Germany: data on milk production costs

In Germany according to the data on milk production costs in the German organic milk sector have been compiled by the German Farm Economics and Rural Studies Office (BAL) and is updated every year, organic dairy farmers were paid on average 48.66 cents per kilogramme of organic milk for the marketing year 2020/21. According to these calculations, however, the production costs amount to 64.39 cent per kilogramme when producers also receive fair remuneration for their work. Producers were faced with a cost shortfall of 24 per cent. Over the years from 2016/17 to 2020/21, organic dairy farmers spent an average 51.98 cents exclusively on farming inputs and general operating costs without wages. The Milk Marker Index (MMI) for organic milk charts the evolution of organic milk production costs. For the marketing year 2020/21, the MMI for organic milk was 96, which means that production costs for German organic milk producers reduced by four percent as compared to the reference year 2015/16 (2015/16 = 100). The price/cost ratio shows to what extent producer prices cover milk production costs on organic dairy farms. In the marketing year 2020/21, the milk price covered 76 percent of the farmers production costs.

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