions, 2016
Source: EU FADN – DG AGRI, Model of the allocation of costs for milk
EU Dairy farms report based on 2016 FADN data
24
4. INCOME ANALYSIS
This chapter focuses on trends in dairy farm income for the farm as a whole, thus also
incorporating the results of other activities that may be carried out on it. The following
income indicators are studied:
– Farm net value added (FNVA) equals total output (total production value), plus balance of
current subsidies and taxes, incl. direct payments, minus intermediate consumption and
depreciation. It represents the amount available to pay for all fixed production factors
(land, labour and capital), that are either owned by the farm or are external.
– Farm net income (FNI) (or family farm income (FFI) in case of farms using unpaid labour
force19
) equals FNVA minus external factors, plus the balance on subsidies and taxes on
investments. It is the amount available to pay for own production factors (labour, land and
capital).
– Remuneration of family labour (RFL) is calculated in Annex II only for family farms. It
equals FNI minus the opportunity cost for own capital. It represents the amount available
to pay family labour.
These indicators are expressed per annual work unit (AWU), for FNVA and FNI, or per
family work unit (FWU) for FFI or RFL, in order to take into account of the differences in
the labour force salary on the holding. All income indicators are calculated before deduction
of income or any personal taxes and expressed in current euros. Detailed tables are presented
in Annex II.
Box 3: What are the components of income on dairy farms?
Holdings have two sources of agricultural20
income: market and subsidies.
Income from the market:
- dairy enterprise: the margins associated with the production of milk are presented in the first
part of this report. However, since public support is no longer incorporated in the milk price,
it is not always easy to predict the income of dairy farms by looking solely at the margins.
- coproducts of the dairy activity: to ensure comparability, the results presented in the first
part of this report relate specifically to the production of milk. Because they could blur the
picture and make it difficult to interpret the results21
, the costs and revenues of products
directly linked to milk production (calves and cull dairy cows) are not taken into
consideration when calculating the margins. They are however part of the income calculation.
As an indication, cattle sales (be they dairy cattle or other cattle, including fattened animals)
account for around 12 % of the total output22
of dairy farms at EU-28 level, with differences
between the Member States.
- other enterprises: the sample of dairy farms has been selected in such a way that the dairy
represents at least 40 % of the holding' potential production. Although farms are quite
specialised, especially in the EU-15, they may run other enterprises which contribute to the
total output of the farm and generate costs. These not only include crop production, but also
farm related OGA such as forestry, tourism (e.g. in Austria), etc..
Subsidies: these include decoupled payments and also contribute significantly to the income
of dairy farms.
19 For the purpose of this report, ‘family farms’ are defined as farms employing an unpaid labour force, which is usually family labour
force. 20
Farmers may have other sources of external income. These are not taken into account. 21
Besides, they are not always well reported in the farm return. 22
SE131, i.e. total output without compensating for differences in forage valuation.
EU Dairy farms report based on 2016 FADN data
25
4.1. Introduction
The income of the EU dairy farms experienced a peak in 2013-2014 dropping again in
2015 and 2016 with a change of the trend in 2017.
In the EU, the income of dairy farms experienced a peak in 2013-2014 only to fall again in
2015 and 2016, with the downward cycle ending towards the start of 2017. Direct payments
and subsidies increased moderately, due in particular to introduction of voluntary coupled
support in the new CAP reform followed by majority of MS. Milk sector, next to beef is the
second most subsidised sector by this measure.
Regarding positive factors, we can find that the number of dairy cows, expressed in livestock
units increase constantly (almost 44 % from 2007), the average milk yield over the period
increased (+8 % from 2007) and the average milk production per farm increased (around
+55 % from 2007).
Figure 9: Trend in income of dairy farms, EU
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
In the period 2013-2016, the decrease in the raw milk price was compensated by an increase
in the volume of milk production (around +17 % between 2013 and 2016 on average per
farm). As a result, market revenue decreased less than the price. Accordingly, FNVA had
decreased by around 9 % between 2013 and 2016.
EU Dairy farms report based on 2016 FADN data
26
Figure 10: Trends in the income of dairy farms, EU-28
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
The income trends in nominal and real terms over the period 2007-2016 were as follows: The
income of dairy farms increased significantly between 2009 and 2012, followed by a slight
decline again in 2012, with a further increase in the period 2012-2014 and another decrease in
2015-2016. Income figures in nominal terms remained higher than in real terms, always
measured in farm net value added by annual work unit (FNVA/AWU).
Figure 11: Income trends in nominal and real terms, EU-28
Source: EU FADN — DG AGRI, ESTAT (HICP index EUR 2007).
However these EU-28 results concealed substantial differences in income among the different
Member States, as we will see in the following sections.
All in all, milk specialised farms' incomes remain in a favourable position. Similar to previous
year, in 2016 dairy farms showed results above the EU-28 total average across all types of
farming. However, since 2009, they have no longer been in the top three of types of farming
for income.
EU Dairy farms report based on 2016 FADN data
27
Figure 12: Comparison of the income of milk farms with other farms, EU-28, 2016
* Source: EU FADN — DG AGRI, FADN public database http://ec.europa.eu/agriculture/rica/database/database_en.cfm
EU Dairy farms report based on 2016 FADN data
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4.2. Distribution of FNVA/AWU
Similar to the distribution of margins, the average EU income results concealed major
differences. The figure below shows the trend in the distribution of weighted FNVA/AWU for
milk specialised farms. The results show that the distribution is not normal (but skewed to the
right side), having quite a wide gap between the 5 % top-performing farms (PC95) –with
much higher income levels - and the 5 % least-performing farms (PC5) – with income levels
closer to the median-.
As we can see in the figure, the mean FNVA/AWU is closer to the third quartile (Q3) than to
the median (which is closer to the first quartile Q1), which is significantly lower. This means
that a majority of dairy farms (more than 50% have) have an income lower than the average.
Figure 13: Trend in the weighted distribution of FNVA/AWU
Source: EU FADN — DG AGRI
4.3. National level
Results are not only affected by differences between Member States but also by differences
within Member States, as illustrated in the following figure.
In contrast to what can be observed for the distribution of gross margin with coupled
payments, the biggest spreads in terms of inter-quartile range for FNVA/AWU are in the EU-
15 Member States, particularly in Italy, Denmark, the Netherlands and Sweden. Besides, in
these Member States, the median is significantly lower than the average, meaning that a large
number of holdings have income levels lower than the average.
By contrast, in the EU-N13 Member States, the inter-quartile range figures, which show
differences between the top 25 % performing farms and the 25 % least-performing farms, are
smaller. Only Malta showed high, similar to EU-15 pattern for inter-quartile range, but with
significantly slower average values and median slightly above the mean.
EU Dairy farms report based on 2016 FADN data
29
Figure 14: Distribution of FNVA/AWU (weighted boxplot) in milk specialised farms
within Member States — 2016
Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The
mean is a global ratio. CYP and ELL data are not displayed for confidentiality reasons (minimum number of farms should
be 15).
If we consider all the Member States together, at EU-28 level, in terms of competitiveness of
the different economic size classes (ESC), we can see that in 2016 the last classes (bigger
holdings) had the highest average income compared to the small farms which had much lower
levels of income. This can be explained by several factors such as the existence of economies
of scale, especially in most of the 'dairy belt' countries (Germany, France, Ireland, United
Kingdom, the Netherlands and Denmark).
In terms of dispersion, the group of the biggest agricultural holdings had also the largest
spreads in terms of inter-quartile range for FNVA/AWU. And, the median FNVA/AWU in
the biggest farms from ESC (6) is significantly higher than the average. This meant that well
over half of the farms had their incomes higher than mean calculated as a global ratio.
EU Dairy farms report based on 2016 FADN data
30
Figure 15: Distribution of FNVA/AWU (weighted boxplot) in milk specialised farms
within Economic Size Classes (ESC) for EU-28 — 2016
Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The
mean is a global ratio.
4.3.1. EU-15 Member States
Figures 16-18 show the average income indicators of dairy farms by Member State in 2016.
FNVA/AWU varied a lot throughout the different EU-15 Member States, ranging from above
64 000 EUR/AWU in Denmark to around 17 000 EUR/AWU in Portugal and 15 000
EUR/AWU in Austria. The main cause of the high value in Denmark was the high average
size of the dairy herd and specially the very high average yield per cow in Denmark reaching
levels above 9 500 kg/cow, which were well above the EU average (around 7 000 kg/cow) in
2016.
Following the trend in gross margin, among the best performing Member States in terms of
income, was Italy, with higher milk prices (more than 400 EUR/t) compared to the EU
average in 2016 (around 300 EUR/t). Besides, the EU average was noticeably influenced by
the very good records of Sweden, Ireland, the Netherlands and Germany, all with values
around 40 000 EUR/AWU.
EU Dairy farms report based on 2016 FADN data
31
At the other end of the spectrum, FNVA/AWU was low in Portugal and Austria. In Austria,
this was due to the lower average milk production (in 2016, in average 127 t per farm
compared to the EU average 233 t per farm ) and in Portugal this was due to low milk price
(261 EUR/t whereas EU average was 301 EUR/t) resulting in low total output figures and a
small average holding size (with forage areas of barely 17 ha in average, whereas the EU
average was 30 ha in 2016).
Concerning farm net income, Italy, Ireland and Sweden had the highest FNI/AWU23
figures. This was mainly because Italy and Ireland had relatively contained external factors
costs, especially in terms of interests paid. In the case of Sweden, the main driving factor
were lower rents and interests paid than for instance in Denmark and the Netherlands.
4.3.1. EU-N13 Member States
Income in EU-N13 Member States was generally lower than in EU-15 in 2016, and in all of
them lower than EU-28 average set at 20 505 EUR/AWU. However, this difference still
concealed a variety of situations, ranging from the highest FNVA/AWU values of Slovakia,
the Czech Republic, and Hungary (all above 19 000 EUR/AWU) to the countries with lower
FNVA/AWU values, such as Bulgaria, Poland (around 4 000 EUR/AWU) and Romania
(around 3500 EUR/AWU).
This can be explained by differences in farm size, productivity, milk price (only Malta,
Romania and Croatia were above EU average) as well as direct payments still lower than in
EU-15. Milk yields were the highest in Estonia (almost 9000 kg/cow), followed by Czech
Republic, Slovakia and Hungary were they were above 7 000 kg/cow, figure similar to the
EU-28 average for 2016. Whereas in Bulgaria and Romania, dairy yields were less than a
half of it, around 3 000 kg/cow in 2016.
In terms of farm net income, Malta recorded the highest value (above 10 000 EUR/AWU)
mainly due to low external factors. Poland and Hungary rated similar to each other, above
7 800 EUR/AWU farm net incomes per AWU but with significant differences in its
components. Poland had one of the lowest in the EU external factors, whereas Hungary
recorded low interests paid as for such big enterprises.
23 23 In order to express income per annual work unit, wages paid which where before deducted are now added up(in FADN standard results
[SE420+SE370]/SE010)
EU Dairy farms report based on 2016 FADN data
32
Income indicators for dairy farms in the EU-28 Member States, 201624
Figure 16: Income per work unit and margins per tonne (Farm Net Value Added and Gross margin with coupled payments), 2016
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
24 For Finland, Luxembourg, Lithuania and Slovenia average income without CAP support was negative in 2016. On the graph, below zero value is a part of negative income compensated by CAP support.
EU Dairy farms report based on 2016 FADN data
33
Figure 17: Income25
per work unit and margins per tonne (Farm net income and Net margin with coupled payments), 2016
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
25 In order to express income per annual work unit, wages paid which where before deducted are now added up (in FADN standard results [SE420+SE370]/SE010)
EU Dairy farms report based on 2016 FADN data
34
Figure 18: Income per work unit and margins per tonne (Remuneration of family labour and Net economic margin with coupled
payments), 2016
Source: EU FADN — DG AGRI, Model of the allocation of costs for milk.
EU Dairy farms report based on 2016 FADN data
35
4.4. Regional level
The map below shows the average FNVA/AWU in milk specialised farms by region in 2016.
The picture is quite different from that of the gross margin mentioned earlier in this report.
The best performing regions are mostly located in the northern Europe: Ireland, the United
Kingdom, the Benelux countries, Denmark, Sweden, north-west Germany and northern part
of Italy. Most of them belong to what is called the 'dairy belt' which can be easily seen in the
map (regions with darker colours). By contrast, Europe's southern and eastern regions had the
lowest income levels. More detailed results are available in Annex II.
Map 2: FNVA/AWU in milk specialised farms by FADN regions, 2016
Source: EU FADN – DG AGRI, Model of the allocation of costs for milk
EU Dairy farms report based on 2016 FADN data
36
5. ANNEXES
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 for the farm
as a whole26
. 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 for the
milk model).
– 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 following breakdown.
26 It is difficult for the accountant or the farmer to assess the proportion of water or electricity or fertilisers to allocate to each activity,
especially for mixed farms.
EU Dairy farms report based on 2016 FADN data
37
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
EU Dairy farms report based on 2016 FADN data
38
The basis of the methodology is to allocate a share of the farm costs to milk production.
Different ratios are used:
– Dairy livestock units27
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 output28
plus linked subsidies
(MO/TO) is used to allocate non-specific inputs and fixed costs. Subsidies are taken
into account to make it possible to compare results over time. Since 2004 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 with market price
support in beef production). The total output (TO denominator) is also adjusted by
deducting the value of home-grown fodder recorded in the FADN and adding the
purchase costs for milk herd renewal (see below).
As the milk levy is directly linked to milk production only, it is fully allocated to the
costs of milk production. In the previous model design, the milk levy was deducted from
subsidies on the revenues side. In the current model, there is a disparity in recording by
Member States concerning the milk levy, as with the change of the farm return in 2014,
milk levy figures had been registered in different places according to the different
Member States.
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 the 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 Member States — 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
27 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).
28 Output after deduction of forage crops farm use.
EU Dairy farms report based on 2016 FADN data
39
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 key29
Seed costs
% area of fodder crops, other forage crops and temporary grass
in the total Utilised Agricultural Area (UAA)
- after exclusion of fallow lands, areas leased to others, meadows
and rough grazing
Fertiliser costs
% area of fodder crops, other forage crops, temporary grass and
meadows
in the total UAA
- after exclusion of fallow lands, areas leased to others and rough
grazing
Crop protection costs
% area of fodder crops and other forage crops
in the total UAA
- after exclusion of fallow lands, temporary grass, areas leased to
others, meadows and rough grazing
– 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 production30
. 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
purchases of animals is available in the FADN only from 2000 onwards; therefore this
estimate can only be made from 2000 onwards. Moreover, it is not obligatory and, in
29 Codes refer to product or cost codes in the farm return (Commission Regulations 2237/77 and 868/2008).
30 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.
EU Dairy farms report based on 2016 FADN data
40
practice, some Member States did not record it in the initial years after its introduction.
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 the 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.
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), and
– 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 coupled dairy payments such as voluntary coupled support (VCS); and
– any coupled national dairy payments.
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; and
– 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.
EU Dairy farms report based on 2016 FADN data
41
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): 45 Specialist dairying, 47
Cattle dairying, rearing and fattening combined, 73 Mixed livestock, mainly dairying,
83 Field crops — grazing livestock combined. The decision was made to include
farming types 47, 73 and 83 (and not only 45) in the sample so as to cover a larger
proportion of dairy cows, particularly in the new Member States.
– A structural specialisation rate31
greater than 40 %. This criterion has been introduced
to make the sample of specialised farms more stable over time and therefore ensure
better comparability of results over time32
.
– An actual specialisation rate33
greater than 35 %. This criterion has been kept to make
sure that in reality, milk production remains the holding's main activity in reality.
– A share of sales of milk and milk products in the milk output higher than 50 %.
– An average milk price at farm level of less than 900 EUR/t of milk, in order to
exclude farms producing buffalo 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 keys34
, some precautions are
necessary in order to prevent problems with estimates:
– total output and total output plus subsidies should be strictly positive;
– total output plus subsidies should be greater than milk output plus subsidies; and
– total output should be greater than milk output35
.
31 Structural specialisation rate: the potential contribution of the ‘cattle, dairying pole’ (as defined by Commission Regulation (EC)
No 1242/2008 establishing a Community typology for agricultural holdings) to the total production of the farm i.e. the share of
the milk sector in the total standard output.
32 The comparability of results over time is however also affected by the extrapolating factors: as FADN is a sample survey, the
collected data need to be extrapolated against the population of farms reported under the Farm Structure Survey (FSS). A new
FSS is carried out every 3 years and takes the form of a census every 10 years. Due to this update in the population used for
extrapolation, the weight of a given farm remaining in the sample may change quite significantly, which affects the average results. However, extrapolating with the newest FSS population is deemed to provide more precise, actual results for the most
recent years, which is what matters for the purpose of this report.
33 Actual specialisation rate: the share of milk output and subsidies in total output and coupled subsidies (forage farm use
deducted) as reported in the farm accounts.
34 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.
EU Dairy farms report based on 2016 FADN data
42
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 known as the ‘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 weighted average of the individual ratio by farm).
35 The number of dairy cows and of grazing livestock units must also be greater than 0.
EU Dairy farms report based on 2016 FADN data
43
Methodology 2
The method for estimating 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 database36
multiplied by the number of hours worked by family workers on the farm.
It is commonly acknowledged that the number of hours worked by 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)37
.
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 wage for
family labour is. Farmers may indeed agree to be paid less than they would be based on
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 farming38
.
– 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
36 If there are not enough farms (fewer than 15) with paid labour at regional level, the national average is taken into account.
37 A constraining factor of the estimation method is that if a farmer receiving a salary would probably work less.
38 If there are not enough farms (fewer than 15) 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).
EU Dairy farms report based on 2016 FADN data
44
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 long-term interest
rate (which means that the calculated rate of interest paid is lower than the long-term
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 rate39
. The correction is made by subtracting the inflation rate40
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 should be deducted 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)
39 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. 40
The inflation rate is based on the Eurostat annual average rate of change in Harmonised Indices of Consumer Prices (HICPs) .
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 costs for capital, mainly in the EU-N13. 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.
EU Dairy farms report based on 2016 FADN data
45
Table 2: Share of dairy cows covered by the FADN by Member State
Source: EU FADN 2016, Eurostat cattle survey 2013, treatment DG AGRI.
Eurostat
cattle
survey
2013
Number of
dairy cow s
Non-
specialised
milk farms
Specialised
milk farmsTotal
Non-
specialised
milk farms
Specialised
milk farmsTotal
Belgium 132 605 379 945 512 550 515 990 26% 74% 99%
Denmark 53 935 533 896 587 831 567 000 10% 94% 104%
Germany 497 569 3 875 719 4 373 288 4 267 610 12% 91% 102%
Greece . . 39 226 130 000 . . 30%
Spain 92 682 925 499 1 018 182 844 060 11% 110% 121%
France 410 895 3 422 010 3 832 905 3 697 000 11% 93% 104%
Ireland 28 603 1 231 711 1 260 314 1 082 460 3% 114% 116%
Italy 398 462 1 226 048 1 624 510 2 074 540 19% 59% 78%
Luxembourg 4 211 43 570 47 781 48 270 9% 90% 99%
The Netherlands 102 806 1 549 374 1 652 180 1 597 000 6% 97% 103%
Austria 80 681 483 494 564 175 529 560 15% 91% 107%
Portugal 24 661 180 015 204 677 230 840 11% 78% 89%
Finland 9 872 289 010 298 882 282 010 4% 102% 106%
Sw eden 12 096 379 607 391 703 346 120 3% 110% 113%
The United Kingdom93 466 1 660 484 1 753 950 1 817 000 5% 91% 97%
EU 15 1 942 543 16 180 383 18 122 926 17 899 460 11% 90% 101%
Bulgaria 86 106 235 170 321 276 313 250 27% 75% 103%
Cyprus . . 17 059 24 550 . . 69%
The Czech Republic196 474 179 672 376 147 375 330 52% 48% 100%
Estonia 8 643 96 990 105 633 97 900 9% 99% 108%
Croatia 54 001 101 993 155 994 168 000 32% 61% 93%
Hungary 100 034 173 411 273 445 250 000 40% 69% 109%
Lithuania 54 677 227 844 282 521 315 700 17% 72% 89%
Latvia 22 453 144 874 167 326 165 010 14% 88% 101%
Malta 763 6 823 7 586 6 330 12% 108% 120%
Poland 599 512 1 594 204 2 193 716 2 299 080 26% 69% 95%
Romania 1 029 525 672 051 1 701 576 1 168 900 88% 57% 146%
Slovakia 84 825 53 466 138 291 144 880 59% 37% 95%
Slovenia 18 074 86 394 104 469 109 570 16% 79% 95%
EU N13 2 255 087 3 572 893 5 827 980 5 413 950 42% 66% 108%
EU 28 4 197 630 19 753 276 23 950 906 23 313 410 18% 85% 103%
FADN 2016 Coverage FADN/FSS
EU Dairy farms report based on 2016 FADN data
46
Table 3: Share of milk production covered by the FADN by Member State
Source: EU FADN 2016, Eurostat production statistics 2013, treatment DG AGRI. FSS2013 was used as FSS 2016 data was
still not available for all EU-28 Member States at the moment of the redaction of the report.
Eurostat
2013
Milk
production
(in 1000
tonnes)
Non-
specialised
milk farms
Specialised
milk farmsTotal
Non-
specialised
milk farms
Specialised
milk farmsTotal
Belgium 983 2 843 3 826 3 529 28% 81% 108%
Denmark 483 5 074 5 557 5 082 9% 100% 109%
Germany 3 694 29 353 33 047 31 324 12% 94% 106%
Greece . . 168 731 . . 23%
Spain 626 7 112 7 738 6 559 10% 108% 118%
France 2 978 23 828 26 807 24 460 12% 97% 110%
Ireland 129 6 943 7 072 5 601 2% 124% 126%
Italy 1 417 8 701 10 118 11 281 13% 77% 90%
Luxembourg 28 331 359 296 10% 112% 121%
The Netherlands 945 12 739 13 683 12 408 8% 103% 110%
Austria 559 3 342 3 900 3 393 16% 98% 115%
Portugal 152 1 377 1 529 1 848 8% 75% 83%
Finland 94 2 619 2 714 2 328 4% 113% 117%
Sw eden 79 3 431 3 510 2 870 3% 120% 122%
The United Kingdom 655 11 875 12 530 13 943 5% 85% 90%
EU 15 12 854 119 705 132 559 125 652 10% 95% 105%
Bulgaria 275 676 952 1 149 24% 59% 83%
Cyprus . . 127 163 . . 78%
The Czech Republic1 578 1 383 2 961 2 849 55% 49% 104%
Estonia 61 871 932 772 8% 113% 121%
Croatia 189 476 665 588 32% 81% 113%
Hungary 682 1 229 1 911 1 773 38% 69% 108%
Lithuania 332 1 331 1 663 1 720 19% 77% 97%
Latvia 114 935 1 049 912 13% 103% 115%
Malta 6 47 53 41 14% 115% 129%
Poland 2 792 9 152 11 944 12 718 22% 72% 94%
Romania 3 865 2 168 6 033 3 966 97% 55% 152%
Slovakia 572 382 955 912 63% 42% 105%
Slovenia 63 483 547 596 11% 81% 92%
EU N13 10 531 19 262 29 793 28 158 37% 68% 106%
EU 28 23 385 138 967 162 352 153 809 15% 90% 106%
FADN 2016 Coverage FADN/FSS
EU Dairy farms report based on 2016 FADN data
47
Table 4: Share of milk production by Member State in the FADN 2016
Source: EU FADN – DG AGRI.
Member StateShare of milk production
2016
Belgium 2%
Denmark 3%
Germany 20%
Greece 0%
Spain 5%
France 17%
Ireland 4%
Italy 6%
Luxembourg 0%
The Netherlands 8%
Austria 2%
Portugal 1%
Finland 2%
Sw eden 2%
The United Kingdom 8%
EU 15 82%
Bulgaria 1%
Cyprus 0%
The Czech Republic 2%
Estonia 1%
Croatia 0%
Hungary 1%
Lithuania 1%
Latvia 1%
Malta 0%
Poland 7%
Romania 4%
Slovakia 1%
Slovenia 0%
EU N13 18%
EU 28 100%
EU Dairy farms report based on 2016 FADN data
48
Table 5: Share of milk production by Member State in the and farm type in FADN 2016
Source: EU FADN – DG AGRI.
Share of milk production by farm type Share of farms by farm type
FADN 2013Specialist
dairying
Cattle - dairying,
rearing and
fattening
combined
Mixed livestock,
mainly grazing
Mixed f ieldcrops
and grazing
livestock
combined
Specialist
dairying
Cattle -
dairying,
rearing and
fattening
combined
Mixed
livestock,
mainly
grazing
Mixed
f ieldcrops
and grazing
livestock
combined
Belgium 78% 14% 4% 4% 77% 16% 3% 4%
Denmark 99% 0% 0% 0% 99% 0% 0% 0%
Germany 89% 3% 2% 6% 89% 4% 1% 6%
Greece . . . . . . . .
Spain 94% 5% 1% . 94% 6% 1% .
France 72% 9% 5% 14% 73% 10% 4% 13%
Ireland 96% 4% . . 96% 4% . .
Italy 91% 8% 1% 1% 91% 7% 1% 1%
Luxembourg 82% 16% 1% 0% 81% 17% 1% 0%
The Netherlands 97% 1% 2% 0% 97% 1% 1% 0%
Austria 92% 6% 0% 1% 93% 6% 0% 1%
Portugal 100% 0% . . 100% 0% . .
Finland 98% 1% . 0% 98% 1% . 0%
Sw eden 99% 0% . 0% 99% 0% . 0%
The United Kingdom 96% 3% 0% 1% 96% 3% 0% 1%
EU 15 91% 6% 2% 3% 91% 6% 1% 3%
Bulgaria 93% 2% . 5% 94% 2% . 4%
Cyprus . . . . . . . .
The Czech Republic 52% 3% 8% 37% 55% 3% 7% 34%
Estonia 96% 1% 1% 2% 95% 1% 1% 2%
Croatia 83% 11% . 6% 85% 8% . 7%
Hungary 84% 0% . 15% 84% 1% . 15%
Lithuania 82% 1% 0% 17% 84% 1% 0% 14%
Latvia 83% 0% 1% 16% 85% 1% 1% 13%
Malta 93% 6% 1% . 94% 6% 1% .
Poland 91% 1% 1% 7% 92% 1% 1% 6%
Romania 76% 11% 9% 5% 76% 11% 9% 5%
Slovakia 71% 5% . 23% 73% 7% . 20%
Slovenia 99% 1% . . 99% 1% . .
EU N13 85% 3% 3% 13% 86% 4% 3% 12%
EU 28 88% 5% 2% 8% 88% 5% 2% 7%
Share of milk production by farm type Share of farms by farm type
Specialised milk farms Specialised milk farms
EU Dairy farms report based on 2016 FADN data
49
ANNEX II
Results for the EU, by Member State and region.
Data as of November 2018.
EU dairy farms report based on 2016 FADN data EU28
EU28 Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 15000-
<20000
15000-
<20000
15000-
<20000
15000-
<20000
15000-
<20000
10000-
<15000
15000-
<20000
15000-
<20000
10000-
<15000
10000-
<15000 -
Farms represented 847 315 840 979 740 831 666 088 670 254 670 911 686 587 657 888 624 123 595 383 -23%
% production from specialised farms 90% 90% 90% 91% 91% 90% 92% 92% 91% 90% 1%
Forage area - ha 22 23 25 28 29 28 27 28 29 30 25%
Dairy cows - LU 23 24 27 30 30 29 29 31 32 33 31%
Rented UAA - % 59% 59% 60% 61% 60% 60% 60% 59% 59% 59% 0%
Total labour - AWU 2 2 2 2 2 2 2 2 2 2 -10%
Family labour - % 87% 85% 85% 83% 83% 83% 82% 82% 82% 83% -3%
Milk per ha fodder area - t/ha 7.8 7.5 8.1 7.7 8.1 8.1 7.9 8.1 8.5 8.4 7%
Milk yield - kg/cow 6 499 6 480 6 566 6 745 6 894 6 816 6 839 6 925 7 037 7 021 7 075 7% 9%
Milk production - t 150 154 174 199 205 199 200 212 225 233 239 40% 59%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 330 332 274 315 350 339 376 383 321 302 350 7% 6%
Coupled payments (incl. Art.69) 2 2 2 3 3 3 4 4 7 7 7 5872% 223%
Total revenues from milk 332 334 275 318 353 342 378 386 327 309 357 9% 8%
Production costs
Feed 91 100 87 92 107 116 125 127 119 115 112 30% 24%
homegrown feed 29 31 27 28 31 33 34 40 38 36 35 32% 22%
purchased feed 62 69 60 64 77 84 91 87 81 79 77 29% 24%
Herd renewal purchases 3 3 3 3 3 3 3 3 2 2 2 -25% -34%
Milk levy 1 1 0 0 0 0 1 1 0 0 0 -21% -100%
Other specific costs 20 22 21 22 23 25 24 26 25 24 24 19% 17%
Specific costs 115 126 112 118 134 145 154 157 146 142 138 26% 20%
Machinery and building upkeep 19 20 18 20 20 19 21 22 19 19 19 6% 0%
Energy (fuel, electricity) 18 20 18 20 22 23 24 24 20 19 19 12% 7%
Contract work 16 18 17 17 18 19 20 21 19 20 19 18% 19%
Taxes 1 1 1 2 2 2 2 2 2 1 1 41% 14%
Other direct inputs 22 23 22 23 24 23 25 26 25 25 23 15% 4%
Non specific costs 77 82 75 81 85 86 92 96 85 85 83 13% 7%
Total operating costs 192 209 187 199 219 231 246 253 232 226 221 21% 15%
Gross margin 138 124 87 116 131 108 130 130 89 76 130 -15% -6%
Gross margin with coupled
payments139 125 89 119 134 111 133 133 96 83 137 -12% -2%
%spe.farms with positive gross
margin 96% 95% 93% 95% 96% 94% 95% 95% 87% 90% -4%
%milk production with positive gross
margin 99% 97% 95% 98% 98% 97% 97% 97% 95% 92% -2%
Depreciation 45 47 46 48 48 49 52 48 45 45 0%
Wages 14 15 15 15 16 16 18 18 16 16 17%
Rent 13 13 12 13 13 13 14 15 13 14 12%
Interest 13 15 13 13 13 13 12 11 10 10 -24%
External factors 40 43 41 41 42 42 44 44 40 40 1%
Net margin 53 34 0 27 42 17 34 38 4 -9 -62%
Net margin with coupled
payments55 36 2 30 45 20 37 41 11 -2
-46%
Family labour costs 72 74 66 67 66 64 66 70 65 67 -5%
Own capital unpaid cost 31 12 25 19 13 12 16 17 13 11 -39%
Imputed family factors 102 86 91 86 79 76 82 87 78 78 -13%
Net economic margin -49 -52 -91 -58 -38 -59 -47 -49 -74 -87 -9%
Net economic margin with
coupled payments-47 -51 -89 -55 -35 -56 -45 -46 -67 -80
-3%
%spe.farms with positive net
economic margin 20% 21% 12% 14% 19% 15% 18% 17% 11% 9% -30%
%milk production with positive net
economic margin 33% 29% 16% 26% 37% 25% 35% 33% 20% 15% -13%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 51
EU dairy farms report based on 2016 FADN data EU28
EU28 Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 39 441 41 371 39 795 51 939 58 493 59 947 64 713 67 396 63 620 64 211 62%
Intermediate consumptions 23 474 26 771 27 714 33 214 37 235 40 310 42 167 44 104 43 983 44 611 70%
Balance subsidies and taxes 6 646 6 971 7 723 9 312 9 153 8 725 8 755 8 622 9 187 9 982 30%
Decoupled payments 4 277 4 450 5 073 6 005 6 096 5 980 5 971 6 125 5 920 6 194 32%
Depreciation 5 265 5 746 6 478 7 636 7 900 8 358 8 723 8 499 8 853 9 076 51%
Farm Net Value Added (FNVA) 17 347 15 825 13 325 20 400 22 510 20 004 22 578 23 416 19 970 20 506 37%
External factors 4 671 5 157 5 725 6 557 6 904 7 246 7 386 7 880 7 930 8 110 54%
Wages 1 717 1 884 2 186 2 577 2 810 2 928 3 124 3 363 3 383 3 420 76%
Rent 1 531 1 538 1 775 2 057 2 132 2 253 2 333 2 646 2 675 2 849 69%
Interest 1 423 1 735 1 764 1 923 1 962 2 065 1 929 1 871 1 872 1 841 13%
Balance invest. subs. and taxes -39 40 326 211 124 111 82 196 245 175 89%
Farm net income (FNI) 12 637 10 709 7 926 14 054 15 731 12 868 15 274 15 732 12 285 12 571 30%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 4 091 1 658 4 060 3 449 2 496 2 459 3 136 3 540 3 003 2 630 -6%
Remuneration of Family Labour
(RFL) 6 272.7 6 789.3 3 638.0 8 925.8 10 880.2 9 013.0 10 762.1 9 217.2 6 974.7 9 012.3 51%
%spe.farms with positive RFL 84% 91% 76% 89% 91% 87% 88% 83% 73% 78% -7%
139 125
89
119 134 111
133 133
96 83
137
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
332 334
275
318
353 342
378 386
327 309
357
277 299
273 288 309 322 341 345 317 311
221
55
36
2
30
45
20
37
41
11
-2
-10
0
10
20
30
40
50
60
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 52
EU dairy farms report based on 2016 FADN data EU28
EU28 Milk specialised farms
332 334
275
318
353 342
378 386
327 309
357
379 385 364 374
388 398 423 432
395 389
221 -47
-51
-89
-55
-35
-56
-45 -46
-67
-80
-100
-90
-80
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
45 47 46 48 48 49 52 48 45 45
72 74
66 67 66 64 66 70
65 67
31 12 25 19 13 12
16 17
13 11
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
200
0
5 000
10 000
15 000
20 000
25 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 53
EU dairy farms report based on 2016 FADN data EU-N13
EU-N13 2016 Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years
STRUCTURAL INFORMATION
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
Sample farms 200-<500 100-<200 100-<200 100-<200 100-<200 40-<100 200-<500 200-<5002000-
<3000500-<1000 40-<100 100-<200
Farms represented 16 796 1 165 982 7 693 4 250 114 20 032 8 209 88 094 185 220 249 4 607
% production from specialised farms 85% 50% 94% 81% 68% 100% 84% 92% 80% 71% 45% 90%
Forage area - ha 7 265 174 12 38 4 23 40 15 2 672 16
Dairy cows - LU 14 154 99 13 41 60 11 18 18 4 215 19
Rented UAA - % 84% 84% 63% 46% 83% 87% 45% 43% 29% 28% 92% 41%
Total labour - AWU 1.95 15.71 5.40 2.06 3.21 2.29 1.73 2.06 1.87 0.97 27.04 1.80
Family labour - % 74% 9% 16% 90% 29% 81% 85% 64% 96% 98% 2% 100%
Milk per ha fodder area - t/ha 4.4 4.5 5.0 5.0 7.4 79.2 2.8 2.8 7.1 4.0 2.3 6.7
Milk yield - kg/cow 2 877 7 699 8 981 4 667 7 087 6 916 5 840 6 453 5 741 3 227 7 150 5 595
Milk production - t 40 1 188 887 62 289 414 66 114 104 12 1 536 105
MILK MARGINS in EUR/t of milk (nominal)
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
Revenues
Price 290 258 233 304 262 448 214 214 245 310 267 258
Coupled payments (incl. Art.69) 27 17 2 52 39 31 43 23 12 32 37 11
Total revenues from milk 317 275 235 356 302 479 257 236 257 342 304 269
Production costs
Feed 151 143 116 205 170 288 76 92 89 91 165 123
homegrown feed 44 80 52 152 74 6 47 47 47 54 103 62
purchased feed 108 63 64 53 96 282 29 45 42 38 62 61
Herd renewal purchases 1 2 2 1 1 8 3 4 3 1 7 5
Milk levy 0 0 0 0 0 0 0 0 0 0 0 0
Other specific costs 12 22 17 22 32 11 16 17 10 8 19 23
Specific costs 164 167 135 228 203 307 96 113 102 101 191 151
Machinery and building upkeep 9 29 18 13 16 14 17 19 13 11 15 21
Energy (fuel, electricity) 22 29 22 25 28 30 23 28 18 30 36 28
Contract work 5 6 17 6 10 2 2 4 7 13 10 8
Taxes 1 0 1 12 3 0 0 0 1 2 1 0
Other direct inputs 11 19 11 11 21 7 18 16 7 8 15 15
Non specific costs 48 84 68 67 78 53 60 67 46 63 77 72
Total operating costs 212 250 203 295 281 360 156 180 148 164 268 223
Gross margin 78 7 30 9 -19 88 58 34 97 146 -1 35
Gross margin with coupled
payments 105 24 32 61 21 118 101 57 109 178 36 46
%spe.farms with positive gross margin75% 79% 73% 64% 74% 78% 87% 79% 93% 80% 69% 78%
%milk production with positive gross
margin86% 66% 76% 75% 54% 91% 97% 89% 99% 96% 65% 83%
Depreciation 35 39 38 48 22 27 79 39 40 55 45 91
Wages 28 77 55 17 55 12 18 31 4 4 101 0
Rent 14 13 7 7 13 2 8 3 3 4 9 5
Interest 4 5 6 3 3 4 3 3 3 0 4 5
External factors 46 95 68 26 71 18 29 37 10 8 114 11
Net margin -3 -127 -77 -66 -112 43 -50 -43 46 84 -159 -66
Net margin with coupled payments24 -110 -74 -14 -73 74 -7 -20 58 116 -123 -55
Family labour costs 107 12 11 188 18 55 126 67 67 262 4 91
Own capital unpaid cost 15 0 13 47 11 0 18 5 31 51 3 24
Imputed family factors 122 12 24 235 29 55 144 71 99 313 7 114
Net economic margin -125 -139 -101 -301 -141 -11 -194 -114 -53 -229 -166 -181
Net economic margin with coupled
payments -98 -122 -99 -249 -102 19 -151 -91 -40 -197 -129 -169
%spe.farms with positive net
economic margin7% 4% 1% 1% 12% 40% 2% 1% 13% 9% 2% 1%
%milk production with positive net
economic margin27% 2% 0% 4% 8% 54% 11% 8% 31% 25% 1% 1%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 54
EU dairy farms report based on 2016 FADN data EU-N13
EU-N13 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
Total output 8 843 48 290 68 164 20 334 49 108 91 841 16 053 21 592 20 229 6 957 41 882 30 831
Intermediate consumptions 5 890 38 574 57 057 14 722 39 616 80 021 11 441 17 082 12 205 3 544 29 739 23 174
Balance subsidies and taxes 2 370 15 660 8 891 4 609 13 725 7 262 6 117 7 773 4 227 1 226 13 128 6 936
Decoupled payments 875 5 864 5 778 2 692 4 608 255 2 647 2 582 2 625 580 7 011 2 957
Depreciation 1 027 6 306 9 295 2 366 3 702 5 566 4 859 3 460 3 614 1 068 5 748 8 162
Farm Net Value Added (FNVA) 4 295 19 071 10 704 7 855 19 516 13 517 5 871 8 823 8 638 3 571 19 523 6 431
External factors 1 433 15 658 17 190 1 232 11 698 3 553 1 875 3 437 963 174 14 310 946
Wages 844 12 731 13 857 747 9 014 2 328 1 171 2 845 432 88 12 619 45
Rent 466 2 190 1 895 335 2 232 343 506 309 301 81 1 180 458
Interest 123 737 1 438 149 452 882 199 283 230 6 511 443
Balance invest. subs. and taxes 15 0 305 197 -7 347 1 678 882 144 10 392 -121
Farm net income (FNI) 2 877 3 412 -6 181 6 820 7 811 10 311 5 674 6 269 7 819 3 406 5 605 5 363
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 621 687 19 803 2 603 6 346 27 1 236 642 2 960 1 087 15 749 2 130
Remuneration of Family Labour
(RFL)2 764 19 862 -10 942 4 745 18 886 12 660 5 081 8 469 5 282 2 295 39 033 3 253
%spe.farms with positive RFL 85% 83% 43% 81% 97% 69% 81% 92% 80% 72% 72% 66%
105
24 32
61
21
118 101
57
109
178
36 46
0
100
200
300
400
500
600
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
317
275
235
356
302
479
257 236
257
342
304
269
293
385
310
370 375 405
264 256 199
226
427
324
24
-110
-74
-14
-73
74
-7 -20
58
116
-123
-55
-150
-100
-50
0
50
100
150
0
100
200
300
400
500
600
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 55
EU dairy farms report based on 2016 FADN data EU-N13
EU-N13 2016 Milk specialised farms
317 275
235
356
302
479
257 236
257
342 304
269
415 397
334
605
404
460
408
328 298
539
433 438
-98
-122
-99
-249
-102
19
-151
-91
-40
-197
-129
-169
-300
-250
-200
-150
-100
-50
0
50
0
100
200
300
400
500
600
700
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
35 39 38 48 22 27
79 39 40 55 45
91
107 12
11
188
18
55
126
67
67
262
4 91
15
0
13
47
11 0
18
5 31
51
3
24
0
50
100
150
200
250
300
350
400
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
EUR/t Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-300
-250
-200
-150
-100
-50
0
50
100
150
200
-20 000
-10 000
0
10 000
20 000
30 000
40 000
50 000
BGR CZE EST HRV HUN MLT LTU LVA POL ROU SVK SVN
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 56
EU dairy farms report based on 2016 FADN data EU15
EU15 2016 Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years
STRUCTURAL INFORMATION
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
Sample farms 200-<500 200-<5002000-
<3000
500-
<1000
1000-
<2000
200-
<500
500-
<1000
200-
<500
200-
<500
500-
<1000
200-
<500
200-
<500200-<500
200-
<500
Farms represented 5 435 3 329 58 520 15 780 57 793 16 840 24 365 656 17 166 26 342 5 568 8 276 4 502 12 732
% production from specialised farms 87% 93% 92% 95% 95% 99% 93% 94% 97% 88% 91% 97% 98% 96%
Forage area - ha 50 113 57 25 75 62 26 80 50 24 17 43 112 109
Dairy cows - LU 70 160 66 59 59 73 50 66 90 18 32 35 84 130
Rented UAA - % 73% 31% 64% 46% 88% 24% 64% 53% 40% 31% 41% 37% 63% 42%
Total labour - AWU 1.84 2.85 2.10 1.93 1.93 1.61 1.80 1.82 1.70 1.80 1.71 2.05 2.61 2.69
Family labour - % 97% 42% 69% 77% 87% 87% 84% 88% 90% 98% 79% 85% 68% 61%
Milk per ha fodder area - t/ha 10.4 13.2 8.8 16.5 5.5 6.7 13.9 6.3 15.0 5.3 14.1 7.3 6.8 8.6
Milk yield - kg/cow 7 482 9 504 7 574 7 684 6 963 5 637 7 101 7 587 8 222 6 912 7 651 9 063 9 039 7 152
Milk production - t 523 1 524 502 451 412 412 357 504 742 127 247 316 762 933
MILK MARGINS in EUR/t of milk (nominal)
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
Revenues
Price 282 323 276 302 316 265 422 279 333 325 261 367 324 285
Coupled payments (incl. Art.69) 2 0 0 12 5 0 7 0 0 1 32 80 19 0
Total revenues from milk 284 323 276 314 321 265 430 279 333 326 293 447 343 285
Production costs
Feed 99 147 102 161 101 79 177 101 120 95 166 128 129 111
homegrown feed 23 51 29 27 33 25 58 33 28 32 65 36 30 28
purchased feed 76 97 73 134 68 54 119 67 91 64 101 92 98 84
Herd renewal purchases 1 2 3 2 2 2 2 2 2 3 2 2 5 2
Milk levy 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other specific costs 25 28 29 18 12 41 16 25 35 28 24 35 29 35
Specific costs 126 177 134 181 116 122 195 127 157 127 191 164 163 149
Machinery and building upkeep 13 25 22 12 22 13 9 25 21 26 13 48 27 18
Energy (fuel, electricity) 13 12 23 14 18 9 23 16 15 21 18 32 22 13
Contract work 21 29 20 14 34 13 6 19 25 19 8 38 24 17
Taxes 1 1 1 0 3 0 6 1 1 0 2 1 0 0
Other direct inputs 13 17 26 16 42 11 15 24 34 40 6 73 26 20
Non specific costs 61 84 92 56 118 46 59 84 96 105 47 192 99 67
Total operating costs 187 260 226 237 234 168 254 212 253 232 238 355 262 216
Gross margin 95 63 50 65 82 97 168 67 81 93 23 12 62 68
Gross margin with coupled
payments 97 63 50 77 87 97 176 67 81 94 55 91 81 69
%spe.farms with positive gross
margin 95% 91% 94% 91% 95% 98% 94% 96% 93% 84% 80% 82% 81% 88%
%milk production with positive
gross margin98% 95% 88% 90% 96% 99% 99% 95% 92% 94% 76% 91% 95% 93%
Depreciation 42 39 44 16 65 21 23 91 47 89 23 94 49 31
Wages 2 35 20 15 8 9 19 7 6 2 13 21 32 24
Rent 15 14 20 4 21 10 12 15 16 8 6 14 15 10
Interest 11 40 9 1 9 5 1 10 30 5 1 12 12 7
External factors 28 90 49 20 38 24 32 32 51 15 20 47 59 41
Net margin 26 -66 -43 29 -21 51 114 -56 -17 -11 -19 -129 -46 -3
Net margin with coupled
payments 28 -66 -43 41 -16 51 121 -56 -17 -10 13 -49 -27 -3
Family labour costs 66 31 56 44 58 64 85 56 68 193 40 165 78 39
Own capital unpaid cost 1 8 6 12 1 27 15 8 11 7 12 16 2 10
Imputed family factors 66 40 62 55 59 91 100 64 79 200 51 181 80 50
Net economic margin -41 -106 -105 -26 -80 -40 13 -120 -96 -211 -70 -310 -126 -53
Net economic margin with
coupled payments -39 -106 -105 -14 -75 -40 20 -120 -96 -210 -39 -230 -107 -52
%spe.farms with positive net
economic margin15% 3% 2% 21% 6% 17% 33% 1% 6% 1% 17% 1% 1% 10%
%milk production with positive
net economic margin16% 3% 3% 32% 7% 28% 58% 2% 8% 3% 19% 1% 4% 19%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 57
EU dairy farms report based on 2016 FADN data EU15
EU15 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
Total output 111 156 264 736 114 043 87 431 103 719 105 280 116 240 122 058 177 789 38 553 52 530 81 586 167 708 142 046
Intermediate consumptions 74 658 196 274 76 810 63 307 77 097 66 321 64 727 91 146 124 297 25 152 41 141 76 914 130 127 104 581
Balance subsidies and taxes 13 770 22 329 17 704 10 061 17 990 12 259 9 555 37 806 10 548 11 754 9 421 33 048 31 286 11 880
Decoupled payments 10 184 21 517 11 353 5 677 13 451 11 537 6 864 14 497 12 168 4 246 3 024 5 590 12 443 10 453
Depreciation 16 451 26 460 15 968 4 329 21 393 7 819 5 783 40 455 24 153 10 675 3 975 17 473 21 324 14 272
Farm Net Value Added (FNVA) 33 817 64 330 38 969 29 857 23 219 43 399 55 286 28 263 39 887 14 481 16 834 20 248 47 543 35 073
External factors 10 982 61 609 18 587 5 494 12 661 8 826 7 837 14 266 25 729 1 777 3 332 8 906 25 066 18 579
Wages 582 24 280 8 417 4 168 2 580 3 304 4 627 3 154 2 899 257 2 147 4 036 13 293 10 852
Rent 6 136 9 892 7 125 1 086 7 098 3 552 3 033 6 967 7 987 901 1 013 2 623 6 550 4 546
Interest 4 263 27 437 3 044 240 2 983 1 970 178 4 144 14 843 619 172 2 247 5 222 3 181
Balance invest. subs. and taxes 1 410 208 -958 -20 757 2 408 300 7 415 1 220 -1 490 256 1 037 240 385
Farm net income (FNI) 24 245 2 929 19 424 24 344 11 314 36 981 47 749 21 412 15 377 11 213 13 758 12 378 22 717 16 880
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 346 13 657 3 004 4 047 395 12 152 4 598 4 102 6 202 910 2 637 3 573 1 290 8 180
Remuneration of Family
Labour (RFL)24 487 -6 732 26 138 26 823 12 557 30 502 52 251 20 052 10 595 10 566 14 826 10 981 32 124 19 669
%spe.farms with positive RFL 89% 47% 89% 93% 76% 95% 94% 79% 61% 79% 93% 76% 80% 72%
97
63 50 77 87
97
176
67 81 94
55
91 81 69
0
50
100
150
200
250
300
350
400
450
500
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
284
323
276
314 321
265
430
279
333 326
293
447
343
285
256
389
319 273
337
213
309 335 351 336
280
496
370
288
28
-66
-43
41
-16
51
121
-56
-17 -10
13
-49
-27
-3
-100
-50
0
50
100
150
0
100
200
300
400
500
600
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 58
EU dairy farms report based on 2016 FADN data EU15
EU15 2016 Milk specialised farms
284 323
276 314 321
265
430
279
333 326 293
447
343
285
323
429 382
328
396
305
409 399 430
536
332
677
450
337
-39
-106 -105
-14
-75
-40
20
-120
-96
-210
-39
-230
-107
-52
-250
-200
-150
-100
-50
0
50
0
100
200
300
400
500
600
700
800
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
42 39 44 16
65
21 23
91
47
89
23
94
49 31
66
31
56
44
58
64 85
56 68
193
40
165
78
39
1
8 6
12
1
27
15
8 11
7
12
16
2
10
0
50
100
150
200
250
300
350
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
EUR/t Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-300
-250
-200
-150
-100
-50
0
50
100
150
200
-20 000
-10 000
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
BEL DAN DEU ESP FRA IRE ITA LUX NED OST POR SUO SVE UKI
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne 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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 59
EU dairy farms report based on 2016 FADN data BE
Belgium Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500200-
<500
200-
<500
200-
<500
200-
<500200-<500
200-
<500200-<500 200-<500
-
Farms represented 8 054 7 937 6 781 7 004 7 045 5 477 5 855 6 086 5 965 5 435 -23%
% production from specialised farms 83% 81% 80% 82% 82% 83% 86% 87% 86% 87% 6%
Forage area - ha 40 40 44 45 47 48 48 49 48 50 18%
Dairy cows - LU 48 49 55 55 56 61 62 63 65 70 30%
Rented UAA - % 75% 74% 75% 74% 75% 74% 73% 74% 73% 73% -2%
Total labour - AWU 1.6 1.7 1.7 1.8 1.8 1.8 1.9 1.8 1.8 1.8 10%
Family labour - % 99% 99% 98% 99% 98% 98% 98% 98% 98% 97% -1%
Milk per ha fodder area - t/ha 8.0 7.9 8.4 8.6 8.5 9.1 9.1 9.3 10.0 10.4 22%
Milk yield - kg/cow 6 673 6 558 6 766 6 964 7 092 7 161 7 057 7 214 7 379 7 482 7 570 10% 13%
Milk production - t 323 319 375 383 397 440 434 455 478 523 541 43% 67%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 347 329 252 310 338 309 379 374 302 282 359 3% 4%
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 1 2 2 - -
Total revenues from milk 347 329 252 310 338 309 379 374 303 284 361 4% 4%
Production costs
Feed 81 96 76 85 97 103 113 108 101 99 97 22% 20%
homegrown feed 31 34 29 28 33 31 31 30 27 23 23 -14% -27%
purchased feed 49 62 48 56 64 73 81 77 74 76 74 43% 50%
Herd renewal purchases 4 3 4 3 3 3 4 2 1 1 1 -57% -65%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 21 23 21 22 24 23 24 23 26 25 25 16% 17%
Specific costs 106 121 101 110 124 130 140 133 128 126 124 18% 17%
Machinery and building upkeep 14 15 13 14 15 14 15 16 13 13 13 -2% -10%
Energy (fuel, electricity) 13 16 12 13 16 17 17 16 13 13 14 3% 10%
Contract work 19 21 19 20 22 22 24 26 22 21 21 18% 12%
Taxes 1 1 1 1 1 1 1 1 1 1 1 -4% -7%
Other direct inputs 11 12 10 11 12 13 14 13 13 13 10 18% -10%
Non specific costs 58 64 55 59 66 66 72 71 61 61 59 9% 2%
Total operating costs 164 185 156 170 190 196 212 204 190 187 182 15% 11%
Gross margin 183 143 96 141 148 113 167 170 112 95 177 -11% -3%
Gross margin with coupled
payments183 143 96 141 148 113 167 170 114 97 179 -10% -2%
%spe.farms with positive gross
margin 100% 98% 96% 99% 98% 98% 97% 99% 94% 95% -2%
%milk production with positive gross
margin 100% 99% 98% 99% 99% 99% 99% 100% 98% 98% 0%
Depreciation 42 47 45 47 49 49 54 48 46 42 1%
Wages 1 1 1 1 1 1 1 2 2 2 104%
Rent 15 15 14 14 16 15 16 17 16 15 8%
Interest 16 16 16 17 17 16 16 14 12 11 -22%
External factors 32 32 31 32 35 32 33 33 29 28 -5%
Net margin 109 64 21 62 64 32 81 89 36 26 -22%
Net margin with coupled
payments109 64 21 62 64 32 81 89 38 28
-20%
Family labour costs 83 86 73 76 79 74 81 80 71 66 -10%
Own capital unpaid cost 15 1 13 3 2 2 4 4 2 1 -76%
Imputed family factors 98 87 86 79 81 76 85 84 73 66 -17%
Net economic margin 11 -23 -65 -18 -17 -44 -5 5 -37 -41 5%
Net economic margin with
coupled payments11 -23 -65 -18 -17 -44 -5 5 -36 -39
11%
%spe.farms with positive net
economic margin 46% 30% 11% 29% 34% 17% 41% 45% 20% 15% -8%
%milk production with positive net
economic margin 61% 42% 16% 43% 46% 22% 56% 60% 27% 16% -13%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 60
EU dairy farms report based on 2016 FADN data BE
Belgium Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 99 591 92 332 84 030 96 661 104 492 107 978 124 598 124 927 112 626 110 959 26%
Intermediate consumptions 48 889 53 505 50 625 51 958 59 806 67 632 71 228 72 971 72 730 74 526 44%
Balance subsidies and taxes 16 082 15 558 15 634 15 462 15 331 14 277 14 298 13 209 12 330 13 746 -17%
Decoupled payments 11 359 11 267 11 648 11 014 11 211 11 053 10 681 10 456 9 422 10 166 -12%
Depreciation 12 247 13 262 14 772 14 636 15 074 16 826 17 513 15 924 17 091 16 422 23%
Farm Net Value Added (FNVA) 54 537 41 122 34 267 45 529 44 944 37 798 50 155 49 240 35 135 33 757 -9%
External factors 9 313 9 122 10 257 10 043 10 709 11 076 11 000 11 098 11 072 10 962 15%
Wages 175 201 286 259 343 354 351 504 568 581 150%
Rent 4 628 4 475 4 749 4 610 5 115 5 321 5 549 5 996 6 039 6 125 31%
Interest 4 511 4 446 5 223 5 174 5 251 5 401 5 100 4 599 4 465 4 255 -6%
Balance invest. subs. and taxes -1 378 -1 432 -406 682 -289 190 -647 1 003 981 1 407 205%
Farm net income (FNI) 43 846 30 569 23 604 36 168 33 947 26 912 38 508 39 144 25 044 24 202 -10%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 4 607 376 4 442 985 744 605 1 586 1 543 872 345 -71%
Remuneration of Family Labour
(RFL) 24 276 18 581 11 487 19 919 19 091 14 897 20 703 18 634 11 271 13 631 -20%
%spe.farms with positive RFL 99% 96% 88% 98% 96% 91% 96% 95% 83% 89% -5%
183
143
96
141 148
113
167 170
114 97
179
0
50
100
150
200
250
300
350
400
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
347 329
252
310
338
309
379 374
303 284
361
238 265
232 249 274 277
299 285 265 256
182
109
64
21
62 64
32
81
89
38
28
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 61
EU dairy farms report based on 2016 FADN data BE
Belgium Milk specialised farms
347 329
252
310
338
309
379 374
303 284
361 336
352
317 328
355 353
384 369
339 323
182
11
-23
-65
-18 -17
-44
-5
5
-36 -39
-70
-60
-50
-40
-30
-20
-10
0
10
20
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
42 47 45 47 49 49 54 48 46 42
83 86
73 76
79 74
81 80
71 66
15 1 13 3
2 2
4 4
2
1
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-100
-50
0
50
100
150
200
0
10 000
20 000
30 000
40 000
50 000
60 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 62
EU dairy farms report based on 2016 FADN data DK
Denmark Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500200-
<500
200-
<500
200-
<500
200-
<500
200-
<500200-<500
200-
<500200-<500 200-<500
-
Farms represented 4 667 4 850 3 755 3 735 4 022 3 456 3 525 3 541 3 512 3 329 -22%
% production from specialised farms 99% 98% 96% 98% 99% 99% 99% 99% 99% 93% -1%
Forage area - ha 79 83 105 103 102 122 119 122 116 113 31%
Dairy cows - LU 117 115 146 148 141 170 167 164 164 160 29%
Rented UAA - % 27% 26% 26% 28% 29% 31% 28% 29% 31% 31% 15%
Total labour - AWU 2.2 2.2 2.6 2.5 2.4 2.8 2.8 2.9 2.9 2.9 23%
Family labour - % 58% 56% 47% 48% 49% 43% 43% 42% 41% 42% -22%
Milk per ha fodder area - t/ha 12.1 11.5 11.7 12.2 12.0 11.9 12.5 12.4 13.4 13.3 11%
Milk yield - kg/cow 8 231 8 258 8 404 8 550 8 418 8 599 8 927 9 255 9 607 9 504 10 043 14% 22%
Milk production - t 964 948 1 225 1 266 1 190 1 461 1 490 1 517 1 571 1 524 1 583 47% 64%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 332 386 292 336 371 358 405 412 330 323 397 5% 20%
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 - -
Total revenues from milk 331 386 292 335 370 358 404 407 330 323 397 5% 20%
Production costs
Feed 92 118 106 96 116 123 137 163 153 147 141 47% 54%
homegrown feed 18 23 21 18 23 24 24 60 57 51 48 174% 173%
purchased feed 74 95 85 78 93 99 113 103 95 97 92 16% 25%
Herd renewal purchases 0 6 5 4 3 3 2 2 1 2 1 -50% -
Milk levy 2 0 0 1 2 0 1 6 0 0 0 228% -100%
Other specific costs 28 31 31 30 31 30 29 29 28 28 27 -6% -3%
Specific costs 121 155 142 131 152 155 168 200 182 177 170 34% 40%
Machinery and building upkeep 22 27 26 26 27 26 28 29 25 25 25 6% 12%
Energy (fuel, electricity) 11 14 12 13 15 15 16 15 12 12 12 3% 8%
Contract work 27 32 30 28 30 30 30 32 29 29 29 3% 8%
Taxes 1 1 1 1 1 1 1 1 4 1 1 54% -23%
Other direct inputs 15 17 17 17 16 16 16 18 17 17 14 4% -6%
Non specific costs 76 91 86 85 89 89 91 95 88 84 81 5% 6%
Total operating costs 198 246 228 216 241 244 259 294 270 260 250 23% 27%
Gross margin 135 140 64 120 130 114 146 118 60 63 147 -29% 9%
Gross margin with coupled
payments133 140 64 119 129 114 145 112 60 63 147 -30% 10%
%spe.farms with positive gross
margin 99% 94% 89% 100% 96% 98% 97% 95% 91% 91% -2%
%milk production with positive gross
margin 100% 99% 94% 100% 99% 99% 100% 99% 96% 95% -1%
Depreciation 39 45 46 46 45 43 44 43 40 39 -6%
Wages 25 30 34 32 32 35 35 36 36 35 21%
Rent 15 15 15 15 15 16 14 14 14 14 -5%
Interest 65 120 87 81 67 61 53 48 44 40 -51%
External factors 106 165 135 128 115 111 102 99 94 90 -30%
Net margin -11 -70 -117 -53 -30 -41 0 -24 -74 -66 17%
Net margin with coupled
payments-12 -70 -117 -54 -31 -41 -1 -29 -74 -66
15%
Family labour costs 46 48 37 37 38 33 33 33 30 31 -28%
Own capital unpaid cost 13 4 9 7 5 5 11 9 9 8 1%
Imputed family factors 59 52 46 44 44 38 44 41 39 40 -23%
Net economic margin -70 -122 -163 -97 -73 -78 -44 -65 -113 -106 20%
Net economic margin with
coupled payments-71 -122 -163 -98 -75 -78 -45 -71 -113 -106
19%
%spe.farms with positive net
economic margin 6% 4% 0% 5% 5% 5% 13% 7% 1% 3% 12%
%milk production with positive net
economic margin 8% 5% 0% 5% 8% 7% 19% 10% 1% 3% 13%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 63
EU dairy farms report based on 2016 FADN data DK
Denmark Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 237 798 251 469 211 081 262 238 291 450 290 395 310 070 314 609 269 486 264 284 21%
Intermediate consumptions 152 100 174 857 171 063 181 055 201 121 208 924 213 313 206 804 199 525 195 939 21%
Balance subsidies and taxes 24 871 25 578 26 214 26 504 25 483 26 293 22 988 18 058 20 086 22 290 -21%
Decoupled payments 25 863 25 217 25 668 26 020 25 716 25 552 23 865 23 853 21 931 21 480 -12%
Depreciation 23 433 24 806 27 760 29 763 29 920 29 252 28 871 28 647 27 499 26 415 9%
Farm Net Value Added (FNVA) 87 136 77 383 38 472 77 924 85 892 78 512 90 874 97 217 62 548 64 220 10%
External factors 63 381 91 153 81 862 84 304 76 049 75 288 67 036 64 959 63 735 61 504 -20%
Wages 15 449 16 732 20 537 21 252 21 435 23 480 23 457 24 129 24 252 24 239 38%
Rent 9 106 8 390 9 082 9 890 10 405 11 189 9 359 9 545 9 987 9 875 11%
Interest 38 826 66 032 52 243 53 162 44 208 40 619 34 220 31 285 29 496 27 390 -44%
Balance invest. subs. and taxes 103 50 42 208 55 516 546 680 317 208 518%
Farm net income (FNI) 23 859 -13 720 -43 348 -6 172 9 898 3 741 24 383 32 938 -870 2 924 205%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 14 003 5 311 11 709 9 383 7 890 7 884 17 639 13 430 15 051 13 633 36%
Remuneration of Family Labour
(RFL) 21 219 -24 413 -85 921 -18 663 10 506 625 31 576 -8 251 -74 443 -5 565 1%
%spe.farms with positive RFL 69% 54% 14% 49% 62% 53% 73% 53% 23% 47% -10%
133 140
64
119 129 114
145 112
60 63
147
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
331
386
292
335
370 358
404 407
330 323
397
343
456 409 389 401 399 405
436 404 389
250
-12
-70
-117
-54
-31
-41
-1
-29
-74 -66
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 64
EU dairy farms report based on 2016 FADN data DK
Denmark Milk specialised farms
331
386
292
335
370 358
404 407
330 323
397
402
508
455 433 445 437 449
477
443 429
250
-71
-122
-163
-98
-75 -78
-45
-71
-113 -106
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
39 45 46 46 45 43 44 43 40 39
46
48
37 37
38 33
33 33 30 31
13
4
9 7
5 5 11 9
9 8
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
200
-100 000
-50 000
0
50 000
100 000
150 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 65
EU dairy farms report based on 2016 FADN data DE
Germany Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000 -
Farms represented 72 385 72 880 70 755 68 137 68 286 62 599 61 943 61 449 59 676 58 520 -17%
% production from specialised farms 91% 90% 93% 91% 92% 91% 93% 92% 91% 92% 1%
Forage area - ha 45 45 51 52 52 55 56 57 56 57 21%
Dairy cows - LU 47 47 53 54 55 61 63 64 65 66 33%
Rented UAA - % 67% 66% 68% 67% 66% 66% 65% 64% 64% 64% -4%
Total labour - AWU 1.9 1.9 2.1 2.1 2.1 2.1 2.2 2.2 2.1 2.1 7%
Family labour - % 76% 75% 70% 71% 69% 69% 66% 68% 71% 69% -6%
Milk per ha fodder area - t/ha 7.4 7.5 7.8 7.9 8.0 8.3 8.6 8.5 8.8 8.8 15%
Milk yield - kg/cow 7 136 7 241 7 406 7 500 7 585 7 545 7 725 7 514 7 659 7 574 7 532 4% 6%
Milk production - t 334 338 394 407 420 458 483 483 495 502 501 39% 50%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 344 274 245 305 352 327 377 396 315 276 371 14% 8%
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 - -
Total revenues from milk 343 274 245 305 352 327 374 396 315 276 371 15% 8%
Production costs
Feed 81 80 67 81 103 106 122 112 105 102 101 40% 24%
homegrown feed 30 30 24 31 32 35 38 33 31 29 28 10% -6%
purchased feed 51 50 43 50 70 71 84 79 74 73 73 57% 42%
Herd renewal purchases 3 3 3 3 3 3 3 3 3 3 3 16% 9%
Milk levy 2 0 0 0 0 0 2 0 0 0 0 -96% -100%
Other specific costs 23 24 22 28 30 30 30 31 29 29 30 29% 29%
Specific costs 108 107 92 112 136 139 158 147 137 134 133 36% 23%
Machinery and building upkeep 26 22 20 24 25 23 26 25 21 22 23 0% -12%
Energy (fuel, electricity) 26 25 23 26 28 28 30 29 24 23 24 4% -5%
Contract work 18 18 17 18 18 19 21 21 19 20 20 14% 14%
Taxes 2 2 2 2 2 2 2 5 1 1 1 48% -38%
Other direct inputs 29 27 25 27 28 25 28 26 24 26 24 -6% -18%
Non specific costs 100 93 87 96 100 96 107 107 90 92 92 3% -8%
Total operating costs 208 201 179 208 236 235 265 254 226 226 226 20% 8%
Gross margin 136 74 66 97 116 92 111 142 89 50 145 2% 7%
Gross margin with coupled
payments134 74 66 97 116 92 109 142 89 50 145 3% 8%
%spe.farms with positive gross
margin 99% 89% 89% 95% 96% 93% 95% 97% 94% 82% -2%
%milk production with positive gross
margin 100% 95% 94% 97% 98% 97% 97% 99% 97% 88% -2%
Depreciation 49 48 46 51 51 49 53 45 43 44 -7%
Wages 19 18 20 20 21 19 23 24 19 20 11%
Rent 21 18 17 17 16 16 17 19 18 20 2%
Interest 10 9 10 9 9 9 9 9 8 9 -9%
External factors 49 45 46 46 46 45 50 52 45 49 4%
Net margin 38 -19 -26 0 19 -2 8 45 1 -43 144%
Net margin with coupled
payments36 -19 -26 0 19 -2 6 45 1 -43
135%
Family labour costs 53 48 43 43 43 40 42 58 56 56 19%
Own capital unpaid cost 37 14 30 15 7 4 12 10 9 6 -69%
Imputed family factors 89 62 73 58 50 44 54 69 65 62 -13%
Net economic margin -52 -81 -99 -57 -31 -46 -46 -23 -64 -105 17%
Net economic margin with
coupled payments-53 -81 -99 -57 -31 -46 -48 -23 -64 -105
17%
%spe.farms with positive net
economic margin 15% 4% 3% 12% 25% 14% 20% 28% 11% 2% 82%
%milk production with positive net
economic margin 29% 8% 6% 21% 38% 23% 32% 42% 16% 3% 41%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 66
EU dairy farms report based on 2016 FADN data DE
Germany Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 97 452 83 699 79 797 100 248 107 472 116 822 130 341 117 041 109 375 113 948 30%
Intermediate consumptions 58 673 59 651 56 906 67 301 73 216 80 392 83 958 78 652 76 921 76 747 33%
Balance subsidies and taxes 17 595 16 668 17 962 19 061 18 385 17 352 16 946 15 675 16 898 17 690 -4%
Decoupled payments 13 017 12 856 13 450 13 397 12 890 12 380 11 532 11 717 11 327 11 344 -13%
Depreciation 12 527 12 897 13 328 15 101 15 629 16 649 17 269 15 274 15 775 15 955 21%
Farm Net Value Added (FNVA) 43 847 27 819 27 524 36 907 37 012 37 132 46 060 38 790 33 577 38 937 12%
External factors 12 972 12 780 14 383 14 463 15 308 16 320 17 284 18 516 17 867 18 571 37%
Wages 5 317 5 379 6 639 6 721 7 375 7 625 8 594 9 064 8 130 8 411 48%
Rent 5 226 4 924 5 012 5 065 5 207 5 680 5 788 6 635 6 706 7 120 35%
Interest 2 429 2 478 2 732 2 677 2 726 3 015 2 902 2 817 3 031 3 041 16%
Balance invest. subs. and taxes -1 236 -1 196 -632 -1 123 -1 227 -1 124 -1 222 -884 -816 -958 13%
Farm net income (FNI) 29 639 13 843 12 509 21 321 20 477 19 687 27 554 19 390 14 894 19 408 -4%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 12 199 4 849 12 111 6 136 3 001 1 933 5 399 4 985 4 493 3 002 -57%
Remuneration of Family Labour
(RFL) 17 684 9 826 5 810 16 879 18 857 17 882 24 084 12 948 9 170 18 167 21%
%spe.farms with positive RFL 89% 79% 71% 89% 91% 89% 93% 83% 75% 89% 3%
134
74 66
97 116 92
109
142
89
50
145
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
343
274
245
305
352 327
374 396
315
276
371
306 293 271
305 333 329
368 351 314 319
226
36
-19
-26
0
19
-2
6
45
1
-43
-50
-40
-30
-20
-10
0
10
20
30
40
50
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 67
EU dairy farms report based on 2016 FADN data DE
Germany Milk specialised farms
343
274
245
305
352 327
374 396
315
276
371
396
355 344
363 383 373
422 419
379 382
226 -53
-81
-99
-57
-31
-46 -48
-23
-64
-105
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
49 48 46 51 51 49 53 45 43 44
53 48 43 43 43 40
42 58 56
56
37
14 30 15 7 4
12 10
9 6
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
200
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 68
EU dairy farms report based on 2016 FADN data ES
Spain Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 1000-
<2000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000 -
Farms represented 23 708 23 164 21 618 24 062 23 543 16 083 16 928 15 037 15 964 15 780 -32%
% production from specialised farms 92% 92% 92% 93% 94% 86% 95% 92% 94% 95% 1%
Forage area - ha 17 16 21 19 21 24 26 25 26 25 44%
Dairy cows - LU 33 35 43 40 43 47 48 53 54 59 49%
Rented UAA - % 38% 37% 43% 46% 47% 50% 45% 50% 49% 46% 23%
Total labour - AWU 1.6 1.6 1.6 1.7 1.7 1.8 1.7 1.8 1.9 1.9 17%
Family labour - % 95% 95% 92% 90% 89% 85% 87% 84% 81% 77% -14%
Milk per ha fodder area - t/ha 13.2 14.4 14.3 14.1 14.5 13.8 12.7 14.6 15.3 17.6 14%
Milk yield - kg/cow 6 830 6 873 6 934 6 788 7 436 7 109 7 051 7 167 7 460 7 684 7 903 8% 16%
Milk production - t 227 240 300 274 317 337 340 378 404 451 461 61% 103%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 355 384 298 292 312 310 339 353 310 302 312 -7% -12%
Coupled payments (incl. Art.69) 0 0 0 2 3 4 6 8 8 12 12 5648% 2289%
Total revenues from milk 356 383 298 294 315 315 345 362 319 314 324 -4% -9%
Production costs
Feed 112 136 119 129 138 158 168 186 166 161 155 40% 38%
homegrown feed 9 9 8 10 10 11 12 26 27 27 26 202% 179%
purchased feed 103 126 111 118 128 147 156 160 139 134 129 27% 25%
Herd renewal purchases 4 9 9 9 7 5 3 3 2 2 2 -65% -59%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other specific costs 20 22 20 20 20 22 21 23 21 18 19 3% -4%
Specific costs 136 166 147 158 166 185 192 212 190 181 176 30% 29%
Machinery and building upkeep 9 12 11 12 13 12 12 15 13 12 12 24% 31%
Energy (fuel, electricity) 11 13 12 13 15 17 18 17 15 14 15 27% 29%
Contract work 5 6 6 7 7 7 8 8 11 14 14 88% 171%
Taxes 0 0 0 0 0 1 1 0 0 0 0 -10% 132%
Other direct inputs 8 9 9 9 9 12 12 16 16 16 14 91% 77%
Non specific costs 34 41 38 42 44 48 50 57 56 56 55 50% 63%
Total operating costs 170 207 186 199 210 233 242 269 246 237 230 34% 36%
Gross margin 186 177 112 92 103 77 96 85 65 65 82 -55% -56%
Gross margin with coupled
payments186 177 112 95 105 81 103 93 73 77 93 -49% -50%
%spe.farms with positive gross
margin 100% 97% 97% 96% 98% 89% 97% 97% 91% 89% -6%
%milk production with positive gross
margin 100% 98% 97% 97% 99% 94% 98% 96% 91% 90% -6%
Depreciation 18 19 18 18 15 16 16 21 18 16 1%
Wages 5 5 6 9 8 11 10 12 13 15 151%
Rent 4 4 4 4 4 4 4 5 5 4 11%
Interest 2 2 2 2 2 2 1 1 1 1 -31%
External factors 10 11 12 15 14 17 15 18 19 20 72%
Net margin 158 148 82 60 74 44 65 46 28 29 -74%
Net margin with coupled
payments158 147 82 62 76 48 71 54 36 41
-66%
Family labour costs 72 77 72 70 63 56 58 53 49 44 -34%
Own capital unpaid cost 26 16 21 20 12 17 15 14 13 12 -37%
Imputed family factors 98 93 93 90 75 73 73 67 63 55 -35%
Net economic margin 60 55 -11 -30 -1 -29 -9 -22 -35 -26 -180%
Net economic margin with
coupled payments60 55 -11 -28 1 -24 -2 -14 -27 -14
-152%
%spe.farms with positive net
economic margin 66% 61% 37% 23% 36% 22% 36% 30% 20% 21% -57%
%milk production with positive net
economic margin 82% 75% 47% 41% 50% 32% 44% 41% 35% 32% -47%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 69
EU dairy farms report based on 2016 FADN data ES
Spain Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 65 505 71 946 71 383 61 158 72 671 76 537 82 514 88 718 83 697 87 418 24%
Intermediate consumptions 33 034 39 959 45 599 42 308 49 282 57 473 59 716 63 585 61 113 63 297 59%
Balance subsidies and taxes 6 137 6 660 9 242 8 116 8 416 8 292 8 972 10 489 9 925 10 060 38%
Decoupled payments 4 509 4 957 5 888 5 367 5 649 6 003 5 876 6 426 6 318 5 677 20%
Depreciation 2 990 3 180 3 860 3 382 3 215 3 706 3 699 4 961 4 543 4 328 38%
Farm Net Value Added (FNVA) 35 619 35 468 31 165 23 584 28 591 23 650 28 072 30 662 27 966 29 853 -13%
External factors 1 811 1 896 2 639 2 870 2 984 4 023 3 513 4 436 4 866 5 493 133%
Wages 856 881 1 325 1 707 1 822 2 568 2 225 2 944 3 312 4 167 240%
Rent 673 728 962 869 839 1 103 975 1 187 1 206 1 086 47%
Interest 283 287 353 293 322 351 313 305 348 239 -3%
Balance invest. subs. and taxes -115 -30 108 204 82 -15 28 -170 40 -20 -313%
Farm net income (FNI) 33 693 33 541 28 634 20 918 25 689 19 613 24 587 26 056 23 140 24 340 -23%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 4 673 3 247 5 074 4 329 3 072 4 628 4 127 4 212 4 281 4 047 -3%
Remuneration of Family Labour
(RFL) 20 939 20 916 17 336 12 162 16 707 12 307 15 990 17 363 15 961 18 403 -13%
%spe.farms with positive RFL 98% 98% 94% 96% 95% 89% 95% 93% 90% 93% -5%
186 177
112 95 105
81 103 93
73 77 93
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
356
383
298 294 315 315
345 362
319 314 324
198 236 216 232 238
266 274 308
282 273 230
158
147
82
62
76
48
71
54
36 41
0
20
40
60
80
100
120
140
160
180
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 70
EU dairy farms report based on 2016 FADN data ES
Spain Milk specialised farms
356
383
298 294 315 315
345 362
319 314 324
295
329 309
322 314
339 347
375
345 328
230
60 55
-11
-28
1
-24
-2
-14
-27
-14
-40
-30
-20
-10
0
10
20
30
40
50
60
70
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
18 19 18 18 15 16 16 21 18 16
72 77 72 70
63 56 58 53
49 44
26 16 21 20
12 17 15 14 13
12
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-50
0
50
100
150
200
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 71
EU dairy farms report based on 2016 FADN data FR
France Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000
1000-
<2000 -
Farms represented 71 464 73 428 63 754 63 411 62 846 58 766 59 468 59 329 58 521 57 793 -16%
% production from specialised farms 93% 95% 94% 95% 95% 93% 96% 96% 95% 95% 2%
Forage area - ha 61 62 66 70 71 74 74 74 74 75 18%
Dairy cows - LU 46 47 51 52 52 55 56 58 58 59 22%
Rented UAA - % 90% 90% 91% 91% 91% 92% 92% 89% 88% 88% -2%
Total labour - AWU 1.8 1.8 1.9 1.9 1.9 2.0 2.0 2.0 1.9 1.9 4%
Family labour - % 92% 92% 91% 91% 90% 89% 89% 88% 88% 87% -4%
Milk per ha fodder area - t/ha 4.9 5.0 5.0 5.0 5.2 5.2 5.3 5.5 5.6 5.5 11%
Milk yield - kg/cow 6 557 6 580 6 539 6 799 7 099 6 984 6 953 7 069 7 096 6 963 6 860 7% 5%
Milk production - t 303 308 332 352 373 385 391 409 411 412 410 31% 35%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 316 347 296 326 345 332 365 373 328 316 341 6% 8%
Coupled payments (incl. Art.69) 0 0 0 1 1 2 2 1 5 5 5 - -
Total revenues from milk 316 347 295 327 346 334 367 374 334 321 346 7% 9%
Production costs
Feed 86 100 96 91 100 111 118 109 104 101 101 12% 18%
homegrown feed 33 36 37 33 35 38 38 35 34 33 33 -4% 0%
purchased feed 52 64 58 59 65 73 80 74 70 68 68 21% 29%
Herd renewal purchases 3 3 3 2 2 3 3 3 2 2 2 -24% -36%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 -94% -100%
Other specific costs 12 13 13 13 13 14 13 13 13 12 12 0% 2%
Specific costs 101 117 112 107 116 127 134 125 120 116 115 9% 14%
Machinery and building upkeep 20 22 21 21 22 22 23 23 21 22 22 5% 11%
Energy (fuel, electricity) 14 18 14 16 18 19 21 21 18 18 20 23% 38%
Contract work 27 29 29 28 29 32 35 34 33 34 34 19% 27%
Taxes 2 3 3 3 3 2 3 3 3 3 3 5% 11%
Other direct inputs 35 37 36 37 38 36 38 42 41 42 40 15% 15%
Non specific costs 98 109 102 105 111 112 120 123 116 118 119 15% 21%
Total operating costs 199 226 214 212 227 239 254 248 235 234 234 12% 17%
Gross margin 117 121 81 115 118 93 111 124 93 82 107 -6% -9%
Gross margin with coupled
payments117 121 81 116 120 95 113 126 99 87 112 -2% -4%
%spe.farms with positive gross
margin 97% 97% 94% 98% 98% 94% 94% 98% 95% 92% -2%
%milk production with positive gross
margin 99% 98% 96% 99% 99% 97% 97% 99% 98% 96% 0%
Depreciation 61 66 68 66 65 64 71 66 63 65 0%
Wages 5 5 6 5 6 7 7 8 7 8 43%
Rent 19 20 21 20 20 20 22 22 21 21 4%
Interest 10 11 12 12 11 11 11 11 9 9 -12%
External factors 35 36 39 37 37 37 40 40 37 38 5%
Net margin 21 19 -25 12 17 -8 0 18 -7 -21 -157%
Net margin with coupled
payments21 19 -25 13 18 -6 1 20 -1 -16
-80%
Family labour costs 66 67 65 63 61 60 63 62 58 58 -10%
Own capital unpaid cost 15 3 11 3 2 1 2 2 2 1 -84%
Imputed family factors 81 70 77 66 63 61 65 64 60 59 -19%
Net economic margin -59 -51 -102 -54 -46 -68 -65 -46 -66 -80 9%
Net economic margin with
coupled payments-60 -51 -102 -53 -45 -67 -64 -45 -61 -75
15%
%spe.farms with positive net
economic margin 12% 16% 2% 13% 17% 8% 11% 17% 8% 6% -3%
%milk production with positive net
economic margin 18% 21% 3% 17% 23% 10% 15% 21% 10% 7% -7%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 72
EU dairy farms report based on 2016 FADN data FR
France Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 84 105 91 912 80 886 94 952 106 422 108 911 113 955 118 539 110 120 103 788 29%
Intermediate consumptions 52 697 61 051 59 765 60 178 68 534 74 297 78 568 80 352 77 724 77 148 36%
Balance subsidies and taxes 16 584 17 050 16 787 18 655 18 354 18 099 17 700 16 868 17 184 18 002 3%
Decoupled payments 12 752 12 901 12 723 15 378 15 469 15 369 15 133 14 200 13 314 13 460 7%
Depreciation 16 691 17 985 19 283 19 248 20 071 20 930 22 370 21 148 21 076 21 407 18%
Farm Net Value Added (FNVA) 31 300 29 926 18 626 34 181 36 171 31 783 30 718 33 907 28 504 23 234 7%
External factors 9 730 10 280 11 220 11 201 11 583 12 368 12 744 12 978 12 621 12 670 23%
Wages 1 369 1 420 1 709 1 677 1 818 2 231 2 377 2 507 2 404 2 582 67%
Rent 5 491 5 718 6 108 6 127 6 328 6 646 6 883 7 011 7 040 7 103 22%
Interest 2 871 3 142 3 403 3 398 3 437 3 490 3 484 3 460 3 178 2 985 2%
Balance invest. subs. and taxes 1 002 1 114 1 110 1 030 753 887 696 576 579 758 -41%
Farm net income (FNI) 22 572 20 760 8 516 24 009 25 342 20 302 18 669 21 504 16 462 11 322 -5%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 4 432 711 3 412 802 581 328 835 687 564 396 -81%
Remuneration of Family Labour
(RFL) 11 799 13 145 3 415 14 546 15 964 12 835 11 612 11 447 8 483 7 448 -3%
%spe.farms with positive RFL 89% 92% 65% 94% 94% 88% 85% 88% 80% 76% -1%
117 121
81
116 120 95
113 126
99 87 112
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
316
347
295
327 346
334
367 374
334 321
346
295 328 321 314 328 340
365 354 335 337
234
21 19
-25
13
18
-6
1
20
-1
-16
-30
-20
-10
0
10
20
30
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 73
EU dairy farms report based on 2016 FADN data FR
France Milk specialised farms
316
347
295
327 346 334
367 374
334 321
346
376 398 397
381 391 401 430 419
395 396
234 -60
-51
-102
-53
-45
-67 -64
-45
-61
-75
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
61 66 68 66 65 64 71 66 63 65
66 67 65 63 61 60
63 62
58 58
15 3 11
3 2 1
2 2
2 1
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 74
EU dairy farms report based on 2016 FADN data IE
Ireland Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 18 670 18 884 17 002 16 978 17 266 17 034 17 266 17 470 17 227 16 840 -6%
% production from specialised farms 99% 99% 98% 99% 99% 99% 100% 99% 99% 99% 0%
Forage area - ha 56 55 58 59 57 61 58 60 61 62 8%
Dairy cows - LU 55 54 60 62 62 66 64 64 69 73 22%
Rented UAA - % 21% 22% 23% 25% 23% 24% 23% 23% 23% 24% 3%
Total labour - AWU 1.6 1.6 1.6 1.7 1.6 1.6 1.6 1.6 1.6 1.6 0%
Family labour - % 87% 88% 87% 87% 86% 86% 87% 87% 87% 87% 0%
Milk per ha fodder area - t/ha 5.3 5.2 5.3 5.6 5.9 5.7 5.9 5.7 6.4 6.7 19%
Milk yield - kg/cow 5 410 5 281 5 108 5 435 5 461 5 248 5 381 5 393 5 735 5 637 6 378 6% 18%
Milk production - t 296 285 309 334 337 344 345 346 395 412 450 30% 52%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 323 330 229 289 329 304 369 360 291 265 321 4% 0%
Coupled payments (incl. Art.69) 0 0 0 2 1 1 1 0 0 0 0 - -
Total revenues from milk 322 328 229 291 330 303 370 360 291 265 321 4% 0%
Production costs
Feed 78 97 84 83 90 107 127 94 83 79 71 -1% -9%
homegrown feed 32 41 34 34 40 40 46 32 29 25 23 -19% -29%
purchased feed 46 56 50 50 50 66 81 62 53 54 48 11% 5%
Herd renewal purchases 11 9 8 7 9 7 8 0 2 2 2 -83% -81%
Milk levy 1 1 0 0 0 3 0 0 0 0 0 -100% -100%
Other specific costs 24 26 26 26 28 29 28 44 40 41 37 66% 57%
Specific costs 113 133 118 117 127 145 163 139 124 122 110 6% -3%
Machinery and building upkeep 18 19 15 17 17 16 17 17 14 13 12 -17% -36%
Energy (fuel, electricity) 11 13 12 13 14 15 16 15 12 9 9 0% -22%
Contract work 15 15 14 14 15 14 16 16 14 13 12 -2% -20%
Taxes 1 1 1 1 1 1 1 1 1 0 0 -10% -53%
Other direct inputs 8 9 11 11 12 11 11 13 11 11 10 23% 16%
Non specific costs 53 56 53 56 58 56 62 61 51 46 42 -2% -21%
Total operating costs 167 189 170 173 185 202 225 201 175 168 152 3% -9%
Gross margin 156 141 58 117 144 103 144 159 116 97 169 4% 8%
Gross margin with coupled
payments156 140 59 118 145 101 145 159 116 97 169 5% 9%
%spe.farms with positive gross
margin 100% 97% 85% 98% 98% 94% 96% 99% 98% 97% 4%
%milk production with positive gross
margin 100% 99% 94% 99% 100% 97% 99% 100% 98% 99% 1%
Depreciation 45 50 29 35 27 34 35 25 22 21 -45%
Wages 11 12 11 11 12 11 11 10 9 9 -15%
Rent 9 10 10 10 9 10 10 10 9 10 -1%
Interest 8 10 8 7 7 6 6 6 5 5 -35%
External factors 28 31 29 29 28 27 27 26 23 24 -16%
Net margin 84 59 1 53 89 42 82 108 71 51 60%
Net margin with coupled
payments83 58 1 54 90 40 83 108 71 51
62%
Family labour costs 78 85 71 74 70 69 73 69 57 64 -18%
Own capital unpaid cost 57 34 71 72 75 49 47 38 28 27 -42%
Imputed family factors 134 118 142 147 145 118 120 107 85 91 -28%
Net economic margin -51 -59 -141 -94 -57 -76 -38 1 -14 -40 79%
Net economic margin with
coupled payments-51 -60 -141 -92 -56 -78 -38 1 -14 -40
79%
%spe.farms with positive net
economic margin 18% 14% 0% 4% 15% 8% 26% 46% 34% 17% 209%
%milk production with positive net
economic margin 25% 22% 1% 8% 23% 14% 38% 59% 47% 28% 178%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 75
EU dairy farms report based on 2016 FADN data IE
Ireland Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 78 919 85 605 67 050 83 335 97 471 98 645 111 840 113 701 110 926 105 201 42%
Intermediate consumptions 41 307 52 235 50 954 52 866 57 170 65 249 71 555 66 745 66 483 66 271 38%
Balance subsidies and taxes 14 949 14 686 14 652 15 460 15 802 15 109 14 761 12 963 12 192 12 250 -16%
Decoupled payments 11 725 11 667 12 027 11 678 11 700 12 316 11 436 11 212 10 682 11 529 -6%
Depreciation 11 191 12 474 7 872 9 649 7 625 10 384 10 281 7 520 7 782 7 813 -27%
Farm Net Value Added (FNVA) 41 371 35 582 22 876 36 280 48 478 38 121 44 765 52 400 48 853 43 366 45%
External factors 7 140 7 693 7 607 7 830 7 883 8 225 7 768 7 711 8 143 8 819 10%
Wages 2 658 2 782 2 825 3 049 3 256 3 305 3 141 2 985 3 081 3 301 13%
Rent 2 489 2 471 2 677 2 823 2 658 3 043 2 913 2 990 3 183 3 550 27%
Interest 1 994 2 440 2 105 1 958 1 969 1 877 1 714 1 736 1 879 1 968 -15%
Balance invest. subs. and taxes -846 -305 7 311 -147 -1 174 -1 479 -1 321 2 817 2 859 2 406 31%
Farm net income (FNI) 33 385 27 583 22 580 28 304 39 421 28 416 35 676 47 506 43 569 36 953 53%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 16 449 9 805 22 449 23 034 25 135 17 909 15 991 13 236 12 038 12 142 -23%
Remuneration of Family Labour
(RFL) 15 541 15 560 2 481 6 694 14 845 10 685 17 701 27 527 25 717 21 847 124%
%spe.farms with positive RFL 89% 83% 53% 70% 84% 75% 86% 96% 94% 95% 27%
156
140
59
118 145
101
145 159
116 97
169
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
322 328
229
291
330
303
370 360
291
265
321
239 270
228 237 240 263
287 252
220 213
152
83
58
1
54
90
40
83
108
71
51
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 76
EU dairy farms report based on 2016 FADN data IE
Ireland Milk specialised farms
322 328
229
291
330
303
370 360
291
265
321
374 389
370 383 385 381
408
359
305 305
152
-51 -60
-141
-92
-56
-78
-38
1
-14
-40
-160
-140
-120
-100
-80
-60
-40
-20
0
20
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
45 50 29 35 27 34 35 25 22 21
78 85
71 74
70 69 73 69
57 64
57 34
71 72
75 49 47
38
28 27
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
200
0
10 000
20 000
30 000
40 000
50 000
60 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 77
EU dairy farms report based on 2016 FADN data IT
Italy Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 1000-
<2000
1000-
<2000
1000-
<2000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000 -
Farms represented 36 222 36 721 29 967 30 293 30 888 28 389 25 222 25 210 24 137 24 365 -28%
% production from specialised farms 91% 87% 83% 87% 90% 88% 88% 93% 91% 93% 6%
Forage area - ha 19 20 21 22 23 24 23 23 25 26 23%
Dairy cows - LU 40 37 43 45 46 48 50 50 50 50 24%
Rented UAA - % 54% 61% 58% 61% 62% 62% 64% 65% 67% 64% 13%
Total labour - AWU 2.0 1.7 1.8 1.9 2.0 2.0 2.0 1.8 1.8 1.8 -2%
Family labour - % 87% 86% 82% 82% 80% 81% 80% 85% 79% 84% -3%
Milk per ha fodder area - t/ha 14.1 12.2 13.4 13.9 13.7 13.7 14.7 15.2 15.3 14.0 12%
Milk yield - kg/cow 6 724 6 512 6 394 6 706 6 864 6 887 6 663 7 057 7 556 7 101 7 424 11% 10%
Milk production - t 271 242 276 298 314 327 335 351 379 357 377 38% 39%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 384 399 384 404 460 444 448 445 416 422 437 10% 14%
Coupled payments (incl. Art.69) 0 0 0 3 3 2 2 2 6 7 7 - -
Total revenues from milk 384 399 384 406 462 447 451 448 422 430 444 11% 16%
Production costs
Feed 124 113 114 115 133 144 144 167 172 177 167 47% 34%
homegrown feed 22 21 19 18 19 21 21 43 54 58 54 149% 146%
purchased feed 102 92 95 96 114 123 123 124 118 119 112 25% 10%
Herd renewal purchases 2 1 3 3 2 2 2 3 2 2 2 14% -17%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other specific costs 13 22 18 15 18 19 18 18 17 16 15 -6% 10%
Specific costs 140 136 135 133 153 165 165 189 191 195 183 40% 31%
Machinery and building upkeep 8 9 6 6 7 7 8 8 9 9 9 17% 16%
Energy (fuel, electricity) 19 18 21 24 27 28 28 26 25 23 23 27% 20%
Contract work 4 3 4 3 4 4 5 5 6 6 5 53% 31%
Taxes 2 5 6 6 6 7 6 8 7 6 6 49% 136%
Other direct inputs 15 11 13 13 15 18 18 17 17 15 13 27% -10%
Non specific costs 48 46 50 52 59 65 65 64 63 59 56 30% 17%
Total operating costs 188 182 185 186 212 230 230 252 254 254 240 37% 28%
Gross margin 196 217 199 218 248 214 218 193 162 168 197 -14% 1%
Gross margin with coupled
payments196 217 199 221 250 217 220 195 168 176 204 -12% 4%
%spe.farms with positive gross
margin 99% 99% 98% 98% 98% 97% 94% 95% 94% 96% -3%
%milk production with positive gross
margin 100% 100% 99% 99% 99% 99% 98% 98% 98% 99% -2%
Depreciation 41 40 39 36 38 38 37 22 22 23 -44%
Wages 14 13 18 18 21 20 22 17 22 19 27%
Rent 11 10 10 10 10 10 11 12 12 12 17%
Interest 2 1 1 1 1 1 1 1 1 1 -28%
External factors 27 24 29 29 32 31 34 30 35 32 21%
Net margin 128 152 131 153 178 145 147 141 106 114 -13%
Net margin with coupled
payments128 152 131 156 181 147 150 143 112 121
-9%
Family labour costs 90 98 86 95 98 93 94 86 77 85 -10%
Own capital unpaid cost 39 13 31 23 22 43 26 24 20 15 -29%
Imputed family factors 129 112 117 118 121 135 120 110 96 100 -14%
Net economic margin -1 41 14 35 57 9 28 31 10 13 -1%
Net economic margin with
coupled payments-1 41 14 38 60 12 30 33 16 20
27%
%spe.farms with positive net
economic margin 25% 33% 28% 30% 32% 30% 29% 35% 32% 33% 15%
%milk production with positive net
economic margin 58% 71% 63% 69% 71% 63% 63% 67% 64% 58% -2%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 78
EU dairy farms report based on 2016 FADN data IT
Italy Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 75 674 81 279 82 712 88 011 97 797 103 355 103 640 123 389 119 249 116 350 50%
Intermediate consumptions 39 637 40 200 41 917 43 936 48 565 56 235 56 911 65 489 67 081 64 788 62%
Balance subsidies and taxes 8 266 7 845 7 398 7 672 7 485 7 607 7 564 8 505 9 080 9 564 15%
Decoupled payments 5 849 6 014 6 090 5 962 6 059 6 187 6 050 6 902 7 114 6 870 16%
Depreciation 7 271 7 584 7 632 7 154 7 609 8 287 8 066 5 605 5 707 5 788 -24%
Farm Net Value Added (FNVA) 37 033 41 340 40 561 44 593 49 107 46 441 46 228 60 800 55 541 55 338 44%
External factors 4 799 4 489 5 655 5 790 6 158 6 590 7 039 7 603 9 014 7 845 64%
Wages 2 373 2 483 3 485 3 600 4 069 4 173 4 549 4 260 5 654 4 631 74%
Rent 2 066 1 842 1 987 2 001 1 920 2 160 2 212 3 060 3 105 3 036 56%
Interest 359 165 183 189 168 258 279 283 255 178 1%
Balance invest. subs. and taxes 530 124 448 1 082 124 135 29 249 436 300 -11%
Farm net income (FNI) 32 764 36 975 35 353 39 885 43 073 39 986 39 218 53 446 46 963 47 794 41%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 8 191 2 875 7 436 5 581 5 508 11 824 7 022 7 196 6 469 4 602 -1%
Remuneration of Family Labour
(RFL) 16 680 26 669 23 821 26 890 29 557 23 733 25 983 35 850 35 862 34 563 58%
%spe.farms with positive RFL 87% 91% 88% 90% 89% 87% 84% 89% 91% 94% 3%
196 217 199 221
250 217 220
195 168 176
204
0
50
100
150
200
250
300
350
400
450
500
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
384 399
384 406
462 447 451 448
422 430 444
255 247 253 250 281 300 301 304 310 309
240
128
152
131
156
181
147 150 143
112 121
0
20
40
60
80
100
120
140
160
180
200
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 79
EU dairy farms report based on 2016 FADN data IT
Italy Milk specialised farms
384 399
384 406
462 447 451 448
422 430 444 385
358 370 369
402
435 421 414 407 409
240
-1
41
14
38
60
12
30 33
16 20
-10
0
10
20
30
40
50
60
70
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
41 40 39 36 38 38 37 22 22 23
90 98 86 95 98 93 94
86 77 85
39 13 31 23
22 43 26
24 20 15
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-50
0
50
100
150
200
250
300
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 80
EU dairy farms report based on 2016 FADN data LU
Luxembourg Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 860 861 738 742 743 656 676 679 652 656 -19%
% production from specialised farms 95% 95% 94% 95% 95% 93% 95% 97% 94% 94% 0%
Forage area - ha 68 66 75 75 76 83 81 81 80 80 15%
Dairy cows - LU 42 42 49 52 53 58 61 63 66 66 46%
Rented UAA - % 49% 48% 50% 49% 52% 53% 53% 53% 53% 53% 8%
Total labour - AWU 1.7 1.6 1.8 1.8 1.8 2.0 1.9 1.9 1.9 1.8 9%
Family labour - % 93% 93% 92% 91% 92% 89% 88% 87% 86% 88% -6%
Milk per ha fodder area - t/ha 4.4 4.5 4.8 5.0 5.3 5.3 5.5 5.6 6.2 6.3 33%
Milk yield - kg/cow 7 155 7 044 7 243 7 220 7 593 7 513 7 199 7 236 7 549 7 587 7 869 4% 10%
Milk production - t 300 295 358 376 400 439 441 455 496 504 521 53% 74%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 351 374 264 293 326 309 358 369 294 279 341 -5% -3%
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 - -
Total revenues from milk 349 372 263 291 326 309 358 353 294 279 341 -6% -2%
Production costs
Feed 65 74 70 72 83 91 98 95 101 101 98 43% 49%
homegrown feed 29 33 35 31 34 35 33 35 36 33 32 7% 12%
purchased feed 37 40 34 41 49 57 65 61 65 67 65 73% 79%
Herd renewal purchases 1 2 2 1 1 1 2 2 2 2 2 -6% 11%
Milk levy 2 2 1 3 0 0 0 16 0 0 0 226% -100%
Other specific costs 19 22 21 19 22 23 21 21 26 25 25 16% 31%
Specific costs 88 100 93 95 107 115 122 134 129 127 124 39% 41%
Machinery and building upkeep 26 27 24 26 25 24 24 27 23 25 24 -3% -7%
Energy (fuel, electricity) 19 23 17 21 23 24 23 23 17 16 16 -7% -14%
Contract work 17 19 17 16 17 18 18 20 16 19 19 6% 10%
Taxes 1 2 1 1 1 1 1 2 1 1 1 -18% -28%
Other direct inputs 24 26 23 25 25 24 25 26 24 24 21 1% -12%
Non specific costs 87 96 82 89 91 90 92 97 81 84 81 -1% -7%
Total operating costs 175 197 175 184 199 205 214 231 210 212 205 19% 17%
Gross margin 177 178 89 109 128 103 145 138 84 67 136 -35% -23%
Gross margin with coupled
payments175 176 88 107 128 103 144 122 84 67 136 -38% -22%
%spe.farms with positive gross
margin 98% 95% 97% 97% 96% 95% 98% 96% 96% 88% -4%
%milk production with positive gross
margin 99% 99% 98% 99% 98% 98% 99% 96% 97% 95% -3%
Depreciation 100 106 94 102 98 96 104 101 93 91 -5%
Wages 5 5 5 6 6 7 8 9 9 7 64%
Rent 19 18 17 18 18 18 18 19 16 15 -9%
Interest 19 20 12 11 10 10 12 11 11 10 -37%
External factors 43 43 34 36 33 35 37 39 35 32 -12%
Net margin 33 29 -40 -28 -3 -27 3 -2 -44 -56 -553%
Net margin with coupled
payments31 27 -40 -31 -3 -27 3 -18 -44 -56
-761%
Family labour costs 66 70 64 67 64 60 65 62 51 56 -15%
Own capital unpaid cost 53 12 50 13 4 3 10 14 9 8 -73%
Imputed family factors 119 82 114 80 68 64 74 76 60 64 -36%
Net economic margin -87 -53 -153 -108 -71 -91 -71 -78 -104 -120 -4%
Net economic margin with
coupled payments-89 -55 -154 -111 -72 -91 -72 -94 -104 -120
-7%
%spe.farms with positive net
economic margin 8% 18% 0% 2% 9% 4% 9% 9% 2% 1% -53%
%milk production with positive net
economic margin 13% 27% 0% 5% 12% 3% 16% 13% 2% 2% -55%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 81
EU dairy farms report based on 2016 FADN data LU
Luxembourg Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 103 372 110 011 92 070 96 806 114 922 116 291 130 379 136 412 126 493 121 843 26%
Intermediate consumptions 60 139 67 875 68 655 68 482 77 272 82 709 85 702 89 619 90 001 90 985 38%
Balance subsidies and taxes 31 484 31 648 32 510 33 761 41 204 38 804 37 616 36 700 46 352 37 739 26%
Decoupled payments 15 170 15 106 15 509 14 866 14 956 15 172 14 686 14 543 15 006 14 472 -4%
Depreciation 29 421 31 195 32 630 33 394 34 719 36 141 38 480 38 427 40 609 40 384 28%
Farm Net Value Added (FNVA) 45 297 42 589 23 296 28 691 44 135 36 245 43 813 45 067 42 235 28 213 4%
External factors 12 621 12 724 11 860 11 750 11 677 13 139 13 832 14 722 15 155 14 240 19%
Wages 1 503 1 504 1 859 2 168 2 061 2 699 2 895 3 418 3 832 3 149 114%
Rent 5 495 5 455 6 019 5 913 6 139 6 653 6 670 7 085 6 892 6 955 23%
Interest 5 623 5 765 3 982 3 669 3 477 3 787 4 266 4 219 4 431 4 137 -17%
Balance invest. subs. and taxes 4 124 3 147 4 864 4 551 2 637 182 1 627 556 7 329 7 402 26%
Farm net income (FNI) 36 800 33 012 16 300 21 493 35 095 23 288 31 608 30 901 34 409 21 375 1%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 16 695 3 824 18 774 4 784 1 650 1 442 4 034 5 959 4 520 4 095 -63%
Remuneration of Family Labour
(RFL) 14 545 20 703 -622 11 575 22 003 14 254 18 675 15 132 19 122 12 429 35%
%spe.farms with positive RFL 80% 87% 51% 80% 94% 83% 88% 80% 88% 79% 13%
175 176
88 107
128 103
144 122
84 67
136
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
349 372
263
291
326 309
358 353
294 279
341
318 345
304 321 329 336 355 371 338 335
205
31 27
-40
-31
-3
-27
3
-18
-44
-56
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 82
EU dairy farms report based on 2016 FADN data LU
Luxembourg Milk specialised farms
349 372
263 291
326 309
358 353
294 279
341
438 427 417 401 398 400
429 447
398 399
205 -89
-55
-154
-111
-72
-91
-72
-94 -104
-120
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
100 106 94 102 98 96 104 101 93 91
66 70
64 67
64 60 65 62
51 56
53 12
50 13 4 3
10 14
9 8
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
200
-10 000
0
10 000
20 000
30 000
40 000
50 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 83
EU dairy farms report based on 2016 FADN data NL
Netherlands Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 19 110 18 528 17 931 18 060 18 181 17 417 17 496 17 231 17 006 17 166 -7%
% production from specialised farms 98% 98% 97% 99% 99% 98% 98% 98% 98% 97% -1%
Forage area - ha 44 44 48 48 49 53 52 51 50 50 11%
Dairy cows - LU 70 73 80 81 81 91 93 93 91 90 23%
Rented UAA - % 38% 38% 38% 42% 43% 37% 37% 36% 38% 40% 0%
Total labour - AWU 1.6 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.7 1.7 5%
Family labour - % 93% 92% 92% 91% 89% 88% 88% 88% 89% 90% -3%
Milk per ha fodder area - t/ha 12.4 12.8 13.1 13.5 13.3 13.8 14.3 14.6 14.9 15.0 16%
Milk yield - kg/cow 7 781 7 809 7 898 8 031 8 023 7 961 7 980 8 072 8 192 8 222 7 616 4% -2%
Milk production - t 545 566 631 654 652 728 742 751 743 742 741 28% 36%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 358 367 282 351 394 372 431 427 351 333 416 10% 16%
Coupled payments (incl. Art.69) 0 0 0 2 0 0 0 0 0 0 0 -7% -
Total revenues from milk 356 364 279 351 392 372 426 419 351 333 416 10% 17%
Production costs
Feed 74 95 79 79 99 109 116 129 125 120 120 51% 62%
homegrown feed 12 16 15 13 16 16 16 34 32 28 28 117% 130%
purchased feed 62 79 64 66 83 93 100 95 93 91 92 37% 49%
Herd renewal purchases 3 3 2 2 2 3 2 2 2 2 2 -34% -51%
Milk levy 2 3 2 2 1 0 5 8 0 0 0 14% -100%
Other specific costs 24 29 28 28 29 32 32 36 37 35 36 34% 45%
Specific costs 103 130 111 112 132 144 155 175 164 157 157 44% 52%
Machinery and building upkeep 24 26 21 24 25 24 24 24 21 21 21 -8% -13%
Energy (fuel, electricity) 14 16 14 15 16 16 17 19 16 15 16 16% 17%
Contract work 20 22 20 21 23 23 24 28 24 25 26 26% 28%
Taxes 1 0 0 1 1 1 1 1 1 1 1 48% 26%
Other direct inputs 27 28 27 28 30 30 31 34 32 34 32 22% 19%
Non specific costs 86 92 83 88 94 94 97 106 95 96 96 14% 12%
Total operating costs 190 222 193 200 226 238 252 281 259 253 253 31% 34%
Gross margin 168 145 88 152 168 135 179 147 92 81 163 -21% -3%
Gross margin with coupled
payments167 142 86 151 166 134 174 138 92 81 163 -21% -2%
%spe.farms with positive gross
margin 99% 98% 94% 99% 100% 98% 98% 97% 93% 87% -5%
%milk production with positive gross
margin 99% 99% 96% 99% 100% 99% 99% 99% 96% 92% -2%
Depreciation 41 45 48 51 53 53 53 50 49 47 10%
Wages 4 5 5 5 6 7 7 7 6 6 35%
Rent 15 15 14 17 17 15 18 19 13 16 7%
Interest 42 46 41 41 42 41 37 35 32 30 -25%
External factors 61 66 61 63 66 63 62 61 51 51 -13%
Net margin 67 34 -20 37 49 19 64 36 -9 -17 -88%
Net margin with coupled
payments65 31 -23 37 47 18 58 27 -9 -17
-99%
Family labour costs 72 80 71 72 71 65 65 66 66 68 -10%
Own capital unpaid cost 27 21 26 38 19 15 24 41 8 11 -17%
Imputed family factors 99 101 97 110 90 79 89 108 74 79 -12%
Net economic margin -32 -66 -117 -72 -42 -61 -25 -72 -83 -96 -17%
Net economic margin with
coupled payments-34 -69 -120 -73 -43 -61 -30 -80 -83 -96
-17%
%spe.farms with positive net
economic margin 32% 14% 4% 18% 26% 17% 36% 20% 9% 6% -29%
%milk production with positive net
economic margin 42% 20% 6% 26% 36% 24% 46% 26% 11% 8% -34%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 84
EU dairy farms report based on 2016 FADN data NL
Netherlands Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 150 157 153 059 130 057 163 905 181 792 185 732 215 127 217 035 188 023 177 893 35%
Intermediate consumptions 78 386 91 493 86 437 90 847 101 897 112 540 121 089 130 968 127 246 124 370 49%
Balance subsidies and taxes 14 403 13 536 14 633 15 437 14 941 15 344 12 167 5 662 11 551 10 554 -35%
Decoupled payments 13 762 13 264 13 797 14 517 14 226 14 573 14 146 13 689 12 466 12 175 -6%
Depreciation 17 320 19 099 22 385 24 203 24 814 26 821 26 907 24 846 25 343 24 168 26%
Farm Net Value Added (FNVA) 68 854 56 004 35 869 64 292 70 020 61 715 79 297 66 883 46 983 39 910 -4%
External factors 25 546 27 554 28 285 29 485 30 462 31 248 30 774 29 557 26 231 25 744 0%
Wages 1 889 2 071 2 386 2 373 2 916 3 594 3 527 3 468 3 257 2 901 52%
Rent 6 174 6 320 6 757 7 853 8 016 7 581 8 775 9 320 6 644 7 992 24%
Interest 17 483 19 163 19 141 19 258 19 530 20 073 18 473 16 769 16 330 14 851 -14%
Balance invest. subs. and taxes -1 538 -1 664 -766 -607 -996 -696 324 -278 2 320 1 221 182%
Farm net income (FNI) 41 770 26 785 6 818 34 200 38 562 29 771 48 847 37 047 23 072 15 386 0%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 11 826 8 932 12 826 18 185 9 558 7 847 13 861 23 106 4 856 6 202 2%
Remuneration of Family Labour
(RFL) 22 145 13 203 -3 471 12 523 21 999 16 247 26 113 -250 1 602 6 927 -74%
%spe.farms with positive RFL 86% 76% 49% 79% 83% 76% 87% 65% 53% 61% -15%
167
142
86
151 166 134
174 138
92 81
163
0
50
100
150
200
250
300
350
400
450
500
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
356 364
279
351
392 372
426 419
351 333
416
291 332
302 314 345 354 367
392 360 351
253
65
31
-23
37
47
18
58
27
-9
-17
-30
-20
-10
0
10
20
30
40
50
60
70
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 85
EU dairy farms report based on 2016 FADN data NL
Netherlands Milk specialised farms
356 364
279
351
392 372
426 419
351 333
416
390
433 399
424 436 433 456
499
433 430
253
-34
-69
-120
-73
-43
-61
-30
-80 -83
-96
-140
-120
-100
-80
-60
-40
-20
0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
41 45 48 51 53 53 53 50 49 47
72 80
71 72 71 65 65 66
66 68
27 21
26 38 19
15 24 41
8 11
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
200
-10 000
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 86
EU dairy farms report based on 2016 FADN data AT
Austria Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000 -
Farms represented 27 384 29 464 25 142 28 175 27 721 26 199 26 727 27 030 26 345 26 342 -3%
% production from specialised farms 86% 88% 86% 87% 85% 88% 90% 91% 89% 88% 4%
Forage area - ha 26 26 28 26 26 28 28 24 24 24 -10%
Dairy cows - LU 16 15 17 16 16 18 18 18 18 18 14%
Rented UAA - % 26% 26% 25% 25% 24% 28% 29% 32% 31% 31% 22%
Total labour - AWU 1.6 1.6 1.6 1.6 1.5 1.6 1.6 1.8 1.8 1.8 11%
Family labour - % 98% 98% 98% 98% 97% 98% 97% 98% 98% 98% 0%
Milk per ha fodder area - t/ha 3.9 3.9 4.0 3.9 4.0 4.2 4.4 5.2 5.2 5.3 34%
Milk yield - kg/cow 6 457 6 582 6 398 6 372 6 609 6 826 6 768 6 861 6 727 6 912 7 200 5% 12%
Milk production - t 101 100 109 103 105 120 122 124 123 127 131 21% 30%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 330 388 294 313 349 339 366 396 343 325 375 5% 13%
Coupled payments (incl. Art.69) 0 0 0 7 5 5 5 4 0 1 1 - -
Total revenues from milk 325 383 292 320 353 336 365 394 343 326 375 6% 16%
Production costs
Feed 80 89 78 80 92 95 107 104 100 95 93 21% 17%
homegrown feed 33 33 29 30 31 32 33 34 34 32 31 5% -6%
purchased feed 47 57 49 50 61 64 73 70 66 64 62 31% 32%
Herd renewal purchases 2 5 3 4 3 3 3 3 3 3 3 1% 42%
Milk levy 6 6 2 0 1 8 6 6 0 0 0 -58% -100%
Other specific costs 21 23 22 24 24 27 27 26 27 28 29 25% 38%
Specific costs 109 123 105 107 121 133 143 140 131 127 125 18% 15%
Machinery and building upkeep 23 27 24 26 27 25 26 27 26 26 25 6% 9%
Energy (fuel, electricity) 19 24 21 21 24 25 25 26 23 21 21 9% 9%
Contract work 13 17 14 15 16 16 17 20 17 19 19 23% 41%
Taxes 0 0 0 0 0 0 0 0 6 0 0 2109% -78%
Other direct inputs 41 46 42 44 44 42 44 43 42 40 37 -3% -10%
Non specific costs 97 115 101 107 110 108 113 116 114 105 102 7% 5%
Total operating costs 205 237 205 214 231 240 256 255 245 232 227 13% 11%
Gross margin 125 151 89 99 118 99 110 141 98 93 148 -9% 18%
Gross margin with coupled
payments119 145 87 106 121 96 109 139 98 94 149 -6% 25%
%spe.farms with positive gross
margin 90% 96% 86% 89% 88% 85% 88% 91% 84% 82% -5%
%milk production with positive gross
margin 96% 98% 93% 96% 97% 93% 94% 97% 93% 94% -1%
Depreciation 75 84 86 88 88 88 94 90 89 89 9%
Wages 2 2 2 2 2 2 3 2 2 2 11%
Rent 6 7 7 7 7 8 8 9 8 8 26%
Interest 9 13 9 7 7 7 6 6 6 5 -45%
External factors 17 22 18 16 15 16 17 17 16 15 -14%
Net margin 33 45 -16 -4 15 -5 -1 33 -7 -11 -76%
Net margin with coupled
payments28 39 -18 2 18 -8 -2 32 -7 -10
-71%
Family labour costs 112 137 129 136 128 135 142 176 176 193 44%
Own capital unpaid cost 79 36 78 44 14 17 18 16 17 7 -79%
Imputed family factors 191 173 207 180 142 152 160 191 193 200 2%
Net economic margin -158 -128 -223 -185 -127 -157 -161 -158 -201 -211 -12%
Net economic margin with
coupled payments-164 -134 -225 -178 -124 -160 -163 -160 -200 -210
-9%
%spe.farms with positive net
economic margin 2% 7% 0% 1% 6% 3% 3% 5% 1% 1% -26%
%milk production with positive net
economic margin 6% 16% 1% 3% 15% 7% 9% 12% 3% 3% -26%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 87
EU dairy farms report based on 2016 FADN data AT
Austria Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 36 519 40 173 33 898 36 069 41 723 44 522 46 599 43 851 39 856 38 658 11%
Intermediate consumptions 19 751 21 856 21 023 21 691 24 256 26 841 28 144 25 921 25 326 25 220 22%
Balance subsidies and taxes 12 203 12 454 13 056 13 755 12 233 11 542 12 010 11 736 10 556 11 786 -10%
Decoupled payments 3 974 3 967 4 142 4 189 4 032 3 960 4 282 3 715 4 331 4 258 2%
Depreciation 8 619 9 042 10 305 10 261 10 717 11 889 12 389 10 205 10 436 10 704 12%
Farm Net Value Added (FNVA) 20 353 21 730 15 625 17 872 18 983 17 333 18 077 19 461 14 650 14 520 -16%
External factors 1 841 2 268 2 112 1 830 1 800 2 150 2 145 1 904 1 837 1 782 -11%
Wages 208 225 283 290 239 237 358 274 284 258 14%
Rent 687 726 771 761 788 989 1 034 965 931 904 28%
Interest 946 1 317 1 058 779 773 924 753 665 622 621 -43%
Balance invest. subs. and taxes -1 313 -76 -197 139 1 416 922 1 034 -1 600 -2 021 -1 494 -223%
Farm net income (FNI) 17 199 19 385 13 316 16 181 18 598 16 106 16 966 15 958 10 792 11 244 -24%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 9 398 4 006 9 742 5 531 1 981 2 446 2 631 1 906 2 149 910 -79%
Remuneration of Family Labour
(RFL) 5 093 10 037 2 406 7 108 11 425 8 979 9 502 7 744 4 697 6 008 5%
%spe.farms with positive RFL 71% 92% 61% 78% 89% 83% 86% 87% 76% 79% 8%
119 145
87 106 121
96 109
139
98 94 149
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
325
383
292
320
353 336
365
394
343 326
375
297 344
310 318 334 344 367 362 350 336
227
28
39
-18
2
18
-8
-2
32
-7 -10
-30
-20
-10
0
10
20
30
40
50
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 88
EU dairy farms report based on 2016 FADN data AT
Austria Milk specialised farms
325
383
292 320
353 336
365 394
343 326
375
488 517 517
498 477
496 527
554 544 536
227
-164
-134
-225
-178
-124
-160 -163 -160
-200 -210
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
75 84 86 88 88 88 94 90 89 89
112
137 129 136 128 135 142
176 176 193
79 36
78 44
14 17
18
16 17 7
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-250
-200
-150
-100
-50
0
50
100
150
200
0
5 000
10 000
15 000
20 000
25 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 89
EU dairy farms report based on 2016 FADN data PT
Portugal Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 7 477 7 662 6 265 6 020 6 527 5 020 5 487 5 760 5 486 5 568 -21%
% production from specialised farms 87% 81% 85% 83% 89% 89% 92% 95% 96% 91% 11%
Forage area - ha 15 16 16 18 17 20 19 17 18 17 10%
Dairy cows - LU 26 24 27 29 30 34 32 32 34 32 28%
Rented UAA - % 46% 39% 40% 41% 42% 42% 44% 47% 47% 41% 8%
Total labour - AWU 1.9 1.7 1.7 1.8 1.7 1.8 1.8 1.7 1.8 1.7 -3%
Family labour - % 83% 85% 86% 86% 86% 82% 82% 81% 79% 79% -6%
Milk per ha fodder area - t/ha 11.5 10.5 11.7 11.6 12.3 12.3 12.3 14.2 14.9 14.2 29%
Milk yield - kg/cow 6 812 6 784 7 032 7 097 7 181 7 366 7 271 7 542 7 727 7 651 7 676 11% 13%
Milk production - t 177 164 189 206 214 248 236 240 264 247 248 42% 41%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 307 345 280 273 293 290 310 328 281 261 279 -7% -9%
Coupled payments (incl. Art.69) 12 17 18 21 20 22 20 21 26 32 32 66% 164%
Total revenues from milk 319 362 298 294 313 312 331 349 307 293 311 -3% -3%
Production costs
Feed 118 136 116 118 132 142 144 185 165 166 169 39% 43%
homegrown feed 20 24 21 20 22 23 23 65 60 65 66 190% 226%
purchased feed 98 112 95 98 109 119 121 120 105 101 103 7% 6%
Herd renewal purchases 10 4 4 4 4 3 3 3 2 2 2 -60% -82%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 23 22 23 22 23 23 22 23 9 24 24 -18% 2%
Specific costs 151 162 143 144 158 168 170 211 177 191 194 27% 29%
Machinery and building upkeep 14 13 12 13 12 13 13 15 14 13 13 5% -6%
Energy (fuel, electricity) 17 19 17 19 20 22 24 21 19 18 18 13% 7%
Contract work 3 4 5 4 4 5 5 6 7 8 8 71% 127%
Taxes 2 2 1 2 1 2 3 3 3 2 2 60% 24%
Other direct inputs 8 7 7 6 6 5 6 6 6 6 6 -18% -27%
Non specific costs 44 46 41 44 44 46 50 51 49 47 47 13% 7%
Total operating costs 195 208 185 188 202 214 219 263 226 238 241 24% 24%
Gross margin 112 137 95 85 91 77 91 66 55 23 37 -58% -67%
Gross margin with coupled
payments124 154 113 106 111 98 111 87 81 55 69 -43% -44%
%spe.farms with positive gross
margin 95% 99% 91% 98% 93% 97% 96% 84% 80% 79% -15%
%milk production with positive gross
margin 100% 100% 99% 99% 98% 99% 99% 88% 87% 76% -16%
Depreciation 32 27 25 23 23 22 24 23 22 23 -20%
Wages 10 9 8 9 8 10 11 11 12 13 32%
Rent 6 6 6 6 6 5 6 6 6 6 -1%
Interest 4 2 3 2 2 2 1 1 2 1 -55%
External factors 19 18 17 17 15 17 19 18 20 20 7%
Net margin 61 92 53 45 53 38 48 25 13 -19 -91%
Net margin with coupled
payments73 109 71 66 73 59 69 46 39 13
-62%
Family labour costs 50 50 47 47 46 41 43 40 41 40 -18%
Own capital unpaid cost 17 10 19 15 24 27 23 15 9 12 -23%
Imputed family factors 68 60 65 62 70 67 66 55 50 51 -19%
Net economic margin -6 32 -12 -17 -17 -29 -18 -30 -37 -70 -1157%
Net economic margin with
coupled payments6 49 6 3 3 -8 3 -9 -11 -39
-198%
%spe.farms with positive net
economic margin 36% 44% 33% 28% 29% 25% 30% 32% 27% 17% -33%
%milk production with positive net
economic margin 58% 73% 48% 40% 48% 35% 44% 37% 29% 19% -53%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 90
EU dairy farms report based on 2016 FADN data PT
Portugal Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 34 975 40 501 39 723 40 528 46 295 52 217 52 636 59 135 53 849 52 389 44%
Intermediate consumptions 23 557 26 890 28 432 29 577 33 724 40 037 39 329 42 210 38 344 41 031 54%
Balance subsidies and taxes 4 896 5 650 6 817 7 198 7 030 8 293 7 800 7 706 8 534 9 396 48%
Decoupled payments 2 726 2 768 3 031 3 142 3 131 3 406 3 353 3 324 2 982 3 016 9%
Depreciation 3 427 3 009 3 260 3 118 3 299 3 588 3 748 3 717 3 868 3 965 19%
Farm Net Value Added (FNVA) 12 886 16 252 14 848 15 031 16 301 16 885 17 358 20 914 20 171 16 789 32%
External factors 1 992 1 964 2 146 2 252 2 209 2 773 2 875 2 960 3 425 3 323 59%
Wages 1 009 995 1 003 1 169 1 123 1 622 1 730 1 799 2 057 2 142 99%
Rent 633 712 830 851 830 867 974 933 1 094 1 010 40%
Interest 350 257 313 232 257 285 172 228 274 172 -27%
Balance invest. subs. and taxes 166 178 205 401 914 1 448 990 769 1 206 255 306%
Farm net income (FNI) 11 059 14 466 12 908 13 180 15 006 15 560 15 472 18 722 17 952 13 721 31%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 2 253 1 333 2 905 2 415 4 018 5 393 4 464 2 989 1 912 2 637 16%
Remuneration of Family Labour
(RFL) 6 815 10 446 8 195 8 317 8 898 9 056 9 914 13 938 14 237 11 005 54%
%spe.farms with positive RFL 81% 89% 88% 94% 91% 91% 92% 98% 96% 93% 11%
124 154
113 106 111 98 111
87 81
55 69
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
319
362
298 294 313 312
331 349
307 293
311
246 254 227 228 241 253 262
304 268 280
241
73
109
71 66
73
59
69
46 39
13
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 91
EU dairy farms report based on 2016 FADN data PT
Portugal Milk specialised farms
319
362
298 294 313 312
331 349
307 293
311
313 314 292 290
310 320 328
359
318 332
241
6
49
6 3 3
-8
3
-9 -11
-39
-50
-40
-30
-20
-10
0
10
20
30
40
50
60
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
32 27 25 23 23 22 24 23 22 23
50 50
47 47 46 41 43 40 41 40
17
10 19 15 24
27 23
15 9 12
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-50
0
50
100
150
200
0
5 000
10 000
15 000
20 000
25 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 92
EU dairy farms report based on 2016 FADN data FI
Finland Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 12 352 12 437 10 270 10 216 10 253 8 629 8 653 8 344 7 972 8 276 -30%
% production from specialised farms 99% 100% 99% 99% 99% 99% 99% 98% 97% 97% -2%
Forage area - ha 31 31 35 38 40 42 41 44 45 43 36%
Dairy cows - LU 25 25 29 30 31 33 33 36 36 35 34%
Rented UAA - % 35% 34% 35% 36% 36% 36% 37% 37% 38% 37% 6%
Total labour - AWU 2.1 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.0 2.1 1%
Family labour - % 90% 90% 88% 86% 85% 83% 82% 82% 84% 85% -6%
Milk per ha fodder area - t/ha 6.9 6.8 7.2 6.7 6.7 6.9 7.0 7.2 7.0 7.3 3%
Milk yield - kg/cow 8 602 8 472 8 544 8 572 8 711 8 685 8 721 8 830 8 824 9 063 8 819 4% 3%
Milk production - t 213 211 250 256 270 290 288 314 314 316 313 40% 47%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 360 438 390 376 411 434 441 444 374 367 375 0% 4%
Coupled payments (incl. Art.69) 78 80 80 84 82 83 84 83 86 80 81 5% 4%
Total revenues from milk 438 518 470 460 493 518 525 526 460 447 456 1% 4%
Production costs
Feed 109 125 116 107 126 139 148 135 133 128 130 13% 19%
homegrown feed 35 38 37 33 40 44 44 39 39 36 36 4% 4%
purchased feed 74 87 79 74 86 95 103 96 94 92 94 17% 27%
Herd renewal purchases 4 4 5 4 4 5 4 3 3 2 2 -37% -60%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 29 30 33 33 33 36 35 37 37 35 36 19% 22%
Specific costs 142 159 153 144 163 180 187 175 173 164 167 13% 18%
Machinery and building upkeep 41 45 44 43 46 46 50 52 44 48 48 10% 18%
Energy (fuel, electricity) 26 35 29 31 36 39 40 36 34 32 35 13% 33%
Contract work 24 30 30 32 36 38 40 42 39 38 39 41% 63%
Taxes 0 0 0 0 0 0 0 1 1 1 1 - -
Other direct inputs 44 48 47 48 49 51 55 72 70 73 70 55% 58%
Non specific costs 136 158 150 154 167 176 186 204 188 192 194 31% 43%
Total operating costs 278 317 304 298 330 355 373 379 361 355 361 22% 30%
Gross margin 83 121 86 78 80 79 68 65 12 12 14 -69% -83%
Gross margin with coupled
payments160 201 166 162 162 162 152 148 98 91 95 -36% -41%
%spe.farms with positive gross
margin 95% 94% 91% 92% 95% 92% 92% 88% 82% 81% -11%
%milk production with positive gross
margin 97% 98% 96% 97% 98% 97% 97% 96% 91% 91% -4%
Depreciation 104 119 112 109 108 105 107 105 100 94 -11%
Wages 13 14 18 18 21 22 24 26 21 21 54%
Rent 10 11 11 11 11 13 12 14 14 14 25%
Interest 18 20 16 13 14 14 13 12 12 12 -34%
External factors 41 46 45 42 46 48 49 52 47 47 10%
Net margin -63 -43 -71 -73 -73 -74 -88 -91 -135 -129 -101%
Net margin with coupled
payments15 36 9 12 9 9 -4 -9 -49 -49
-278%
Family labour costs 177 196 180 170 159 152 158 158 151 165 -14%
Own capital unpaid cost 46 26 35 29 20 9 11 18 23 16 -47%
Imputed family factors 223 223 215 199 179 161 169 176 174 181 -20%
Net economic margin -286 -266 -286 -272 -253 -235 -257 -267 -309 -310 -6%
Net economic margin with
coupled payments-209 -186 -206 -188 -170 -152 -173 -185 -223 -230
-6%
%spe.farms with positive net
economic margin 0% 0% 0% 0% 0% 1% 0% 0% 0% 1% 435%
%milk production with positive net
economic margin 0% 1% 0% 0% 0% 2% 1% 1% 0% 1% 145%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 93
EU dairy farms report based on 2016 FADN data FI
Finland Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 46 534 56 452 55 806 58 281 66 212 85 931 85 065 93 341 86 043 81 399 64%
Intermediate consumptions 37 049 43 445 46 124 47 408 55 152 74 139 76 310 80 344 80 426 76 737 88%
Balance subsidies and taxes 25 977 28 479 30 364 33 055 32 792 35 570 34 907 36 205 35 861 32 972 24%
Decoupled payments 6 224 6 603 6 739 6 959 6 635 6 828 6 488 6 223 5 900 5 577 -10%
Depreciation 13 427 15 545 16 210 16 833 17 374 17 570 17 435 18 818 18 941 17 433 22%
Farm Net Value Added (FNVA) 22 036 25 941 23 836 27 095 26 478 29 792 26 227 30 385 22 536 20 201 2%
External factors 5 393 5 998 6 604 6 694 7 551 8 283 8 139 9 294 8 901 8 886 50%
Wages 1 693 1 841 2 568 2 892 3 391 3 727 3 970 4 723 4 070 4 027 110%
Rent 1 421 1 542 1 706 1 831 1 938 2 228 2 076 2 566 2 705 2 617 69%
Interest 2 279 2 616 2 330 1 970 2 223 2 328 2 092 2 005 2 126 2 242 -12%
Balance invest. subs. and taxes 652 844 959 1 017 1 025 1 014 1 011 1 157 1 118 1 034 35%
Farm net income (FNI) 17 295 20 786 18 191 21 418 19 952 22 523 19 099 22 248 14 753 12 349 -12%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 6 546 3 761 5 706 5 244 3 737 2 050 2 370 3 915 5 347 3 573 -20%
Remuneration of Family Labour
(RFL) 6 833 10 880 8 117 11 008 11 330 14 093 11 960 11 836 5 541 6 299 -8%
%spe.farms with positive RFL 88% 90% 86% 90% 90% 90% 87% 86% 73% 76% -11%
160 201
166 162 162 162 152 148
98 91
95
0
100
200
300
400
500
600
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
438
518
470 460 493
518 525 526
460 447 456
423 481 461 448
484 508 529 535 509 496
361
15
36
9 12 9 9
-4 -9
-49 -49
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 94
EU dairy farms report based on 2016 FADN data FI
Finland Milk specialised farms
438
518
470 460 493
518 525 526
460 447 456
647
704 677
648 663 670 698 711
683 677
361
-209
-186
-206
-188
-170
-152
-173 -185
-223 -230
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
700
800
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
104 119 112 109 108 105 107 105 100 94
177
196 180
170 159 152 158 158 151 165
46
26 35
29 20
9 11 18 23 16
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-300
-250
-200
-150
-100
-50
0
50
100
150
200
250
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 95
EU dairy farms report based on 2016 FADN data SE
Sweden Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 6 777 7 170 5 539 5 774 5 658 4 814 4 712 4 633 4 612 4 502 -29%
% production from specialised farms 98% 99% 98% 97% 98% 99% 98% 98% 98% 98% 0%
Forage area - ha 70 71 82 78 87 100 102 105 108 112 45%
Dairy cows - LU 52 54 66 58 63 76 78 78 81 84 41%
Rented UAA - % 59% 59% 58% 59% 61% 62% 61% 61% 62% 63% 6%
Total labour - AWU 2.1 2.1 2.3 2.1 2.2 2.5 2.5 2.5 2.5 2.6 17%
Family labour - % 76% 76% 72% 74% 74% 68% 69% 68% 68% 68% -9%
Milk per ha fodder area - t/ha 6.2 6.4 6.5 6.3 6.1 6.4 6.5 6.6 6.6 6.8 5%
Milk yield - kg/cow 8 361 8 436 8 098 8 352 8 542 8 469 8 578 8 817 9 101 9 039 8 822 8% 6%
Milk production - t 435 458 538 488 534 645 666 690 740 762 750 53% 72%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 322 359 272 356 386 373 410 397 330 324 408 10% 26%
Coupled payments (incl. Art.69) 0 0 0 0 7 9 9 8 18 19 19 24836% -
Total revenues from milk 322 359 273 356 393 382 419 405 348 343 427 15% 32%
Production costs
Feed 107 128 103 105 130 140 143 155 133 129 134 23% 25%
homegrown feed 26 32 26 23 31 32 33 42 31 30 31 23% 20%
purchased feed 81 96 78 83 99 109 110 113 102 98 102 23% 27%
Herd renewal purchases 9 9 6 8 7 10 7 7 6 5 5 -20% -41%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 16 17 25 30 33 34 34 36 31 29 30 68% 91%
Specific costs 132 153 134 144 171 184 184 198 170 163 169 27% 28%
Machinery and building upkeep 25 26 22 29 31 29 32 30 26 27 28 13% 10%
Energy (fuel, electricity) 23 27 22 28 30 30 31 28 23 22 24 3% 6%
Contract work 36 35 19 23 25 26 27 27 24 24 25 -17% -31%
Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other direct inputs 17 18 20 25 26 25 25 30 26 26 24 50% 36%
Non specific costs 101 106 82 104 113 109 114 116 99 99 101 8% -1%
Total operating costs 233 259 216 248 283 293 298 314 270 262 270 19% 16%
Gross margin 89 101 56 109 103 79 111 83 60 62 138 -17% 55%
Gross margin with coupled
payments89 101 57 109 109 88 120 91 78 81 157 2% 77%
%spe.farms with positive gross
margin 90% 93% 80% 89% 89% 84% 91% 86% 86% 84% -3%
%milk production with positive gross
margin 96% 95% 91% 95% 94% 94% 98% 94% 94% 95% 0%
Depreciation 47 41 41 50 55 57 57 62 51 49 26%
Wages 25 25 27 29 31 35 36 35 31 32 27%
Rent 12 11 11 14 15 16 17 17 15 15 37%
Interest 17 21 15 15 23 25 24 16 12 12 -25%
External factors 55 57 53 58 68 77 77 68 57 59 12%
Net margin -13 3 -37 1 -21 -55 -22 -47 -48 -46 -206%
Net margin with coupled
payments-13 3 -37 1 -14 -46 -13 -39 -30 -27
-110%
Family labour costs 109 104 85 101 102 96 97 95 80 78 -15%
Own capital unpaid cost 16 3 5 7 6 4 10 10 3 2 -37%
Imputed family factors 125 107 90 107 108 99 107 105 83 80 -17%
Net economic margin -137 -104 -127 -107 -129 -154 -129 -153 -131 -126 -11%
Net economic margin with
coupled payments-137 -103 -127 -107 -122 -145 -120 -145 -113 -107
1%
%spe.farms with positive net
economic margin 1% 6% 1% 5% 3% 0% 3% 1% 1% 1% -58%
%milk production with positive net
economic margin 3% 11% 1% 12% 8% 1% 7% 1% 4% 4% -38%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 96
EU dairy farms report based on 2016 FADN data SE
Sweden Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 102 857 116 805 98 227 121 822 146 592 166 074 178 415 173 145 157 198 167 407 57%
Intermediate consumptions 77 896 86 364 83 082 92 565 114 700 136 115 139 782 133 910 121 914 129 893 56%
Balance subsidies and taxes 22 366 24 473 21 820 25 311 28 396 27 248 28 615 26 763 31 054 31 230 30%
Decoupled payments 12 244 12 632 12 102 12 089 13 288 13 347 14 388 13 829 12 399 12 420 5%
Depreciation 13 979 12 667 13 383 15 756 18 428 20 914 20 841 22 519 21 659 21 286 64%
Farm Net Value Added (FNVA) 33 347 42 248 23 582 38 813 41 861 36 292 46 407 43 479 44 679 47 458 37%
External factors 16 439 17 781 17 346 18 061 22 844 28 502 28 365 24 617 23 895 25 021 43%
Wages 7 529 7 822 8 726 9 097 10 141 13 037 13 165 12 686 12 825 13 270 61%
Rent 3 865 3 560 3 726 4 386 5 140 6 110 6 387 6 380 6 190 6 538 71%
Interest 5 045 6 399 4 894 4 578 7 564 9 355 8 813 5 551 4 880 5 213 -4%
Balance invest. subs. and taxes 0 0 340 0 0 0 0 0 0 240 -30%
Farm net income (FNI) 16 908 24 467 6 576 20 751 19 017 7 790 18 043 18 862 20 785 22 676 30%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 6 192 1 198 2 580 2 892 2 526 2 038 5 476 5 426 2 159 1 290 -11%
Remuneration of Family Labour
(RFL) 9 798 19 248 3 933 15 891 14 077 5 552 12 308 7 906 12 239 18 104 16%
%spe.farms with positive RFL 79% 91% 68% 86% 82% 65% 78% 72% 75% 80% -5%
89 101
57
109 109 88
120 91 78 81
157
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
322
359
273
356
393 382
419 405
348 343
427
335 356 310
355 407 428 432 444
378 370
270
-13
3
-37
1
-14
-46
-13
-39
-30 -27
-50
-40
-30
-20
-10
0
10
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 97
EU dairy farms report based on 2016 FADN data SE
Sweden Milk specialised farms
322
359
273
356
393 382
419 405
348 343
427
459 463
400
463
515 527 539 549
461 450
270
-137
-103
-127
-107
-122
-145
-120
-145
-113 -107
-160
-140
-120
-100
-80
-60
-40
-20
0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
47 41 41 50 55 57 57 62 51 49
109 104 85
101 102
96 97 95
80 78
16 3
5
7 6 4 10 10
3 2
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 98
EU dairy farms report based on 2016 FADN data UK
United Kingdom Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000
500-
<1000200-<500 200-<500
-
Farms represented 16 171 16 616 14 619 14 666 14 519 12 747 12 779 12 832 12 880 12 732 -19%
% production from specialised farms 93% 97% 97% 97% 98% 97% 99% 97% 97% 96% 1%
Forage area - ha 94 92 101 99 101 105 107 106 107 109 12%
Dairy cows - LU 112 109 116 117 119 125 129 131 133 130 17%
Rented UAA - % 41% 39% 43% 44% 40% 41% 42% 43% 42% 42% 3%
Total labour - AWU 2.5 2.5 2.6 2.6 2.6 2.8 2.7 2.8 2.8 2.7 10%
Family labour - % 65% 66% 63% 64% 63% 60% 60% 60% 59% 61% -7%
Milk per ha fodder area - t/ha 8.5 8.3 8.1 8.8 8.8 8.7 8.9 9.1 9.1 8.6 7%
Milk yield - kg/cow 7 066 7 013 7 013 7 425 7 432 7 239 7 368 7 324 7 296 7 152 7 458 3% 6%
Milk production - t 791 766 813 871 885 908 949 956 972 933 971 21% 23%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 315 311 262 286 315 341 373 385 307 285 348 10% 10%
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 - -
Total revenues from milk 315 311 262 286 315 341 373 385 307 285 348 10% 10%
Production costs
Feed 97 107 95 99 109 137 139 146 124 111 112 28% 16%
homegrown feed 22 24 22 22 24 28 27 34 32 28 28 36% 25%
purchased feed 74 83 72 78 85 110 112 112 92 84 84 25% 13%
Herd renewal purchases 2 2 2 1 2 3 3 2 2 2 2 6% -6%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 31 30 29 32 33 38 36 39 37 35 32 25% 4%
Specific costs 130 138 126 133 144 178 177 188 163 149 146 27% 13%
Machinery and building upkeep 17 17 16 15 10 10 10 22 19 18 18 16% 4%
Energy (fuel, electricity) 14 15 13 14 15 18 17 17 14 13 14 7% 0%
Contract work 15 16 14 14 15 16 18 20 17 17 15 17% -2%
Taxes 0 0 0 0 0 0 0 0 0 0 0 -18% -76%
Other direct inputs 18 15 14 14 15 17 16 23 21 20 18 35% -2%
Non specific costs 65 63 57 58 55 61 62 83 70 67 65 19% 0%
Total operating costs 195 202 183 190 199 239 239 270 233 216 211 24% 8%
Gross margin 121 109 79 96 116 102 134 114 74 68 137 -17% 13%
Gross margin with coupled
payments121 109 79 96 116 102 134 114 74 69 137 -17% 14%
%spe.farms with positive gross
margin 99% 98% 94% 98% 99% 95% 98% 96% 88% 89% -6%
%milk production with positive gross
margin 100% 99% 97% 99% 100% 98% 100% 97% 91% 93% -5%
Depreciation 28 29 27 30 31 36 37 39 36 31 25%
Wages 22 20 20 20 21 25 25 26 25 24 19%
Rent 9 8 8 8 8 9 9 11 10 10 26%
Interest 11 9 5 5 6 7 7 8 7 7 -13%
External factors 42 36 33 33 35 40 41 44 42 41 14%
Net margin 50 44 19 33 50 25 57 31 -4 -3 -78%
Net margin with coupled
payments50 44 19 33 50 25 57 31 -4 -3
-78%
Family labour costs 48 43 37 38 38 41 38 43 40 39 -4%
Own capital unpaid cost 22 9 10 8 5 5 7 10 15 10 -14%
Imputed family factors 70 52 47 46 43 46 45 53 55 50 -7%
Net economic margin -20 -8 -28 -13 8 -21 11 -22 -59 -53 -140%
Net economic margin with
coupled payments-20 -8 -28 -13 8 -21 11 -22 -59 -52
-139%
%spe.farms with positive net
economic margin 26% 37% 19% 27% 49% 27% 49% 32% 11% 10% -35%
%milk production with positive net
economic margin 41% 48% 33% 39% 64% 40% 65% 40% 19% 19% -37%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 99
EU dairy farms report based on 2016 FADN data UK
United Kingdom Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 129 114 130 444 117 441 135 024 146 998 154 889 171 433 173 729 150 221 142 179 24%
Intermediate consumptions 83 567 90 907 86 231 94 994 97 800 112 857 117 033 122 951 111 214 104 679 30%
Balance subsidies and taxes 15 264 13 809 14 215 14 592 13 183 12 828 12 366 11 209 10 947 11 891 -21%
Decoupled payments 12 982 11 740 12 240 11 796 11 521 10 979 10 723 9 954 9 049 10 463 -20%
Depreciation 11 462 11 289 11 491 13 244 13 787 15 439 15 880 16 533 16 210 14 285 37%
Farm Net Value Added (FNVA) 49 349 42 057 33 934 41 378 48 594 39 421 50 885 45 454 33 744 35 106 -9%
External factors 17 549 14 534 13 982 14 493 15 366 17 456 17 733 18 639 18 914 18 596 22%
Wages 9 194 8 150 8 680 8 878 9 335 10 850 10 680 10 912 11 257 10 862 27%
Rent 3 870 3 023 3 216 3 532 3 381 3 671 3 987 4 506 4 599 4 551 35%
Interest 4 484 3 361 2 086 2 083 2 650 2 935 3 066 3 221 3 059 3 184 -5%
Balance invest. subs. and taxes 638 589 1 432 535 875 1 040 909 1 336 410 386 -20%
Farm net income (FNI) 32 438 28 111 21 385 27 419 34 104 23 005 34 061 28 150 15 240 16 896 -26%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 13 710 5 596 6 869 5 434 3 223 3 876 5 197 7 567 11 505 8 180 4%
Remuneration of Family Labour
(RFL) 21 917 22 935 16 815 23 284 31 685 20 801 31 667 20 151 5 388 12 063 -39%
%spe.farms with positive RFL 87% 90% 83% 90% 94% 84% 91% 81% 58% 72% -19%
121 109
79 96
116 102
134 114
74 69
137
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
315 311
262 286
315 341
373 385
307 285
348
265 267 243 253 265
315 317 353
311 288
211
50
44
19
33
50
25
57
31
-4 -3
-10
0
10
20
30
40
50
60
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 100
EU dairy farms report based on 2016 FADN data UK
United Kingdom Milk specialised farms
315 311
262 286
315 341
373 385
307 285
348
335 318
290 299 307
361 362
407
366
337
211 -20
-8
-28
-13
8
-21
11
-22
-59
-52
-70
-60
-50
-40
-30
-20
-10
0
10
20
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
28 29 27 30 31 36 37 39 36 31
48 43
37 38 38
41 38 43
40 39
22
9
10 8 5
5 7
10 15
10
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-100
-50
0
50
100
150
0
10 000
20 000
30 000
40 000
50 000
60 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 101
EU dairy farms report based on 2016 FADN data CZ
Czech Republic Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500200-
<500
200-
<500
200-
<500
200-
<500
200-
<500200-<500
200-
<500200-<500 100-<200
-
Farms represented 1 851 1 930 1 538 1 562 1 465 1 545 1 605 1 687 1 219 1 165 -23%
% production from specialised farms 54% 56% 54% 60% 58% 51% 56% 58% 57% 50% 0%
Forage area - ha 209 217 234 250 252 216 234 220 303 265 19%
Dairy cows - LU 108 113 127 136 138 119 125 125 172 154 30%
Rented UAA - % 90% 90% 89% 90% 89% 88% 86% 85% 85% 84% -5%
Total labour - AWU 14.0 13.9 15.1 16.6 16.0 13.6 14.2 13.8 18.7 15.7 12%
Family labour - % 10% 9% 8% 8% 8% 10% 10% 10% 7% 9% -6%
Milk per ha fodder area - t/ha 3.2 3.3 3.5 3.6 3.8 3.9 3.8 4.2 4.4 4.5 30%
Milk yield - kg/cow 6 288 6 402 6 479 6 621 6 814 7 095 7 062 7 396 7 716 7 699 8 171 19% 30%
Milk production - t 677 721 825 899 942 842 881 924 1 327 1 188 1 267 55% 87%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 301 331 241 294 335 310 333 336 287 258 304 1% 1%
Coupled payments (incl. Art.69) 0 0 0 14 14 8 8 13 17 17 16 - -
Total revenues from milk 301 331 241 309 348 317 341 349 305 275 320 6% 6%
Production costs
Feed 102 111 93 101 112 110 115 144 144 143 137 40% 33%
homegrown feed 43 52 46 48 54 54 56 84 82 80 76 74% 77%
purchased feed 59 59 47 54 59 56 58 60 63 63 60 12% 2%
Herd renewal purchases 1 2 2 2 3 2 2 2 2 2 2 27% 60%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 20 23 21 22 23 25 25 24 22 22 21 5% 5%
Specific costs 124 136 116 125 138 137 141 169 168 167 160 34% 29%
Machinery and building upkeep 25 28 20 25 28 32 37 35 30 29 28 30% 14%
Energy (fuel, electricity) 35 44 35 44 45 42 45 41 32 29 28 -10% -19%
Contract work 14 16 11 12 11 9 9 8 6 6 5 -51% -61%
Taxes 1 1 1 1 1 1 1 0 0 0 0 -63% -74%
Other direct inputs 31 34 29 32 38 29 34 26 22 19 16 -29% -47%
Non specific costs 106 123 96 114 122 113 125 110 91 84 78 -12% -26%
Total operating costs 229 259 212 239 260 250 267 280 259 250 238 13% 4%
Gross margin 72 72 29 56 74 60 66 56 28 7 66 -47% -9%
Gross margin with coupled
payments72 72 29 70 88 68 74 69 45 24 82 -20% 14%
%spe.farms with positive gross
margin 93% 90% 72% 87% 94% 89% 92% 92% 79% 73% -4%
%milk production with positive gross
margin 95% 91% 74% 92% 96% 93% 90% 89% 80% 66% -9%
Depreciation 32 37 34 38 38 36 43 41 41 39 17%
Wages 83 95 79 95 96 88 92 86 83 77 -5%
Rent 7 8 8 10 10 9 11 12 13 13 68%
Interest 4 6 5 6 6 6 7 6 5 5 0%
External factors 94 110 91 111 112 103 109 103 101 95 1%
Net margin -55 -75 -97 -94 -76 -78 -86 -88 -114 -127 -45%
Net margin with coupled
payments-55 -75 -97 -80 -62 -71 -79 -75 -96 -110
-24%
Family labour costs 12 13 11 11 13 14 14 13 9 12 -4%
Own capital unpaid cost 26 0 26 17 8 0 4 3 1 0 -90%
Imputed family factors 38 13 37 28 21 15 18 16 11 12 -56%
Net economic margin -93 -87 -134 -122 -97 -93 -104 -104 -124 -139 -17%
Net economic margin with
coupled payments-93 -87 -134 -108 -83 -85 -97 -91 -107 -122
-2%
%spe.farms with positive net
economic margin 11% 8% 4% 4% 9% 10% 9% 8% 8% 4% -11%
%milk production with positive net
economic margin 7% 5% 2% 2% 5% 7% 4% 4% 3% 2% -27%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 102
EU dairy farms report based on 2016 FADN data CZ
Czech Republic Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 32 287 37 994 30 153 35 618 44 241 43 258 44 994 52 451 48 931 48 292 49%
Intermediate consumptions 24 476 30 287 25 963 28 322 33 153 32 851 34 988 38 727 38 366 38 575 43%
Balance subsidies and taxes 7 782 9 512 9 541 10 371 10 784 10 119 13 040 13 471 13 344 15 661 58%
Decoupled payments 2 639 3 496 3 947 4 596 5 517 5 895 6 533 6 348 5 860 5 865 79%
Depreciation 3 037 3 733 3 685 3 981 4 402 4 500 5 326 5 619 6 172 6 306 73%
Farm Net Value Added (FNVA) 12 556 13 485 10 046 13 686 17 470 16 027 17 720 21 575 17 737 19 071 62%
External factors 9 202 11 478 10 172 11 932 13 248 13 008 13 660 14 497 15 338 15 659 47%
Wages 8 127 9 977 8 791 10 189 11 330 11 109 11 416 12 075 12 629 12 732 39%
Rent 667 886 848 1 098 1 209 1 130 1 350 1 643 2 016 2 190 144%
Interest 407 615 533 645 709 769 894 780 693 737 42%
Balance invest. subs. and taxes 377 256 381 797 996 783 541 911 1 223 0 110%
Farm net income (FNI) 3 731 2 264 256 2 551 5 218 3 802 4 601 7 989 3 621 3 412 140%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 24 853 55 35 053 23 472 11 316 150 4 297 4 560 2 886 687 -86%
Remuneration of Family Labour
(RFL) 14 655 17 656 8 879 17 083 24 504 18 927 18 586 23 605 27 885 20 720 75%
%spe.farms with positive RFL 79% 81% 56% 74% 87% 89% 87% 94% 78% 83% 19%
72 72
29
70 88
68 74 69 45
24 82
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
301
331
241
309
348
317 341 349
305
275
320
356 406
338 388
410 388
419 423 401 385
238
-55
-75
-97
-80
-62
-71
-79 -75
-96
-110
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 103
EU dairy farms report based on 2016 FADN data CZ
Czech Republic Milk specialised farms
301 331
241
309
348
317 341 349
305 275
320
394 419
375
417 431
403
437 440 412
397
238
-93 -87
-134
-108
-83 -85
-97 -91
-107
-122
-160
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
32 37 34 38 38 36 43 41 41 39
12
13
11
11 13 14
14 13 9
12
26 0
26
17 8
0
4 3
1 0
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
0
5 000
10 000
15 000
20 000
25 000
30 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 104
EU dairy farms report based on 2016 FADN data EE
Estonia Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200-
Farms represented 1 338 1 356 1 048 1 219 1 174 860 999 901 1 128 982 -20%
% production from specialised farms 94% 95% 94% 97% 95% 94% 96% 92% 93% 94% -2%
Forage area - ha 146 145 173 169 178 229 199 203 154 174 14%
Dairy cows - LU 61 61 78 77 81 105 103 108 84 99 45%
Rented UAA - % 66% 61% 62% 64% 64% 65% 62% 61% 59% 63% -3%
Total labour - AWU 5.9 5.5 6.5 5.5 5.8 6.9 6.6 6.6 5.0 5.4 -5%
Family labour - % 25% 25% 21% 21% 19% 14% 14% 15% 19% 16% -30%
Milk per ha fodder area - t/ha 2.8 3.1 3.3 3.3 3.4 3.6 4.2 4.3 4.6 5.0 51%
Milk yield - kg/cow 6 798 7 288 7 308 7 323 7 445 7 806 8 132 8 372 8 582 8 981 9 161 21% 35%
Milk production - t 416 444 573 561 606 819 838 901 720 887 901 75% 117%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 265 282 207 269 313 294 331 325 232 233 307 5% 16%
Coupled payments (incl. Art.69) 0 0 0 2 2 2 2 2 2 2 2 - -
Total revenues from milk 265 282 207 271 315 296 332 327 234 235 310 6% 17%
Production costs
Feed 98 109 80 93 114 120 131 132 115 116 115 27% 18%
homegrown feed 50 58 49 45 50 54 58 65 50 52 51 6% 3%
purchased feed 48 51 31 48 64 66 72 68 66 64 64 52% 33%
Herd renewal purchases 1 2 1 4 5 4 4 2 2 2 2 23% 22%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 14 18 15 17 17 20 19 20 17 17 17 13% 16%
Specific costs 114 129 96 114 136 143 154 154 134 135 134 25% 18%
Machinery and building upkeep 15 16 13 18 22 19 21 22 16 18 18 29% 20%
Energy (fuel, electricity) 25 32 25 31 35 35 35 33 24 22 22 -5% -13%
Contract work 9 12 6 13 15 15 16 15 12 17 17 65% 87%
Taxes 0 0 0 0 0 0 1 0 1 1 1 372% 443%
Other direct inputs 11 13 11 12 14 17 19 20 11 11 10 19% -14%
Non specific costs 61 72 54 74 86 86 91 90 63 68 67 19% 11%
Total operating costs 174 202 150 188 222 229 245 244 198 203 201 22% 15%
Gross margin 91 81 56 80 92 65 85 81 34 30 106 -36% 17%
Gross margin with coupled
payments91 81 56 82 94 67 87 83 36 32 109 -33% 20%
%spe.farms with positive gross
margin 83% 80% 77% 92% 84% 81% 85% 88% 73% 70% -4%
%milk production with positive gross
margin 94% 91% 95% 97% 96% 90% 93% 94% 83% 76% -9%
Depreciation 29 37 37 38 40 38 41 42 37 38 14%
Wages 53 62 56 58 61 60 65 68 54 55 4%
Rent 2 3 3 5 5 5 6 7 6 7 143%
Interest 9 13 14 8 9 8 7 8 6 6 -46%
External factors 64 77 73 71 75 73 78 82 65 68 1%
Net margin -3 -33 -54 -29 -23 -46 -34 -43 -68 -77 -109%
Net margin with coupled
payments-3 -33 -54 -27 -21 -44 -32 -41 -66 -74
-102%
Family labour costs 19 21 15 15 14 10 11 12 14 11 -33%
Own capital unpaid cost 19 0 17 5 0 1 2 12 11 13 1%
Imputed family factors 37 21 32 20 15 11 13 24 25 24 -19%
Net economic margin -40 -54 -86 -49 -38 -57 -47 -67 -94 -101 -45%
Net economic margin with
coupled payments-40 -54 -86 -47 -36 -55 -45 -65 -91 -99
-41%
%spe.farms with positive net
economic margin 11% 9% 2% 9% 12% 8% 11% 7% 1% 1% -59%
%milk production with positive net
economic margin 21% 17% 1% 12% 24% 16% 18% 11% 1% 0% -69%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 105
EU dairy farms report based on 2016 FADN data EE
Estonia Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 34 426 39 706 34 559 45 392 54 848 64 582 71 955 74 504 66 405 68 164 92%
Intermediate consumptions 23 315 29 752 26 669 33 291 39 451 48 162 53 874 56 465 52 068 57 056 108%
Balance subsidies and taxes 6 776 8 307 7 221 10 122 10 566 10 781 10 413 8 603 10 390 8 891 25%
Decoupled payments 1 882 2 466 3 004 3 824 4 288 4 943 5 165 5 459 5 403 5 778 126%
Depreciation 3 416 4 713 5 121 5 547 6 327 7 146 7 857 8 325 8 814 9 295 100%
Farm Net Value Added (FNVA) 14 471 13 549 9 991 16 676 19 636 20 056 20 637 18 318 15 913 10 704 18%
External factors 7 452 9 789 10 112 10 298 11 617 13 956 15 216 16 773 16 067 17 190 83%
Wages 6 127 7 773 7 713 8 363 9 494 11 507 12 585 13 803 13 159 13 857 89%
Rent 290 336 465 688 724 947 1 267 1 461 1 529 1 895 348%
Interest 1 036 1 681 1 935 1 247 1 399 1 502 1 364 1 509 1 379 1 438 -7%
Balance invest. subs. and taxes 397 2 401 1 761 1 200 2 204 3 098 1 646 106 303 305 -84%
Farm net income (FNI) 7 416 6 161 1 640 7 577 10 224 9 198 7 067 1 651 149 -6 181 -129%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 8 339 10 11 273 3 418 366 1 278 2 738 15 800 14 313 19 803 154%
Remuneration of Family Labour
(RFL) 9 059 13 409 4 097 15 451 21 994 29 408 24 874 8 552 -1 782 -15 702 -134%
%spe.farms with positive RFL 89% 91% 62% 96% 96% 91% 90% 71% 71% 43% -24%
91 81
56
82 94
67 87 83
36 32
109
0
50
100
150
200
250
300
350
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
265 282
207
271
315 296
332 327
234 235
310
268 315
261 297
337 340 364 368
300 310
201
-3
-33
-54
-27
-21
-44
-32
-41
-66
-74
-80
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 106
EU dairy farms report based on 2016 FADN data EE
Estonia Milk specialised farms
265 282
207
271
315 296
332 327
234 235
310
306
336
293 318
351 351 377
392
325 334
201
-40
-54
-86
-47
-36
-55
-45
-65
-91
-99
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
29 37 37 38 40 38 41 42 37 38
19
21 15 15
14 10
11 12
14 11
19
0 17 5 0
1
2
12
11 13
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
-20 000
-15 000
-10 000
-5 000
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 107
EU dairy farms report based on 2016 FADN data HU
Hungary Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 100-<200 100-<200 100-<200 100-<200 40-<100 100-<200 100-<200 100-<200 100-<200 100-<200-
Farms represented 3 485 4 878 5 122 3 044 2 325 3 897 4 767 4 234 4 521 4 250 -4%
% production from specialised farms 84% 83% 71% 79% 78% 76% 83% 83% 81% 68% -3%
Forage area - ha 76 54 40 62 92 54 49 51 45 38 -21%
Dairy cows - LU 71 52 32 56 76 47 43 50 45 41 -12%
Rented UAA - % 88% 85% 75% 85% 89% 83% 84% 88% 81% 83% 2%
Total labour - AWU 7.2 5.3 3.0 5.0 7.1 4.1 3.9 4.5 3.8 3.2 -26%
Family labour - % 12% 18% 32% 19% 15% 21% 24% 20% 24% 29% 19%
Milk per ha fodder area - t/ha 6.4 6.3 6.0 6.3 6.0 6.5 6.5 8.4 7.8 9.3 36%
Milk yield - kg/cow 6 934 6 750 6 556 7 073 7 148 7 139 6 797 7 218 7 079 7 087 7 079 6% 2%
Milk production - t 490 349 209 395 544 334 296 361 317 289 289 -8% -41%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 292 335 231 265 309 305 332 354 281 262 325 4% 11%
Coupled payments (incl. Art.69) 0 0 0 16 28 21 27 26 40 39 39 - -
Total revenues from milk 292 335 231 280 337 326 359 379 321 302 365 17% 25%
Production costs
Feed 100 118 106 116 146 160 157 181 165 170 131 59% 31%
homegrown feed 43 42 36 33 45 53 48 79 78 74 57 90% 33%
purchased feed 57 76 70 82 101 108 109 102 86 96 74 40% 30%
Herd renewal purchases 4 1 0 1 4 2 1 2 1 1 1 -23% -68%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 64 50 15 17 20 32 33 29 26 32 27 -33% -58%
Specific costs 168 170 121 134 170 195 190 211 192 203 160 32% -5%
Machinery and building upkeep 15 16 12 16 17 16 20 19 18 16 15 23% -2%
Energy (fuel, electricity) 30 39 31 36 42 39 46 43 34 28 31 5% 1%
Contract work 9 12 10 9 8 7 10 12 10 10 8 3% -4%
Taxes 3 3 2 2 4 2 4 4 3 3 3 43% 7%
Other direct inputs 26 32 22 25 27 21 24 24 20 21 21 -20% -20%
Non specific costs 83 102 76 87 98 85 104 102 84 78 78 1% -6%
Total operating costs 251 271 197 221 269 280 294 313 276 281 237 21% -6%
Gross margin 41 64 34 43 40 25 38 40 5 -19 88 -81% 114%
Gross margin with coupled
payments41 64 34 59 68 46 65 66 45 21 127 -6% 211%
%spe.farms with positive gross
margin 84% 89% 66% 58% 81% 77% 80% 86% 75% 82% 2%
%milk production with positive gross
margin 94% 89% 80% 87% 87% 71% 84% 75% 73% 54% -23%
Depreciation 22 24 21 25 29 26 31 29 27 22 17%
Wages 63 66 51 56 61 57 67 73 62 55 5%
Rent 12 13 10 16 18 15 18 18 15 13 35%
Interest 10 12 8 7 11 9 8 5 3 3 -65%
External factors 85 91 69 79 89 82 92 96 80 71 1%
Net margin -66 -51 -57 -60 -78 -83 -85 -85 -102 -112 -73%
Net margin with coupled
payments-66 -51 -57 -45 -50 -62 -58 -59 -62 -73
-12%
Family labour costs 8 14 19 11 9 13 18 14 15 18 16%
Own capital unpaid cost 11 4 15 7 8 6 16 20 16 11 56%
Imputed family factors 18 18 34 18 17 19 33 35 31 29 33%
Net economic margin -84 -69 -91 -79 -95 -101 -118 -120 -133 -141 -61%
Net economic margin with
coupled payments-84 -69 -91 -63 -67 -81 -91 -94 -93 -102
-18%
%spe.farms with positive net
economic margin 5% 23% 2% 8% 19% 11% 11% 15% 12% 12% 29%
%milk production with positive net
economic margin 6% 20% 4% 20% 8% 13% 9% 11% 7% 8% -14%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 108
EU dairy farms report based on 2016 FADN data HU
Hungary Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 44 759 46 404 31 358 40 293 51 126 50 634 49 451 52 974 48 831 49 091 23%
Intermediate consumptions 35 882 35 573 26 352 31 246 38 450 38 955 39 473 37 971 37 887 39 601 18%
Balance subsidies and taxes 8 255 7 770 8 140 12 390 14 389 12 201 13 845 13 969 12 121 13 720 65%
Decoupled payments 2 487 3 017 4 090 4 783 6 178 5 525 6 049 5 779 4 646 4 606 57%
Depreciation 3 186 3 080 2 572 3 480 4 449 3 967 4 247 4 034 4 280 3 700 36%
Farm Net Value Added (FNVA) 13 946 15 520 10 575 17 958 22 617 19 914 19 577 24 938 18 785 19 509 58%
External factors 12 375 11 897 8 142 10 785 13 388 12 777 12 722 13 365 12 280 11 694 15%
Wages 9 238 8 677 6 001 7 621 9 126 8 878 9 168 10 075 9 532 9 011 20%
Rent 1 598 1 603 1 254 2 170 2 661 2 446 2 486 2 548 2 293 2 231 59%
Interest 1 540 1 617 887 994 1 601 1 453 1 068 742 455 452 -59%
Balance invest. subs. and taxes 192 445 697 566 810 445 430 1 514 723 -7 67%
Farm net income (FNI) 1 762 4 069 3 129 7 739 10 038 7 582 7 285 13 087 7 228 7 808 214%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 12 258 2 739 5 990 4 872 7 242 4 195 8 521 13 632 9 569 6 344 41%
Remuneration of Family Labour
(RFL) 9 468 10 152 6 169 15 141 22 820 21 330 15 365 22 097 18 432 21 754 142%
%spe.farms with positive RFL 59% 63% 71% 79% 89% 86% 84% 91% 90% 97% 45%
41 64
34
59 68 46
65 66 45
21
127
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
292
335
231
280
337 326
359 379
321 302
365
358 386
288 325
387 388 417 439
383 375
237
-66
-51
-57
-45
-50
-62 -58 -59
-62
-73
-80
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 109
EU dairy farms report based on 2016 FADN data HU
Hungary Milk specialised farms
292
335
231
280
337 326
359 379
321 302
365
377 404
322 343
404 406
451 473
414 404
237
-84
-69
-91
-63 -67
-81
-91 -94 -93
-102
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
22 24 21 25 29 26 31 29 27 22
8
14
19 11
9 13
18 14
15
18
11
4
15 7
8 6
16 20
16
11
0
20
40
60
80
100
120
140
160
180
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-120
-100
-80
-60
-40
-20
0
20
40
60
80
0
5 000
10 000
15 000
20 000
25 000
30 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 110
EU dairy farms report based on 2016 FADN data LT
Lithuania Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 23 461 19 363 17 626 19 697 20 432 18 930 17 883 19 565 18 766 20 032 -3%
% production from specialised farms 79% 74% 86% 81% 85% 79% 81% 83% 81% 84% 4%
Forage area - ha 21 22 24 23 22 23 25 23 23 23 2%
Dairy cows - LU 10 11 14 12 11 11 12 11 12 11 -3%
Rented UAA - % 53% 52% 60% 55% 51% 51% 46% 45% 44% 45% -19%
Total labour - AWU 1.9 1.8 2.0 1.9 1.8 1.8 1.8 1.8 1.8 1.7 -7%
Family labour - % 85% 84% 74% 82% 81% 84% 84% 83% 84% 85% 3%
Milk per ha fodder area - t/ha 2.4 2.6 3.1 2.9 2.8 2.7 2.6 2.8 2.9 2.8 6%
Milk yield - kg/cow 5 134 5 103 5 408 5 437 5 482 5 482 5 618 5 779 5 710 5 840 5 522 11% 8%
Milk production - t 52 58 75 65 63 62 65 65 67 66 66 7% 27%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 241 241 195 247 276 258 304 275 214 214 297 4% 24%
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0 9 30 43 44 - -
Total revenues from milk 241 241 195 247 276 258 304 284 244 257 341 16% 42%
Production costs
Feed 59 66 65 64 71 72 80 82 81 76 78 27% 33%
homegrown feed 37 41 43 41 41 46 47 52 48 47 48 21% 29%
purchased feed 21 25 22 23 30 26 33 30 33 29 30 37% 41%
Herd renewal purchases 3 2 1 1 1 1 3 1 2 3 3 14% -2%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 7 7 8 8 14 14 16 16 15 16 17 120% 149%
Specific costs 69 74 74 73 86 88 100 99 98 96 99 36% 44%
Machinery and building upkeep 12 13 11 14 16 16 18 18 17 17 18 44% 48%
Energy (fuel, electricity) 21 25 21 24 28 29 31 30 23 23 25 14% 21%
Contract work 3 2 1 1 1 2 1 2 4 2 3 33% -17%
Taxes 0 0 1 0 0 0 0 0 0 0 0 -94% -93%
Other direct inputs 13 14 12 15 15 13 14 18 14 18 15 24% 14%
Non specific costs 49 55 46 55 61 60 65 68 58 60 61 23% 23%
Total operating costs 118 129 120 128 147 147 165 167 156 156 159 31% 35%
Gross margin 123 112 75 119 130 111 139 108 58 58 138 -28% 13%
Gross margin with coupled
payments123 112 75 119 130 111 139 117 88 101 182 -1% 48%
%spe.farms with positive gross
margin 100% 95% 91% 94% 94% 88% 87% 95% 87% 88% -6%
%milk production with positive gross
margin 100% 98% 97% 98% 98% 97% 97% 96% 95% 97% -2%
Depreciation 31 38 39 49 53 57 62 69 59 79 93%
Wages 12 15 20 16 17 13 16 21 18 18 20%
Rent 4 4 5 5 5 5 6 6 7 8 59%
Interest 5 6 7 4 4 4 4 4 3 3 -47%
External factors 21 26 31 25 27 23 26 31 27 29 11%
Net margin 71 48 5 45 50 32 51 8 -29 -50 -157%
Net margin with coupled
payments71 48 5 45 50 32 51 17 2 -7
-91%
Family labour costs 77 89 62 76 75 81 90 101 104 126 45%
Own capital unpaid cost 20 0 45 24 8 11 18 18 16 18 -21%
Imputed family factors 97 89 107 99 82 92 108 118 120 144 31%
Net economic margin -26 -40 -103 -54 -33 -61 -57 -110 -148 -194 -168%
Net economic margin with
coupled payments-26 -40 -103 -54 -33 -61 -57 -102 -118 -151
-119%
%spe.farms with positive net
economic margin 17% 13% 2% 10% 13% 10% 11% 5% 2% 2% -70%
%milk production with positive net
economic margin 50% 45% 6% 44% 48% 46% 49% 22% 10% 11% -57%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 111
EU dairy farms report based on 2016 FADN data LT
Lithuania Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 12 773 14 835 15 051 16 109 17 795 17 612 19 603 17 919 16 521 16 061 18%
Intermediate consumptions 7 038 8 844 10 042 9 633 10 739 11 073 12 220 11 882 11 727 11 447 35%
Balance subsidies and taxes 2 583 3 426 3 664 3 839 3 333 3 364 4 021 3 956 4 776 6 121 54%
Decoupled payments 952 1 327 1 731 1 927 2 052 2 245 2 612 2 112 2 427 2 648 79%
Depreciation 1 554 2 099 2 523 2 839 3 062 3 304 3 523 3 896 3 656 4 861 101%
Farm Net Value Added (FNVA) 6 763 7 317 6 149 7 476 7 328 6 600 7 881 6 098 5 913 5 874 -12%
External factors 1 065 1 535 2 240 1 492 1 570 1 393 1 514 1 779 1 765 1 876 12%
Wages 640 937 1 470 951 1 028 839 949 1 201 1 168 1 171 16%
Rent 199 265 335 309 313 320 369 383 444 506 67%
Interest 225 333 436 232 229 234 197 195 153 199 -45%
Balance invest. subs. and taxes 620 862 1 750 1 681 1 101 1 229 449 864 781 1 679 3%
Farm net income (FNI) 6 318 6 645 5 659 7 664 6 859 6 435 6 816 5 182 4 929 5 677 -15%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 1 191 3 4 018 1 713 581 812 1 246 1 230 1 166 1 237 -30%
Remuneration of Family Labour
(RFL) 3 706 4 944 2 650 4 924 5 202 4 501 4 406 3 169 2 855 3 445 -16%
%spe.farms with positive RFL 86% 92% 64% 81% 89% 86% 79% 81% 73% 81% -3%
123 112
75
119 130 111
139 117
88 101
182
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
241 241
195
247
276 258
304 284
244 257
341
170 193 190 202
227 227 253 267
242 264
159
71
48
5
45 50
32
51
17
2
-7
-20
-10
0
10
20
30
40
50
60
70
80
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 112
EU dairy farms report based on 2016 FADN data LT
Lithuania Milk specialised farms
241 241
195
247
276 258
304 284
244 257
341
267 281
298 301 309 319
361 386
362
408
159
-26
-40
-103
-54
-33
-61 -57
-102
-118
-151
-160
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
31 38 39 49 53 57 62 69 59 79
77
89 62 76 75 81
90 101
104
126
20 0 45 24 8
11
18
18 16
18
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
200
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 113
EU dairy farms report based on 2016 FADN data LV
Latvia Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500-
Farms represented 8 503 8 554 8 382 9 657 8 966 8 205 8 470 8 924 8 614 8 209 1%
% production from specialised farms 86% 86% 86% 89% 92% 92% 94% 94% 92% 92% 7%
Forage area - ha 39 41 42 40 42 45 44 42 41 40 1%
Dairy cows - LU 14 15 16 15 16 17 18 17 17 18 16%
Rented UAA - % 42% 41% 44% 43% 44% 45% 45% 46% 45% 43% 6%
Total labour - AWU 2.3 2.2 2.1 2.1 2.2 2.3 2.3 2.2 2.1 2.1 -4%
Family labour - % 71% 69% 67% 72% 69% 66% 65% 65% 64% 64% -6%
Milk per ha fodder area - t/ha 1.9 1.9 2.0 2.0 2.1 2.3 2.4 2.5 2.5 2.8 37%
Milk yield - kg/cow 5 234 5 253 5 374 5 504 5 549 5 853 5 939 6 283 6 132 6 453 6 296 19% 20%
Milk production - t 73 76 85 81 88 102 105 105 104 114 114 38% 57%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 263 263 182 236 279 269 293 276 215 214 305 -1% 16%
Coupled payments (incl. Art.69) 8 11 30 12 14 23 24 39 39 23 23 104% 169%
Total revenues from milk 272 275 212 248 294 293 317 315 254 236 328 6% 21%
Production costs
Feed 92 94 73 81 97 106 113 106 95 92 90 13% -3%
homegrown feed 52 50 42 43 46 50 53 51 49 47 46 1% -13%
purchased feed 40 44 31 38 51 56 60 54 47 45 44 28% 11%
Herd renewal purchases 4 5 1 2 1 1 4 2 1 4 4 -41% -10%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 15 16 15 15 18 19 20 20 17 17 17 18% 14%
Specific costs 111 115 89 99 116 126 137 127 113 113 111 12% -1%
Machinery and building upkeep 24 24 18 23 27 26 27 28 23 19 19 6% -21%
Energy (fuel, electricity) 33 41 34 39 44 43 45 42 35 28 29 -3% -13%
Contract work 6 7 6 6 6 6 6 6 4 4 4 -27% -29%
Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other direct inputs 14 17 14 15 18 16 19 19 18 16 14 16% 0%
Non specific costs 78 89 71 84 95 92 97 95 79 67 67 1% -15%
Total operating costs 190 204 160 182 211 218 234 222 192 180 178 7% -6%
Gross margin 73 60 22 54 69 52 60 54 23 34 127 -29% 73%
Gross margin with coupled
payments82 71 51 66 83 75 84 93 62 57 150 4% 83%
%spe.farms with positive gross
margin 87% 81% 82% 84% 80% 75% 78% 83% 79% 77% -5%
%milk production with positive gross
margin 92% 87% 89% 92% 91% 92% 90% 95% 91% 89% 3%
Depreciation 42 47 44 42 45 42 47 45 41 39 -6%
Wages 22 29 26 25 29 31 35 37 33 31 31%
Rent 2 2 2 2 3 3 3 4 3 3 82%
Interest 8 10 7 5 6 5 5 4 3 3 -59%
External factors 32 41 35 32 38 39 43 44 40 37 12%
Net margin -1 -28 -58 -20 -13 -30 -30 -36 -58 -43 -58%
Net margin with coupled
payments8 -16 -28 -8 1 -6 -6 3 -19 -20
5%
Family labour costs 71 85 65 68 74 64 70 78 71 67 -2%
Own capital unpaid cost 14 0 28 38 6 8 14 9 5 5 -56%
Imputed family factors 85 85 93 107 80 72 84 87 77 71 -11%
Net economic margin -86 -113 -151 -127 -94 -102 -114 -123 -135 -114 -6%
Net economic margin with
coupled payments-77 -101 -122 -115 -79 -78 -90 -83 -96 -91
10%
%spe.farms with positive net
economic margin 5% 5% 0% 1% 4% 3% 3% 3% 1% 1% -57%
%milk production with positive net
economic margin 17% 17% 0% 4% 20% 15% 14% 14% 4% 8% -25%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 114
EU dairy farms report based on 2016 FADN data LV
Latvia Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 14 790 15 869 13 986 15 989 19 029 21 021 22 724 21 835 20 912 21 564 44%
Intermediate consumptions 10 941 12 623 12 295 12 809 14 952 16 670 18 195 17 185 16 951 17 060 43%
Balance subsidies and taxes 4 596 5 473 6 527 5 589 5 242 5 450 5 762 6 535 7 125 7 763 29%
Decoupled payments 740 1 053 1 342 1 460 1 757 1 886 2 103 2 207 2 334 2 578 127%
Depreciation 2 066 2 457 2 736 2 428 2 689 2 847 3 172 3 053 3 231 3 456 34%
Farm Net Value Added (FNVA) 6 379 6 262 5 482 6 342 6 629 6 955 7 119 8 133 7 855 8 811 37%
External factors 1 665 2 268 2 260 1 880 2 352 2 749 3 070 3 156 3 301 3 432 60%
Wages 1 178 1 659 1 669 1 451 1 821 2 223 2 497 2 644 2 750 2 841 83%
Rent 89 114 137 149 186 201 254 267 283 309 153%
Interest 397 495 454 281 346 324 319 245 268 282 -41%
Balance invest. subs. and taxes 1 277 1 017 469 409 1 519 0 0 591 871 881 -15%
Farm net income (FNI) 5 992 5 010 3 692 4 871 5 796 4 206 4 049 5 567 5 424 6 260 17%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 1 002 2 2 665 3 197 566 798 1 497 966 672 641 -38%
Remuneration of Family Labour
(RFL) 4 220 4 498 2 225 2 541 4 416 3 444 3 523 4 728 5 106 6 537 50%
%spe.farms with positive RFL 95% 97% 78% 80% 90% 87% 89% 93% 92% 92% 3%
82 71
51 66
83 75 84 93
62 57
150
0
50
100
150
200
250
300
350
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
272 275
212
248
294 293
317 315
254 236
328
264 291
240 256 293 299
324 312 273 256
178
8
-16
-28
-8
1
-6 -6
3
-19 -20
-30
-25
-20
-15
-10
-5
0
5
10
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 115
EU dairy farms report based on 2016 FADN data LV
Latvia Milk specialised farms
272 275
212
248
294 293 317 315
254 236
328
349
376
333
363 373 371
408 399
349 328
178 -77
-101
-122 -115
-79 -78
-90 -83
-96 -91
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
42 47 44 42 45 42 47 45 41 39
71
85
65 68 74
64 70 78
71 67
14
0
28 38 6 8
14 9
5 5
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 116
EU dairy farms report based on 2016 FADN data MT
Malta Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 -
Farms represented 117 109 102 104 107 101 114 106 128 114 6%
% production from specialised farms 98% 98% 96% 95% 97% 97% 95% 97% 100% 100% 2%
Forage area - ha 5 5 5 4 4 4 4 4 3 4 -32%
Dairy cows - LU 67 71 63 60 56 57 56 58 50 60 -17%
Rented UAA - % 84% 85% 84% 85% 86% 85% 86% 86% 86% 87% 3%
Total labour - AWU 2.6 2.5 2.5 2.5 2.4 2.4 2.6 2.4 2.1 2.3 -11%
Family labour - % 90% 86% 85% 87% 86% 85% 76% 85% 84% 81% -4%
Milk per ha fodder area - t/ha 71.7 76.9 74.6 94.6 99.8 96.0 93.0 98.2 125.3 99.3 45%
Milk yield - kg/cow 5 783 5 839 5 564 6 198 6 664 6 947 6 649 6 817 6 671 6 916 6 213 19% 7%
Milk production - t 387 417 349 369 371 395 373 393 331 414 394 -1% 2%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 358 449 436 406 463 475 499 459 450 448 495 9% 38%
Coupled payments (incl. Art.69) 34 19 17 7 0 0 0 0 34 31 32 -7% -4%
Total revenues from milk 391 468 453 414 463 475 499 459 484 479 527 8% 35%
Production costs
Feed 248 278 283 272 304 307 322 295 298 288 310 9% 25%
homegrown feed 4 3 5 2 2 2 3 11 11 6 7 139% 87%
purchased feed 244 274 278 270 302 305 319 284 288 282 303 7% 24%
Herd renewal purchases 6 1 0 5 5 5 4 6 14 8 9 290% 46%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 12 16 14 14 18 17 15 14 11 11 11 -13% -2%
Specific costs 265 295 297 291 328 328 341 316 324 307 330 10% 24%
Machinery and building upkeep 13 19 18 16 18 14 14 13 15 14 14 -16% 10%
Energy (fuel, electricity) 25 27 31 32 33 38 35 35 32 30 32 18% 26%
Contract work 2 2 2 2 2 2 2 2 2 2 2 11% 32%
Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other direct inputs 5 5 5 6 5 6 7 5 7 7 8 24% 59%
Non specific costs 45 53 57 56 58 60 58 55 56 53 56 7% 25%
Total operating costs 310 348 354 347 386 388 399 371 380 360 386 10% 25%
Gross margin 48 101 82 59 77 87 100 88 70 88 109 6% 128%
Gross margin with coupled
payments82 120 99 67 77 87 100 88 104 118 142 3% 73%
%spe.farms with positive gross
margin 85% 91% 79% 69% 83% 82% 90% 79% 77% 86% -5%
%milk production with positive gross
margin 91% 92% 85% 77% 84% 84% 96% 87% 88% 91% -1%
Depreciation 15 16 35 21 21 21 22 24 28 27 19%
Wages 7 11 12 10 10 10 14 10 10 12 8%
Rent 1 1 1 1 1 1 2 9 1 2 240%
Interest 4 4 7 6 6 6 5 5 6 4 -1%
External factors 12 15 20 17 17 17 22 24 17 18 22%
Net margin 21 69 27 21 39 49 56 40 25 43 -7%
Net margin with coupled
payments54 88 44 29 39 49 56 40 59 74
-7%
Family labour costs 60 57 67 63 61 59 57 59 56 55 -8%
Own capital unpaid cost 43 1 28 22 21 9 30 20 3 0 -68%
Imputed family factors 102 59 95 84 82 68 87 79 58 55 -25%
Net economic margin -82 11 -68 -63 -43 -19 -31 -39 -33 -11 40%
Net economic margin with
coupled payments-48 30 -50 -56 -43 -19 -31 -39 1 19
73%
%spe.farms with positive net
economic margin 8% 40% 23% 21% 24% 33% 27% 27% 24% 40% 28%
%milk production with positive net
economic margin 12% 60% 36% 37% 40% 49% 39% 40% 46% 54% 29%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 117
EU dairy farms report based on 2016 FADN data MT
Malta Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 71 488 98 024 78 568 75 126 89 859 95 214 92 276 90 911 86 494 91 922 9%
Intermediate consumptions 64 805 80 088 67 521 68 701 78 856 83 859 80 978 76 596 74 736 80 092 9%
Balance subsidies and taxes 18 979 17 944 10 033 8 897 8 529 8 272 7 305 8 657 7 531 7 269 -50%
Decoupled payments 3 304 4 827 6 206 4 654 6 912 7 732 6 999 8 428 283 255 -37%
Depreciation 2 895 3 354 5 687 3 832 3 928 4 183 3 997 4 601 5 543 5 571 32%
Farm Net Value Added (FNVA) 22 767 32 526 15 393 11 491 15 604 15 444 14 607 18 371 13 746 13 529 -35%
External factors 2 326 3 100 3 503 3 045 3 328 3 323 4 196 4 583 3 182 3 556 27%
Wages 1 356 2 153 2 067 1 734 1 918 2 001 3 006 1 899 1 869 2 330 9%
Rent 274 190 196 224 263 279 338 1 726 280 343 256%
Interest 695 757 1 240 1 087 1 147 1 043 852 958 1 032 883 7%
Balance invest. subs. and taxes 0 1 702 0 8 619 4 506 2 850 1 737 1 777 5 933 347 373%
Farm net income (FNI) 20 441 31 129 11 889 17 065 16 782 14 971 12 149 15 565 16 497 10 320 -33%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 9 380 286 5 645 4 611 4 700 2 138 7 217 4 619 644 27 -65%
Remuneration of Family Labour
(RFL) 6 175 16 179 3 729 7 183 7 347 7 606 5 165 6 486 10 075 7 015 -10%
%spe.farms with positive RFL 77% 86% 64% 73% 79% 76% 72% 67% 69% 69% -10%
82 120 99
67 77 87 100 88
104 118 142
0
100
200
300
400
500
600
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
391
468 453
414
463 475 499
459 484 479
527
337 379
409 385 424 427 443 419 425 405 386
54
88
44
29
39
49
56
40
59
74
0
10
20
30
40
50
60
70
80
90
100
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 118
EU dairy farms report based on 2016 FADN data MT
Malta Milk specialised farms
391
468 453
414
463 475 499
459 484 479
527 439 438
503 470
507 495 530
498 483
460
386
-48
30
-50 -56
-43
-19
-31
-39
1
19
-60
-50
-40
-30
-20
-10
0
10
20
30
40
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
15 16 35
21 21 21 22 24 28 27
60 57
67
63 61 59 57
59 56 55
43
1
28
22 21 9
30 20
3 0
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-80
-60
-40
-20
0
20
40
60
80
100
120
140
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 119
EU dairy farms report based on 2016 FADN data PL
Poland Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000
2000-
<3000 -
Farms represented 124 139 124 412 117 614 115 057 100 153 100 494 101 775 102 696 88 734 88 094 -24%
% production from specialised farms 81% 79% 76% 80% 81% 80% 81% 81% 76% 80% 0%
Forage area - ha 11 11 11 12 13 13 13 13 14 15 27%
Dairy cows - LU 13 13 14 15 16 16 17 17 18 18 29%
Rented UAA - % 27% 31% 29% 29% 29% 28% 28% 28% 28% 29% -2%
Total labour - AWU 1.8 1.8 1.8 1.8 1.9 1.9 1.9 1.8 1.9 1.9 1%
Family labour - % 95% 94% 95% 94% 94% 96% 96% 96% 96% 96% 2%
Milk per ha fodder area - t/ha 6.2 6.4 6.4 6.3 6.5 6.8 6.6 6.8 7.0 7.1 11%
Milk yield - kg/cow 5 043 5 145 5 173 5 176 5 266 5 479 5 364 5 412 5 563 5 741 6 072 9% 20%
Milk production - t 67 69 73 77 86 89 89 90 99 104 109 40% 63%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 279 289 206 260 286 277 309 312 263 245 294 6% 5%
Coupled payments (incl. Art.69) 0 0 0 1 1 1 1 1 13 12 12 - -
Total revenues from milk 279 289 206 261 287 278 310 314 276 257 306 10% 10%
Production costs
Feed 88 100 70 81 96 100 103 101 94 89 85 11% -2%
homegrown feed 55 61 43 47 55 56 57 56 51 47 45 -3% -18%
purchased feed 33 39 27 34 41 44 45 45 43 42 41 33% 24%
Herd renewal purchases 5 4 2 3 3 4 4 4 3 3 3 -17% -45%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other specific costs 12 14 10 12 12 12 13 12 11 10 10 -6% -13%
Specific costs 104 117 83 95 111 116 120 117 108 102 98 8% -6%
Machinery and building upkeep 14 15 13 15 14 13 15 15 13 13 13 0% -9%
Energy (fuel, electricity) 18 24 19 22 24 24 25 25 20 18 17 3% -8%
Contract work 6 8 6 7 6 6 7 9 8 7 7 21% 23%
Taxes 0 0 0 0 0 0 0 0 1 1 1 398% 578%
Other direct inputs 8 10 8 9 8 9 9 10 9 7 7 0% -13%
Non specific costs 46 57 46 52 52 53 57 59 52 46 44 5% -4%
Total operating costs 150 174 129 148 163 169 177 176 160 148 142 7% -5%
Gross margin 129 114 77 113 122 108 132 137 103 97 152 5% 18%
Gross margin with coupled
payments129 114 77 114 123 109 133 138 116 109 164 13% 27%
%spe.farms with positive gross
margin 97% 92% 89% 97% 96% 90% 93% 95% 95% 95% 3%
%milk production with positive gross
margin 99% 97% 96% 99% 99% 97% 97% 98% 98% 99% 1%
Depreciation 35 44 39 41 39 40 47 49 45 40 14%
Wages 5 9 5 7 6 4 4 4 4 4 -35%
Rent 2 3 2 3 3 3 3 4 4 3 46%
Interest 3 3 3 3 3 4 4 3 3 3 5%
External factors 10 15 11 12 12 10 11 11 11 10 -8%
Net margin 85 56 27 60 71 58 73 76 48 46 1%
Net margin with coupled
payments85 56 27 61 72 59 75 78 61 58
17%
Family labour costs 62 82 74 79 71 71 80 85 72 67 4%
Own capital unpaid cost 44 21 20 29 21 16 35 41 36 31 28%
Imputed family factors 106 102 93 108 92 87 115 126 109 99 10%
Net economic margin -21 -46 -66 -49 -20 -28 -41 -49 -61 -53 -22%
Net economic margin with
coupled payments-21 -46 -66 -48 -20 -27 -40 -48 -48 -40
-2%
%spe.farms with positive net
economic margin 22% 16% 8% 12% 22% 20% 17% 16% 12% 13% -13%
%milk production with positive net
economic margin 50% 39% 24% 34% 47% 46% 41% 39% 30% 31% -11%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 120
EU dairy farms report based on 2016 FADN data PL
Poland Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 16 626 17 614 12 900 17 035 20 550 20 205 21 576 21 924 20 197 20 228 32%
Intermediate consumptions 8 445 10 602 8 499 9 507 11 196 11 964 12 422 12 612 12 549 12 204 36%
Balance subsidies and taxes 2 335 2 807 2 869 3 415 3 691 3 362 3 603 3 409 4 083 4 227 46%
Decoupled payments 863 1 111 1 342 1 659 2 081 2 075 2 416 2 656 2 543 2 625 136%
Depreciation 2 135 2 681 2 392 2 693 2 848 2 930 3 375 3 478 3 725 3 613 50%
Farm Net Value Added (FNVA) 8 382 7 138 4 878 8 251 10 196 8 673 9 383 9 243 8 006 8 637 27%
External factors 595 968 678 845 895 757 797 830 882 963 19%
Wages 307 607 358 474 480 273 295 305 339 432 -15%
Rent 143 175 138 172 210 212 231 284 295 301 93%
Interest 144 185 181 199 206 273 271 241 248 230 41%
Balance invest. subs. and taxes -173 -14 -2 111 37 89 176 142 142 144 327%
Farm net income (FNI) 7 614 6 157 4 198 7 516 9 337 8 004 8 762 8 555 7 266 7 818 32%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 2 844 1 358 1 254 2 056 1 643 1 253 2 647 3 047 3 114 2 960 67%
Remuneration of Family Labour
(RFL) 2 948 3 027 1 877 3 465 4 540 4 012 3 599 3 187 2 398 2 953 9%
%spe.farms with positive RFL 87% 90% 82% 93% 95% 90% 87% 81% 78% 80% -8%
129
114
77
114 123 109
133 138
116 109
164
0
50
100
150
200
250
300
350
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
279 289
206
261
287 278
310 314
276 257
306
194 233
179 201 215 219 235 236
216 199
142
85
56
27
61
72
59
75 78
61 58
0
10
20
30
40
50
60
70
80
90
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 121
EU dairy farms report based on 2016 FADN data PL
Poland Milk specialised farms
279 289
206
261
287 278
310 314
276 257
306
300
335
272
309 306 305
350 362
324
298
142
-21
-46
-66
-48
-20
-27
-40
-48 -48
-40
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
35 44 39 41 39 40 47 49 45 40
62
82
74 79
71 71
80 85 72
67
44
21
20
29
21 16
35 41
36
31
0
20
40
60
80
100
120
140
160
180
200
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-100
-50
0
50
100
150
0
2 000
4 000
6 000
8 000
10 000
12 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 122
EU dairy farms report based on 2016 FADN data SK
Slovakia Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 40-<100 40-<100 40-<100 100-<200 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100-
Farms represented 424 458 341 461 430 437 352 358 301 249 -26%
% production from specialised farms 51% 54% 39% 64% 55% 55% 59% 61% 51% 45% 10%
Forage area - ha 785 773 633 820 788 690 734 722 655 672 -6%
Dairy cows - LU 212 217 189 232 217 194 222 211 205 215 2%
Rented UAA - % 99% 98% 98% 97% 98% 97% 97% 95% 94% 92% -5%
Total labour - AWU 35.6 37.3 27.1 33.1 29.6 26.5 31.4 29.2 26.2 27.0 -18%
Family labour - % 3% 3% 5% 2% 2% 3% 2% 2% 3% 2% -31%
Milk per ha fodder area - t/ha 1.6 1.6 1.7 1.6 1.6 1.7 1.9 1.9 2.1 2.3 30%
Milk yield - kg/cow 5 852 5 858 5 770 5 618 5 732 6 133 6 303 6 568 6 780 7 150 7 029 17% 20%
Milk production - t 1 238 1 271 1 088 1 303 1 242 1 187 1 397 1 389 1 393 1 536 1 542 20% 25%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 301 312 224 286 334 315 339 356 281 267 296 8% -2%
Coupled payments (incl. Art.69) 0 0 0 11 13 15 15 30 36 37 37 - -
Total revenues from milk 301 312 224 297 347 330 354 386 317 304 332 20% 11%
Production costs
Feed 116 143 111 126 153 148 153 188 169 165 160 41% 38%
homegrown feed 62 76 62 74 95 80 79 119 109 103 100 67% 62%
purchased feed 54 68 50 52 58 67 74 69 60 62 60 12% 11%
Herd renewal purchases 3 1 3 10 8 15 6 8 2 7 7 122% 119%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 20 22 28 27 29 25 23 27 21 19 18 -4% -6%
Specific costs 139 166 143 163 190 188 183 223 193 191 186 36% 34%
Machinery and building upkeep 15 19 22 27 24 24 22 21 17 15 16 -5% 3%
Energy (fuel, electricity) 37 47 42 54 57 57 58 57 42 36 39 7% 6%
Contract work 14 17 19 19 29 29 26 15 13 10 10 -24% -28%
Taxes 2 2 1 2 1 2 2 1 1 1 1 -38% -44%
Other direct inputs 19 49 53 60 47 40 27 23 18 15 11 -54% -40%
Non specific costs 86 133 138 163 158 152 135 117 91 77 77 -20% -11%
Total operating costs 225 300 281 326 348 339 318 340 284 268 263 11% 17%
Gross margin 76 13 -56 -40 -14 -24 21 16 -2 -1 33 -60% -56%
Gross margin with coupled
payments76 13 -56 -29 -1 -10 36 46 34 36 70 263% -8%
%spe.farms with positive gross
margin 88% 59% 40% 46% 52% 46% 64% 73% 69% 73% 16%
%milk production with positive gross
margin 95% 63% 25% 36% 48% 43% 73% 80% 69% 65% 17%
Depreciation 132 58 74 94 77 60 57 56 49 45 -43%
Wages 97 110 109 130 120 115 124 123 106 101 4%
Rent 6 7 8 10 10 9 11 12 11 9 46%
Interest 7 9 10 11 10 9 6 6 5 4 -39%
External factors 110 126 128 151 140 134 141 141 122 114 4%
Net margin -166 -171 -258 -285 -230 -218 -177 -181 -173 -159 14%
Net margin with coupled
payments-166 -171 -258 -275 -217 -203 -162 -151 -137 -123
31%
Family labour costs 3 3 5 3 3 4 3 3 3 4 -7%
Own capital unpaid cost 39 1 9 9 1 1 5 10 4 3 -64%
Imputed family factors 42 4 14 11 3 5 8 13 7 7 -54%
Net economic margin -208 -175 -272 -297 -233 -223 -185 -195 -180 -166 17%
Net economic margin with
coupled payments-208 -175 -272 -286 -221 -208 -170 -165 -144 -129
33%
%spe.farms with positive net
economic margin 10% 4% 0% 4% 3% 0% 0% 6% 8% 2% 14%
%milk production with positive net
economic margin 7% 1% 0% 1% 0% 0% 0% 4% 2% 1% -4%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 123
EU dairy farms report based on 2016 FADN data SK
Slovakia Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 24 125 24 507 20 332 24 142 33 249 31 516 34 142 39 373 38 317 41 890 73%
Intermediate consumptions 18 381 23 118 24 938 25 252 30 474 29 780 29 010 33 482 30 805 29 745 42%
Balance subsidies and taxes 8 600 8 736 12 024 12 198 11 248 9 997 9 774 11 624 12 249 13 131 26%
Decoupled payments 2 260 2 506 3 827 4 839 5 482 5 924 6 014 7 009 7 091 7 012 146%
Depreciation 9 899 4 076 5 980 6 712 6 525 5 162 4 863 5 193 5 431 5 749 -18%
Farm Net Value Added (FNVA) 4 445 6 048 1 438 4 376 7 498 6 572 10 044 12 322 14 330 19 526 287%
External factors 8 261 8 987 10 137 10 664 11 665 11 629 11 842 12 865 13 162 14 313 47%
Wages 7 287 7 831 8 671 9 182 9 958 9 997 10 433 11 170 11 394 12 621 48%
Rent 452 508 672 725 853 826 908 1 126 1 206 1 180 115%
Interest 523 649 794 757 855 806 501 570 561 511 -16%
Balance invest. subs. and taxes 494 776 1 233 1 587 1 479 143 190 193 862 393 -42%
Farm net income (FNI) -3 322 -2 163 -7 467 -4 702 -2 688 -4 915 -1 607 -350 2 030 5 606 156%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost . . . . . . . . . . .
Remuneration of Family Labour
(RFL). . . . . . . . . . .
%spe.farms with positive RFL . . . . . . . . . . .
76
13
-56
-29 -1 -10
36 46 34 36 70
-100
-50
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
301 312
224
297
347 330
354 386
317 304 332
467 483 483
571 564 533 516 537 454 427
263
-166 -171
-258 -275
-217 -203
-162 -151
-137 -123
-300
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 124
EU dairy farms report based on 2016 FADN data SK
Slovakia Milk specialised farms
301 312
224
297
347 330
354 386
317 304 332
508 487 497
583 568 538 524
551
462 433
263 -208
-175
-272 -286
-221 -208
-170 -165
-144 -129
-350
-300
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
700
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
132
58 74
94 77
60 57 56 49 45
3
3
5
3
3
4 3 3
3 4
39
1
9
9
1
1 5 10
4 3
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-350
-300
-250
-200
-150
-100
-50
0
50
100
-10 000
-5 000
0
5 000
10 000
15 000
20 000
25 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne Farm Net Value Added (FNVA) Farm net income (FNI)
Gross margin with coupled payments Net margin with coupled payments
Net economic margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 125
EU dairy farms report based on 2016 FADN data SI
Slovenia Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 100-<200 100-<200 100-<200 100-<200-
Farms represented 8 626 10 196 6 642 5 918 5 257 5 741 5 872 5 399 5 012 4 607 -41%
% production from specialised farms 88% 91% 94% 93% 91% 94% 95% 93% 93% 90% 1%
Forage area - ha 13 11 14 16 16 16 15 14 15 16 17%
Dairy cows - LU 13 12 16 18 19 18 16 16 17 19 25%
Rented UAA - % 40% 38% 43% 44% 43% 43% 42% 40% 40% 41% 0%
Total labour - AWU 1.9 1.8 2.0 2.1 2.1 2.0 1.9 1.8 1.8 1.8 -6%
Family labour - % 99% 99% 99% 99% 99% 98% 99% 100% 99% 100% 1%
Milk per ha fodder area - t/ha 5.8 5.5 6.1 6.1 6.6 6.4 5.6 5.7 6.4 6.7 7%
Milk yield - kg/cow 5 469 5 247 5 368 5 427 5 519 5 590 5 249 5 123 5 365 5 595 5 687 0% 4%
Milk production - t 73 63 87 96 107 102 84 82 92 105 106 25% 44%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 277 321 263 271 310 309 328 354 292 258 308 5% 11%
Coupled payments (incl. Art.69) 0 0 0 5 6 5 6 5 12 11 11 - -
Total revenues from milk 277 321 263 276 315 314 334 359 304 269 319 8% 15%
Production costs
Feed 73 94 84 80 100 104 114 124 133 123 118 51% 61%
homegrown feed 19 26 28 25 31 35 36 48 63 62 60 137% 207%
purchased feed 54 68 57 55 69 69 78 76 70 61 58 16% 8%
Herd renewal purchases 4 3 3 2 3 5 5 3 7 5 5 51% 32%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 20 21 21 21 22 23 23 24 24 23 23 15% 17%
Specific costs 97 119 109 104 125 133 142 152 165 151 146 44% 50%
Machinery and building upkeep 28 33 29 32 30 29 27 25 23 21 20 -24% -28%
Energy (fuel, electricity) 21 32 26 29 32 34 38 40 33 28 30 29% 39%
Contract work 5 7 6 6 8 7 8 10 8 8 8 46% 69%
Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -100%
Other direct inputs 9 11 9 11 12 12 15 21 17 15 13 82% 46%
Non specific costs 63 83 70 78 81 82 88 97 81 72 71 15% 12%
Total operating costs 160 202 179 182 206 214 230 249 246 223 217 33% 35%
Gross margin 117 119 84 89 103 95 98 106 45 35 91 -42% -22%
Gross margin with coupled
payments117 119 84 94 109 100 104 111 58 46 102 -33% -12%
%spe.farms with positive gross
margin 94% 95% 86% 92% 91% 93% 88% 93% 78% 69% -13%
%milk production with positive gross
margin 98% 97% 96% 97% 97% 96% 95% 97% 82% 83% -10%
Depreciation 72 82 78 82 82 88 100 103 95 91 25%
Wages 2 2 2 1 2 2 2 1 1 0 -66%
Rent 4 5 5 6 6 6 7 7 6 5 19%
Interest 2 3 2 2 2 3 3 3 3 5 44%
External factors 8 10 9 10 9 11 12 10 10 11 11%
Net margin 37 27 -3 -3 12 -3 -13 -8 -59 -66 -319%
Net margin with coupled
payments37 27 -3 3 17 2 -8 -2 -47 -55
-272%
Family labour costs 107 119 117 113 84 94 109 112 100 91 -12%
Own capital unpaid cost 67 1 53 32 46 49 71 59 45 24 5%
Imputed family factors 174 120 169 145 129 142 180 171 146 114 -7%
Net economic margin -138 -93 -173 -148 -118 -146 -194 -178 -205 -181 -40%
Net economic margin with
coupled payments-138 -93 -173 -143 -112 -141 -188 -173 -193 -169
-33%
%spe.farms with positive net
economic margin 4% 8% 1% 2% 6% 3% 0% 3% 2% 1% -57%
%milk production with positive net
economic margin 14% 28% 5% 8% 15% 7% 5% 7% 6% 1% -70%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 126
EU dairy farms report based on 2016 FADN data SI
Slovenia Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 20 459 21 169 22 514 24 675 28 930 29 950 27 353 28 567 29 297 30 815 38%
Intermediate consumptions 13 382 15 139 16 821 18 494 20 846 22 068 20 398 19 389 21 794 23 162 42%
Balance subsidies and taxes 3 718 3 885 4 913 5 926 5 463 6 118 6 159 6 106 5 308 6 932 47%
Decoupled payments 2 455 2 348 2 977 3 182 3 208 3 190 3 160 2 994 2 716 2 955 11%
Depreciation 4 028 4 129 4 979 5 472 5 844 6 591 6 573 7 030 7 394 8 158 72%
Farm Net Value Added (FNVA) 6 767 5 786 5 627 6 635 7 703 7 410 6 541 8 254 5 418 6 427 11%
External factors 435 470 576 633 661 804 749 651 769 946 60%
Wages 96 78 105 88 103 152 120 33 49 45 -55%
Rent 219 252 337 401 394 430 463 442 438 458 65%
Interest 120 140 134 144 164 221 166 175 283 443 129%
Balance invest. subs. and taxes 110 416 191 1 136 1 129 758 413 255 2 409 -121 255%
Farm net income (FNI) 6 442 5 732 5 242 7 138 8 171 7 363 6 205 7 859 7 058 5 360 16%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 3 892 72 3 485 2 195 3 359 3 776 4 805 4 107 3 562 2 130 32%
Remuneration of Family Labour
(RFL) 1 397 3 155 924 2 425 2 323 1 909 795 2 016 1 806 1 814 3%
%spe.farms with positive RFL 63% 83% 56% 67% 69% 70% 57% 69% 60% 66% -4%
117 119
84 94 109 100 104
111
58 46
102
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
277
321
263 276
315 314 334
359
304
269
319
240
293 266 273
298 313 342
362 351 324
217
37
27
-3 3
17
2
-8 -2
-47
-55 -60
-40
-20
0
20
40
60
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 127
EU dairy farms report based on 2016 FADN data SI
Slovenia Milk specialised farms
277
321
263 276
315 314 334
359
304
269
319
414 414 435
419 427 455
522 532
497
438
217 -138
-93
-173
-143
-112
-141
-188
-173
-193
-169
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
72 82 78 82 82 88 100 103 95 91
107 119 117 113
84 94
109 112 100
91
67 1
53 32
46 49
71 59
45
24
0
50
100
150
200
250
300
350
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-250
-200
-150
-100
-50
0
50
100
150
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 128
EU dairy farms report based on 2016 FADN data BG
Bulgaria Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 200-<500200-
<500
200-
<500
200-
<500
200-
<500
200-
<500200-<500
100-
<200200-<500 200-<500
-
Farms represented 37 554 28 446 15 364 17 867 17 011 19 336 16 810 13 644 14 190 16 796 -45%
% production from specialised farms 86% 84% 76% 78% 79% 84% 87% 85% 87% 85% 4%
Forage area - ha 3 5 9 8 8 6 8 9 7 7 32%
Dairy cows - LU 7 9 13 12 13 13 15 16 16 14 56%
Rented UAA - % 63% 72% 79% 81% 82% 83% 81% 79% 77% 84% 13%
Total labour - AWU 1.8 2.0 2.3 2.1 2.2 2.1 2.1 2.0 2.1 1.9 -3%
Family labour - % 80% 68% 61% 64% 67% 66% 61% 63% 70% 74% -1%
Milk per ha fodder area - t/ha 8.9 6.3 5.4 4.9 5.1 6.3 5.4 5.9 6.2 6.1 -12%
Milk yield - kg/cow 3 852 3 780 3 584 3 143 3 137 3 004 3 092 3 105 3 029 2 877 3 000 -20% -22%
Milk production - t 28 33 48 38 40 39 46 51 48 40 45 27% 59%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 254 276 245 270 311 309 329 316 299 290 307 17% 21%
Coupled payments (incl. Art.69) 4 19 10 7 10 23 25 26 27 27 24 142% 583%
Total revenues from milk 258 295 255 277 321 332 353 341 326 317 331 22% 29%
Production costs
Feed 104 116 107 124 147 154 154 159 162 151 133 45% 28%
homegrown feed 27 25 25 25 38 37 40 62 50 44 38 102% 43%
purchased feed 77 91 82 99 109 117 114 97 113 108 95 27% 23%
Herd renewal purchases 1 2 0 1 2 3 1 4 1 1 1 116% 48%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 9 10 11 10 11 10 9 13 15 12 11 36% 16%
Specific costs 114 127 119 136 160 167 165 176 179 164 145 44% 27%
Machinery and building upkeep 5 9 8 9 6 9 9 10 11 9 8 36% 76%
Energy (fuel, electricity) 17 19 20 22 28 26 27 29 23 22 21 33% 22%
Contract work 10 9 11 6 8 7 6 6 4 5 5 -49% -49%
Taxes 0 0 1 1 1 2 2 1 0 1 1 -14% 259%
Other direct inputs 7 12 18 13 15 25 30 14 11 11 8 -6% 16%
Non specific costs 38 49 59 50 58 69 75 59 48 48 43 6% 11%
Total operating costs 152 176 177 186 218 236 240 235 227 212 187 33% 23%
Gross margin 102 100 68 84 93 73 89 80 72 78 120 -15% 17%
Gross margin with coupled
payments106 119 78 91 103 96 113 106 99 105 144 2% 36%
%spe.farms with positive gross
margin 96% 81% 75% 83% 84% 83% 85% 85% 75% 82% -4%
%milk production with positive gross
margin 96% 89% 85% 90% 91% 86% 88% 88% 83% 86% -5%
Depreciation 15 16 17 18 22 28 31 31 38 35 120%
Wages 15 26 29 33 32 33 35 32 32 28 32%
Rent 4 5 6 7 9 12 14 16 15 14 194%
Interest 2 5 5 4 6 7 9 6 5 4 19%
External factors 21 36 40 44 46 52 57 54 51 46 56%
Net margin 67 47 11 22 25 -6 1 -5 -18 -3 -121%
Net margin with coupled
payments70 67 22 29 35 17 26 20 10 24
-66%
Family labour costs 68 60 52 66 80 75 70 54 76 107 31%
Own capital unpaid cost 16 0 14 10 8 9 13 21 16 15 74%
Imputed family factors 84 61 66 77 88 83 83 75 91 122 37%
Net economic margin -17 -13 -54 -55 -63 -90 -82 -80 -109 -125 -269%
Net economic margin with
coupled payments-14 6 -44 -48 -53 -67 -57 -54 -82 -98
-350%
%spe.farms with positive net
economic margin 30% 35% 12% 14% 14% 14% 14% 15% 11% 7% -58%
%milk production with positive net
economic margin 49% 51% 29% 31% 35% 28% 31% 28% 27% 27% -37%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 129
EU dairy farms report based on 2016 FADN data BG
Bulgaria Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 5 822 7 077 7 791 7 591 8 830 9 136 10 728 12 541 10 654 8 860 55%
Intermediate consumptions 3 591 4 377 5 502 5 085 5 972 6 451 7 443 8 184 7 057 5 901 57%
Balance subsidies and taxes 320 1 014 1 176 1 421 1 469 1 742 2 301 3 175 3 396 2 374 256%
Decoupled payments 169 222 366 401 495 516 744 806 885 877 239%
Depreciation 318 393 485 498 566 730 910 1 111 1 291 1 029 187%
Farm Net Value Added (FNVA) 2 233 3 321 2 980 3 429 3 761 3 697 4 677 6 421 5 702 4 304 92%
External factors 444 880 1 169 1 128 1 251 1 424 1 733 2 021 1 812 1 436 111%
Wages 317 611 837 818 820 864 1 030 1 158 1 061 846 74%
Rent 84 142 195 203 281 356 453 657 575 467 304%
Interest 43 127 137 107 150 204 250 206 176 123 64%
Balance invest. subs. and taxes 10 1 24 23 13 151 293 512 393 15 2507%
Farm net income (FNI) 1 800 2 442 1 835 2 324 2 524 2 424 3 236 4 911 4 283 2 883 99%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 413 18 697 442 320 362 677 1 263 770 622 135%
Remuneration of Family Labour
(RFL) 1 192 2 204 1 130 2 344 2 095 2 166 2 895 4 299 3 191 1 990 109%
%spe.farms with positive RFL 81% 88% 61% 80% 79% 90% 79% 87% 87% 85% 12%
106 119
78 91 103 96
113 106 99 105 144
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
258
295
255 277
321 332
353 341
326 317 331
188 228 234 248
286 315 328 321 316
293
187
70 67
22
29
35
17
26
20
10
24
0
10
20
30
40
50
60
70
80
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 130
EU dairy farms report based on 2016 FADN data BG
Bulgaria Milk specialised farms
258
295
255 277
321 332
353 341
326 317 331
272 289
300
325
374
399 410
395 408 415
187
-14
6
-44 -48
-53
-67
-57 -54
-82
-98
-120
-100
-80
-60
-40
-20
0
20
0
50
100
150
200
250
300
350
400
450
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
15 16 17 18 22 28 31 31 38 35
68 60 52
66 80
75 70 54
76 107
16 0 14
10
8 9 13
21
16
15
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 131
EU dairy farms report based on 2016 FADN data RO
Romania Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms 100-<200 200-<500 200-<500500-
<1000
500-
<1000
500-
<1000
500-
<1000200-<500 200-<500
500-
<1000 -
Farms represented 310 888 309 027 271 241 192 812 214 135 242 990 250 910 225 351 214 102 185 220 -30%
% production from specialised farms 73% 73% 73% 70% 71% 73% 78% 71% 69% 66% -15%
Forage area - ha 2 2 2 2 2 2 3 3 3 2 13%
Dairy cows - LU 4 4 4 4 4 4 4 4 4 4 -5%
Rented UAA - % 23% 18% 18% 21% 17% 20% 22% 21% 30% 28% 33%
Total labour - AWU 1.8 1.8 1.6 1.4 1.3 1.2 1.1 1.0 1.0 1.0 -41%
Family labour - % 96% 94% 95% 95% 96% 96% 95% 97% 97% 98% 2%
Milk per ha fodder area - t/ha 6.8 6.2 7.5 6.0 5.7 5.4 4.9 4.5 5.6 5.2 -25%
Milk yield - kg/cow 3 774 3 561 3 736 3 499 3 514 3 278 3 374 3 479 3 260 3 227 3 382 -10% -10%
Milk production - t 14 15 15 14 14 12 13 12 14 12 13 -14% -9%
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price 316 318 274 299 323 305 327 331 292 310 302 3% -4%
Coupled payments (incl. Art.69) 11 11 5 0 0 0 0 14 13 32 30 122% 183%
Total revenues from milk 327 329 279 299 323 305 327 344 306 342 332 6% 2%
Production costs
Feed 72 73 57 58 59 58 56 86 85 91 98 30% 36%
homegrown feed 29 28 25 29 32 30 28 58 49 54 57 95% 101%
purchased feed 44 45 32 28 28 28 28 28 36 38 40 -14% -7%
Herd renewal purchases 1 2 2 1 0 1 1 1 1 1 1 -35% -35%
Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -
Other specific costs 18 15 16 15 13 5 4 7 9 8 8 -50% -56%
Specific costs 92 89 74 73 72 63 61 94 95 101 107 14% 16%
Machinery and building upkeep 7 11 10 11 11 11 10 11 14 11 11 28% 66%
Energy (fuel, electricity) 20 17 17 21 21 23 23 27 27 30 27 52% 32%
Contract work 9 12 11 13 15 15 15 14 12 13 13 25% 41%
Taxes 1 1 1 1 1 1 2 2 2 2 2 240% 161%
Other direct inputs 5 7 6 8 8 8 8 8 9 8 6 41% 31%
Non specific costs 41 48 45 54 55 58 58 63 64 63 58 41% 41%
Total operating costs 133 138 119 128 127 121 119 158 160 164 165 23% 24%
Gross margin 183 180 154 171 196 184 208 173 133 146 137 -13% -25%
Gross margin with coupled
payments194 191 160 172 196 184 208 187 146 178 167 -6% -14%
%spe.farms with positive gross
margin 96% 98% 98% 96% 99% 100% 100% 96% 80% 94% -7%
%milk production with positive gross
margin 97% 97% 97% 96% 99% 100% 100% 98% 84% 96% -4%
Depreciation 26 29 33 31 34 37 40 36 45 55 55%
Wages 9 9 10 10 11 10 11 7 6 4 -35%
Rent 3 2 2 3 2 3 3 4 4 4 84%
Interest 2 2 1 1 1 1 1 0 0 0 -78%
External factors 13 12 13 14 14 14 15 11 11 8 -20%
Net margin 145 139 109 127 149 133 153 126 76 84 -27%
Net margin with coupled
payments155 150 114 127 149 133 153 139 90 116
-18%
Family labour costs 217 189 183 208 243 221 218 241 228 262 24%
Own capital unpaid cost 50 7 36 19 21 34 27 37 41 51 40%
Imputed family factors 267 195 219 226 264 255 245 278 269 313 26%
Net economic margin -122 -56 -110 -100 -115 -122 -92 -152 -192 -229 -99%
Net economic margin with
coupled payments-112 -45 -104 -99 -115 -122 -92 -139 -179 -197
-97%
%spe.farms with positive net
economic margin 19% 26% 18% 15% 14% 14% 17% 12% 10% 9% -50%
%milk production with positive net
economic margin 32% 40% 29% 29% 30% 32% 38% 26% 20% 25% -30%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 132
EU dairy farms report based on 2016 FADN data RO
Romania Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output 3 958 4 805 4 677 5 967 6 403 5 993 6 786 6 745 6 752 6 987 52%
Intermediate consumptions 2 069 2 415 2 383 3 013 3 099 2 876 3 088 3 250 3 679 3 559 53%
Balance subsidies and taxes 437 574 474 611 716 691 740 658 445 1 231 57%
Decoupled payments 104 151 181 252 347 392 483 498 345 583 227%
Depreciation 319 423 522 546 575 651 738 640 931 1 073 109%
Farm Net Value Added (FNVA) 2 006 2 541 2 245 3 019 3 445 3 157 3 701 3 513 2 586 3 586 43%
External factors 153 172 193 240 237 229 259 213 242 175 22%
Wages 102 125 153 177 184 167 189 137 141 88 -3%
Rent 31 26 29 49 44 53 60 71 95 81 185%
Interest 20 21 12 14 10 9 10 5 7 6 -67%
Balance invest. subs. and taxes 0 4 0 0 0 0 0 163 23 10 5143%
Farm net income (FNI) 1 853 2 373 2 052 2 779 3 208 2 928 3 442 3 464 2 367 3 421 47%
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 641 108 600 366 408 658 540 697 908 1 087 100%
Remuneration of Family Labour
(RFL) 648 1 388 1 006 1 832 2 179 2 075 2 828 2 773 1 490 2 427 120%
%spe.farms with positive RFL 80% 95% 82% 92% 91% 88% 92% 81% 63% 72% -16%
194 191
160 172
196 184 208
187
146
178
167
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Opera
ting c
osts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
327 329
279 299
323 305
327 344
306
342 332
172 179 165 172 174 173 174 205 216 226
165
155 150
114
127
149
133
153
139
90
116
0
20
40
60
80
100
120
140
160
180
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 133
EU dairy farms report based on 2016 FADN data RO
Romania Milk specialised farms
327 329
279 299
323 305
327 344
306
342 332
439
374 384 399
439 428 419
483 485
539
165
-112
-45
-104 -99
-115 -122
-92
-139
-179
-197
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
26 29 33 31 34 37 40 36 45 55
217 189 183
208 243 221 218 241 228
262
50
7 36
19
21 34 27
37 41
51
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-250
-200
-150
-100
-50
0
50
100
150
200
250
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 134
EU dairy farms report based on 2016 FADN data HR
Croatia Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)
STRUCTURAL INFORMATION
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend*
Trend
2017/
2007
Sample farms - - - - - -
200-<500 200-<500 100-<200 100-<200-
Farms represented - - - - - - 8 892 9 309 6 669 7 693 -
% production from specialised farms - - - - - - 86% 81% 74% 81% -
Forage area - ha - - - - - - 11 10 14 12 -
Dairy cows - LU - - - - - - 13 12 14 13 -
Rented UAA - % - - - - - - 52% 46% 48% 46% -
Total labour - AWU - - - - - - 2.2 2.1 2.0 2.1 -
Family labour - % - - - - - - 85% 90% 85% 90% -
Milk per ha fodder area - t/ha - - - - - - 5.5 5.0 4.7 5.2 -
Milk yield - kg/cow - - - - - - 4 634 4 319 4 595 4 667 4 297 - -
Milk production - t - - - - - - 62 52 66 62 60 - -
MILK MARGINS in EUR/t of milk (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Revenues
Price - - - - - - 334 337 325 304 327 - -
Coupled payments (incl. Art.69) - - - - - - 19 21 47 52 54 - -
Total revenues from milk - - - - - - 353 358 372 356 380 - -
Production costs
Feed - - - - - - 130 214 212 205 197 - -
homegrown feed - - - - - - 89 170 161 152 146 - -
purchased feed - - - - - - 42 44 51 53 51 - -
Herd renewal purchases - - - - - - 1 4 3 1 1 - -
Milk levy - - - - - - 0 0 0 0 0 - -
Other specific costs - - - - - - 21 20 18 22 22 - -
Specific costs - - - - - - 153 237 233 228 220 - -
Machinery and building upkeep - - - - - - 12 11 10 13 13 - -
Energy (fuel, electricity) - - - - - - 32 29 26 25 25 - -
Contract work - - - - - - 5 6 6 6 7 - -
Taxes - - - - - - 8 10 12 12 12 - -
Other direct inputs - - - - - - 12 9 11 11 11 - -
Non specific costs - - - - - - 68 65 65 67 69 - -
Total operating costs - - - - - - 221 302 298 295 289 - -
Gross margin - - - - - - 113 34 27 9 38 - -
Gross margin with coupled
payments- - - - - - 132 56 74 61 91 - -
%spe.farms with positive gross
margin - - - - - - 78% 69% 63% 73% -
%milk production with positive gross
margin - - - - - - 90% 73% 76% 75% -
Depreciation - - - - - - 51 50 48 48 -
Wages - - - - - - 23 14 17 17 -
Rent - - - - - - 8 5 7 7 -
Interest - - - - - - 6 4 3 3 -
External factors - - - - - - 37 23 27 26 -
Net margin - - - - - - 26 -39 -48 -66 -
Net margin with coupled
payments- - - - - - 45 -18 -1 -14
-
Family labour costs - - - - - - 120 106 86 188 -
Own capital unpaid cost - - - - - - 27 44 43 47 -
Imputed family factors - - - - - - 148 149 129 235 -
Net economic margin - - - - - - -122 -188 -177 -301 -
Net economic margin with
coupled payments- - - - - - -103 -167 -130 -249
-
%spe.farms with positive net
economic margin - - - - - - 6% 3% 6% 1% -
%milk production with positive net
economic margin - - - - - - 30% 15% 16% 4% -
Source: EU FADN DG AGRI, model of the allocation of costs for milk 135
EU dairy farms report based on 2016 FADN data HR
Croatia Milk specialised farms
INCOME in EUR/AWU (nominal)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e
Three
years
average
trend
Trend
2017/
2007
Total output - - - - - - 19 013 17 104 22 095 20 350 -
Intermediate consumptions - - - - - - 12 908 11 556 15 194 14 735 -
Balance subsidies and taxes - - - - - - 4 012 3 907 4 337 4 613 -
Decoupled payments - - - - - - 3 674 3 479 2 891 2 694 -
Depreciation - - - - - - 2 314 1 999 2 492 2 367 -
Farm Net Value Added (FNVA) - - - - - - 7 803 7 456 8 747 7 861 -
External factors - - - - - - 1 670 850 1 296 1 233 -
Wages - - - - - - 1 022 497 796 748 -
Rent - - - - - - 366 217 344 336 -
Interest - - - - - - 283 137 157 150 -
Balance invest. subs. and taxes - - - - - - 0 0 0 197 -
Farm net income (FNI) - - - - - - 6 132 6 606 7 450 6 826 -
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost - - - - - - 1 509 1 974 2 675 2 605 -
Remuneration of Family Labour
(RFL) - - - - - - 2 223 2 647 3 280 2 644 -
%spe.farms with positive RFL - - - - - - 71% 83% 77% 81% -
132
56 74 61
91
0
50
100
150
200
250
300
350
400
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
353 358 372
356
380
308
376 373 370
289
45
-18
-1
-14
-30
-20
-10
0
10
20
30
40
50
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017e
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 136
EU dairy farms report based on 2016 FADN data HR
Croatia Milk specialised farms
353 358 372 356 380
456
525 502
605
289
-103
-167
-130
-249
-300
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
700
2013 2014 2015 2016 2017e
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
51 50 48 48
120
106 86
188
27
44 43
47
0
50
100
150
200
250
300
350
2013 2014 2015 2016
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-300
-250
-200
-150
-100
-50
0
50
100
150
200
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
2013 2014 2015 2016
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 137
EU dairy farms report based on 2016 FADN data BE RG
Belgium 2016 Milk specialised farms
STRUCTURAL INFORMATION
Vlaanderen Wallonie Belgium
Sample farms 40-<100 200-<500 200-<500
Farms represented 3 198 2 236 5 435
% production from specialised farms 89% 83% 87%
Forage area - ha 39 66 50
Dairy cows - LU 67 74 70
Rented UAA - % 73% 73% 73%
Total labour - AWU 1.81 1.90 1.84
Family labour - % 98% 97% 97%
Milk per ha fodder area - t/ha 13.9 7.4 10.4
Milk yield - kg/cow 8 186.5 6 571.0 7 482.5
Milk production - t 548.7 486.5 523.1
MILK MARGINS in EUR/t of milk (nominal)
Vlaanderen Wallonie Belgium
Revenues
Price 274 294 282
Coupled payments (incl. Art.69) 0 6 2
Total revenues from milk 274 301 284
Production costs
Feed 101 97 99
homegrown feed 25 22 23
purchased feed 76 75 76
Herd renewal purchases 2 1 1
Milk levy 0 0 0
Other specific costs 27 22 25
Specific costs 130 120 126
Machinery and building upkeep 10 17 13
Energy (fuel, electricity) 12 14 13
Contract work 20 24 21
Taxes 1 0 1
Other direct inputs 11 16 13
Non specific costs 55 71 61
Total operating costs 184 190 187
Gross margin 89 104 95
Gross margin with coupled
payments 89 110 97
%spe.farms with positive gross
margin 93% 97% 95%
%milk production with positive gross
margin98% 98% 98%
Depreciation 37 51 42
Wages 1 3 2
Rent 14 17 15
Interest 10 13 11
External factors 24 33 28
Net margin 29 20 26
Net margin with coupled
payments 29 26 28
Family labour costs 62 72 66
Own capital unpaid cost 1 1 1
Imputed family factors 63 73 66
Net economic margin -34 -52 -41
Net economic margin with
coupled payments -34 -46 -39
%spe.farms with positive net
economic margin15% 15% 15%
%milk production with positive net
economic margin16% 17% 16%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 138
EU dairy farms report based on 2016 FADN data BE RG
Belgium 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Vlaanderen Wallonie Belgium
Total output 117 945 101 446 110 959
Intermediate consumptions 78 095 69 665 74 526
Balance subsidies and taxes 11 587 16 685 13 746
Decoupled payments 8 727 12 126 10 166
Depreciation 15 785 17 290 16 422
Farm Net Value Added (FNVA) 35 652 31 176 33 757
External factors 10 443 11 668 10 962
Wages 315 944 581
Rent 6 112 6 144 6 125
Interest 4 016 4 580 4 255
Balance invest. subs. and taxes 468 2 687 1 407
Farm net income (FNI) 25 676 22 194 24 202
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 387 288 345
Remuneration of Family Labour
(RFL)25 809 22 662 24 487
%spe.farms with positive RFL 89% 89% 89%
89 110
97
0
50
100
150
200
250
300
350
Revenues Operating costs Revenues Operating costs Revenues Operating costs
Vlaanderen Wallonie Belgium
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed
Other specific costs Non specific costs Gross margin with coupled payments
274
301 284
245 274
256
29
26
28
25
26
26
27
27
28
28
29
29
30
0
50
100
150
200
250
300
350
Vlaanderen Wallonie Belgium
EUR/t
Milk specialised farms - net margin
Total revenues from milk
Operating costs + depreciation + external factors
Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 139
EU dairy farms report based on 2016 FADN data BE RG
Belgium 2016 Milk specialised farms
274
301 284
308
347 323
-34
-46
-39
-50
-45
-40
-35
-30
-25
-20
-15
-10
-5
0
0
50
100
150
200
250
300
350
400
Vlaanderen Wallonie Belgium
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
37 51
42
62
72
66
1
1
1
0
20
40
60
80
100
120
140
160
180
Vlaanderen Wallonie Belgium
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-60
-40
-20
0
20
40
60
80
100
120
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
Vlaanderen Wallonie Belgium
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne 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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 140
EU dairy farms report based on 2016 FADN data DE RG
Germany 2016 Milk specialised farms
STRUCTURAL INFORMATION
Schleswig-
Holstein
Niedersach
sen
Nordrhein-
WestfalenHessen
Rheinland-
Pfalz
Baden-
Wurttember
g
Bayern SaarlandBrandenbur
g
Mecklenburg-
VorpommernSachsen
Sachsen-
AnhaltThueringen Germany
Sample farms 200-<500 200-<500 200-<500 100-<200 100-<200 200-<500 500-<1000 15-<40 40-<100 40-<100 100-<200 40-<100 40-<100 3000-<5000
Farms represented 3 957 8 394 4 664 2 289 1 598 6 417 28 833 150 359 482 737 372 267 58 520
% production from specialised farms 97% 97% 97% 95% 95% 97% 97% 92% 79% 81% 78% 75% 63% 92%
Forage area - ha 86 74 56 60 71 44 33 91 459 223 203 327 282 57
Dairy cows - LU 100 95 79 59 66 51 39 72 342 262 224 297 275 66
Rented UAA - % 56% 60% 67% 70% 71% 65% 55% 66% 72% 65% 77% 81% 86% 64%
Total labour - AWU 2.13 2.01 1.88 1.86 2.02 1.60 1.52 1.97 16.79 7.97 11.62 12.71 14.14 2.10
Family labour - % 69% 77% 75% 80% 80% 90% 95% 86% 3% 19% 11% 11% 8% 69%
Milk per ha fodder area - t/ha 8.9 10.2 11.8 7.1 7.2 7.9 7.9 5.4 6.4 10.2 9.7 8.0 8.7 8.8
Milk yield - kg/cow 7 591 7 935 8 262 7 255 7 719 6 908 6 699 6 911 8 556 8 656 8 807 8 817 8 895 7 574
Milk production - t 761 754 656 428 510 350 264 496 2 926 2 268 1 970 2 615 2 444 502
MILK MARGINS in EUR/t of milk (nominal)
Schleswig-
Holstein
Niedersach
sen
Nordrhein-
WestfalenHessen
Rheinland-
Pfalz
Baden-
Wurttember
g
Bayern SaarlandBrandenbur
g
Mecklenburg-
VorpommernSachsen
Sachsen-
AnhaltThueringen Germany
Revenues
Price 273 260 277 280 274 296 302 264 265 248 246 258 247 276
EU coupled payments (incl. Art.69) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total revenues from milk 273 260 277 280 274 296 302 264 265 248 246 258 247 276
Production costs
Feed 92 103 98 100 103 103 100 113 115 104 106 115 125 102
homegrown feed 29 20 20 34 35 34 32 52 38 32 34 33 50 29
purchased feed 63 83 78 67 68 69 69 62 77 72 72 82 74 73
Herd renewal purchases 3 4 5 3 1 0 1 3 5 1 2 3 8 3
Milk levy 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Other specific costs 40 26 27 26 28 26 30 27 28 34 34 32 30 29
Specific costs 135 133 130 129 132 129 131 143 149 139 142 150 163 134
Machinery and building upkeep 20 18 21 22 21 26 26 25 22 19 20 23 21 22
Energy (fuel, electricity) 20 18 21 28 26 26 26 29 26 22 24 24 26 23
Contract work 27 23 26 19 18 19 18 20 14 17 6 12 12 20
Taxes 1 1 0 0 1 0 1 1 4 2 2 4 2 1
Other direct inputs 19 20 23 28 28 33 34 31 23 22 24 21 26 26
Non specific costs 88 81 91 98 94 104 105 106 90 82 75 85 88 92
Total operating costs 223 214 221 228 226 233 236 249 239 221 217 235 251 226
Gross margin 51 46 56 52 48 62 66 15 26 27 29 23 -4 50
Gross margin with coupled
payments 51 46 56 52 48 62 66 15 26 27 29 23 -4 50
%spe.farms with positive gross
margin 95% 95% 95% 96% 91% 89% 94% 94% 96% 86% 94% 90% 88% 94%
%milk production with positive gross
margin94% 90% 92% 87% 88% 88% 90% 72% 83% 89% 78% 70% 45% 88%
Depreciation 28 34 35 49 49 55 61 57 44 34 41 43 48 44
Wages 16 12 13 15 11 8 5 11 82 50 70 66 77 20
Rent 24 21 25 14 16 19 15 13 21 20 16 23 17 20
Interest 11 11 8 10 7 7 6 9 10 16 6 10 7 9
External factors 51 44 46 38 35 35 27 33 113 86 92 99 101 49
Net margin -28 -31 -25 -35 -36 -27 -22 -75 -131 -93 -105 -119 -154 -43
Net margin with coupled payments-28 -31 -25 -35 -36 -27 -22 -75 -131 -93 -105 -119 -154 -43
Family labour costs 41 47 42 64 53 82 98 72 4 16 15 12 11 56
Own capital unpaid cost 9 6 7 4 3 5 7 3 3 3 1 1 0 6
Imputed family factors 50 53 49 68 56 88 106 76 7 20 16 13 11 62
Net economic margin -78 -84 -75 -103 -92 -115 -127 -150 -138 -113 -120 -132 -164 -105
Net economic margin with coupled
payments -78 -84 -75 -103 -92 -115 -127 -150 -138 -113 -120 -132 -164 -105
%spe.farms with positive net
economic margin2% 2% 3% 0% 1% 2% 2% 0% 0% 0% 0% 0% 0% 2%
%milk production with positive net
economic margin3% 3% 5% 1% 2% 5% 3% 0% 0% 0% 0% 0% 0% 3%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 141
EU dairy farms report based on 2016 FADN data DE RG
Germany 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Schleswig-
Holstein
Niedersach
sen
Nordrhein-
WestfalenHessen
Rheinland-
Pfalz
Baden-
Wurttember
g
Bayern SaarlandBrandenbur
g
Mecklenburg-
VorpommernSachsen
Sachsen-
AnhaltThueringen Germany
Total output 158 329 147 033 150 038 104 930 107 920 108 527 91 465 112 746 105 424 134 808 97 873 114 798 105 089 114 043
Intermediate consumptions 106 925 102 615 102 523 73 422 76 615 71 281 57 228 88 168 74 502 100 395 66 720 80 634 77 668 76 810
Balance subsidies and taxes 18 582 18 289 18 340 18 620 16 504 17 630 16 688 23 507 20 116 16 729 15 473 18 142 24 815 17 704
Decoupled payments 14 725 12 911 11 662 12 517 13 145 10 584 8 982 16 564 14 087 14 917 10 462 15 089 11 844 11 353
Depreciation 14 130 16 743 16 877 16 214 17 062 17 493 15 825 21 123 14 800 15 625 13 727 16 437 17 081 15 968
Farm Net Value Added (FNVA) 55 855 45 965 48 978 33 913 30 748 37 384 35 099 26 961 36 237 35 517 32 899 35 868 35 156 38 969
External factors 25 708 21 935 21 937 12 410 11 964 11 235 7 112 12 223 38 061 40 815 32 291 38 394 36 549 18 587
Wages 7 670 5 762 6 335 4 593 3 945 2 695 1 326 4 128 27 761 23 839 24 853 25 569 27 712 8 417
Rent 12 566 10 913 12 026 4 733 5 653 6 274 4 131 4 702 6 987 9 888 5 518 9 137 6 430 7 125
Interest 5 472 5 261 3 576 3 083 2 367 2 266 1 656 3 394 3 312 7 088 1 920 3 688 2 407 3 044
Balance invest. subs. and taxes -1 526 -2 122 -1 581 -752 -253 -1 294 -1 169 -1 193 155 -182 663 1 069 703 -958
Farm net income (FNI) 28 621 21 908 25 460 20 752 18 531 24 855 26 818 13 545 -1 668 -5 480 1 271 -1 457 -691 19 424
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 7 200 4 046 4 964 1 680 1 270 1 954 2 013 1 475 37 666 7 719 2 645 4 355 1 187 3 018
Remuneration of Family Labour
(RFL)34 397 24 386 28 927 24 292 21 944 25 738 26 141 14 257 49 664 9 247 22 398 13 799 16 144 26 138
%spe.farms with positive RFL 85% 83% 85% 92% 80% 87% 94% 80% 54% 58% 69% 55% 64% 89%
51 46
56 52 48
62 66
15 26 27
29 23
-4
50
-50
0
50
100
150
200
250
300
350
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
SH NI NW HE RP BW BY SL BB MV SN ST TH Germany
EUR/t
Milk specialised farms - gross margin
Price EU coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
273 260
277 280 274 296 302
264 265 248 246
258 247
276
301 291 302 316 310 323 324 339
396
341 351 377
400
319
-28 -31 -25
-35 -36 -27
-22
-75
-131
-93
-105
-119
-154
-43
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
Schle
sw
ig-
Hols
tein
Nie
ders
achsen
No
rdrh
ein
-W
estfa
len
Hessen
Rh
ein
lan
d-P
falz
Ba
den
-W
urt
tem
be
rg
Ba
ye
rn
Sa
arla
nd
Bra
nd
en
bu
rg
Me
ckle
nb
urg
-V
orp
om
me
rn
Sa
ch
se
n
Sa
ch
se
n-A
nha
lt
Th
uerin
gen
Germ
any
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 142
EU dairy farms report based on 2016 FADN data DE RG
Germany 2016 Milk specialised farms
273 260 277 280 274
296 302
264 265 248 246 258 247
276
352 344 352 384
365
411 429
415 403
361 366 390
411 382
-78 -84
-75
-103 -92
-115 -127
-150 -138
-113 -120
-132
-164
-105
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
Schle
sw
ig-
Hols
tein
Nie
de
rsa
ch
sen
Nord
rhein
-W
estfa
len
He
sse
n
Rhein
land-
Pfa
lz
Ba
den
-W
urt
tem
be
rg
Ba
ye
rn
Sa
arla
nd
Bra
nd
en
bu
rg
Me
ckle
nb
urg
-V
orp
om
me
rn
Sa
ch
se
n
Sa
ch
se
n-
An
halt
Th
uering
en
Germ
any
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
28 34 35 49 49 55 61 57 44 34 41 43 48 44
41 47 42 64
53
82 98 72
4
16 15
12 11
56 9 6 7
4 3
5 7
3 3
3 1 1 0
6
0
50
100
150
200
250
Schle
sw
ig-
Hols
tein
Nie
de
rsa
ch
sen
No
rdrh
ein
-W
estfa
len
Hessen
Rh
ein
land
-P
falz
Ba
den-
Wurt
tem
berg
Ba
ye
rn
Sa
arla
nd
Bra
ndenburg
Meckle
nburg
-V
orp
om
mern
Sa
chsen
Sa
chsen-
An
halt
Th
uering
en
Germ
any
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
-10 000
0
10 000
20 000
30 000
40 000
50 000
60 000
Schle
sw
ig-H
ols
tein
Nie
ders
achsen
No
rdrh
ein
-Westf
ale
n
He
sse
n
Rhein
land-P
falz
Ba
den
-Wu
rtte
mb
erg
Ba
ye
rn
Sa
arland
Bra
ndenburg
Meckle
nburg
-Vorp
om
mern
Sa
chsen
Sa
ch
se
n-A
nha
lt
Thueringen
Germ
any
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 143
EU dairy farms report based on 2016 FADN data ES RG
Spain 2016 Milk specialised farms
STRUCTURAL INFORMATION
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna BalearesCastilla-
LeonAndalucia Spain
Sample farms 200-<500 100-<200 100-<200 40-<100 15-<40 40-<100 15-<40 15-<40 40-<100 500-<1000
Farms represented 8 370 1 788 1 500 313 142 654 179 1 304 816 15 780
% production from specialised farms 94% 91% 88% 93% 99% 97% 96% 98% 96% 95%
Forage area - ha 23 20 22 36 44 34 89 21 18 25
Dairy cows - LU 44 59 46 65 126 94 60 81 86 59
Rented UAA - % 24% 48% 78% 70% 80% 84% 75% 63% 37% 46%
Total labour - AWU 1.61 2.00 1.61 2.29 3.49 2.75 1.62 2.74 1.70 1.93
Family labour - % 86% 89% 92% 79% 54% 50% 76% 68% 89% 77%
Milk per ha fodder area - t/ha 14.9 16.2 12.7 16.4 29.9 24.1 3.8 23.3 26.8 16.5
Milk yield - kg/cow 8 124 5 593 6 092 9 191 10 553 9 149 5 867 7 028 6 799 7 684
Milk production - t 357 329 279 595 1 326 863 354 567 584 451
MILK MARGINS in EUR/t of milk (nominal)
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna BalearesCastilla-
LeonAndalucia Spain
Revenues
Price 291 316 285 354 314 307 311 302 316 302
Coupled payments (incl. Art.69) 12 14 19 13 11 11 12 13 11 12
Total revenues from milk 303 330 305 367 325 318 323 315 327 314
Production costs
Feed 173 165 149 178 161 174 182 151 141 161
homegrown feed 42 13 3 8 23 36 58 22 2 27
purchased feed 131 152 146 170 138 138 124 130 139 134
Herd renewal purchases 4 0 0 3 1 0 0 0 1 2
Milk levy 0 0 0 0 0 0 0 0 0 0
Other specific costs 16 32 15 29 27 24 9 25 13 18
Specific costs 192 197 164 210 188 198 191 177 155 181
Machinery and building upkeep 8 16 16 17 17 28 16 16 12 12
Energy (fuel, electricity) 12 16 13 14 12 17 23 15 16 14
Contract work 23 11 6 5 6 15 6 6 1 14
Taxes 0 0 0 0 0 0 0 0 0 0
Other direct inputs 9 27 19 21 26 27 11 16 15 16
Non specific costs 52 70 54 57 60 88 56 53 43 56
Total operating costs 244 268 218 267 249 286 247 230 199 237
Gross margin 47 48 67 87 65 21 64 72 117 65
Gross margin with coupled
payments 59 63 86 100 76 32 76 85 128 77
%spe.farms with positive gross
margin 92% 88% 95% 98% 97% 74% 99% 90% 81% 91%
%milk production with positive
gross margin90% 80% 97% 100% 97% 73% 92% 95% 97% 90%
Depreciation 15 20 21 32 36 23 18 16 11 16
Wages 9 8 6 13 21 24 12 23 6 15
Rent 2 5 6 3 6 8 18 7 3 4
Interest 0 2 1 2 2 2 1 1 0 1
External factors 12 14 13 18 29 34 31 30 8 20
Net margin 21 14 33 37 0 -36 16 26 97 29
Net margin with coupled
payments 33 28 52 50 11 -25 27 40 109 41
Family labour costs 49 72 56 44 17 22 37 62 37 44
Own capital unpaid cost 12 19 9 58 7 5 10 8 9 12
Imputed family factors 61 91 65 102 25 27 47 70 46 55
Net economic margin -41 -77 -32 -64 -25 -63 -31 -44 51 -26
Net economic margin with
coupled payments -28 -63 -13 -51 -14 -52 -19 -30 63 -14
%spe.farms with positive net
economic margin13% 22% 22% 30% 23% 8% 37% 30% 74% 21%
%milk production with positive
net economic margin14% 20% 31% 44% 13% 18% 37% 42% 90% 32%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 144
EU dairy farms report based on 2016 FADN data ES RG
Spain 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna BalearesCastilla-
LeonAndalucia Spain
Total output 80 468 63 577 58 498 100 950 143 790 128 436 100 036 82 228 126 106 87 431
Intermediate consumptions 60 537 51 242 43 628 76 614 107 203 105 259 68 916 58 901 78 459 63 307
Balance subsidies and taxes 8 252 9 039 10 666 14 348 13 060 13 464 14 299 10 947 15 372 10 061
Decoupled payments 4 632 5 468 5 623 6 939 8 164 8 259 9 122 6 869 9 313 5 677
Depreciation 3 707 3 755 4 184 8 981 15 524 8 964 5 203 3 941 4 523 4 329
Farm Net Value Added (FNVA) 24 477 17 618 21 352 29 703 34 123 27 677 40 216 30 333 58 497 29 857
External factors 2 924 2 629 2 665 5 115 12 562 13 101 9 224 7 605 3 374 5 494
Wages 2 359 1 449 1 115 3 682 9 085 9 036 3 754 5 662 2 347 4 168
Rent 454 847 1 288 803 2 428 3 257 5 206 1 800 1 027 1 086
Interest 110 332 262 630 1 048 808 264 143 0 240
Balance invest. subs. and taxes 0 -17 -239 251 -35 162 -82 -21 -137 -20
Farm net income (FNI) 21 553 14 973 18 448 24 839 21 526 14 737 30 910 22 707 54 986 24 344
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 3 503 3 937 1 940 19 927 5 816 4 054 3 664 3 423 4 033 4 047
Remuneration of Family
Labour (RFL)21 418 12 810 18 026 11 689 34 433 23 999 36 758 29 705 57 939 26 823
%spe.farms with positive RFL 97% 87% 90% 98% 81% 76% 96% 89% 80% 93%
59 63
86 100
76
32
76 85
128
77
0
50
100
150
200
250
300
350
400
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon Andalucia Spain
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
303
330
305
367
325 318 323 315
327 314
270 302
252
317 314 343
296 275
219
273
33 28
52 50
11
-25
27
40
109
41
-40
-20
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
400
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon
Andalucia Spain
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 145
EU dairy farms report based on 2016 FADN data ES RG
Spain 2016 Milk specialised farms
303
330
305
367
325 318 323 315 327
314
331
393
318
418
339
370
343 345
264
328
-28
-63
-13
-51
-14
-52
-19
-30
63
-14
-80
-60
-40
-20
0
20
40
60
80
0
50
100
150
200
250
300
350
400
450
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon
Andalucia Spain
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
15 20 21 32 36
23 18 16 11 16
49
72 56
44 17 22 37
62
37
44
12
19
9
58
7 5
10
8
9
12
0
20
40
60
80
100
120
140
160
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon Andalucia Spain
EUR/t Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-100
-50
0
50
100
150
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon
Andalucia Spain
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 146
EU dairy farms report based on 2016 FADN data FR RG (1)
France 2016 Milk specialised farms
STRUCTURAL INFORMATION
Champagn
e-ArdennePicardie
Haute-
NormandieCentre
Basse-
NormandieBourgogne
Nord-Pas-
de-CalaisLorraine Alsace
Franche-
ComteFrance
Sample farms 40-<100 40-<100 40-<100 40-<100 100-<200 15-<40 40-<100 100-<200 40-<100 100-<2001000-<2000
Farms represented 1 279 1 863 1 573 743 6 307 715 2 770 2 807 715 3 632 57 793
% production from specialised farms 79% 95% 85% 93% 94% 84% 93% 95% 96% 99% 95%
Forage area - ha 116 63 72 75 79 94 48 109 66 102 75
Dairy cows - LU 68 70 66 78 66 66 59 67 65 54 59
Rented UAA - % 93% 96% 95% 92% 92% 97% 95% 87% 87% 84% 88%
Total labour - AWU 2.36 2.02 2.08 2.54 1.88 2.23 1.95 2.31 2.32 1.94 1.93
Family labour - % 81% 80% 78% 90% 87% 87% 85% 82% 78% 89% 87%
Milk per ha fodder area - t/ha 3.9 7.9 6.5 8.6 5.3 4.7 9.5 4.4 7.6 3.3 5.5
Milk yield - kg/cow 6 760 7 171 7 141 8 220 6 315 6 627 7 715 7 219 7 788 6 280 6 963
Milk production - t 458 500 470 640 417 437 453 484 507 340 412
MILK MARGINS in EUR/t of milk (nominal)
Champagn
e-ArdennePicardie
Haute-
NormandieCentre
Basse-
NormandieBourgogne
Nord-Pas-
de-CalaisLorraine Alsace
Franche-
ComteFrance
Revenues
Price 303 297 315 307 323 318 291 297 310 423 316
Coupled payments (incl. Art.69) 4 4 4 4 5 5 4 5 4 8 5
Total revenues from milk 307 300 320 311 327 323 295 301 315 431 321
Production costs
Feed 96 114 111 110 96 128 105 107 115 120 101
homegrown feed 35 27 34 37 35 53 28 35 33 34 33
purchased feed 61 86 77 72 61 75 77 72 82 86 68
Herd renewal purchases 2 1 1 4 1 2 2 2 1 2 2
Milk levy 0 0 0 0 0 0 0 0 0 0 0
Other specific costs 11 12 13 11 12 15 12 12 14 18 12
Specific costs 109 127 125 124 109 145 119 120 130 140 116
Machinery and building upkeep 22 22 18 20 24 25 16 24 24 29 22
Energy (fuel, electricity) 19 16 18 20 18 22 15 19 18 21 18
Contract work 26 26 31 28 33 32 27 27 29 31 34
Taxes 3 3 4 3 3 3 3 3 3 3 3
Other direct inputs 43 38 32 38 42 46 35 42 41 55 42
Non specific costs 114 105 103 109 119 128 97 115 114 141 118
Total operating costs 223 232 229 233 228 272 216 236 245 281 234
Gross margin 80 64 87 74 95 46 76 61 66 142 82
Gross margin with coupled
payments 84 68 91 78 99 51 79 66 70 151 87
%spe.farms with positive gross
margin 100% 94% 96% 96% 97% 90% 96% 91% 83% 99% 95%
%milk production with positive
gross margin96% 98% 98% 97% 97% 93% 99% 93% 95% 98% 96%
Depreciation 77 63 69 56 62 64 61 63 67 99 65
Wages 12 9 12 6 8 8 8 10 12 8 8
Rent 26 28 29 17 27 25 22 19 23 31 21
Interest 8 8 12 10 11 12 8 8 5 9 9
External factors 46 45 52 33 47 45 38 37 40 49 38
Net margin -43 -44 -34 -14 -14 -63 -23 -39 -41 -6 -21
Net margin with coupled
payments -39 -40 -30 -10 -9 -58 -20 -34 -37 3 -16
Family labour costs 71 44 45 56 54 60 45 48 47 78 58
Own capital unpaid cost 2 0 0 0 1 0 0 0 0 1 1
Imputed family factors 72 44 45 56 55 60 45 48 47 80 59
Net economic margin -116 -88 -79 -70 -69 -124 -69 -87 -89 -85 -80
Net economic margin with
coupled payments -111 -84 -75 -66 -64 -119 -65 -82 -85 -77 -75
%spe.farms with positive net
economic margin2% 4% 0% 7% 5% 0% 7% 3% 0% 7% 6%
%milk production with positive
net economic margin1% 6% 0% 9% 8% 0% 8% 5% 0% 9% 7%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 147
EU dairy farms report based on 2016 FADN data FR RG (1)
France 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Champagn
e-ArdennePicardie
Haute-
NormandieCentre
Basse-
NormandieBourgogne
Nord-Pas-
de-CalaisLorraine Alsace
Franche-
ComteFrance
Total output 103 629 133 229 130 521 117 753 107 103 102 921 114 674 108 994 111 415 99 845 103 719
Intermediate consumptions 81 295 105 704 93 273 90 338 75 946 88 555 86 124 88 331 84 588 66 758 77 097
Balance subsidies and taxes 23 788 20 607 16 622 18 975 15 855 22 815 14 072 23 171 16 161 20 726 17 990
Decoupled payments 17 778 18 651 16 326 15 547 13 592 18 119 13 950 16 867 14 140 12 932 13 451
Depreciation 26 224 27 801 28 761 21 518 20 923 20 819 24 402 23 423 23 201 23 676 21 393
Farm Net Value Added (FNVA) 19 898 20 331 25 110 24 872 26 090 16 361 18 220 20 410 19 787 30 138 23 219
External factors 16 270 20 677 21 784 12 738 15 528 14 688 14 869 13 740 14 868 11 632 12 661
Wages 4 406 4 369 4 700 2 194 2 671 2 563 2 925 3 657 4 479 2 016 2 580
Rent 9 194 12 932 12 084 6 892 9 094 8 175 8 819 7 079 8 553 7 507 7 098
Interest 2 670 3 375 4 999 3 652 3 763 3 950 3 124 3 004 1 836 2 110 2 983
Balance invest. subs. and taxes 599 168 898 0 1 247 1 510 235 313 1 039 204 757
Farm net income (FNI) 4 228 -178 4 224 12 134 11 808 3 183 3 587 6 983 5 958 18 709 11 314
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 593 241 135 61 271 60 151 182 132 416 395
Remuneration of Family
Labour (RFL)4 586 -462 5 288 13 367 13 335 3 599 4 061 8 355 7 542 20 538 12 557
%spe.farms with positive RFL 57% 49% 58% 72% 72% 49% 51% 66% 70% 84% 76%
84 68
91 78 99
51 79 66 70
151
87
0
50
100
150
200
250
300
350
400
450
500
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
CG PI HT CN BN BG NP LE AA FC France
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed
Other specific costs Non specific costs Gross margin with coupled payments
307 300 320 311
327 323 295 301 315
431
321
346 340 350 321 336
382
315 335 352
429
337 -39 -40
-30
-10 -9
-58
-20
-34 -37
3
-16
-70
-60
-50
-40
-30
-20
-10
0
10
0
50
100
150
200
250
300
350
400
450
500
Cham
pagne-A
rdenne
Pic
ard
ie
Haute
-Norm
andie
Centr
e
Ba
sse-N
orm
andie
Bo
urg
ogne
Nord
-Pas-d
e-C
ala
is
Lorr
ain
e
Als
ace
Fra
nch
e-C
om
te
Fra
nce
EUR/t
Milk specialised farms - net margin
Total revenues from milkOperating costs + depreciation + external factorsNet margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 148
EU dairy farms report based on 2016 FADN data FR RG (1)
France 2016 Milk specialised farms
307 300 320 311 327 323 295 301 315
431
321
419 384 395 377 392
442
360 383 399
508
396
-111
-84 -75
-66 -64
-119
-65
-82 -85 -77 -75
-140
-120
-100
-80
-60
-40
-20
0
0
100
200
300
400
500
600
Cham
pagne-A
rdenne
Pic
ard
ie
Haute
-Norm
andie
Centr
e
Ba
sse-N
orm
andie
Bo
urg
ogne
Nord
-Pas-d
e-C
ala
is
Lorr
ain
e
Als
ace
Fra
nch
e-C
om
te
Fra
nce
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
77 63 69 56 62 64 61 63 67
99 65
71
44 45
56
54 60 45 48
47
78
58
2
0 0
0
1 0
0 0 0
1
1
0
50
100
150
200
250
Cham
pagn
e-A
rdenne
Pic
ard
ie
Haute
-N
orm
andie
Centr
e
Ba
sse-
Norm
andie
Bo
urg
og
ne
Nord
-Pas-
de-C
ala
is
Lorr
ain
e
Als
ace
Fra
nch
e-
Com
te
Fra
nce
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
150
200
-5 000
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Cham
pagne-A
rdenne
Pic
ard
ie
Haute
-Norm
andie
Centr
e
Ba
sse-N
orm
andie
Bo
urg
ogne
Nord
-Pas-d
e-C
ala
is
Lorr
ain
e
Als
ace
Fra
nch
e-C
om
te
Fra
nce
EUR/t of milk
EUR/WU Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 149
EU dairy farms report based on 2016 FADN data FR RG (2)
France 2016 Milk specialised farms
STRUCTURAL INFORMATION
Pays de la
LoireBretagne
Poitou-
CharentesAquitaine
Midi-
PyreneesLimousin Rhone-Alpes Auvergne
Languedoc-
RoussillonFrance
Sample farms 100-<200 100-<200 40-<100 40-<100 40-<100 15-<40 40-<100 100-<200 15-<40 1000-<2000
Farms represented 8 107 11 023 1 116 1 301 2 514 623 5 036 4 983 501 57 793
% production from specialised farms 96% 99% 96% 97% 97% 96% 97% 93% 100% 95%
Forage area - ha 79 60 80 57 57 82 79 73 120 75
Dairy cows - LU 61 63 73 49 44 45 50 45 43 59
Rented UAA - % 91% 89% 97% 71% 59% 67% 86% 80% 76% 88%
Total labour - AWU 1.99 1.86 2.31 1.72 1.69 1.96 1.83 1.65 1.52 1.93
Family labour - % 89% 91% 80% 85% 92% 93% 87% 91% 100% 87%
Milk per ha fodder area - t/ha 5.6 7.8 7.0 6.5 5.3 3.7 4.2 3.6 2.0 5.5
Milk yield - kg/cow 7 186 7 379 7 662 7 481 6 843 6 657 6 634 5 861 5 518 6 963
Milk production - t 438 468 563 369 301 299 332 263 238 412
MILK MARGINS in EUR/t of milk (nominal)
Pays de la
LoireBretagne
Poitou-
CharentesAquitaine
Midi-
PyreneesLimousin Rhone-Alpes Auvergne
Languedoc-
RoussillonFrance
Revenues
Price 308 294 283 316 301 291 387 308 311 316
Coupled payments (incl. Art.69) 5 4 4 5 7 7 9 10 12 5
Total revenues from milk 312 298 287 321 308 298 396 318 323 321
Production costs
Feed 92 89 117 121 103 89 115 101 120 101
homegrown feed 33 33 34 35 37 36 34 31 41 33
purchased feed 59 56 83 87 66 53 81 70 80 68
Herd renewal purchases 1 2 2 1 1 3 4 2 6 2
Milk levy 0 0 0 0 0 0 0 0 0 0
Other specific costs 10 10 13 17 14 13 16 16 15 12
Specific costs 103 101 132 139 118 106 134 119 142 116
Machinery and building upkeep 19 18 19 25 25 21 27 24 30 22
Energy (fuel, electricity) 16 15 18 21 22 20 22 21 22 18
Contract work 42 35 34 29 36 31 41 28 37 34
Taxes 3 2 2 2 2 2 3 2 2 3
Other direct inputs 36 43 32 45 49 39 57 49 39 42
Non specific costs 116 113 106 122 134 114 150 124 131 118
Total operating costs 218 214 238 262 252 219 284 243 272 234
Gross margin 90 80 46 55 49 71 103 65 39 82
Gross margin with coupled
payments 94 84 50 59 56 79 112 76 51 87
%spe.farms with positive gross
margin 98% 99% 93% 88% 79% 96% 96% 92% 87% 95%
%milk production with positive
gross margin96% 98% 85% 89% 79% 95% 97% 91% 88% 96%
Depreciation 55 56 51 56 63 59 88 84 82 65
Wages 6 5 10 11 6 5 9 8 0 8
Rent 19 17 20 17 18 14 21 18 14 21
Interest 10 9 8 8 7 6 9 8 10 9
External factors 35 31 38 37 32 26 40 34 24 38
Net margin 0 -6 -43 -38 -46 -14 -24 -53 -67 -21
Net margin with coupled
payments 4 -2 -39 -34 -38 -6 -15 -42 -55 -16
Family labour costs 57 57 43 60 71 69 66 81 89 58
Own capital unpaid cost 1 1 0 3 3 5 2 4 2 1
Imputed family factors 57 58 43 63 74 74 67 85 91 59
Net economic margin -58 -64 -86 -101 -120 -88 -91 -138 -159 -80
Net economic margin with
coupled payments -53 -61 -82 -97 -112 -80 -83 -127 -147 -75
%spe.farms with positive net
economic margin14% 7% 3% 0% 2% 1% 5% 1% 0% 6%
%milk production with positive
net economic margin13% 8% 4% 0% 4% 3% 10% 3% 0% 7%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 150
EU dairy farms report based on 2016 FADN data FR RG (2)
France 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Pays de la
LoireBretagne
Poitou-
CharentesAquitaine
Midi-
PyreneesLimousin Rhone-Alpes Auvergne
Languedoc-
RoussillonFrance
Total output 108 308 109 904 115 689 95 838 74 276 68 534 95 128 69 976 73 123 103 719
Intermediate consumptions 78 066 78 308 92 252 80 691 63 112 53 875 70 812 54 070 61 342 77 097
Balance subsidies and taxes 15 293 13 442 20 569 17 352 19 559 19 923 21 743 23 264 28 526 17 990
Decoupled payments 13 696 12 313 17 416 12 306 10 332 10 306 11 077 10 502 12 452 13 451
Depreciation 19 334 20 891 21 189 17 058 15 643 14 671 21 547 19 194 19 892 21 393
Farm Net Value Added (FNVA) 26 201 24 147 22 816 15 441 15 080 19 911 24 512 19 977 20 415 23 219
External factors 12 216 11 460 15 696 11 341 8 042 5 991 10 097 7 887 5 745 12 661
Wages 2 319 1 893 4 128 3 504 1 503 1 133 2 512 1 769 0 2 580
Rent 6 522 6 297 8 447 5 382 4 653 3 351 5 385 4 232 3 411 7 098
Interest 3 375 3 270 3 120 2 456 1 887 1 507 2 200 1 886 2 334 2 983
Balance invest. subs. and taxes 14 646 726 0 612 2 092 2 715 991 1 769 757
Farm net income (FNI) 13 999 13 332 7 846 4 100 7 650 16 012 17 129 13 081 16 440 11 314
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 316 255 59 1 172 770 1 527 470 1 032 485 395
Remuneration of Family
Labour (RFL)15 405 14 456 9 670 3 668 7 551 15 726 19 212 13 298 15 942 12 557
%spe.farms with positive RFL 87% 81% 65% 68% 75% 91% 87% 83% 95% 76%
94 84
50 59 56
79
112
76
51
87 0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Op
era
tin
g c
osts
Revenues
Opera
ting c
osts
Re
ve
nu
es
Opera
ting c
osts
PL BT PT AQ MP LM RA AU LU France
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
312 298
287
321 308
298
396
318 323 321
308 301 327
355 347 304
411
361 378 337
4
-2
-39
-34
-38
-6
-15
-42
-55
-16
-60
-50
-40
-30
-20
-10
0
10
0
50
100
150
200
250
300
350
400
450
Pays de laLoire
Bretagne Poitou-Charentes
Aquitaine Midi-Pyrenees Limousin Rhone-Alpes Auvergne Languedoc-Roussillon
France
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 151
EU dairy farms report based on 2016 FADN data FR RG (2)
France 2016 Milk specialised farms
312 298 287 321 308 298
396
318 323 321
366 359 369
418 421
378
479 446
470
396 -53
-61
-82
-97
-112
-80 -83
-127
-147
-75
-160
-140
-120
-100
-80
-60
-40
-20
0
0
100
200
300
400
500
600
Pays de laLoire
Bretagne Poitou-Charentes
Aquitaine Midi-Pyrenees Limousin Rhone-Alpes Auvergne Languedoc-Roussillon
France
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
55 56 51 56 63 59
88 84 82 65
57 57 43 60
71 69
66 81 89
58
1 1 0
3 3
5
2 4 2
1
0
50
100
150
200
250
Pays de laLoire
Bretagne Poitou-Charentes
Aquitaine Midi-Pyrenees Limousin Rhone-Alpes Auvergne Languedoc-Roussillon
France
EUR/t Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
0
5 000
10 000
15 000
20 000
25 000
30 000
Pays de laLoire
Bretagne Poitou-Charentes
Aquitaine Midi-Pyrenees Limousin Rhone-Alpes Auvergne Languedoc-Roussillon
France
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 152
EU dairy farms report based on 2016 FADN data IT RG (1)
Italy 2016 Milk specialised farms
STRUCTURAL INFORMATION
Aosta Piemonte Lombardia Trentino Alto-Adige VenetoFriuli-
VeneziaLiguria
Emilia-
RomagnaItaly
Sample farms 40-<100 15-<40 40-<100 15-<40 100-<200 40-<100 40-<100 15-<40 40-<100 500-<1000
Farms represented 432 1 145 4 411 790 4 768 3 167 637 76 2 487 24 365
% production from specialised farms 67% 77% 95% 94% 95% 97% 97% 94% 98% 93%
Forage area - ha 48 38 42 25 13 16 26 20 36 26
Dairy cows - LU 25 59 103 23 13 53 47 24 69 50
Rented UAA - % 82% 89% 81% 94% 32% 67% 63% 68% 46% 64%
Total labour - AWU 1.61 1.71 2.61 1.21 1.10 1.91 1.84 1.52 2.09 1.80
Family labour - % 86% 94% 75% 97% 99% 95% 97% 89% 64% 84%
Milk per ha fodder area - t/ha 1.3 9.8 19.7 6.1 6.5 23.6 11.8 6.6 13.4 13.9
Milk yield - kg/cow 2 507 6 280 8 082 6 469 6 837 7 389 6 481 5 622 7 188 7 101
Milk production - t 62 370 834 151 87 388 302 132 499 357
MILK MARGINS in EUR/t of milk (nominal)
Aosta Piemonte Lombardia Trentino Alto-Adige VenetoFriuli-
VeneziaLiguria
Emilia-
RomagnaItaly
Revenues
Price 555 371 424 446 525 395 346 404 466 422
Coupled payments (incl. Art.69) 32 8 7 15 17 6 8 9 6 7
Total revenues from milk 587 379 431 461 542 401 354 412 471 430
Production costs
Feed 142 152 171 179 135 176 163 71 235 177
homegrown feed 1 35 51 34 6 52 78 3 107 58
purchased feed 141 118 119 146 128 124 85 67 129 119
Herd renewal purchases 13 0 3 3 8 3 0 0 0 2
Milk levy 0 0 0 0 0 0 0 0 0 0
Other specific costs 23 17 15 23 27 17 16 21 16 16
Specific costs 177 170 188 205 170 196 179 92 251 195
Machinery and building upkeep 18 9 9 14 27 11 10 3 6 9
Energy (fuel, electricity) 40 19 20 27 25 24 25 22 20 23
Contract work 0 3 8 1 4 6 6 0 3 6
Taxes 17 3 6 5 32 3 5 2 0 6
Other direct inputs 44 7 13 24 30 15 21 19 23 15
Non specific costs 118 40 56 71 118 60 68 46 52 59
Total operating costs 295 210 245 276 288 256 247 138 303 254
Gross margin 260 161 179 169 236 139 99 266 162 168
Gross margin with coupled
payments 291 169 186 185 253 145 107 274 168 176
%spe.farms with positive gross
margin 94% 100% 97% 91% 92% 93% 82% 100% 95% 94%
%milk production with positive
gross margin97% 100% 99% 96% 98% 96% 99% 100% 98% 99%
Depreciation 120 29 11 55 92 31 43 33 14 23
Wages 57 3 23 4 3 7 3 16 34 19
Rent 32 9 17 12 4 10 9 3 12 12
Interest 2 0 0 2 7 1 3 0 0 1
External factors 91 12 40 18 13 18 14 19 46 32
Net margin 49 121 128 97 131 90 42 214 102 114
Net margin with coupled
payments 81 129 136 112 148 96 50 223 108 121
Family labour costs 331 83 63 135 214 104 142 101 64 85
Own capital unpaid cost 40 11 10 12 58 15 11 14 16 15
Imputed family factors 370 94 72 147 272 119 153 115 80 100
Net economic margin -322 26 56 -51 -142 -29 -111 99 22 13
Net economic margin with
coupled payments -290 34 63 -35 -125 -23 -103 108 27 20
%spe.farms with positive net
economic margin4% 51% 48% 15% 17% 24% 11% 56% 51% 33%
%milk production with positive
net economic margin11% 60% 67% 50% 33% 46% 11% 92% 67% 58%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 153
EU dairy farms report based on 2016 FADN data IT RG (1)
Italy 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Aosta Piemonte Lombardia Trentino Alto-Adige VenetoFriuli-
VeneziaLiguria
Emilia-
RomagnaItaly
Total output 34 671 121 193 177 498 76 388 60 275 106 268 93 261 56 654 160 991 116 240
Intermediate consumptions 22 136 65 075 97 611 46 752 32 404 64 507 54 561 22 922 89 548 64 727
Balance subsidies and taxes 14 806 13 236 12 483 13 993 5 133 8 874 8 260 5 349 12 403 9 555
Decoupled payments 3 851 8 034 11 552 3 760 2 290 5 182 6 494 2 309 8 575 6 864
Depreciation 6 716 8 219 4 195 8 548 9 205 7 369 9 640 4 727 4 638 5 783
Farm Net Value Added (FNVA) 20 626 61 135 88 175 35 080 23 799 43 266 37 320 34 354 79 208 55 286
External factors 4 648 3 982 15 194 2 670 1 331 4 230 3 505 2 437 13 995 7 837
Wages 2 844 1 062 8 622 586 283 1 736 787 1 933 10 420 4 627
Rent 1 711 2 919 6 571 1 820 353 2 339 2 008 504 3 463 3 033
Interest 93 1 0 264 695 155 710 0 112 178
Balance invest. subs. and taxes 67 453 7 62 1 943 181 262 0 0 300
Farm net income (FNI) 16 044 57 605 72 988 32 472 24 411 39 217 34 078 31 917 65 213 47 749
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 2 454 3 588 5 041 1 907 5 753 3 914 2 638 2 198 8 179 4 598
Remuneration of Family
Labour (RFL)16 218 57 415 91 978 31 509 18 896 37 405 32 424 33 680 94 210 52 251
%spe.farms with positive RFL 91% 95% 99% 72% 86% 95% 98% 100% 100% 94%
291
169 186 185
253
145 107
274
168 176
0
100
200
300
400
500
600
700
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Reve
nues
Op
era
tin
g c
osts
Aosta Piemonte Lombardia Trentino Alto-Adige Veneto Friuli-Venezia Liguria Emilia-Romagna
Italy
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
587
379
431 461
542
401
354
412
471
430
506
251 295
349 394
304 304
190
364 309
81
129 136
112
148
96
50
223
108 121
0
50
100
150
200
250
0
100
200
300
400
500
600
700
Ao
sta
Pie
monte
Lom
bard
ia
Tre
ntin
o
Alto-A
dig
e
Ve
neto
Friuli-
Venezia
Lig
uria
Em
ilia-
Rom
agna
Italy
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors
Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 154
EU dairy farms report based on 2016 FADN data IT RG (1)
Italy 2016 Milk specialised farms
587
379 431
461
542
401 354
412 471
430
876
345 368
496
666
423 457
304
444 409
-290
34 63
-35
-125
-23
-103
108
27 20
-350
-300
-250
-200
-150
-100
-50
0
50
100
150
0
100
200
300
400
500
600
700
800
900
1 000
Ao
sta
Pie
monte
Lom
bard
ia
Tre
ntin
o
Alto-A
dig
e
Ve
neto
Friuli-
Venezia
Lig
uria
Em
ilia-R
om
agna
Italy
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
120
29 11 55
92 31 43 33 14 23
331
83 63
135
214
104 142
101 64 85
40
11 10
12
58
15
11
14 16 15
0
100
200
300
400
500
600
700
Ao
sta
Pie
monte
Lom
bard
ia
Tre
ntin
o
Alto-A
dig
e
Ve
neto
Friuli-
Venezia
Lig
uria
Em
ilia-
Rom
agna
Italy
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-400
-300
-200
-100
0
100
200
300
400
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
Ao
sta
Pie
monte
Lom
bard
ia
Tre
ntin
o
Alto-A
dig
e
Ve
neto
Friuli-
Venezia
Lig
uria
Em
ilia-
Rom
agna
Italy
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 155
EU dairy farms report based on 2016 FADN data IT RG (2)
Italy 2016 Milk specialised farms
STRUCTURAL INFORMATION
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
Sample farms 15-<40 15-<40 15-<40 15-<40 15-<40 15-<40 15-<40 15-<40 500-<1000
Farms represented 1 047 661 461 1 306 1 055 301 607 208 24 365
% production from specialised farms 85% 82% 82% 82% 100% 67% 77% 92% 93%
Forage area - ha 25 15 21 8 26 13 37 38 26
Dairy cows - LU 56 21 28 27 37 54 43 52 50
Rented UAA - % 61% 60% 77% 55% 33% 43% 57% 38% 64%
Total labour - AWU 1.93 1.53 1.53 1.29 1.94 1.58 1.84 1.93 1.80
Family labour - % 75% 93% 91% 89% 92% 84% 84% 88% 84%
Milk per ha fodder area - t/ha 14.1 7.5 7.6 16.2 10.1 17.5 5.8 9.9 13.9
Milk yield - kg/cow 6 187 5 212 5 653 4 774 7 192 4 530 5 025 7 141 7 101
Milk production - t 349 110 159 130 268 227 215 375 357
MILK MARGINS in EUR/t of milk (nominal)
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
Revenues
Price 397 393 405 387 416 399 369 363 422
Coupled payments (incl. Art.69) 9 9 4 3 8 4 2 7 7
Total revenues from milk 405 402 409 390 423 403 371 370 430
Production costs
Feed 144 149 146 162 206 145 158 184 177
homegrown feed 43 51 55 68 66 42 47 94 58
purchased feed 101 98 92 93 139 102 111 90 119
Herd renewal purchases 0 0 0 0 0 1 0 0 2
Milk levy 0 0 0 0 0 0 0 0 0
Other specific costs 15 11 9 12 12 5 5 12 16
Specific costs 159 160 155 174 218 151 164 196 195
Machinery and building upkeep 9 4 5 9 8 4 4 4 9
Energy (fuel, electricity) 32 31 30 36 26 23 30 27 23
Contract work 2 2 2 4 2 1 0 7 6
Taxes 6 3 4 15 4 0 10 1 6
Other direct inputs 11 14 9 12 10 7 7 13 15
Non specific costs 60 54 49 76 51 36 51 52 59
Total operating costs 219 214 204 250 268 187 215 248 254
Gross margin 178 180 201 138 148 212 154 115 168
Gross margin with coupled
payments 187 188 205 141 155 216 156 122 176
%spe.farms with positive gross
margin 100% 76% 100% 96% 96% 96% 100% 97% 94%
%milk production with positive gross
margin100% 99% 100% 100% 100% 100% 100% 97% 99%
Depreciation 31 38 19 21 21 18 30 21 23
Wages 22 13 13 14 7 15 19 14 19
Rent 5 9 5 4 14 1 9 5 12
Interest 2 0 0 0 0 0 0 0 1
External factors 29 22 18 19 21 16 28 19 32
Net margin 118 120 164 98 106 178 96 75 114
Net margin with coupled
payments 126 128 168 101 113 183 98 82 121
Family labour costs 67 150 110 90 94 74 99 76 85
Own capital unpaid cost 12 19 9 14 40 8 17 15 15
Imputed family factors 79 170 120 104 135 83 116 91 100
Net economic margin 38 -50 44 -6 -29 96 -19 -15 13
Net economic margin with
coupled payments 47 -41 49 -3 -21 100 -18 -9 20
%spe.farms with positive net
economic margin38% 25% 50% 38% 29% 49% 25% 16% 33%
%milk production with positive net
economic margin77% 46% 79% 52% 28% 72% 45% 31% 58%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 156
EU dairy farms report based on 2016 FADN data IT RG (2)
Italy 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
Total output 108 279 45 319 60 644 60 932 78 255 83 384 69 300 99 232 116 240
Intermediate consumptions 58 252 21 408 30 267 30 988 46 530 34 241 36 881 58 715 64 727
Balance subsidies and taxes 10 637 5 084 8 328 3 305 5 962 6 650 3 436 10 697 9 555
Decoupled payments 7 846 2 978 4 213 3 723 3 331 3 349 4 538 7 383 6 864
Depreciation 7 971 4 289 2 592 2 998 3 378 3 644 4 751 4 838 5 783
Farm Net Value Added (FNVA) 52 693 24 707 36 113 30 250 34 309 52 150 31 103 46 376 55 286
External factors 7 147 2 151 2 389 2 302 3 383 3 545 4 860 4 014 7 837
Wages 5 442 1 249 1 731 1 674 1 170 3 383 3 392 2 884 4 627
Rent 1 294 902 659 628 2 146 162 1 468 1 130 3 033
Interest 411 0 0 0 66 0 0 0 178
Balance invest. subs. and taxes 0 0 1 0 76 0 0 246 300
Farm net income (FNI) 45 546 22 555 33 725 27 948 31 002 48 605 26 243 42 608 47 749
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 3 991 2 259 1 436 2 130 7 019 1 996 3 164 3 783 4 598
Remuneration of Family Labour
(RFL)57 141 21 873 35 668 29 146 26 555 56 148 27 880 44 386 52 251
%spe.farms with positive RFL 84% 98% 100% 100% 100% 100% 100% 100% 94%
187 188 205
141 155
216
156 122
176
0
50
100
150
200
250
300
350
400
450
500
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Revenues
Opera
ting
costs
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed
Other specific costs Non specific costs Gross margin with coupled payments
405 402 409 390
423 403
371 370
430
279 274 241
289 310
221 273 288 309
126 128
168
101
113
183
98
82
121
0
20
40
60
80
100
120
140
160
180
200
0
50
100
150
200
250
300
350
400
450
500
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 157
EU dairy farms report based on 2016 FADN data IT RG (2)
Italy 2016 Milk specialised farms
405 402 409 390
423 403
371 370
430 358
443
361
393
444
304
388 379
409
47
-41
49
-3
-21
100
-18 -9
20
-60
-40
-20
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
400
450
500
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
31 38 19 21 21 18
30 21 23
67
150
110 90 94
74
99
76
85
12
19
9
14
40
8
17
15
15
0
50
100
150
200
250
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-100
-50
0
50
100
150
200
250
0
10 000
20 000
30 000
40 000
50 000
60 000
Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 158
EU dairy farms report based on 2016 FADN data PT RG
Portugal 2016 Milk specialised farms
STRUCTURAL INFORMATION
Norte e Centro Acores e Madeira Portugal
Sample farms 100-<200 100-<200 200-<500
Farms represented 3 241 2 250 5 568
% production from specialised farms 91% 90% 91%
Forage area - ha 13 24 17
Dairy cows - LU 35 28 32
Rented UAA - % 20% 61% 41%
Total labour - AWU 2.09 1.18 1.71
Family labour - % 74% 89% 79%
Milk per ha fodder area - t/ha 22.0 8.1 14.1
Milk yield - kg/cow 8 069.2 6 877.5 7 651.5
Milk production - t 284 192 247
MILK MARGINS in EUR/t of milk (nominal)
Norte e Centro Acores e Madeira Portugal
Revenues
Price 269 245 261
Coupled payments (incl. Art.69) 17 64 32
Total revenues from milk 286 309 293
Production costs
Feed 190 112 166
homegrown feed 78 39 65
purchased feed 113 72 101
Herd renewal purchases 1 3 2
Milk levy 0 0 0
Other specific costs 28 15 24
Specific costs 219 130 191
Machinery and building upkeep 14 11 13
Energy (fuel, electricity) 20 13 18
Contract work 7 10 8
Taxes 3 2 2
Other direct inputs 7 4 6
Non specific costs 50 41 47
Total operating costs 270 171 238
Gross margin -1 74 23
Gross margin with coupled
payments 16 138 55
%spe.farms with positive gross
margin 66% 100% 80%
%milk production with positive gross
margin64% 100% 76%
Depreciation 24 19 23
Wages 17 4 13
Rent 2 15 6
Interest 1 1 1
External factors 20 20 20
Net margin -45 35 -19
Net margin with coupled
payments -28 99 13
Family labour costs 40 40 40
Own capital unpaid cost 11 12 12
Imputed family factors 51 52 51
Net economic margin -96 -17 -70
Net economic margin with
coupled payments -79 47 -39
%spe.farms with positive net
economic margin2% 37% 17%
%milk production with positive net
economic margin5% 49% 19%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 159
EU dairy farms report based on 2016 FADN data PT RG
Portugal 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Norte e Centro Acores e Madeira Portugal
Total output 52 618 50 985 52 530
Intermediate consumptions 43 031 35 053 41 141
Balance subsidies and taxes 6 485 16 774 9 421
Decoupled payments 4 147 0 3 024
Depreciation 4 041 3 746 3 975
Farm Net Value Added (FNVA) 12 031 28 959 16 834
External factors 3 097 3 937 3 332
Wages 2 638 860 2 147
Rent 299 2 867 1 013
Interest 159 211 172
Balance invest. subs. and taxes 186 442 256
Farm net income (FNI) 9 120 25 464 13 758
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 2 608 2 539 2 644
Remuneration of Family Labour
(RFL)9 668 25 831 14 826
%spe.farms with positive RFL 90% 98% 93%
16
138
55
0
50
100
150
200
250
300
350
Revenues Operating costs Revenues Operating costs Revenues Operating costs
Norte e Centro Acores e Madeira Portugal
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69)
Feed Other specific costs
Non specific costs Gross margin with coupled payments
286
309 293
314
210
280
-28
99
13
-40
-20
0
20
40
60
80
100
120
0
50
100
150
200
250
300
350
Norte e Centro Acores e Madeira Portugal
EUR/t
Milk specialised farms - net margin
Total revenues from milk
Operating costs + depreciation + external factors
Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 160
EU dairy farms report based on 2016 FADN data PT RG
Portugal 2016 Milk specialised farms
286 309
293
365
262
332
-79
47
-39
-100
-80
-60
-40
-20
0
20
40
60
0
50
100
150
200
250
300
350
400
Norte e Centro Acores e Madeira Portugal
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
24 19 23
40 40
40
11 12
12
0
10
20
30
40
50
60
70
80
90
100
Norte e Centro Acores e Madeira Portugal
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-100
-50
0
50
100
150
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Norte e Centro Acores e Madeira Portugal
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne 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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 161
EU dairy farms report based on 2016 FADN data FI RG
Finland 2016 Milk specialised farms
STRUCTURAL INFORMATION
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
Sample farms 40-<100 40-<100 40-<100 40-<100 200-<500
Farms represented 2 037 2 601 1 700 1 939 8 276
% production from specialised farms 96% 96% 98% 99% 97%
Forage area - ha 38 41 45 51 43
Dairy cows - LU 35 32 40 35 35
Rented UAA - % 37% 37% 36% 38% 37%
Total labour - AWU 2.11 1.96 1.98 2.19 2.05
Family labour - % 86% 88% 87% 78% 85%
Milk per ha fodder area - t/ha 8.6 7.1 8.0 6.0 7.3
Milk yield - kg/cow 9 294 9 061 9 016 8 870 9 063
Milk production - t 322 292 358 307 316
MILK MARGINS in EUR/t of milk (nominal)
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
Revenues
Price 360 367 370 372 367
Coupled payments (incl. Art.69) 59 76 71 116 80
Total revenues from milk 419 442 442 488 447
Production costs
Feed 114 130 117 151 128
homegrown feed 37 33 34 39 36
purchased feed 77 97 83 111 92
Herd renewal purchases 2 3 0 1 2
Milk levy 0 0 0 0 0
Other specific costs 35 37 32 34 35
Specific costs 151 169 150 186 164
Machinery and building upkeep 46 48 44 52 48
Energy (fuel, electricity) 30 33 26 37 32
Contract work 36 40 37 39 38
Taxes 1 1 1 2 1
Other direct inputs 66 83 65 77 73
Non specific costs 179 206 173 206 192
Total operating costs 330 375 323 392 355
Gross margin 29 -8 48 -20 12
Gross margin with coupled
payments 89 67 119 97 91
%spe.farms with positive gross
margin 82% 84% 81% 81% 82%
%milk production with positive gross
margin96% 86% 94% 90% 91%
Depreciation 95 84 89 110 94
Wages 19 18 14 34 21
Rent 16 11 18 10 14
Interest 10 11 13 15 12
External factors 45 40 45 60 47
Net margin -111 -132 -87 -189 -129
Net margin with coupled
payments -51 -56 -15 -73 -49
Family labour costs 167 181 148 161 165
Own capital unpaid cost 20 11 21 11 16
Imputed family factors 187 192 169 172 181
Net economic margin -298 -323 -256 -361 -310
Net economic margin with
coupled payments -239 -248 -185 -245 -230
%spe.farms with positive net
economic margin0% 0% 7% 0% 1%
%milk production with positive net
economic margin0% 0% 4% 0% 1%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 162
EU dairy farms report based on 2016 FADN data FI RG
Finland 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
Total output 80 511 76 692 95 829 76 481 81 586
Intermediate consumptions 71 855 74 874 85 437 76 991 76 914
Balance subsidies and taxes 30 695 29 228 37 792 35 940 33 048
Decoupled payments 6 286 4 819 6 085 5 365 5 590
Depreciation 18 237 14 737 19 234 18 421 17 473
Farm Net Value Added (FNVA) 21 113 16 308 28 950 17 009 20 248
External factors 8 769 6 911 10 218 10 317 8 906
Wages 3 764 3 058 3 281 6 047 4 036
Rent 3 110 1 930 4 130 1 741 2 623
Interest 1 895 1 923 2 807 2 528 2 247
Balance invest. subs. and taxes 1 097 702 1 583 934 1 037
Farm net income (FNI) 13 441 10 100 20 315 7 627 12 378
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 4 644 2 365 5 449 2 324 3 581
Remuneration of Family Labour
(RFL)10 920 9 118 17 790 7 506 10 981
%spe.farms with positive RFL 79% 73% 85% 72% 76%
89 67
119 97 91
0
100
200
300
400
500
600
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
419 442 442
488
447
470 499 457
562 496
-51
-56
-15
-73
-49
-80
-70
-60
-50
-40
-30
-20
-10
0
0
100
200
300
400
500
600
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 163
EU dairy farms report based on 2016 FADN data FI RG
Finland 2016 Milk specialised farms
419 442 442
488 447
658 690
626
734
677
-239 -248
-185
-245 -230
-300
-250
-200
-150
-100
-50
0
0
100
200
300
400
500
600
700
800
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
95 84 89 110 94
167 181 148
161
165
20 11 21
11 16
0
50
100
150
200
250
300
350
400
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-300
-250
-200
-150
-100
-50
0
50
100
150
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 164
EU dairy farms report based on 2016 FADN data SE RG
Sweden 2016 Milk specialised farms
STRUCTURAL INFORMATION
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
Sample farms 100-<200 100-<200 40-<100 200-<500
Farms represented 2 345 1 411 745 4 502
% production from specialised farms 98% 98% 98% 98%
Forage area - ha 102 123 121 112
Dairy cows - LU 88 92 59 84
Rented UAA - % 62% 58% 76% 63%
Total labour - AWU 2.71 2.51 2.52 2.61
Family labour - % 68% 68% 67% 68%
Milk per ha fodder area - t/ha 8.0 6.6 4.1 6.8
Milk yield - kg/cow 9 246 8 912 8 436 9 039
Milk production - t 814 817 495 762
MILK MARGINS in EUR/t of milk (nominal)
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
Revenues
Price 334 308 321 324
Coupled payments (incl. Art.69) 10 11 92 19
Total revenues from milk 344 319 414 343
Production costs
Feed 126 131 135 129
homegrown feed 29 34 25 30
purchased feed 97 97 110 98
Herd renewal purchases 6 4 5 5
Milk levy 0 0 0 0
Other specific costs 28 27 37 29
Specific costs 160 162 177 163
Machinery and building upkeep 26 25 39 27
Energy (fuel, electricity) 21 20 36 22
Contract work 24 22 27 24
Taxes 0 0 0 0
Other direct inputs 24 23 48 26
Non specific costs 95 90 150 99
Total operating costs 255 252 327 262
Gross margin 78 56 -6 62
Gross margin with coupled
payments 88 67 86 81
%spe.farms with positive gross
margin 84% 80% 77% 81%
%milk production with positive gross
margin95% 98% 90% 95%
Depreciation 49 43 70 49
Wages 31 27 48 32
Rent 15 14 15 15
Interest 12 11 13 12
External factors 59 53 76 59
Net margin -30 -39 -152 -46
Net margin with coupled
payments -20 -29 -59 -27
Family labour costs 75 69 120 78
Own capital unpaid cost 2 3 0 2
Imputed family factors 77 71 121 80
Net economic margin -107 -111 -272 -126
Net economic margin with
coupled payments -97 -100 -180 -107
%spe.farms with positive net
economic margin2% 0% 0% 1%
%milk production with positive net
economic margin7% 0% 0% 4%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 165
EU dairy farms report based on 2016 FADN data SE RG
Sweden 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
Total output 171 691 186 192 117 032 167 708
Intermediate consumptions 127 067 143 777 112 917 130 127
Balance subsidies and taxes 24 780 30 071 55 152 31 286
Decoupled payments 11 706 13 619 12 543 12 443
Depreciation 22 060 21 551 18 106 21 324
Farm Net Value Added (FNVA) 47 343 50 934 41 160 47 543
External factors 26 185 25 923 19 312 25 066
Wages 13 575 13 219 12 295 13 293
Rent 7 052 7 071 3 776 6 550
Interest 5 558 5 634 3 240 5 222
Balance invest. subs. and taxes 188 357 191 240
Farm net income (FNI) 21 347 25 368 22 039 22 717
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 1 165 2 111 139 1 292
Remuneration of Family Labour
(RFL)30 246 35 186 32 713 32 124
%spe.farms with positive RFL 75% 84% 87% 80%
88
67 86 81
0
50
100
150
200
250
300
350
400
450
Revenues Operating costs Revenues Operating costs Revenues Operating costs Revenues Operating costs
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69)
Feed Other specific costs
Non specific costs Gross margin with coupled payments
344 319
414
343
363 348
473
370
-20
-29
-59
-27
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
400
450
500
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 166
EU dairy farms report based on 2016 FADN data SE RG
Sweden 2016 Milk specialised farms
344 319
414
343
440 419
594
450
-97 -100
-180
-107
-200
-180
-160
-140
-120
-100
-80
-60
-40
-20
0
0
100
200
300
400
500
600
700
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
EUR/t Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
49 43 70
49
75 69
120
78
2 3
0
2
0
50
100
150
200
250
300
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
0
10 000
20 000
30 000
40 000
50 000
60 000
Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 167
EU dairy farms report based on 2016 FADN data UK RG
United Kingdom 2016 Milk specialised farms
STRUCTURAL INFORMATION
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
Sample farms 40-<100 40-<100 100-<200 40-<100 40-<100 100-<200 200-<500
Farms represented 2 326 954 3 564 1 890 1 019 2 979 12 732
% production from specialised farms 98% 97% 96% 92% 98% 97% 96%
Forage area - ha 116 135 123 88 155 75 109
Dairy cows - LU 145 152 144 119 162 92 130
Rented UAA - % 54% 59% 43% 23% 30% 37% 42%
Total labour - AWU 2.80 3.95 3.06 2.24 3.21 1.85 2.69
Family labour - % 57% 41% 54% 72% 59% 84% 61%
Milk per ha fodder area - t/ha 9.4 8.9 8.2 9.3 7.6 8.5 8.6
Milk yield - kg/cow 7 496 7 825 6 998 6 831 7 199 6 892 7 152
Milk production - t 1 087 1 192 1 007 815 1 169 634 933
MILK MARGINS in EUR/t of milk (nominal)
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
Revenues
Price 285 312 307 264 270 251 285
Coupled payments (incl. Art.69) 0 0 0 0 0 0 0
Total revenues from milk 285 313 307 264 270 251 285
Production costs
Feed 106 131 114 108 108 104 111
homegrown feed 23 44 32 29 20 20 28
purchased feed 83 87 82 79 89 85 84
Herd renewal purchases 2 1 4 2 2 1 2
Milk levy 0 0 0 0 0 0 0
Other specific costs 37 37 39 36 31 25 35
Specific costs 146 170 158 146 141 131 149
Machinery and building upkeep 18 19 20 17 17 14 18
Energy (fuel, electricity) 12 14 13 13 12 13 13
Contract work 16 17 19 16 14 14 17
Taxes 0 0 0 0 0 0 0
Other direct inputs 19 28 23 21 16 13 20
Non specific costs 64 79 76 67 58 54 67
Total operating costs 210 248 233 213 199 184 216
Gross margin 75 64 73 51 71 67 68
Gross margin with coupled
payments 75 64 74 51 71 67 69
%spe.farms with positive gross
margin 89% 83% 88% 88% 86% 88% 88%
%milk production with positive gross
margin94% 91% 91% 90% 96% 97% 93%
Depreciation 25 29 28 30 45 38 31
Wages 24 40 29 17 22 8 24
Rent 10 15 11 5 6 11 10
Interest 6 7 8 7 7 6 7
External factors 40 63 49 29 35 25 41
Net margin 9 -28 -3 -8 -10 3 -3
Net margin with coupled
payments 10 -28 -3 -7 -10 3 -3
Family labour costs 33 34 37 41 38 54 39
Own capital unpaid cost 7 9 9 14 10 15 10
Imputed family factors 40 42 47 55 48 69 50
Net economic margin -31 -70 -50 -62 -58 -66 -53
Net economic margin with
coupled payments -30 -70 -49 -62 -58 -66 -52
%spe.farms with positive net
economic margin17% 6% 13% 11% 6% 4% 10%
%milk production with positive net
economic margin33% 7% 20% 23% 9% 5% 19%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 168
EU dairy farms report based on 2016 FADN data UK RG
United Kingdom 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
Total output 151 849 144 364 146 064 137 294 144 556 124 270 142 046
Intermediate consumptions 109 944 105 129 105 865 106 317 105 663 94 224 104 581
Balance subsidies and taxes 10 939 11 480 11 576 10 999 13 247 13 830 11 880
Decoupled payments 9 283 9 863 9 881 9 929 11 368 13 317 10 453
Depreciation 12 588 12 109 12 299 13 876 23 691 16 475 14 272
Farm Net Value Added (FNVA) 40 256 38 607 39 475 28 100 28 449 27 402 35 073
External factors 19 771 25 571 21 467 13 591 18 143 10 918 18 579
Wages 11 768 16 269 12 980 7 972 11 728 3 633 10 852
Rent 5 083 6 306 4 833 2 455 2 771 4 839 4 546
Interest 2 920 2 995 3 654 3 164 3 643 2 446 3 181
Balance invest. subs. and taxes 166 56 140 710 0 1 340 385
Farm net income (FNI) 20 650 13 091 18 148 15 219 10 307 17 824 16 880
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 6 441 9 300 7 976 9 704 9 313 8 000 8 172
Remuneration of Family Labour
(RFL)29 930 22 328 25 673 11 479 8 230 13 110 19 669
%spe.farms with positive RFL 77% 73% 74% 63% 62% 77% 72%
75 64
74 51
71 67 69
0
50
100
150
200
250
300
350
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
285
313 307
264 270 251
285
276
340 310
272 279 248
288
10
-28
-3
-7 -10
3
-3
-30
-25
-20
-15
-10
-5
0
5
10
15
0
50
100
150
200
250
300
350
400
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 169
EU dairy farms report based on 2016 FADN data UK RG
United Kingdom 2016 Milk specialised farms
285
313 307
264 270 251
285
316
383 357
326 328 317
337
-30
-70
-49
-62 -58
-66
-52
-80
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
400
450
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
25 29 28 30 45 38 31
33
34
37
41
38 54 39
7
9
9
14
10 15
10
0
20
40
60
80
100
120
140
160
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-80
-60
-40
-20
0
20
40
60
80
100
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
England-North England-East England-West Wales Scotland Northern Ireland United Kingdom
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 170
EU dairy farms report based on 2016 FADN data HU RG
Hungary 2016 Milk specialised farms
STRUCTURAL INFORMATION
Észak-Magyarország Alfold Dunantul Hungary
Sample farms 15-<40 40-<100 15-<40 100-<200
Farms represented 417 2 806 1 028 4 250
% production from specialised farms 92% 61% 74% 68%
Forage area - ha 53 32 51 38
Dairy cows - LU 40 34 58 41
Rented UAA - % 81% 81% 86% 83%
Total labour - AWU 3.55 2.59 4.78 3.21
Family labour - % 24% 34% 23% 29%
Milk per ha fodder area - t/ha 6.0 7.0 8.8 7.4
Milk yield - kg/cow 7 785 6 575 7 718 7 087
Milk production - t 314 227 449 289
MILK MARGINS in EUR/t of milk (nominal)
Észak-Magyarország Alfold Dunantul Hungary
Revenues
Price 262 263 261 262
Coupled payments (incl. Art.69) 39 41 37 39
Total revenues from milk 301 304 299 302
Production costs
Feed 169 173 166 170
homegrown feed 75 70 80 74
purchased feed 93 103 86 96
Herd renewal purchases 2 1 2 1
Milk levy 0 0 0 0
Other specific costs 14 23 50 32
Specific costs 185 197 218 203
Machinery and building upkeep 15 16 18 16
Energy (fuel, electricity) 29 29 27 28
Contract work 6 9 12 10
Taxes 3 2 3 3
Other direct inputs 9 18 28 21
Non specific costs 62 74 87 78
Total operating costs 247 271 305 281
Gross margin 15 -8 -43 -19
Gross margin with coupled
payments 54 33 -6 21
%spe.farms with positive gross
margin 90% 70% 81% 74%
%milk production with positive gross
margin99% 67% 24% 54%
Depreciation 27 20 25 22
Wages 55 51 61 55
Rent 17 13 13 13
Interest 4 2 4 3
External factors 75 66 78 71
Net margin -87 -94 -145 -112
Net margin with coupled
payments -48 -53 -108 -73
Family labour costs 13 21 14 18
Own capital unpaid cost 10 13 10 11
Imputed family factors 24 34 24 29
Net economic margin -110 -127 -170 -141
Net economic margin with
coupled payments -71 -86 -132 -102
%spe.farms with positive net
economic margin3% 16% 3% 12%
%milk production with positive net
economic margin3% 13% 1% 8%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 171
EU dairy farms report based on 2016 FADN data HU RG
Hungary 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Észak-Magyarország Alfold Dunantul Hungary
Total output 44 078 46 213 54 752 49 108
Intermediate consumptions 33 490 36 340 46 180 39 616
Balance subsidies and taxes 12 592 13 946 13 695 13 725
Decoupled payments 5 117 4 698 4 306 4 608
Depreciation 3 834 3 216 4 370 3 702
Farm Net Value Added (FNVA) 19 345 20 603 17 897 19 516
External factors 10 912 10 290 13 981 11 698
Wages 7 911 7 895 10 973 9 014
Rent 2 480 2 108 2 334 2 232
Interest 522 287 674 452
Balance invest. subs. and taxes -13 -10 0 -7
Farm net income (FNI) 8 419 10 304 3 916 7 811
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 6 745 5 768 7 474 6 346
Remuneration of Family Labour
(RFL)28 490 19 788 13 865 18 886
%spe.farms with positive RFL 98% 98% 93% 97%
54
33
-6
21
-50
0
50
100
150
200
250
300
350
Revenues Operating costs Revenues Operating costs Revenues Operating costs Revenues Operating costs
Észak-Magyarország Alfold Dunantul Hungary
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
301 304 299 302
349 357 407
375
-48 -53
-108
-73
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
Észak-Magyarország Alfold Dunantul Hungary
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 172
EU dairy farms report based on 2016 FADN data HU RG
Hungary 2016 Milk specialised farms
301 304 299 302
372 390
431 404
-71
-86
-132
-102
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
Észak-Magyarország Alfold Dunantul Hungary
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
27 20 25 22
13
21
14 18
10 13
10 11
0
20
40
60
80
100
120
140
Észak-Magyarország Alfold Dunantul Hungary
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-150
-100
-50
0
50
100
0
5 000
10 000
15 000
20 000
25 000
30 000
Észak-Magyarország Alfold Dunantul Hungary
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 173
EU dairy farms report based on 2016 FADN data PL RG
Poland 2016 Milk specialised farms
STRUCTURAL INFORMATION
Pomorze and MazuryWielkopolska and
Slask
Mazowsze and
Podlasie
Malopolska and
PogorzePoland
Sample farms 200-<500 500-<1000 1000-<2000 200-<500 3000-<5000
Farms represented 9 070 12 426 58 311 8 286 88 094
% production from specialised farms 81% 63% 89% 64% 80%
Forage area - ha 23 17 13 11 15
Dairy cows - LU 23 23 17 13 18
Rented UAA - % 21% 35% 27% 42% 29%
Total labour - AWU 1.97 2.04 1.81 1.92 1.87
Family labour - % 93% 86% 98% 97% 96%
Milk per ha fodder area - t/ha 5.7 9.0 7.2 6.0 7.1
Milk yield - kg/cow 5 774 6 478 5 588 5 135 5 741
Milk production - t 132 149 95 66 104
MILK MARGINS in EUR/t of milk (nominal)
Pomorze and MazuryWielkopolska and
Slask
Mazowsze and
Podlasie
Malopolska and
PogorzePoland
Revenues
Price 241 246 246 238 245
Coupled payments (incl. Art.69) 12 10 13 15 12
Total revenues from milk 253 255 259 253 257
Production costs
Feed 81 98 88 80 89
homegrown feed 42 46 47 53 47
purchased feed 39 52 41 27 42
Herd renewal purchases 3 2 3 2 3
Milk levy 0 0 0 0 0
Other specific costs 10 13 10 10 10
Specific costs 94 113 101 92 102
Machinery and building upkeep 15 12 13 14 13
Energy (fuel, electricity) 19 18 17 20 18
Contract work 8 8 7 7 7
Taxes 1 1 1 1 1
Other direct inputs 9 8 7 8 7
Non specific costs 52 47 44 49 46
Total operating costs 146 160 145 141 148
Gross margin 95 85 101 97 97
Gross margin with coupled
payments 106 95 114 112 109
%spe.farms with positive gross
margin 95% 96% 91% 96% 93%
%milk production with positive gross
margin98% 99% 99% 98% 99%
Depreciation 39 34 42 48 40
Wages 5 13 2 3 4
Rent 3 3 4 3 3
Interest 4 2 2 2 3
External factors 12 19 8 8 10
Net margin 44 33 52 40 46
Net margin with coupled
payments 55 43 65 55 58
Family labour costs 76 64 64 91 67
Own capital unpaid cost 29 28 33 30 31
Imputed family factors 105 91 98 121 99
Net economic margin -61 -59 -46 -81 -53
Net economic margin with
coupled payments -49 -49 -33 -66 -40
%spe.farms with positive net
economic margin12% 10% 14% 5% 13%
%milk production with positive net
economic margin25% 24% 36% 20% 31%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 174
EU dairy farms report based on 2016 FADN data PL RG
Poland 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Pomorze and MazuryWielkopolska and
Slask
Mazowsze and
Podlasie
Malopolska and
PogorzePoland
Total output 23 906 28 695 18 755 12 471 20 229
Intermediate consumptions 14 144 18 497 11 137 7 132 12 205
Balance subsidies and taxes 5 337 4 766 4 060 3 252 4 227
Decoupled payments 3 485 2 995 2 506 1 870 2 625
Depreciation 4 165 4 207 3 519 2 693 3 614
Farm Net Value Added (FNVA) 10 934 10 758 8 158 5 897 8 638
External factors 1 258 2 495 619 472 963
Wages 515 1 804 133 140 432
Rent 307 397 292 200 301
Interest 436 294 194 132 230
Balance invest. subs. and taxes 188 175 123 184 144
Farm net income (FNI) 9 863 8 439 7 662 5 609 7 819
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 3 330 4 014 2 861 1 752 2 960
Remuneration of Family Labour
(RFL)7 453 6 144 4 942 4 004 5 282
%spe.farms with positive RFL 89% 81% 77% 89% 80%
106 95
114 112 109
0
50
100
150
200
250
300
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Pomorze and Mazury Wielkopolska and Slask Mazowsze and Podlasie Malopolska and Pogorze Poland
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69)
Feed Other specific costs
Non specific costs Gross margin with coupled payments
253 255 259 253 257
197 213 195 198 199
55
43
65
55 58
0
10
20
30
40
50
60
70
0
50
100
150
200
250
300
Pomorze and Mazury Wielkopolska and Slask Mazowsze and Podlasie Malopolska and Pogorze Poland
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 175
EU dairy farms report based on 2016 FADN data PL RG
Poland 2016 Milk specialised farms
253 255 259 253 257
302 304 292
319 298
-49 -49
-33
-66
-40
-70
-60
-50
-40
-30
-20
-10
0
0
50
100
150
200
250
300
350
Pomorze and Mazury Wielkopolska and Slask Mazowsze and Podlasie Malopolska and Pogorze Poland
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
39 34 42 48 40
76 64 64
91
67
29 28 33
30
31
0
20
40
60
80
100
120
140
160
180
200
Pomorze and Mazury Wielkopolska and Slask Mazowsze and Podlasie Malopolska and Pogorze Poland
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-80
-60
-40
-20
0
20
40
60
80
100
120
140
0
2 000
4 000
6 000
8 000
10 000
12 000
Pomorze and Mazury Wielkopolska and Slask Mazowsze and Podlasie Malopolska and Pogorze Poland
EUR/t of milk
EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 176
EU dairy farms report based on 2016 FADN data BG RG
Bulgaria 2016 Milk specialised farms
STRUCTURAL INFORMATION
SeverozapadenSeveren
tsentralenSeveroiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
Sample farms 15-<40 15-<40 15-<40 15-<40 40-<100 40-<100 200-<500
Farms represented 1 555 1 824 1 709 2 331 6 948 2 428 16 796
% production from specialised farms 84% 78% 74% 82% 87% 93% 85%
Forage area - ha 8 7 7 6 4 12 7
Dairy cows - LU 19 15 16 11 11 22 14
Rented UAA - % 73% 83% 82% 91% 77% 91% 84%
Total labour - AWU 2.53 1.83 1.95 1.90 1.77 2.19 1.95
Family labour - % 60% 71% 70% 88% 82% 57% 74%
Milk per ha fodder area - t/ha 4.3 5.8 3.8 4.6 5.0 3.4 4.4
Milk yield - kg/cow 2 358 3 266 2 794 2 943 2 677 3 259 2 877
Milk production - t 44 48 46 32 28 70 40
MILK MARGINS in EUR/t of milk (nominal)
SeverozapadenSeveren
tsentralenSeveroiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
Revenues
Price 271 282 267 358 277 297 290
Coupled payments (incl. Art.69) 36 21 26 35 29 21 27
Total revenues from milk 308 304 292 394 306 318 317
Production costs
Feed 121 130 151 94 171 177 151
homegrown feed 37 69 64 18 37 42 44
purchased feed 83 60 86 75 133 136 108
Herd renewal purchases 0 1 0 0 1 2 1
Milk levy 0 0 0 0 0 0 0
Other specific costs 15 7 11 8 13 14 12
Specific costs 136 138 162 102 185 193 164
Machinery and building upkeep 6 10 8 10 9 10 9
Energy (fuel, electricity) 25 20 21 29 20 23 22
Contract work 9 6 4 9 6 2 5
Taxes 0 0 0 0 1 1 1
Other direct inputs 18 11 14 10 11 6 11
Non specific costs 58 47 48 57 47 40 48
Total operating costs 194 185 209 159 232 233 212
Gross margin 78 97 57 200 45 64 78
Gross margin with coupled
payments 114 118 83 235 74 85 105
%spe.farms with positive gross
margin 62% 74% 80% 99% 67% 75% 75%
%milk production with positive gross
margin91% 82% 90% 97% 84% 80% 86%
Depreciation 75 35 36 29 21 39 35
Wages 36 28 25 21 27 30 28
Rent 10 23 27 15 9 12 14
Interest 2 2 7 1 2 6 4
External factors 48 53 59 36 38 49 46
Net margin -45 9 -37 134 -14 -23 -3
Net margin with coupled
payments -8 31 -12 170 15 -2 24
Family labour costs 107 105 112 167 131 51 107
Own capital unpaid cost 22 20 17 14 17 8 15
Imputed family factors 129 125 129 182 148 59 122
Net economic margin -173 -116 -166 -47 -163 -83 -125
Net economic margin with
coupled payments -137 -95 -140 -12 -133 -62 -98
%spe.farms with positive net
economic margin7% 9% 4% 15% 3% 7% 7%
%milk production with positive net
economic margin25% 30% 24% 37% 16% 34% 27%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 177
EU dairy farms report based on 2016 FADN data BG RG
Bulgaria 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
SeverozapadenSeveren
tsentralenSeveroiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
Total output 7 071 11 343 10 270 8 870 6 583 13 061 8 843
Intermediate consumptions 4 456 6 822 6 726 4 268 5 096 9 142 5 890
Balance subsidies and taxes 2 152 3 298 2 583 2 137 1 697 3 609 2 370
Decoupled payments 729 1 268 1 108 1 004 403 1 592 875
Depreciation 1 586 1 370 1 355 745 466 1 746 1 027
Farm Net Value Added (FNVA) 3 181 6 449 4 773 5 994 2 719 5 782 4 295
External factors 1 295 2 179 2 371 875 846 2 329 1 433
Wages 969 1 060 978 521 625 1 326 844
Rent 280 1 010 1 109 335 184 629 466
Interest 0 0 0 0 0 0 0
Balance invest. subs. and taxes 40 26 6 -8 18 9 15
Farm net income (FNI) 1 926 4 297 2 408 5 111 1 890 3 461 2 877
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 890 1 086 936 380 478 601 621
Remuneration of Family Labour
(RFL)1 945 3 900 2 580 5 378 1 570 3 298 2 764
%spe.farms with positive RFL 79% 65% 96% 96% 82% 94% 85%
114 118 83
235
74 85
105
0
50
100
150
200
250
300
350
400
450
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
308 304 292
394
306 318 317
316 273
304
224
291 321
293
-8
31
-12
170
15
-2
24
-40
-20
0
20
40
60
80
100
120
140
160
180
0
50
100
150
200
250
300
350
400
450
Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 178
EU dairy farms report based on 2016 FADN data BG RG
Bulgaria 2016 Milk specialised farms
308 304 292
394
306 318 317
445
398
433 406
439
380
415
-137
-95
-140
-12
-133
-62
-98
-160
-140
-120
-100
-80
-60
-40
-20
0
0
50
100
150
200
250
300
350
400
450
500
Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
75
35 36 29 21 39 35
107
105 112 167
131 51
107
22
20 17
14
17
8
15
0
50
100
150
200
250
300
Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-200
-150
-100
-50
0
50
100
150
200
250
300
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 179
EU dairy farms report based on 2016 FADN data RO RG
Romania 2016 Milk specialised farms
e: estimate
*: trend between the average of the first three available years and the average of the last available three years
STRUCTURAL INFORMATION
Nord-Est Sud-Est Sud-MunteniaSud-Vest-
OlteniaVest Nord-Vest Centru Romania
Sample farms 40-<100 100-<200 15-<40 40-<100 40-<100 100-<200 100-<200 500-<1000
Farms represented 53 464 31 601 7 754 18 379 9 306 41 918 22 795 185 220
% production from specialised farms 67% 84% 45% 80% 57% 74% 82% 71%
Forage area - ha 2 2 1 2 3 3 4 2
Dairy cows - LU 3 4 4 4 4 4 5 4
Rented UAA - % 28% 41% 24% 7% 34% 19% 37% 28%
Total labour - AWU 0.77 0.94 0.72 1.31 1.04 1.05 1.10 0.97
Family labour - % 99% 97% 97% 100% 99% 98% 95% 98%
Milk per ha fodder area - t/ha 5.6 3.5 9.3 4.7 3.6 3.6 3.1 4.0
Milk yield - kg/cow 3 546 3 147 3 826 2 542 3 209 3 340 3 032 3 227
Milk production - t 10 12 16 10 14 12 15 12
MILK MARGINS in EUR/t of milk (nominal)
Nord-Est Sud-Est Sud-MunteniaSud-Vest-
OlteniaVest Nord-Vest Centru Romania
Revenues
Price 312 302 317 496 264 274 281 310
Coupled payments (incl. Art.69) 24 9 97 15 28 36 52 32
Total revenues from milk 336 311 414 511 292 310 333 342
Production costs
Feed 90 93 53 109 91 95 90 91
homegrown feed 64 46 30 50 64 51 56 54
purchased feed 26 47 23 59 28 44 35 38
Herd renewal purchases 1 0 0 0 2 0 4 1
Milk levy 0 0 0 0 0 0 0 0
Other specific costs 6 11 14 14 8 7 7 8
Specific costs 96 103 68 122 101 102 101 101
Machinery and building upkeep 4 12 12 12 13 13 15 11
Energy (fuel, electricity) 15 27 22 72 28 34 29 30
Contract work 19 15 6 22 11 7 11 13
Taxes 1 3 0 3 2 2 2 2
Other direct inputs 5 10 5 8 13 7 9 8
Non specific costs 44 66 45 117 67 62 65 63
Total operating costs 140 170 112 239 168 165 166 164
Gross margin 172 132 205 257 96 109 115 146
Gross margin with coupled
payments 196 141 302 272 124 145 167 178
%spe.farms with positive gross
margin 97% 64% 100% 100% 75% 74% 62% 80%
%milk production with positive gross
margin97% 91% 100% 98% 93% 96% 97% 96%
Depreciation 54 38 44 142 49 44 47 55
Wages 1 5 5 0 1 6 9 4
Rent 3 4 3 2 5 2 7 4
Interest 0 0 0 0 0 1 0 0
External factors 5 9 8 2 6 9 16 8
Net margin 113 85 153 114 41 56 52 84
Net margin with coupled
payments 137 94 250 128 68 92 104 116
Family labour costs 239 248 139 598 207 272 179 262
Own capital unpaid cost 47 46 36 86 51 50 52 51
Imputed family factors 286 294 175 684 257 322 231 313
Net economic margin -173 -209 -22 -570 -216 -266 -178 -229
Net economic margin with
coupled payments -149 -200 75 -555 -189 -230 -127 -197
%spe.farms with positive net
economic margin10% 10% 50% 1% 11% 1% 9% 9%
%milk production with positive net
economic margin22% 23% 63% 5% 40% 9% 35% 25%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 180
EU dairy farms report based on 2016 FADN data RO RG
Romania 2016 Milk specialised farms
INCOME in EUR/AWU (nominal)
Nord-Est Sud-Est Sud-MunteniaSud-Vest-
OlteniaVest Nord-Vest Centru Romania
Total output 7 135 6 548 13 132 7 004 6 771 6 153 7 314 6 957
Intermediate consumptions 3 231 3 610 4 716 3 906 3 776 3 260 3 831 3 544
Balance subsidies and taxes 1 578 732 2 816 437 1 606 1 119 1 694 1 226
Decoupled payments 522 548 692 393 673 602 803 580
Depreciation 976 766 1 607 1 686 1 245 894 1 116 1 068
Farm Net Value Added (FNVA) 4 505 2 903 9 625 1 849 3 355 3 118 4 061 3 571
External factors 111 194 293 25 156 180 372 174
Wages 32 104 136 0 36 121 197 88
Rent 78 84 156 24 118 45 168 81
Interest 1 6 1 0 2 14 7 6
Balance invest. subs. and taxes 0 0 306 0 0 0 0 10
Farm net income (FNI) 4 394 2 709 9 638 1 825 3 199 2 938 3 689 3 406
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 1 002 930 1 426 1 056 1 312 1 070 1 305 1 082
Remuneration of Family Labour
(RFL)3 392 1 728 8 385 766 1 689 1 922 2 179 2 295
%spe.farms with positive RFL 83% 61% 99% 71% 50% 68% 69% 72%
196
141
302 272
124 145
167 178
0
100
200
300
400
500
600
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Revenues
Opera
ting c
osts
Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
336 311
414
511
292 310
333 342
199 217 164
224 218 229 226
137
94
250
128
68
92 104
116
0
50
100
150
200
250
300
0
100
200
300
400
500
600
Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania
EUR/t
Milk specialised farms - net margin
Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 181
EU dairy farms report based on 2016 FADN data RO RG
Romania 2016 Milk specialised farms
336 311
414
511
292 310
333 342
485 511
340
481
540
460
539
-149
-200
75
-555
-189 -230
-127
-197
-600
-500
-400
-300
-200
-100
0
100
200
0
100
200
300
400
500
600
Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
54 38 44 142
49 44 47 55
239 248 139
598
207 272
179 262
47 46
36
86
51
50
52
51
0
100
200
300
400
500
600
700
800
900
Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-600
-500
-400
-300
-200
-100
0
100
200
300
400
0
2 000
4 000
6 000
8 000
10 000
12 000
Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 182
EU dairy farms report based on 2016 FADN data HR RG
Croatia 2016
STRUCTURAL INFORMATION
Jadranska Hrvatska (Adriatic Croatia)Kontinentalna Hrvatska (Continental
Croatia)Croatia
Sample farms 15-<40 100-<200 100-<200
Farms represented 1 169 6 524 7 693
% production from specialised farms 72% 81% 81%
Forage area - ha 12 12 12
Dairy cows - LU 6 15 13
Rented UAA - % 70% 44% 46%
Total labour - AWU 2.28 2.02 2.06
Family labour - % 98% 88% 90%
Milk per ha fodder area - t/ha 1.8 5.6 5.0
Milk yield - kg/cow 3 570 4 743 4 667
Milk production - t 20 69 62
MILK MARGINS in EUR/t of milk (nominal)
Jadranska Hrvatska (Adriatic Croatia)Kontinentalna Hrvatska (Continental
Croatia)Croatia
Revenues
Price 466 295 304
Coupled payments (incl. Art.69) 35 53 52
Total revenues from milk 501 348 356
Production costs
Feed 222 204 205
homegrown feed 176 151 152
purchased feed 46 53 53
Herd renewal purchases 2 1 1
Milk levy 0 0 0
Other specific costs 33 21 22
Specific costs 257 227 228
Machinery and building upkeep 16 13 13
Energy (fuel, electricity) 36 24 25
Contract work 3 7 6
Taxes 12 12 12
Other direct inputs 11 11 11
Non specific costs 78 66 67
Total operating costs 335 293 295
Gross margin 130 2 9
Gross margin with coupled payments166 55 61
%spe.farms with positive gross margin 72% 63% 64%%milk production with positive gross
margin80% 74% 75%
Depreciation 118 45 48
Wages 7 17 17
Rent 5 7 7
Interest 3 3 3
External factors 16 27 26
Net margin -3 -70 -66
Net margin with coupled payments32 -16 -14
Family labour costs 498 172 188
Own capital unpaid cost 97 44 47
Imputed family factors 595 216 235
Net economic margin -598 -286 -301Net economic margin with coupled
payments -563 -233 -249
%spe.farms with positive net economic
margin2% 1% 1%
%milk production with positive net
economic margin4% 4% 4%
Source: EU FADN DG AGRI, model of the allocation of costs for milk 183
EU dairy farms report based on 2016 FADN data HR RG
INCOME in EUR/AWU (nominal)
Jadranska Hrvatska (Adriatic Croatia)Kontinentalna Hrvatska (Continental
Croatia)Croatia
Total output 10 435 22 341 20 334
Intermediate consumptions 6 756 16 338 14 722
Balance subsidies and taxes 2 444 5 049 4 609
Decoupled payments 1 104 3 014 2 692
Depreciation 1 713 2 498 2 366
Farm Net Value Added (FNVA) 4 410 8 554 7 855
External factors 210 1 439 1 232
Wages 89 880 747
Rent 82 387 335
Interest 39 172 149
Balance invest. subs. and taxes 0 237 197
Farm net income (FNI) 4 200 7 352 6 820
Family farms only in EUR/FWU (nominal)
Own capital unpaid cost 1 450 2 868 2 603
Remuneration of Family Labour (RFL) 2 816 5 182 4 745
%spe.farms with positive RFL 90% 80% 81%
166
55 61
0
100
200
300
400
500
600
Revenues Operating costs Revenues Operating costs Revenues Operating costs
Jadranska Hrvatska Kontinentalna Hrvatska Croatia
EUR/t
Milk specialised farms - gross margin
Price Coupled payments (incl. Art.69) Feed Other specific costs Non specific costs Gross margin with coupled payments
501
348 356
469
365 370
32
-16 -14
-20
-10
0
10
20
30
40
0
100
200
300
400
500
600
Jadranska Hrvatska Kontinentalna Hrvatska Croatia
EUR/t
Milk specialised farms - net margin
Total revenues from milk
Operating costs + depreciation + external factors
Net margin with coupled payments
Source: EU FADN DG AGRI, model of the allocation of costs for milk 184
EU dairy farms report based on 2016 FADN data HR RG
501
348 356
1 064
581 605
-563
-233 -249
-600
-500
-400
-300
-200
-100
0
0
200
400
600
800
1 000
1 200
Jadranska Hrvatska Kontinentalna Hrvatska Croatia
EUR/t
Milk specialised farms - net economic margin
Total revenues from milk Total costs Net economic margin with coupled payments
118 45 48
498
172 188
97
44 47
0
100
200
300
400
500
600
700
800
Jadranska Hrvatska (Adriatic Croatia) Kontinentalna Hrvatska (Continental Croatia) Croatia
EUR/t
Milk specialised farms - non-operating costs
Depreciation Wages Rent Interest Family labour costs Own capital unpaid cost
-600
-500
-400
-300
-200
-100
0
100
200
300
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
Jadranska Hrvatska (Adriatic Croatia) Kontinentalna Hrvatska (ContinentalCroatia)
Croatia
EUR/t of milk EUR/WU
Milk specialised farms - income per work unit and margins per tonne
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
Source: EU FADN DG AGRI, model of the allocation of costs for milk 185
European Commission
EU dairy farms report based on 2016 FADN data
Disclaimer:This publication does not necessarily reflect the official opinion of the European Union. Neither the European Union insti-tutions 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,Farm economicsE-mail: [email protected]: http://ec.europa.eu/agriculture/rica/index.cfm
This report provides an overview of costs of production, margins and income of specialised milk farms in the EU. The analysis is based on 2016 FADN data.
European CommissionDirectorate-General for Agriculture and Rural Development
http://ec.europa.eu/agriculture