Finland: average income of dairy farms in 2022

In Finland the average entrepreneurial income of dairy farms in 2022 is expected to decrease to 11000 euro. According to the Central Union of Agricultural Producers and Forest Owners (MTK) due to the cost crisis milk production is declining and new investments or generation changes by successors cannot be made. In particular energy prices are creating problems. As for homes which in Finland mainly are heated by electricity, for dairy farms electricity is a necessary production input also, and its high prices need relief for farms, for example by means of electricity cost subsidies, suggests MTK.

Germany: ife data October/September

In Germany in October compared to September 2022 the raw material or compound value of milk at farm has fallen 1.7 eurocent to 58.0 eurocent per kilogram milk with 4.0 percent fat and 3.4 percent protein (exclusive VAT). This is 14.7 eurocent more than in the same month one year before. The highest future price of milk for the next 18 months on the Kieler Börsenmilchwert European Energy Exchange is the price for November 2022 at 50.0 eurocent. The lowest future price is the price for January 2023 at 47.8 eurocent.

Germany: dairy products – consumer data

In Germany during the first nine months of 2022 consumers bought in volume less dairy products but spent more for dairy products. The decrease in volume varies from more than three percent of yogurt to more than 15 percent of cheese. In value they paid more than three percent more for yogurt up to more than 21 percent for butter.

Germany: DMK starts future project

In Germany the biggest dairy cooperative DMK starts a future project with pilot farms, the so-called „DMK Net Zero Farms“ with the aim implementing concepts to reduce greenhouse gas emissions on these farms, testing them out and gaining insights. The next step is to identify ways to make these findings transferable to all farms. At DMK, milk production accounts for around 80 percent of the company’s total CO2 footprint. DMK has set the goal of reducing greenhouse gas emissions by a further 20 percent along the entire value chain by 2030.

The Netherlands: RFC will expand sites in Belgium and Germany

The Holland headquartered dairy cooperative Royal FrieslandCampina proposes to expand the operating area of the cooperative in Belgium in the Aalter region and in North Antwerp/North Limburg by January 1, 2023. In Germany, the cooperative wants to expand its operating area to include part of the state of Lower Saxony in northern Germany in the second half of 2023. This means that dairy farmers who have their farms in these areas will be able to supply milk to FrieslandCampina after becoming a member of the cooperative. The board’s proposal will be discussed with members.

The Netherlands: RFC proposes to update standard contents

The Holland headquartered dairy cooperative Royal FrieslandCampina proposes to value fat more as a milk component and will change the ratio of components to protein (6), fat (4), and lactose (0). Currently, the guaranteed price is paid in the fixed ratio of protein (10), fat (5), and lactose (1). The proposal is also to update the standard contents, based on the actual supplied contents delivered in 2021. This means that from 2023, the guaranteed price will be published per 100 kilograms of milk with 3.58 percent protein, 4.45 percent fat and 4.54 percent lactose. The board’s proposal will be discussed with members.

The Netherlands: Royal FrieslandCampina works on new system for Foqus planet sustainability programme

The Holland headquartered dairy cooperative Royal FrieslandCampina is working on a new system for the Foqus planet sustainability programme. To accelerate sustainability, efforts on the farm will be rewarded in a more targeted way and each farm can pick and choose in which themes it wants to excel. The renewed system will make it possible for the cooperative and the company to determine which sustainability goals should be the focus in a given period. Currently, climate is an important theme for acceleration. Therefore, the proposal is to reward dairy farmers additionally on sustainability results achieved in the field of climate-related indicators. Dairy farmers can earn an amount of up to 1.50 euros per 100 kilogram of milk, depending on the improvement in lowering greenhouse gas emissions. The board’s proposal will be discussed with members.

The Netherlands: Alfa Accountants – one of the main Dutch agricultural accountancies

In Holland, the average balance of dairy farms that are working with Alfa Accountants, which is one of the main Dutch agricultural accountancies, was in the bookkeeping year 2021/2022 per 100 kilogram milk 4.75 euro higher than in the year before.

The Netherlands: research on production costs of organic milk

In Holland a study of Wageningen University & Research shows that from 2018 till 2020 the production costs of organic milk average are 19 eurocent more than the production costs of regular milk. However: average farmers milk price of organic milk is only 17 eurocents higher than the one of regular milk.

UK: First Milk agreed partnership with Arla

In the United Kingdom the dairy cooperative First Milk has agreed a new partnership with the Danish headquartered dairy cooperative Arla, that has also British member farmers suppliers, to produce a specialist whey protein powder. Protein enrichment of food remains a growing consumer trend. The innovative patented microparticulate whey protein concentrate product, Nutrilac FO-7875, developed by Arla, is used as an ingredient to enhance the level of protein in food and drink products whilst retaining texture and taste. First Milk will manufacture Nutrilac FO-7875 on behalf of Arla using the company’s proprietary process, with Arla marketing and selling the product internationally. In addition, First Milk will continue to manufacture its own whey protein concentrate powder, WPC80, and market it through its existing partnership.

Denmark: Arla introduces sustainability incentive to its farmer owners

The Denmark headquartered dairy cooperative Arla introduces a sustainability incentive to its farmer owners to help fund and motivate actions required to hit the 2030 emission reduction target on farm. Arla earmarks up to 3 eurocent per kilogram of milk for sustainability activities in addition to the existing 1 eurocent for submitting Climate Check data. Based on the cooperative’s current milk volume, this corresponds to a total of up to 500 million euro annually. From next year, the milk price that the individual Arla farmers will receive from the dairy cooperative will depend on his or her activities related to environmental sustainability. The model is a point-based system, in which the farmers can collect points based on their activities on the model’s 19 different levers e.g. feed, protein and fertilizer efficiency, manure delivery to biogas, biodiversity, carbon farming and use of renewable electricity and deforestation free soy. From the start in 2023 will 80 points be available and further 20 points for new levers are expected to be built into the model within a few years, leading to a total of 100 points. For each point that the farmers are able to achieve, they will receive 0.03 eurocent per kilo of milk. Activities with bigger improvement potential for climate and nature will lead to the most points and therefore also the biggest financial incentive. According to the Danish dairy farmers organization LDM will Arla’s plan result in a redistribution of the settlement price between milk producers and perhaps between cooperative countries. The announced supplements are actually deductions, as it costs the farmer money to obtain the so-called supplements. The money for the compensations is taken from the general settlement price. This effectively means that the farmer’s net earnings are reduced, according to LDM.

Finland: project to explore attitudes towards the use of additives

In Finland, after in spring 2022 the EU approved the use of the first rumen methane-reducing feed additive, 3-nitro-oxypropanol (3-NOP) for cattle (with the brand name Bovaer). Now the Finnish ministry of agriculture and forestry is financing a project whose goal is to solve questions related to the introduction of the 3-NOP additive in Finnish conditions. The project also explores the attitudes of producers and consumers towards the use of additives.