EU dairy farms 2010 reportec.europa.eu/agriculture/rica/pdf/Dairy_report_2015.pdfEU Dairy farms report based on 2013 FADN data Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel,

EU Dairy farms report based on 2013 FADN data

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

EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR AGRICULTURE AND RURAL DEVELOPMENT Directorate E. Economic analysis, perspectives and evaluation; communication E.3. Economic analysis of EU agriculture

Brussels, May 2016

EU DAIRY FARMS REPORT BASED ON 2013 FADN DATA

Executive summary

This annual report provides an overview of EU dairy farms based on the latest available data from the Farm Accountancy Data Network (FADN) for 2013. It provides trends in milk margin per tonne and in income per work unit from 20041 to 2013, and estimates of gross milk margins for 2014. The sample of milk specialised farms for 2013 represented 89 % of dairy cows and 96 % of milk production in the 28 EU Member States (EU-28).

2013 was an exceptionally good year for the dairy sector, with high dairy prices and margins. In 2014, prices decreased but operating costs decreased at a proportionally higher level, so that a slight increase in gross margin is expected in 2014. However, the prospects for the upcoming years are expected to break this trend.

Following the milk crisis of 2009, the period 2010-2013 were recovery years in most EU Member States. At EU level, 2013 even saw milk prices reach a peak (380 EUR/t (euros per tonne) on average) for the period 2007-2013. However, operating costs per tonne increased in parallel, and while the 2013 gross margin2 improved compared to 2012, it did not reach its 2007 level. In 2014, it is expected to increase by 10 EUR/t due to the continuous increase in the price of milk and the stabilisation of operating costs, even if they remain high. Overall, 95 % of dairy farms in the EU-28, representing 97 % of milk production achieved a positive gross margin in 2013 (against 93 % in 2009).

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

1 2007 for EU-28 and EU-N13 Member States. 2 Gross margin = (milk price + coupled payments) - (feed, veterinary, energy costs and other operating costs). Decoupled payments, progressively

introduced from 2005, are not included in margins, but they are part of income.

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The global picture is the same in the respective EU groups (see the graph above). Even if gross margin levels remain significantly different, the gap seems to be gradually narrowing between the 15 Member States that belonged to the EU before 2004 (EU-15) and the 13 countries that joined the EU after 2004 (EU-N133), as both the price of milk and operating costs appear to beconverging over time.

2012 and 2013 were positive years in terms of income, with EU-28 dairy farms obtaining a higher average Farm Net Value Added per Annual Work Unit (FNVA/AWU) than in 2007, in nominal terms. In real terms, compared to 2007, there was a higher average FNVA/AWU in 2013, but 2012 was similar. The increase in FNVA/AWU is attributed to the combined effect of an improvement in gross margin and of a significant increase in milk production per farm (+29 % since 2007) in average. However, whereas dairy farms used to provide higher incomes per AWU than other types of farming, this has no longer been the case since 2009.

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

In both EU groups, following the drop observed in 2009, the years 2010-2013 have been characterised by a recovery in income, even if in 2012 it dropped slightly (but not at the 2009 level). As with gross margins, income levels varied among the EU groups (see the chart above). FNVA/AWU in the EU-15 is around four times higher than in the EU-N13. In addition to the huge gap in macro variables (income levels, wage rates, other costs and prices), huge differences in farm size (see charts below) explain this result.

Again, the gap between the EU-15 and EU-N13 seems to be narrowing somewhat. Production increased proportionally in a similar way in the EU-15 (+26 %) than in the EU-N13 (+25 %), with a higher increase in the EU-N10 (+30%) over the period 2004-2013, while there was a decrease in EU-N2 production (-11%) over the period 2007-2013. The phasing-in of direct payments in the EU-N13, which is still ongoing, also contributed to this trend. In this EU group, direct payments and subsidies represented 45 % of the FNVA/AWU of dairy farms in 2013, but they also played a significant role in supporting income in the EU-15 (38 %).

In 2014, the trend in the margins was expected to lead to an increase in income compared to 2013, as the quantity of milk produced is expected to remain more or less stable at the EU-28 level.

3 EU-N13 are the Member States that joined the European Union after the 2004 enlargement: They include the EU-N10 (Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovakia, Slovenia, Cyprus –no available figures-) with FADN data from 2004, the EU-N2 (Bulgaria, Romania) with FADN data from 2007 and Croatia with FADN data from 2013.

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

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

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Table of contents

Contents

1. INTRODUCTION ...................................................................................................... 8

2. DAIRY FARMS IN THE EU ..................................................................................... 8

3. ANALYSIS OF MILK MARGINS .......................................................................... 10

3.1. Breakdown by EU group ................................................................................. 11

3.1.1. EU-28 ................................................................................................ 11

3.1.2. EU-15 ................................................................................................ 13

3.1.3. EU-N13 ............................................................................................. 16

3.2. Distribution of gross margin ........................................................................... 19

3.3. National level .................................................................................................. 19

3.3.1. EU-15 Member States ....................................................................... 21

3.3.2. EU-N13 Member States .................................................................... 24

3.4. Regional level ................................................................................................. 28

4. INCOME ANALYSIS .............................................................................................. 29

4.1. Breakdown by EU groups ............................................................................... 30

4.1.1. EU-28 ................................................................................................ 30

4.1.2. EU-15 ................................................................................................ 34

4.1.3. EU-N13 ............................................................................................. 36

4.2. Distribution of FNVA/AWU .......................................................................... 38

4.3. National level .................................................................................................. 39

4.3.1. EU-15 Member States ....................................................................... 40

4.3.2. EU-N13 Member States .................................................................... 44

4.4. Regional level ................................................................................................. 44

5. ANALYSIS OF THE COMPETITIVENESS OF THE DAIRY SECTOR IN EUROPE ................................................................................................................................... 46

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Box 1: The Farm Accountancy Data Network (FADN)

The FADN4 is a European system of sample surveys that take place 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 2013, the sample consists of over 80 000 holdings in the EU-28, which represent over 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.

The most recent FADN data available for this report are for the 2013 accounting year5. This is because of the time needed to collect, check and correct the data of all the EU Member States.

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 output6) was integrated into the FADN database. This report is the second edition of the dairy farms report based on the ‘Standard Output’ database, which is also the reason why time series only go back to 2004.

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

5 2013 FADN data cover for all Member States accounting data from 1st January 2013 to 31st December 2013, except for Germany that cover from 1st July 2013 to 30th June 2014.

6 See the FADN website for more information.

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



1. INTRODUCTION

This report provides an overview of EU dairy farms based on the latest available FADN data, for 2013. Cost of production and gross margins for 2014 are also estimated. The main feature of the period covering 2007-2013 was the high level of volatility in agriculture in general, and in the milk sector in particular, with both milk prices and input prices being affected. Milk prices fell dramatically in mid-2008 following their sharp increase alongside a general boom in agricultural prices in 2007. Producer prices recovered in 2010 and 2011, dropped again in 2012 and raised in 2013 above 2011 level. Input prices, which had followed the trend in milk prices albeit to a different extent, increased in this period.

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 by EU group and Member State. Chapter 4 is dedicated to income analysis at EU and national level and Chapter 5 provides an analysis of the competitiveness of the dairy sector in Europe. Detailed data by EU group, 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.7 Following changes in the methodology from accounting year 2010, this sample of dairy farms increased substantially, in particular in the EU-N13 Member States. It now includes to some extent8 farms which were not previously well covered, in particular large farms in Slovakia and the Czech Republic that diversify their activities a great deal. The coverage of the sector has therefore improved. In the FADN 2013, the sample is made up of 15 914 farms, representing 741 387 farms in the EU-28 of which 40 % are in the EU-15, and 60 % in the EU-N13.

The share of the milk production covered by dairy farms in the FADN is 98 % in the EU-15 and 92% in the EU-N13. There are big differences in coverage among Member States: dairy farms in the FADN cover 62 % of the dairy cows reported to Eurostat in the Czech Republic but more than 100 % in Ireland, Sweden and Finland.9 Globally, the FADN sample covers 95 % of EU-28 milk production.10

There is significant diversity of dairy farms across the EU (Table 1). Farms in the EU-15 are much bigger on average and have higher yields than in the EU-N13. On average, dairy farms in the EU-15 have 55 dairy cows, with a milk yield of 7.3 t/cow, producing 401 t of milk per year, whereas in the EU-N13 they have 9 dairy cows, with a yield of 5.0 t/cow, and produce 46 t of milk per year. 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 particular, the different national policies on milk quota management are very likely to have had an impact on the level of restructuring within each Member State.

7 See Annex I. 8 Provided that milk production is significant enough in the individual structure and actual output of the holdings. 9 This reflects a slight overrepresentation of the EU-FADN weighting system in these countries. 10 See also Table and 3 in Annex I. The results for Cyprus and Greece are not displayed because the sample is too small (less than 15 holdings).

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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.

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3. ANALYSIS OF MILK MARGINS

This chapter highlights the main results for revenues, costs and margins of dairy activity. They relate exclusively to the production of milk and milk products, without taking into account the by-products (calf and dairy cow). They are expressed in terms of current euros per tonne (EUR/t) of milk produced. The tables in Annex II show the detailed results by EU group, Member State and region.

Three different margin indicators are studied.11 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 relating to the farm as a whole. Hence, the direct contribution of each enterprise to the farm income is not available, which means that the costs of production by product have to be estimated. The EU FADN unit has built several models to estimate costs and margins for the different products: arable crops, milk and beef, and permanent crops. These models allocate farm costs to a particular product using different ratios. Annex I gives details of the model for estimating 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 2014 are estimated on the basis of milk prices, milk yield indices and input price indices. It is assumed that structures remain unchanged (e.g. the number of cows remains the same), but a change in milk production resulting from a change in average yield per cow is taken into consideration. The sources of the indices used are the following:

- for the milk price: the Commission’s Directorate-General for Agriculture (DG AGRI)

- for milk yield and input prices: Eurostat databases (agricultural production, agricultural prices and price indices).

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

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3.1. Breakdown by EU group 3.1.1. EU-28

With the highest milk price in seven years, 2013 has been quite a good year in terms of gross margin despite the simultaneous rise in production costs. Milk prices then fell and operating costs decreased at a proportionally higher level, therefore, a slight increase in gross margin was expected in 2014 compared to 2013. However, the prospects for the upcoming years are expected to break this trend. At EU-28 level, the operating costs for milk production consist mainly of:

feed costs (around 40 % 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 15 % of operating costs.

Since the decoupling of direct support, revenues from milk12 have depended mostly on the price and the quantity produced.13 In the short term, gross margin is therefore mainly influenced by the milk price and feed costs.

Between 2007 and 2009, the average price for milk fell by 17 % while operating costs per tonne remained stable. As a consequence, the average milk gross margin fell to 92 EUR/t with coupled payments (Figure 1). Milk prices subsequently recovered, reaching their highest level in seven years in 2013. This more than compensated for the continuous increase in operating costs (mostly feed and energy), which also hit their highest point in five years in 2013. As a result, there was a recovery in gross margin, which reached 138 EUR/t with coupled payments in 2013. However, in 2014 slightly lower but still high milk prices and even lower operating costs will result in a slightly better gross margin that is expected to rise by 10 EUR/t that year to 148 EUR/t with coupled payments. While 95 % of dairy farms had a positive gross margin in 2013, this percentage is expected to rise to 97 % in 2014.

The average net margin (gross margin minus depreciation and external factors, both of which remained mostly unchanged) shows the same trend. After a sharp decrease between 2007 and 2009, it recovered from 2010 and in 2013 it reached 43 EUR/t with coupled payments. After deducting the estimated opportunity costs for family labour and capital, the net economic margin was obtained, and also recovered to -43 EUR/t in 2013 with coupled payments. 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 rate,14 the imputed family labour costs remaining stable. A negative net economic margin means that, on average, farmers do not obtain what could be considered an adequate remuneration for their own labour and capital for the activity in question.15 In 2013, it is estimated that 17 % of the EU-28 dairy farms achieved a positive net economic margin, representing 36 % of the milk production of dairy farms. Given the prospects for gross margin, net economic margin is expected to deteriorate in the years to come.

12 The decoupling also means that the link between milk margins and income of dairy producers is somewhat less obvious than in the past. 13 Since the margins are presented per tonne of milk, the impact of the quantity produced is mostly visible in the income indicators. 14 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.

15 It is worth noting that the margins presented in this section relate exclusively to the production of milk. The ‘by-products’ (calf and dairy cow) are not taken into consideration although they are accounted for in the income part.

11

Figure 1: Trend in cost of milk production and margins, EU-28

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

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3.1.2. EU-15

Trends in the EU-15 were similar to those in the EU-28. In the EU-15, 2013 saw the highest price for milk since 2004, at 390 EUR/t. When taking into consideration the coupled payments (including aid under Article 68 since 2008), the revenue from milk amount to 394 EUR/t on average. Yet the specific costs of production increased too (+20 % for the period 2007-2014) and so did the non-specific operating costs (+14 %). At 139 EUR/t with coupled payments, the resulting gross margin is among the highest in the ten -year period (see Figure 5). 95 % of dairy farms had a positive gross margin in 2013 and this percentage is not expected to change in 2014 (still representing 98 % of the EU-15 milk production from dairy farms). Even if milk prices remain high in 2014, (+10% as compared with 2007), the expected increase in operating costs (+17 %) would lead in 2014 to gross margin values quite similar to those in 2007.

Given that depreciation and external factor costs per tonne have remained stable with a slight rise since 2009, net margin also recovered, reaching 42 EUR/t with coupled payments. However, the average over the last five years (2009 - 2013) is significantly lower (-44 %) than the average over the first three years studied (2004 - 2006), even though average milk prices are slightly higher (+13 %).

In 2013, the imputed costs for family factors (family labour and own capital), were among the lowest over the covered period. The decrease in the real interest rate since 2004 meant that opportunity costs for own capital were low (Figure 4). 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 2004 (Figure 2), which offsets the gain in imputed wage for family labour (Figure 3).16 As a result, net economic margin with coupled payments, although negative (-38 EUR/t), is significantly less than in 2009 (-85 EUR/t), and 22 % of the EU-15 dairy farms achieved a positive net economic margin in 2013.

Figure 2: Apparent labour productivity

Figure 3: Imputed wage for family labour


16 The increase in labour productivity decreases the cost of labour per tonne of milk, but increases the income of family workers.

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

Source: EU FADN — DG AGRI.

.

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Figure 5: Trend in cost of milk production and margins, EU-15


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3.1.3. EU-N13

In 2013, gross margin with coupled payments in the EU-N13 recovered to its 2007 level, in spite of an increase in the operating costs of production. In 2013, the average milk prices in the EU-N13 were the highest for the period 2007-2013. In 2013, they were complemented by an increased national aid so that total revenue from milk reached 325 EUR/t on average. At the same time, operating costs almost returned to their 2008 peak, almost reaching 200 EUR/t. The resulting average gross margin per tonne (128 EUR/t with coupled payments) returned to its 2007 level (Figure 9). In 2013, a number of farms benefited from these good results, with 96 % of EU-N13 dairy farms having a positive gross margin, representing 95 % of the milk production. In 2014, an increase in milk prices will probably result in an increase in gross margin even with sustained high production costs, though to a lesser extent than in the EU-15 (+24 EUR/t).

In line with the trend in gross margin, net margin also recovered between 2009 and 2013, although to a lesser extent than the gross margin, with external costs of factors and depreciation per tonne back to their 2008 levels.

Overall, apparent labour productivity has been growing since 2004 (Figure 6), but so did the imputed wage, which almost doubled over the period (Figure 7). The resulting opportunity cost for family labour hovers at around 90 EUR/t. The opportunity cost for own capital decreased significantly following the trend in the real interest rate (Figure 9). The net economic margin therefore shows a recovery to an average of -74 EUR/t with coupled payments in 2013. In the EU-N13, 29 % of milk from dairy farms is produced with a positive net economic margin.

Figure 6: Apparent labour productivity

Figure 7: Imputed wage for family labour


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Figure 8: Opportunity cost for own capital and real interest rate


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Figure 9: Trend in cost of milk production and margins, EU-N13


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3.2. Distribution of gross margin

The results above are averages. To provide a better insight, the figure below shows the trend in the distribution of gross margin with coupled payments in the EU-15 and EU-N13. In both EU groups, the average (mean) and the median are quite close, the average being about 10 EUR/t above the median for the EU-N13 in 2013. The inter-quartile range (Q3 – Q1) for 2013 is around 88 EUR/t in the EU-15 and around 110 EUR/t in the EU-N13. The gap between the 5 % top-performing farms (PC95) and the 5 % least-performing ones (PC5) is wider in the EU-N13 with 373 EUR/t against 254 EUR/t in the EU-15.

Figure 11: Trend in the weighted distribution of gross margin with coupled payments

Source: EU FADN — DG AGRI

Note that in the graph related to EU-N13 gross margin there is a visible difference between years 2006 and 2007 for the fact that in 2007 there were two more Member States that joined the Union: Bulgaria and Romania.

3.3. National level

This section focuses on the individual Member State performances between 2004 and 2013 based on trends in costs and margins provided in Annex II. Indeed, as seen in the previous section, the EU

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averages conceal big differences between farms. Some are country-specific, while others occur within individual Member States (see figure below). With the exception of Italy, differences within Member States are more striking in the EU-N13 countries. It is worth noting that in some countries such as Italy, which has one of the highest average gross margins in their EU group (almost 200 EUR/t), the median gross margin is lower (less than 200 EUR/t), meaning that well over half the farms do not reach the average gross margin.

In terms of Member States' competitiveness, the graph below clearly shows which are the most competitive in the dairy sector, which mostly belong to the EU-15 group and are the Netherlands, Ireland, Belgium, Denmark, Germany, the United Kingdom and France. These Member States not only have average gross margins above 100 EUR/t but also most have small inter-quartile ranges, showing that the differences among exploitations are not as big as in other less competitive Member States.

Figure 12: Weighted boxplot of gross margin with coupled payments per Member State — 2013

Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The mean is a global ratio.

Figure 13: Weighted boxplot of gross margin with coupled payments per Economic Size Class for EU-28 — 2013

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If we consider all Member States together, at EU-28 level, in terms of competitiveness of the different economic size classes (ESC), we can see that in 2013 the first and the last classes had the highest average gross margin (157 EUR/t for ESC (1), 122 EUR/t for ESC (6) and 119 EUR/t for ESC (5)) however, the first class (small farms) also had the biggest differences among exploitations, because the inter-quartile range showing the differences between the highest and the lowest average gross margins was much larger. It is worth noting that for this class (ESC (1)), the median gross margin is lower (less than 143 EUR/t), meaning that well over half the farms do not reach the average gross margin.

3.3.1. EU-15 Member States

In 2009 Ireland was the EU-15 Member State most affected by the crisis. By 2013, it had also experienced the most spectacular recovery: expressed in index 2004=100, its average gross margin with coupled payments was 41 in 2009 and 102 in 2013. As in 2009, the milk price was the main driver of this increase in gross margin, as Ireland had the lowest average operating costs in the EU-15 and these increased only very moderately over this period. Denmark, the Netherlands and Sweden also performed quite well, going from 50, 57 and 47 respectively in 2009 to 112, 114 and 98 in 2013 in index 2004 = 100, mostly thanks to the increase in milk prices but also due to relatively stable operating costs in Denmark.

By contrast, in Spain, Portugal and Finland gross margins have decreased since 2009, going from 64, 81 and 81 respectively in 2009 to 57, 80 and 71 in 2013 in index 2004 = 100. The milk price has not risen significantly in any of these three Member States since 2009. The increase in feed costs has been significant in Spain and Portugal — where they represent around 60 % and 50% of the operating costs respectively — as has been the case for non-specific costs in Finland — where they represent around 35 % of the operating costs —. However, thanks to considerable coupled national

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aid (around 80 EUR/t), Finland remains in the top-three countries of the EU-15 for gross margins with coupled payments.

The margins for Italy, with its high value added products generating high prices and its limited costs, and for the Netherlands were 218 EUR/t and 177 EUR/t respectively. Italy and the Netherlands follow Ireland in the top three.

Germany, EU´s main producer, had a low average gross margin with coupled payments (137 EUR/t on average). It is worth noting, however, that the German data correspond to the campaign year 2013/2014 whereas the data for the other Member States are for the 2013 calendar year (January to December). Therefore, the effects of the slowdown in milk prices and increase in some cost items in the first half of 2014 may already have been incorporated in the German results for the 2013 accounting year.

The average net margin has also recovered in most EU-15 Member States since 2009. However, it remained negative in Austria, Finland, Sweden and Denmark (-3, -6, -11 and 0 EUR/t respectively) due to very high external cost factors (financial charges and wages — family labour force represent only 50 % of the total labour force in Denmark). Luxembourg, with its high depreciation, also had a negative average net margin with coupled payments, as did Sweden, where the external cost factors, especially wages, are relatively high. At the other end of the spectrum, Italy, Ireland and Belgium achieved the highest net margins (see Figure 14).

An improvement in the gross margin and a decrease in the real interest rate (i.e. a decrease in the imputed costs for own capital17) always result in an improvement in the average net economic margin. When considered with coupled payments, net economic margin was positive in two Member States in 2013: Italy and the United Kingdom. By contrast, high family labour costs resulted in high negative average net economic margins in Austria (low quantity of milk per FWU), Finland and Sweden (high wages).

The expected costs of maintenance (mainly feed) together with lower — but still high — milk prices in 2014 are likely to result in a slight better average gross margin in most EU-15 Member States.

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

agriculture.

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Figure 14: Cost of milk production and margins in the EU-15 Member States, 2013


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3.3.2. EU-N13 Member States

The 2013 situation in the EU-N13 Member States was varied. In Malta, where the 2009 crisis hardly felt, the average gross margin with coupled payments fell by 32 EUR/t in 2010 due to a decrease in the milk price and in national coupled payments. It only partially recovered in 2013 (reaching 102 EUR/t) because of the increase in feed price.

In the other EU-N13 Member States, the situation improved. In Lithuania and Latvia, a steep increase in the milk price led to a tremendous recovery; expressed in index 2004=100. The average gross margins with coupled payments were 146 and 118 respectively in 2013 against 91 and 89 in 2009. With the exception of Romania (which reached 204 EUR/t), Lithuania exhibited the highest average gross margin of the EU-N13 (141 EUR/t) followed by Poland. Both countries had very low

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operating costs (164 EUR/t and 179 EUR/t respectively). In contrast, Slovakia had the lowest gross margin in 2013 (32 EUR/t with coupled payments). 18

In Bulgaria, dairy farms received a fairly high price for milk (323 EUR/t), supplemented by coupled national aid (24 EUR/t), which brought their milk revenues well above the EU-N13 average. However, average operating costs were 231 EUR/t. Operating costs in Romania are among the lowest in the EU-28, with feed, in particular, being cheaper in Romania. This is why Romanian dairy farms achieved a very good gross margin and were less sensitive to increases in production costs. This is not the case on Bulgarian specialised farms. Their gross margin was 116 EUR/t and the percentage of dairy farms with a positive gross margin was quite low (88 %). In Croatia, the gross margin with coupled payments was 131 EUR/t and the percentage of specialised farms with a positive gross margin was slightly higher (90 %).

In line with the trend in gross margin, net margins improved in the EU-N13 Member States in 2013. Net margins with coupled payments were positive in half of these Member States: Romania, Poland, Malta, Lithuania, Croatia and Bulgaria. In line with the structures, wages constitute a very high cost in the Czech Republic, Estonia, Hungary and Slovakia. Depreciation is also quite high in the very large farms of Slovakia (56 EUR/t) and the very small farms of Slovenia (99 EUR/t). This high level in Slovenia may be surprising, but it is similar to its mountainous neighbour, Austria.

Opportunity costs for family factors are high in Lithuania, Latvia, Malta, Poland and Slovenia, where family farms dominate. In 2013, the average net economic margin was negative in all EU-N13 Member States, especially in Slovakia and Slovenia.

The opportunity costs for family labour and own capital were much higher in Romania (220 EUR/t), than in Bulgaria (77 EUR/t) or in Croatia (144 EUR/t). This difference is exacerbated by the difference in their farm structures and the importance of family farming.

18 Slovakian (and, to a lesser extent, Czech) milk specialised farms are few and very big (on average 240 dairy cows and 792 ha of fodder area);

they rely heavily on paid labour and very little on unpaid labour (they are cooperatives or companies), and may produce a significant amount of other products (they are not very specialised). Therefore it is difficult to allocate non-specific costs properly and the Slovakian estimates should be interpreted with caution.

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Figure 15: Cost of milk production and margins in the EU-N13 Member States, 2013


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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 region. The best performing regions are those with high average milk prices (e.g. in Italy), low costs (e.g. Romania), coupled support (e.g. in Finland) or higher competitiveness (e.g. the Netherlands, Belgium and Luxembourg). More detailed results are available in annex II. Map 1: Average gross margin per tonne with coupled payments by region, 2013

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4. INCOME ANALYSIS Map 1 shows that, on average, the margins for the dairy activity on dairy farms have recovered since 2009. This chapter focuses on trends in the income of dairy farms at the level of the whole farm, thus also incorporating the results of other activities that may be carried out on the farm. 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 all fixed production factors (land, labour and capital), either owned by the farm or external.

– Farm Net Income (FNI) equals FNVA minus external factors, plus balance on subsidies and taxes on investments. It is the amount available to pay family factors (labour, land and capital).

– Remuneration of Family Labour (RFL) is calculated only for family farms.19 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 RFL, to take account of the differences in the labour force salary on the holding. All income indicators are calculated before deduction of income 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 stricto sensu. Because they could blur the picture and make it difficult to interpret the results,21 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 10% 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 pole represents at least 40 % of the potential of production of the holding. 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 forestry and tourism (e.g. in Austria).

Subsidies, including decoupled payments, also contribute significantly to the income of dairy farms (see text).

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.

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4.1. Breakdown by EU groups

4.1.1. EU-28

At EU-28 level, 2013 was a good year in terms of income, recovering from 2012.

In line with the positive trend in the margin indicators (Figure 16), not only have the income indicators for dairy farms in the EU-28 recovered since 2009, they have also reached a peak compared to 2007 and 2011 performances. The increase in the milk price as well as in average milk production (+29 % since 2007) has resulted in a rise in the milk output and subsequently in total output. This increase (+48 %), together with the increase in subsidies (mostly the phasing-in of direct payments), has been significant enough to outweigh the rise in intermediate consumption (+51 %). As a result, farm net value added and farm net income have increased by 36 % and 38 % respectively since 2007 to 21 421 EUR/AWU and 14 587 EUR/AWU respectively. The remuneration of family labour wage has also increased since 2007 (14 184 EUR/FWU on average in 2013).

Figure 16: Trends in the income of dairy farms, EU-28


However these EU-28 results conceal substantial differences in income between the EU groups (Figure 17). The FNVA/AWU is still more than five times higher in the EU-15 than in the EU-N13.

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Figure 17: Income of dairy farms by EU group, 2013


As illustrated in Figure 18, taking into account the significant gaps in the macro variables (income level, wage rate, other costs and prices), the differences in income between the EU groups have more to do with differences in farm size than in margin per tonne. Since the decoupling of direct payments, these are no longer included in the gross margin but are part of income. The increase in milk revenues (both milk price and milk production) means that the share of direct payments and subsidies (first and second pillars, EU and national) in the FNVA/AWU has decreased. In 2013 it was, on average, 40 % in the EU-15, 43 % in the EU-N13, with some Member States23 where direct support is still being phased in.

Figure 18: FNVA/AWU and some variables by EU group, 2013


23 For example Romania, Bulgaria and Croatia

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In 2013 as in the previous years, dairy farms showed results above the EU-28 total average across all types of farming. Since 2009 however, they have no longer been in the top three of types of farming for income (Figure 18). In 2013, they ranked fifth after Granivores, Fieldcrops, Wine and Horticulture farms for FNVA/AWU and FNI/FWU. For RFL/FWU, they also ranked fifth, although remaining well above the EU-28 average. Therefore, while dairy farms may not have appeared the most attractive in terms of income in 2013 at EU-28 level, they were in a better situation than some other types of farming.

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Figure 19: Comparison of the income of milk farms with other farms, EU-28, 2013*

* Source: EU FADN — DG AGRI, FADN public database http://ec.europa.eu/agriculture/rica/database/database_en.cfm for FNVA/AWU and FNI/FWU 2013 and for the RFL/FWU 2012 data from the Farm economics overview 2012 (last published)

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http://ec.europa.eu/agriculture/rica/database/database_en.cfm

http://ec.europa.eu/agriculture/rica/pdf/EU_FEO_FADN_2012.pdf



4.1.2. EU-15

The income of the EU-15 dairy farms recovered in 2013, although it did not reach its 2007 level in real terms.

In the EU-15, the income of dairy farms increased significantly between 2004 and 2007 in both nominal and real terms (Figure 20). It then fell steeply in 2008 and 2009 (both in nominal and real terms) as a result of the milk crisis. 2010 and 2011 mark a significant recovery in FNVA/AWU: income in nominal terms was even higher in 2011 than in 2007, although this was not the case in real terms, where it was ten points below the 2007 peak. In 2012, income dropped again and recovered in 2013, although it did not reach its 2007 level in real terms. As was the case at EU-28 level, the improvement in gross margin was not the only factor driving this recovery: the average milk production per farm also increased (+26 % from 2007).

Figure 20: Income trends in nominal and real terms, EU-15

Source: EU FADN — DG AGRI, ESTAT (HICP index EUR 2004). The recovery has been higher for the two other income indicators. Farm net income has increased by 24 % in the last three years, while the remuneration of family labour increased by 40% (Figure 21). It is worth noting that the improvement in the FNVA is not the only reason for these good results. The remuneration of family labour is also influenced by the real interest rate which decreased significantly between 2009 and 2013, leading to a decrease in the imputed cost of own capital. The percentage of farms with a positive figure for remuneration of family labour reached 87 % in 2013.

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Figure 21: Trend in income of dairy farms, EU-15


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4.1.3. EU-N13

Thanks to improvements in labour productivity in the EU-N13, the income of dairy farms has improved significantly since 2004.

The income of dairy farms in the EU-N13 also dropped steeply between 2007 and 2009 (Figure 22), falling back to its 2004 level in real terms. However, it has recovered since, with an increase in nominal terms by 2013 of almost 40% compared to 2004 level.

This can be explained by good performance in terms of margins, and by the phasing-in of direct payments. Nevertheless, FNVA per AWU (6 907 EUR/AWU on average) remains lower in the EU-N13 than in the EU-15.

Figure 22: Income trends in nominal and real terms, EU-N13

Source: EU FADN — DG AGRI, ESTAT (HICP index EUR 2004).

Note that between 2006 and 2007 there is a decrease in the figures due to the accession of Bulgaria and Romania.

Thanks to an increase in dairy cow yield and in the average number of cows per AWU, the average quantity of milk produced per AWU increased by almost 25 % from 2007, which was sufficient to more than compensate for the 11 % increase in imputed wage. The gradual phasing-in of direct payments and subsidies since 2004 also contributed to this trend (see Figure 23).

Farm net income and remuneration of family labour also changed much better between 2004 and 2013. Although external factor costs and in particular wages rose, so too did the balance of investment subsidies and taxes, suggesting that massive investment, sponsored partly by rural development programmes, took place. After peaking in 2010 due to the high real interest rate, the cost of own capital decreased, contributing to the increase in the remuneration of family labour. In 2013, this latter indicator was positive in 88 % of farms.

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Figure 23: Trends in the income of dairy farms, EU-N13


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4.2. Distribution of FNVA/AWU

As was the case for margins, the average EU income results conceal big differences. The figure below shows the trend in the distribution of weighted FNVA/AWU in the different EU groups. The results show that the good performers have a marked effect on the average. This is especially the case for the EU-N13, where the mean FNVA/AWU (5 195 EUR/AWU) is closer to the third quartile (6 275 EUR/AWU) than to the median (3 421 EUR/AWU), which is significantly lower. This means that nearly 75 % of dairy farms in this EU group have an income lower than the average.

Figure 24: Trend in the weighted distribution of FNVA/AWU


Note that between 2006 and 2007 there is a decrease in the figures due to the accession of Bulgaria and Romania. 4.3.

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4.4. National level

Results are not only affected by differences between Member States but also by differences within Member States, as illustrated in Figure 25. 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, in particular in Denmark and the Netherlands (around 50 000 EUR/AWU). The median FNVA/AWU (20 771 EUR) in Italy is significantly lower than the average of the EU-15 Member States (36 228 EUR), as was the case for the margin. EU-N13 Member States have lower average values than EU-15, and the interquartile range is particularly high in Cyprus (around 45 000 EUR/AWU): this can be explained by the size of the sample.

Figure 25: Distribution of FNVA/AWU (weighted boxplot) within Member States — 2013

Source: EU FADN — DG AGRI. Extreme values are not displayed. The whiskers represent the 5th and 95th percentiles. The mean (average) is a global ratio.

If we consider all Member States together, at EU-28 level, in terms of competitiveness of the different economic size classes (ESC), we can see that in 2013 the last classes had the highest average income compared to the small exploitations that had much lower levels of income. This can be explained by several factors such as the existence of economies of scale that we will analyse in the last chapter of this report.

The median FNVA/AWU in the biggest farms from ESC (6) is significantly higher than the average meaning that well over half the farms had significant results in terms of income.

In absolute values, the biggest exploitations had also the largest spreads in terms of inter-quartile range for FNVA/AWU. Nevertheless, in relative values, the inter-quartile ranges were similar for

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all economic size classes, because the 3rd quartile represented about 130% of the average in all classes and the 1st quartile represented around 50% of the average in all classes as well.

Figure 26: Distribution of FNVA/AWU (weighted boxplot) within Economic Size Classes for EU-28 — 2013


4.4.1. EU-15 Member States

Figure 27 shows the average income indicators of dairy farms by Member State in the EU-15 in 2013. Farm net value added per AWU ranged from 15 795 EUR in Portugal to 87 718 EUR in Denmark. The high gross margin in Denmark is inflated by the high average size of the herd and the very high average yield per cow, both of which contribute to an average production of 1 305 t per farm. Portugal, at the other end of the spectrum, is not the EU-15 Member State with the lowest average milk production (112 t per farm) — this is Austria where farmers tend to complement their milk income with forestry and tourism — but intermediate consumption in Portugal is high when compared with total output, and the balance of subsidies and taxes is quite low (around 7 000 EUR/AWU) in comparison with the EU-15 average (around 15 000 EUR/AWU), which may be linked to the small size of Portuguese holdings. The nature of the subsidies also differs: whereas decoupled payments account for 70 % of the balance of subsidies and taxes at EU-15 level, they represent only 46 % in Portugal, where subsidies for livestock are equally important. This is also the case in 2013 in Sweden (51 % - livestock subsidies and rural development), Luxembourg (39 % - subsidies for the production of renewable energy) Austria (35 % - rural development payments), Belgium (30%) and Finland (19 % - livestock subsidies and rural development). In 2013, Finland was the only EU-15 country where subsidies were necessary to prevent a negative FNVA/AWU.

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Luxembourg’s dairy farmers also received a significant amount of investment subsidies. As a result of these payments, Luxembourg ranks fourth for farm net income with an average of 39 430 EUR/AWU. Whereas Belgium, Italy, Ireland and the United Kingdom had similar performances in terms of FNVA/AWU (between 33 000 and 37 000 EUR/AWU), Italy and the United Kingdom fared in terms of FNI/AWU. Italy has low external factors costs, and compared to the other Member States mentioned above, Ireland has higher rent and interest costs than Italy. Belgium has both high rent and interest costs, while in the United Kingdom, the average amount for wages is among the highest in the EU-15 (24 EUR/t of milk), after Sweden (32 EUR/t)and above all, Denmark (33 EUR/t). Financial costs in Denmark remained extremely high (33 442 EUR/AWU), which explains why it had by far the highest FNVA/AWU (87 718 EUR/AWU) and after deduction of external factors, one of the lowest FNI/AWU (24 296 EUR/AWU on average), after Portugal, Austria, Sweden and Spain (with 14 205, 15 870, 18 396 and 23 153 EUR/AWU respectively).

The remuneration of family labour was the lowest in Portugal in 2013 (13 069 EUR/FWU), slightly lower than in Austria (13 312 EUR/FWU). Overall however, Portuguese farms were in good health, since 89 % of them achieved a positive figure for remuneration of family labour. The figure exceeded 80 % in the other EU-15 Member States, including Ireland where opportunity costs for own capital remain very high (25 276 EUR/FWU) due to the real interest rate. The EU-15 average was noticeably influenced by the very good performances of the United Kingdom, Italy, Denmark, Germany and the Benelux countries, the only EU-15 Member States who performed above the average.

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Figure 27: Income indicators for dairy farms in the EU-15 Member States, 201324


24 On the green graph showing gross margin and FNVA/AWU, for Finland, only the total level (FNVA/AWU) is comparable with other Member

States, as the total amount of direct payments and subsidies per AWU is actually higher than the FNVA/AWU.

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Figure 28: Income indicators for dairy farms in the EU-N13 Member States, 201325


25 On the green graph showing gross margin and FNVA/AWU, for Slovakia, only the total level (FNVA/AWU) is comparable between countries,

as the total amount of direct payments and subsidies per AWU is actually higher than the FNVA/AWU.

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4.4.2. EU-N13 Member States

Figure 28 shows the average income indicators for dairy farms by Member State in the EU-N13 in 2013. Estonia, Hungary, Czech Republic and Malta achieve quite good results, with an FNVA/AWU of between 20 220 EUR and 14 971 EUR. Romania and Bulgaria are among the EU-N13 Member States with the lowest FNVA/AWU (3 648 EUR and 4 657 EUR respectively). The farm net value added per AWU is also relatively comparable for these two countries, although the result is due to low costs in Romania and to higher output and subsidies in Bulgaria. The costs of external factors are significantly higher in Bulgaria, resulting in lower farm net income. However, both countries remain below the average income indicators for the EU-N13 Member States. This can be explained by differences in farm size and in direct payments and subsidies (the EU part of direct payments has not yet been fully phased in). In addition to that, Romanian farms are small (4 dairy cows on average) and the average labour productivity is low. At the other end of the spectrum, on the big cooperatives of Slovakia (240 dairy cows on average), labour productivity is also limited resulting in a low FNVA/AWU. Even in Malta and Estonia, where the quantity of milk per AWU is the highest among the EU-N13 Member States, it remains much lower than the EU-15 average.

In contrast, wage costs tend to be proportionally higher than in the EU-15. This is particularly true in the Czech Republic, Slovakia, Estonia and Hungary due to their structures, and even produces a negative average farm net income in Slovakia (- 1 990 EUR/FWU). Family farms in Slovakia do not perform too well either, having one of the lowest remuneration of family labour (-24 799 EUR/FWU), while neighbouring Czech Republic achieves an RFL of 19 744 EUR/FWU. The percentage of specialised farms with a positive RFL varies considerably between the different Member States.

4.5. Regional level

The map below shows the average FNVA/AWU by region in 2013. The picture is quite different from that off the gross margin. The best performing regions are mostly located in northern Europe: Ireland, Denmark, the United Kingdom, Belgium, the Netherlands and north-west Germany. Some regions in the north of Italy and in the south of Spain also performed well, mainly due to lower costs. More detailed results are available in Annex II.

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Map 2: FNVA/AWU by region, 2013

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5. ANALYSIS OF THE COMPETITIVENESS OF THE DAIRY SECTOR IN EUROPE

The previous chapters presented an analysis of the structures, margins and income of the dairy farms based on FADN. On the basis of the data already presented and the data available in Annex II, an analysis of the competitiveness of the dairy sector in Europe is presented below.

If we define competitiveness as the capacity to keep and extend your market share, an analysis of the competitiveness of the dairy sector based on FADN data will look at the main strengths and weaknesses of the different Member States that will define their final competitive advantage.

Map 2 (FNVA/AWU by region in 2013) already gave us a general overview of the situation in Europe in terms of income. On this map, regions of the North and West of Europe showed better results than the rest, in what some studies have called the "milk belt" (a banana shape corridor covering Ireland, the United Kingdom, the Netherlands, Belgium, the northern regions of France, Germany and Denmark).

The analysis of the structures, margins and income performed in chapters 2, 3 and 4 and the data provided in Annex II showed in general better micro economic results for the above mentioned Member States and regions until FADN year 2013 and 2014 (estimated).

The main trend in terms of competitiveness after 2015 ought to be the concentration of dairy production in the North of Europe, as the end of the quotas and the macro-economic context will impact the dairy production and geographical distribution, speeding up structural changes in the dairy sector.

An overview of the main competitiveness drivers of the dairy sector is shown below however it would be worth to summarize the some of the main features that make some countries more competitive than others in the dairy sector.

Based on specialized dairy literature26, in the dairy sector, the main competitive advantages are linked to the existence of natural resources, infrastructures, high population density, economies of scale and of scope and market orientation (Figure 29).

a) The existence of natural resources, such as good climate conditions (e.g. oceanic climate, climate not too dry…) and natural pastures will naturally favour the competitiveness of some Member States as they will dispose of more home-grown feed and will need less purchased feed for their cows, therefore lowering one of the main production costs, the feed costs.

26 Sources: MTT Agrifood Resarch Finland, "Competitiveness of Northern European dairy chains", N. 116, August 2014. https://portal.mtt.fi/portal/page/portal/mtt/mtt/julkaisut/Dairy%20chain%20competitiveness%20MTT%202014%20final%20version.pdf

Astley, M., milk quota abolition will create a North European 'production belt', Dairy reporter.com, 18-Mar-2014, http://www.dairyreporter.com/Markets/Milk-quota-abolition-will-create-North-European-production-belt

Van Marrewijk, C., Utrech University, Balassa Index (or Revealed Comparative Advantage, RCA): 2001-2008, http://www2.econ.uu.nl/users/marrewijk/research/balassa.htm

Institut de l´Elevage, Economie de l´élevage, "Lait en Europe du Nord", N. 460 and 462, September and November 2015. http://idele.fr/linstitut-de-lelevage/publication/idelesolr/recommends/dossier-economie-de-lelevage-geb.html

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https://portal.mtt.fi/portal/page/portal/mtt/mtt/julkaisut/Dairy%20chain%20competitiveness%20MTT%202014%20final%20version.pdf

http://www.dairyreporter.com/Markets/Milk-quota-abolition-will-create-North-European-production-belt

http://www2.econ.uu.nl/users/marrewijk/research/balassa.htm

http://idele.fr/linstitut-de-lelevage/publication/idelesolr/recommends/dossier-economie-de-lelevage-geb.html

http://idele.fr/linstitut-de-lelevage/publication/idelesolr/recommends/dossier-economie-de-lelevage-geb.html



Figure 29: Main competitive advantages of the dairy sector in Europe

Source: EU FADN — DG AGRI, own creation based on specialized dairy literature such as the sources specified in footnote 26.

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Map 3: Home-grown feed, in percentage of total feed costs, by Member State, 2013


Map 3 shows an overview of the competitive advantage of some Member States in relation to the existence of natural resources. To evaluate this, the availability of home-grown against purchased feed has been studied.

As a result of this, three groups of Member States have been identified:

1.- Member States with a high percentage of home-grown feed in relation to total feed (from 31 to 100% of their feed being home-grown, the rest up to 100% being purchased feed):

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In the EU-15, Ireland (36%), Luxembourg (35%), France (32%), Germany (32%), Austria (32%) and Finland (31%).

In the EU-N13, Croatia (68%), Lithuania (60%), Poland (57%), Romania (54%), Slovakia (51%), Czech Republic (49%), Latvia (48%), Estonia (44%), Hungary (32%) and Slovenia (32%)

2.- Member States with an average percentage of home-grown feed in relation to total feed (from 11 to 30% of their feed being home-grown, the rest up to 100% being purchased feed):

In EU-15, Belgium (29%), Denmark (24%), Sweden (24%), the United Kingdom (19%), Portugal (16%), Italy (15%) and the Netherlands (14%)

3.- Member States with low percentage of home-grown feed in relation to total feed (from 1 to 10% of their feed being home-grown, the rest until 100% being purchased feed):

In the EU-15, Greece (10%) according to the last available FADN data, 2006, Spain (7%)

In the EU-N13, Malta (1%) which means that the remainder 99% of their total feed is purchased feed, for an average farm in this Member State.

b) The existence of infrastructures will favour the competitiveness of some Member States as they will be closer to potential markets and they will lower their transport costs when selling their products.

If we consider this factor, the most competitive Member States are: Germany, France and the Benelux (Belgium, the Netherlands and Luxembourg) and the northern regions of Italy, as they are located in the centre of Europe and dispose of more infrastructures to be connected to the internal market.

This is also broadly applicable to the existence of high density of population.

Apart from the existence of national infrastructures (e.g. roads, ports etc...), the existence of suitable farm infrastructures will also have a positive impact in the competitiveness, in particular in the ability to increase future milk deliveries at national and at EU level.

In Figure 30, we have studied the change in the share of EU's milk deliveries and the change in the national milk deliveries level for the period 2004-2015.

The Member States which have mostly increased their share of EU's milk deliveries are the Netherlands, Germany, Poland, Belgium, Ireland, Latvia and Denmark. By contrast, the United Kingdom, Sweden, France and Italy decreased their share of EU's milk deliveries but they increased their milk deliveries at a national level by 8% in United Kingdom, 11% in France and 7% in Italy.

However, in terms of national milk deliveries level, the Member States that increased the most are Latvia, Belgium, Estonia, Luxembourg and the Netherlands. By contrast, Bulgaria, Sweden, Slovakia, Croatia and Romania were the Member States that decreased the most their milk deliveries at national level.

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Figure 30: Change in the share of EU´s milk deliveries and the change in the national milk deliveries level (2004-2015)

Source: EU FADN, Eurostat Cows'milk collection and products obtained - annual data [apro_mk_cola], treatment DG AGRI

c) The existence of economies of scale will favour the competitiveness of some Member States.

Map 4 provides an overview of the competitive advantage of some Member States in relation to the average farm size for specialized dairy farms. As a result of that, three groups of Member States have been identified:

1.- Member States with high average farm size:

In the EU-15, Denmark (105 ha), the United Kingdom (104 ha).

In the EU-N13, Slovakia (792 ha), Czech Republic (258 ha), Estonia (178 ha)

2.- Member States with medium average farm size:

In EU-15, Sweden (91 ha), Luxembourg (74 ha), France (71 ha), Ireland (56 ha), Germany (52 ha), the Netherlands (49 ha), Belgium (46 ha), Finland (38 ha).

In EU-N13, Hungary (44 ha), Latvia (41 ha), Lithuania (27 ha)

3.- Member States with low average farm size:

In the EU-15, Spain (24 ha), Italy (21 ha), Portugal (17 ha) and Greece (4 ha).

In the EU-N13, Slovenia (15 ha), Poland (13 ha), Croatia (10 ha), Bulgaria (8 ha), Malta (4 ha) and Romania (3 ha).

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Map 4: Average dairy farm size by Member State, 2013

d) Market orientation will also be one of the factors that favour the competitiveness.

Map 5 provides an overview of the competitive advantage of some Member States in relation to market orientation. To evaluate this, the average national dairy milk price has been studied. It is important to underline that the source of data are the economic farm accounts from the dairy farms from the FADN system, this means that a low farm dairy price would indicate that the farmer doesn't get enough payment to cover costs. By contrast, a high farm dairy price would indicate that farmers will get a good compensation for their output that allows covering their input with a good exploitation margin.

As a result of that, three groups of Member States have been identified:

1.- Member States with a high dairy price (in EUR/t of milk per farm, in average):

In the EU-15, Italy (447 €/t), Finland (441 €/t), the Netherlands (431 €/t), Sweden (410 €/t), Denmark (404 €/t)

In the EU-N13, Malta (498 €/t)

2.- Member States with a medium price (in EUR/t of milk per farm, in average):

In the EU-15, Germany (400 €/t), Belgium (379 €/t), the United Kingdom (373 €/t), Ireland (369 €/t), France (366 €/t), Austria (365 €/t), Luxembourg (358 €/t)

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Map 5: Milk price in EUR/t of milk per farm, in average, by Member State, 2013

3.- Member States with a low dairy price (in EUR/t of milk per farm, in average):

In the EU-15, Spain (338 €/t), Greece (325 €/t), Portugal (309 €/t)

In the EU-N13, Slovakia (338 €/t), Czech Republic (333 €/t), Croatia (333 €/t), Hungary (332 €/t), Estonia (330 €/t), Slovenia (328 €/t), Romania (327 €/t), Bulgaria (323 €/t), Poland (307 €/t), Lithuania (305 €/t), Latvia (289 €/t)

e) The existence of economies of scope will favour the competitiveness of some Member States.

Map 5 provides an overview of the competitive advantage of some Member States in relation to the dairy production.

As a result of that, three groups of Member States have been identified:

1.- Member States with high dairy production (in t of milk per farm, in average) in 2013:

In the EU-15, Denmark (1 305 t), the United Kingdom (904 t), the Netherlands (667 t), Sweden (567 t), Germany (436 t) and Belgium (406 t)

In the EU-N13, Slovakia (1 519 t), Czech Republic (982 t) and Estonia (721 t)

2.- Member States with average dairy production (in t of milk per farm, in average):

In the EU-15, Luxembourg (387 t), France (372 t), Ireland (329 t), Spain (323 t), Italy (302 t), Finland (252 t), Portugal (200 t), Greece (167 t) and Austria (112 t)

In the EU-N13, Malta (359 t) and Hungary (243 t)

3.- Member States with low dairy production (in t of milk per farm, in average):

In the EU-N13, Latvia (93 t), Slovakia (87 t), Poland (85 t), Lithuania (74 t), Croatia (57 t), Bulgaria (44 t) and Romania (12 t)

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Map 6: Milk production in t of milk per farm, in average, by Member State, 2013

To conclude this chapter, Table 2 compiles the underlying data used to produce the maps above based on FADN 2013.

The analysis of FADN data applied to some of the main competitive advantages of the dairy sector provides a general overview of the situation in Europe in terms of competitiveness.

In the dairy sector, EU-15 Member States in Northern and Western Europe showed better results than the rest: Ireland, the United Kingdom, the Netherlands, Belgium, Luxembourg, France, Germany, Austria, Denmark, Sweden and Finland.

In contrast, EU-15 Member States in Southern Europe showed weaker results. In this group, EU-N13 Member States of the South East of Europe showed weaker results, whereas the EU-N13 countries showing the best results were the Baltic States (Estonia, Latvia, Lithuania), the Czech Republic and Slovakia followed by Hungary and Poland.

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Table 2: Comparison of FADN data per farm, in average, by Member State, 2013

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ANNEX I

Methodology 1

The model for estimating milk production costs and margins on the basis of FADN data

The FADN (Farm Accountancy Data Network) database contains information on output and subsidies per enterprise; however, as regards costs, it only provides information referring to the farm as a whole.27 In this context, the contribution of each enterprise to the farm income is not directly available. Therefore production costs by product have to be estimated. The EU FADN unit has constructed several models to estimate costs and margins, for a range of different products: arable crops, milk and beef, and permanent crops. This note describes the methodology used to estimate milk production costs and margins.

The allocation of costs

The following terminology is used with regard to costs:

– Operating costs, which include the following:

– Specific costs: for milk production, they cover purchased concentrates, purchased coarse fodder, farm use of non-fodder crops, specific forage costs, milk herd renewal costs, the milk levy and other specific livestock costs (veterinary etc.).

– Non-specific costs: upkeep of machinery and buildings, power (fuel and electricity), contract work, taxes and other dues (excluding the milk levy), taxes on land and buildings, insurance for farm buildings and other direct costs (including water as regards the model for milk).

– Depreciation

– External factors: i.e. wages, rent and interest

– Imputed family factors, which cover: family labour cost and own capital cost (own land cost + estimated cost for own capital except land – interest paid).

The costs are illustrated in the breakdown overleaf.

27 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.

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Purchased concentrates for grazing livestock X 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 unitsDLU/TLU: Dairy livestock units / Total livestock unitsMO/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

56


The basis of the methodology is to allocate a share of the farm costs to milk production. Different ratios are used:

– Dairy livestock units28 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 output29 plus linked subsidies (MO/TO) is used to allocate non-specific inputs and fixed costs. Subsidies are taken into account to enable the results to be compared over time since, from 2004 onwards, part of the milk support that was previously included in the price has been allocated via a direct payment. Moreover, this makes it possible to distinguish and to take better account of the co-existence of beef production on farms where costs of milk production are estimated (increasing the importance of direct aid support compared 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 FADN and adding the purchase costs for milk herd renewal (see below).

As the milk levy30 is directly linked to milk production only, it is fully allocated to the costs of milk production.

Some disparities in FADN recording among Member States also have to be taken into account in order to be able to make comparisons. Some Member States (generally from the north of the EU) do not put a value on fodder in FADN, mainly because of the difficulty of estimating production and the value of forage. Based on the principle that forage production is simply an input for animal production, and that failure to record it — either on the crop output side, or on the animal costs side — does not affect income, no effort is made to estimate it. In other countries — generally those where fodder production is more expensive — a value is assigned to the production of fodder. Even if this difference is unlikely to affect margins, it can lead to biases when comparing costs between Member States. To take account of the differences in records, fodder production used on the farm is treated as follows for the purpose of the model:

– The value of the farm use of non-fodder plants (e.g. barley, rye, etc.) is maintained in the item ‘Crops used for feed’, but the farm use value of all crops used as forage (fodder roots, other fodder plants — e.g. silage of cereals, temporary grass, meadows and pastures and rough grazing) is excluded.

– The value of fodder plants produced on the farm is estimated on the basis of the specific costs of the crops (e.g. seeds, fertilisers, crop protection). Specific costs are allocated to fodder production according to a ratio (fodder on total area). However, some forage crops do not benefit from all inputs (e.g. there is no crop protection for 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’.

28 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). 29 Output after deduction of forage crops farm use. 30 In the previous model design, the milk levy was deducted from subsidies on the revenues side.

57


Estimation of ‘Specific forage costs’

Cost item Allocation key31

Seed costs

% area of fodder crops (144), other forage crops (145) and temporary grass (147) in the total Utilised Agricultural Area (UAA) - after exclusion of fallow lands (146), areas leased to others (149), meadows (150) and rough grazing (151)

Fertiliser costs

% area of fodder crops (144), other forage crops (145), temporary grass (147) and meadows (150) in the total UAA - after exclusion of fallow lands (146), areas leased to others (149) and rough grazing (151)

Crop protection costs

% area of fodder crops (144) and other forage crops (145) in the total UAA - after exclusion of fallow lands (146), temporary grass (147), areas leased to others (149), meadows (150) and rough grazing (151)

– The home-grown fodder value is deducted from total output (the denominator in the allocation ratio MO/TO) because it is included in the farm total output and it has to be deducted to obtain a comparable ratio between the Member States that value fodder and those that do not.

The milk herd renewal purchases cost was introduced when the model was revised in 2008. Although the cost of rearing the farm’s own milk heifers was already included in the model, the cost of the purchase of new heifers (for example, to renew the genetic potential of the herd) was not included. It was indirectly taken into account in part by the MO/TO ratio, because the total output of the farm includes the meat output, which is calculated by deducting the purchases. Therefore, for farms that rely heavily on purchases rather than on rearing their own animals, total output (the denominator) was lower and therefore the ratio used for the allocation of costs to milk was higher, with the result that all of their costs calculated using this ratio were higher. However, it was done regardless of whether these purchases were linked to the milk enterprise or to the meat enterprise. With the new method, an attempt has been made to take direct account of the share of purchases that can be related to milk.

The aim is therefore to take direct account of the cost of purchases of young female bovines to be used for milk production.32 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 FADN only from 2000 onwards; therefore this estimate can only be made from 2000 onwards. Moreover, it is not obligatory and, in practice, some Member States did not record it in the initial years after its introduction.33 This has to be taken into account when interpreting the results.

However, a correction should be made for total output (the denominator in the allocation ratio MO/TO) to avoid double counting of these costs. The total output already deducts all purchases of animals, so the calculated milk herd renewal costs should be added back into the total output used in the allocation ratio MO/TO. 31 Codes refer to product or cost codes in the farm return (Commission Regulations Nrs 2237/77 and 868/2008). 32 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.

33 Milk herd renewal purchases cannot be estimated for Greece, Italy (2000-2005), Ireland (2000), Finland (2000), Sweden (2000).

58


Another disparity in recording by Member States concerns depreciation of the milk quota, which is applied in some Member States and not in others (in part because of differences in milk quota management). Moreover, for the most recent accounting years, specific instructions were given to Member States that depreciation of quotas should not be entered in the FADN table related to capital.34 This means that depreciation is not taken into account in the calculation of income. In order to be consistent with this principle and to allow comparability over time and among Member States, our estimates apply a rule of non-depreciation of milk quota. It should be noted that the cost of buying or renting milk quota is covered (where it is not self-financed) by interest and rent paid.

The following FADN cost items have been included in the 2008 revision of the model:

– taxes and other dues (excluding the milk levy) (part of farming overheads, non-specific costs),

– insurance on farm buildings (part of farming overheads, non-specific costs),

– taxes on land and buildings (part of farming overheads, non-specific costs).

The estimation of imputed unpaid family factors has also been included in the margin and income calculation. The methodology used is explained in another annex.

Revenues from milk

Revenues from milk take into account:

– the value of sales of milk and milk products;

– EU dairy payments (11.81EUR/t of quota in 2004, 23.65EUR/t in 2005, 35.50EUR/t in 2006 before decoupling; the actual implementation date of the payments depends on the Member State), Article 69 payments for dairy (used in Spain) and Article 68 payments linked to dairy production;

– Any 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.

34 Document RI/CC 1256: Deprecation of quota should NOT be entered in Table G (Land and buildings, dead stock, circulating capital), but may

be entered in Table L.

59


The margins

The following terminology is used in relation to margins:

– Gross margin (over operating costs): sales of milk and milk products minus operating costs;

– Net margin (before own factors): sales of milk and milk products minus operating costs, depreciation and external factors;

– Net economic margin (after own factors): sales of milk and milk products minus operating costs, depreciation, external factors, and imputed unpaid family factors.

All the margins are displayed with and without coupled payments for milk (EU and national). This makes it possible to simulate the removal of coupled payments.

The sample of farms

Given the estimation methodology, i.e. the need to allocate costs, to obtain reliable estimations of production costs and margins it is necessary to focus on milk specialised farms. Depending on the specific objectives of the analysis, different specialisation criteria might be chosen. In general, the following criteria have been used:

– Farms covered by the following types of farming (TF): 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 share of dairy cows, particularly in the new Member States.35

– A structural specialisation rate36 greater than 40 %. This criterion has been introduced to make the sample of specialised farms more stable over years and therefore ensure better comparability of results over time.37

– An actual specialisation rate38 greater than 35 %. This criterion has been kept39 to make sure that in reality, milk production remains the main activity of the holding.

– 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 buffaloes’ milk. These farms are mainly located in the two Italian regions Lazio and

35 See Table 5. 36 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.

37 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 every three years and takes the form of a census every ten 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, thus affecting the average results (in some Member States there appears to be a break in time series for structural information between 2008 — extrapolated with FSS 2007 — and 2009 — extrapolated with FSS 2010). 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.

38 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.

39 Although its threshold has been lowered (from 50 % to 35 %) as compared with the previous editions of this report.

60


Campania, essentially for the production of ‘Mozzarella di buffala’. It was decided to exclude them because of their major differences in terms of milk yield, price, costs and margins.

Moreover, given the use of different ratios for the allocation keys,40 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.

– Total output should be greater than milk output.41

Farms that do not meet these conditions are excluded from the sample used to estimate costs and margins.

The results are presented in EUR/t of milk. They are the so-called ‘global ratio’, i.e. they are obtained by dividing the average revenues, costs or margin in the Member State (or region) by the average quantity of milk produced in that Member State (or region) (and not by the weighted average of the individual ratio by farm).

40 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. 41 The number of dairy cows and of grazing livestock units must also be greater than 0.

61


Methodology 2

Estimation of imputed unpaid family factor costs — Method

Family labour cost: this is estimated on the basis of the wages which the owner of the farm would have to pay to hire employees to do the work carried out by family members.

It is estimated as the average regional wage per hour obtained in the FADN database42 multiplied by the number of hours worked by family workers on the farm.

It is commonly acknowledged that the number of hours of family workers is sometimes overestimated. Thus the method uses a maximum of 3 000 hours per Annual Work Unit (this is the equivalent of 8.2 hours a day, 365 days a year, and corresponds more or less to the time that can be spent on a farm by dairy farmers).43

Using hours makes it possible to remunerate a manager more than an employee for working more hours.

It is challenging to calculate a reliable estimate because records of hours worked on the farm might be overestimated and it is not easy to determine what an appropriate remuneration for family labour is. Farmers may indeed agree to be remunerated less than they would be according to the average agricultural wage. They may consider farming a way of life or benefit from other sources of income for their household (other gainful activities directly related to the holding, spouse working outside the farm, etc.).

Own capital cost

– Own land cost: this is estimated on the basis of the rent that the owner of the farm would have to pay if the land were rented instead of owned.

It is estimated as the owned area multiplied by the rent paid per ha on the same farm or, if there is no rented land on the farm, by the average rent paid per ha in the same region and for the same type of farming.44

– 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 and the long term interest rate taken from the Global Insight database for the net worth. It should be noted that if the ‘weighted’ interest rate is lower than the LT interest rate (which means that the calculated rate of

42 If there are not enough farms (fewer than 20) with paid labour at regional level, the national average is taken into account. 43 A constraining factor of the estimation method is that if a farmer receiving a salary would probably work less. 44 If there are not enough farms (fewer than 20) in a given region for a type of farming, the national rent per hectare for the given type of farming

is used (the TF8 classification is used).

62


interest paid is lower than the LT interest rate), the LT interest rate is used instead of the ‘weighted’ interest rate.

In the end, the own capital value (excluding land and land improvement) is estimated as the average value of the assets (closing plus opening valuation divided by 2) multiplied by the real interest rate.45 The correction is made by subtracting the inflation rate46 from the nominal interest rate. A condition is applied to avoid negative real interest rates.

The total circulating capital is not valued because of the unreliability of this variable in some Member States. Nevertheless, the crop stock value is taken into account.

To calculate the unpaid capital costs, in order to avoid double counting, we have to deduct the interest paid from the sum of the own land cost and the cost of own capital except land:

Imputed unpaid capital costs = own land cost + estimated cost for own capital except land — interest paid (when interest paid is lower than the sum of own land and own capital costs).

The total cost of imputed unpaid family factors is then the sum of family labour costs and unpaid capital costs:

Imputed unpaid family factors = family labour cost + unpaid capital costs

Or

Imputed unpaid family factors = family labour cost + (own land cost + estimated cost for own capital other than land – interest paid)

45 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.

46 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.

63


Table 3: Share of dairy cows covered by the FADN by Member State

Source: EU FADN 2013, Eurostat cattle survey 2013, treatment DG AGRI.

64


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

*: excluding Malta.

Source: EU FADN 2013, Eurostat production statistics 2013, treatment DG AGRI.

65


Table 5: Share of milk production by Member State in the FADN 2013


66


Table 6: Share of milk production by Member State and farm type in the FADN 2013


67


ANNEX II

Results by EU group, Member State and region.

Data as of 19/05/2016.

EU Dairy farms based on 2013 FADN data Annex II EU 28

EU 28 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

2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014/

2007

Sample farms 10000-<20000 10000-<20000 10000-<20000 10000-<20000 10000-<20000 10000-<20000 10000-<20000 0%

Farms represented 847 000 840 830 741 060 666 090 670 290 709 670 741 390 -13%

% production from specialised farms 98% 98% 98% 98% 98% 99% 98% 1%

Forage area - ha 22 23 25 28 29 27 26 17%

Dairy cows - LU 23 24 27 29 30 28 28 16%

Rented UAA - % 59% 59% 60% 61% 60% 59% 59% 1%

Total labour - AWU 1.92 1.88 1.85 1.84 1.82 1.71 1.70 -7%

Family labour - % 86% 85% 85% 83% 82% 84% 83% -3%

Milk per ha fodder area - t/ha 6.6 6.6 6.9 6.9 7.0 7.0 7.1 5%

Milk yield - kg/cow 6 498 6 480 6 566 6 770 6 918 6 825 6 819 7 054 5% 9%

Milk production - t 150 154 174 199 205 191 188 195 22% 29%

MILK MARGINS in EUR/t of milk (nominal)

2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014/

2007

Revenues

Price 337 338 279 322 349 341 380 373 12% 11%

EU coupled payments (incl. Art.68) 0 0 0 1 1 1 1 1 912% 809%

National aids 2 2 2 2 2 3 3 3 18% 25%

Total revenues from milk 339 340 282 325 352 345 384 376 12% 11%

Production costs

Feed 93 103 90 95 107 119 124 110 23% 18%

homegrown feed 30 32 28 29 31 33 34 31 10% 6%

purchased feed 64 71 62 66 76 86 90 79 28% 24%

Herd renewal purchases 3 3 3 3 3 3 3 3 -1% -6%

Milk levy 1 1 0 0 0 0 1 1 23% 57%

Other specific costs 20 22 21 22 23 25 24 24 14% 17%

Specific costs 118 129 114 121 134 148 153 139 20% 18%

Machinery and building upkeep 19 20 18 20 20 19 21 21 6% 9%

Energy (fuel, electricity) 18 21 18 20 22 23 24 23 22% 22%

Contract work 16 18 17 17 18 19 20 20 11% 21%

Taxes 1 1 1 2 2 2 2 2 15% 24%

Other direct inputs 22 23 22 23 24 24 25 25 9% 11%

Non specific costs 78 83 76 82 86 87 93 90 12% 15%

Total operating costs 195 212 190 203 220 235 246 228 17% 17%

Gross margin 142 126 89 119 129 106 134 145 3% 2%

Gross margin with coupled

payments144 128 92 123 132 110 138 148 4% 3%

%spe.farms with positive gross

margin97% 95% 93% 95% 96% 94% 95% 97% 0% 0%

%milk production with positive gross

margin99% 97% 96% 98% 98% 96% 97% 98% 0% -1%

Depreciation 45 47 46 48 48 49 52 7%

Wages 14 15 15 15 16 16 17 14%

Rent 13 12 12 13 13 13 14 3%

Interest 13 15 13 13 13 12 12 -12%

External factors 40 43 41 41 42 41 43 2%

Net margin 57 36 3 30 40 17 39 0%

Net margin with coupled

payments59 38 5 33 43 21 43 4%

Family labour costs 72 74 66 67 66 67 70 -4%

Own capital unpaid cost 18 12 25 19 13 13 16 -22%

Imputed family factors 90 86 91 86 79 80 86 -8%

Net economic margin -32 -50 -88 -56 -40 -63 -47 12%

Net economic margin with

coupled payments-30 -47 -86 -52 -36 -59 -43 15%

%spe.farms with positive net

economic margin25% 22% 13% 15% 18% 14% 17% -17%

%milk production with positive net

economic margin41% 30% 17% 29% 35% 24% 36% 8%

Source: EU FADN DG AGRI, model of the allocation of costs for milk. 5969



INCOME in EUR/AWU (nominal)

2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014/

2007

Total output 39 456 41 385 39 775 51 938 58 433 58 721 61 738 48%

Intermediate consumptions 23 475 26 773 27 700 33 214 37 197 39 668 40 481 51%

Balance subsidies and taxes 6 648 6 973 7 719 9 312 9 144 8 620 8 486 23%

Decoupled payments 4 279 4 451 5 070 6 005 6 090 5 901 5 785 29%

Depreciation 5 267 5 749 6 476 7 636 7 892 8 158 8 322 39%

Farm Net Value Added (FNVA) 17 362 15 837 13 318 20 400 22 488 19 515 21 421 36%

External factors 4 669 5 155 5 721 6 557 6 896 6 899 6 897 33%

Wages 1 717 1 885 2 184 2 577 2 807 2 785 2 925 47%

Rent 1 532 1 537 1 774 2 057 2 130 2 181 2 196 34%

Interest 1 420 1 733 1 763 1 923 1 959 1 933 1 776 15%

Balance invest. subs. and taxes -39 40 325 211 124 129 62 -4%

Farm net income (FNI) 12 654 10 723 7 922 14 054 15 715 12 745 14 587 38%

Family farms only in EUR/FWU (nominal)

Own capital unpaid cost 2 330 1 636 4 042 3 461 2 500 2 453 3 048 0%

Remuneration of Family Labour

(RFL)12 035 10 853 5 674 13 500 16 262 12 598 14 184 51%

%spe.farms with positive RFL 90% 91% 76% 89% 91% 87% 88% 4%

144128

92

123 132110

138148

0

50

100

150

200

250

300

350

400

450

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

Reven

ues

Op

era

ting

co

sts

2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t

Milk specialised farms - gross margin

Price EU coupled payments (incl. Art.68) National aids Feed Other specific costs Non specific costs Gross margin with coupled payments

339 340

282

325

352 345

384

280302

277 292 309 324 341

59

38

5

33

43

21

43

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

EUR/t

Milk specialised farms - net margin

Total revenues from milk Operating costs + depreciation + external factors

Net margin with coupled payments




339 340

282

325352 345

384

370388

368 377388

404427

-30

-47

-86

-52

-36

-59

-43

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

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

7274

66 67 66 6770

18 12 25 19 13 1316

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013

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

5 000

10 000

15 000

20 000

25 000

2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/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




e: estimate

*: trend between the average of the first three available years and the average of the last available three years (excluding estimates)


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014

/2007

Sample farms 10000-<11000 10000-<11000 10000-<11000 10000-<11000 10000-<11000 10000-<11000 10000-<11000 10000-<11000 10000-<11000 10000-<11000 -6%

Farms represented 367 280 372 880 365 980 326 550 332 010 295 830 298 550 298 700 295 410 296 380 -19%

% production from specialised farms 99% 99% 99% 98% 98% 99% 99% 99% 99% 99% 0%

Forage area - ha 42 42 44 45 45 49 50 51 51 51 19%

Dairy cows - LU 44 44 45 47 47 53 53 54 55 55 23%

Rented UAA - % 61% 62% 62% 63% 63% 64% 64% 64% 63% 63% 3%

Total labour - AWU 1.84 1.86 1.86 1.87 1.82 1.93 1.92 1.93 1.91 1.92 4%

Family labour - % 86% 85% 85% 85% 85% 81% 82% 81% 82% 80% -5%

Milk per ha fodder area - t/ha 6.9 7.0 7.1 7.3 7.2 7.5 7.6 7.8 7.7 7.8 11%

Milk yield - kg/cow 6 640 6 779 6 880 6 939 6 947 6 986 7 188 7 347 7 235 7 264 7 488 8% 8%

Milk production - t 291 299 311 328 326 371 381 396 394 401 414 32% 26%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014

/2007

Revenues

Price 309 301 297 347 345 289 330 356 349 390 382 21% 10%

EU coupled payments (incl. Art.68) 11 12 5 0 0 0 1 1 1 1 1 -88% 782%

National aids 2 2 2 2 2 2 2 2 2 2 2 0% 9%

Total revenues from milk 323 316 304 349 348 291 334 359 353 394 384 17% 10%

Production costs

Feed 86 82 83 95 104 93 97 108 122 128 113 43% 20%

homegrown feed 24 24 24 27 29 26 26 28 31 31 29 24% 7%

purchased feed 61 58 59 68 76 67 70 81 91 97 85 51% 25%

Herd renewal purchases 3 3 3 3 4 3 3 3 4 3 3 18% -6%

Milk levy 1 1 0 1 1 0 0 0 0 1 1 4% 56%

Other specific costs 19 19 20 21 23 22 24 25 26 26 26 35% 23%

Specific costs 108 104 106 120 132 119 124 137 152 158 144 40% 20%

Machinery and building upkeep 18 18 19 20 21 19 20 21 20 22 22 14% 7%

Energy (fuel, electricity) 14 16 17 18 19 17 19 21 22 23 21 40% 21%

Contract work 16 16 16 18 20 18 19 19 20 22 22 29% 21%

Taxes 1 1 1 1 2 2 2 2 2 2 2 19% 19%

Other direct inputs 23 24 24 24 24 24 25 25 25 27 27 10% 9%

Non specific costs 72 76 78 82 86 80 84 88 90 96 93 21% 14%

Total operating costs 180 180 184 202 218 198 208 225 242 254 237 33% 17%

Gross margin 129 121 113 145 128 91 122 131 107 136 145 3% 0%

Gross margin with coupled payments 142 136 120 147 130 93 125 134 111 139 147 -3% 0%

%spe.farms with positive gross margin 98% 98% 97% 98% 96% 93% 96% 96% 93% 95% 95% -3% -2%


margin99% 99% 99% 99% 98% 96% 98% 99% 97% 98% 98% -1% -1%

Depreciation 43 44 46 47 49 47 49 49 50 53 14%

Wages 11 13 12 13 13 14 14 15 15 16 26%

Rent 14 14 14 15 14 14 14 14 14 15 0%

Interest 12 12 13 15 18 15 15 14 14 13 10%

External factors 38 39 39 42 44 43 43 43 42 44 11%

Net margin 48 39 28 56 35 0 30 39 15 39 -18%

Net margin with coupled payments 61 53 35 58 37 2 33 42 19 42 -31%

Family labour costs 72 71 71 69 71 63 64 63 64 65 -10%

Own capital unpaid cost 20 16 16 18 12 25 18 13 12 15 -25%

Imputed family factors 92 87 87 87 83 87 82 76 76 80 -13%

Net economic margin -44 -48 -59 -30 -48 -87 -52 -36 -61 -41 9%

Net economic margin with coupled

payments-31 -34 -52 -28 -46 -85 -49 -33 -57 -38 -9%

%spe.farms with positive net economic

margin20% 18% 15% 26% 20% 10% 16% 21% 13% 22% 8%


economic margin31% 28% 23% 40% 30% 17% 29% 36% 23% 37% 17%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014

/2007

Total output 69 976 70 663 73 524 88 313 89 641 81 866 95 388 105 933 108 758 116 749 55%

Intermediate consumptions 42 819 43 326 46 303 52 514 58 102 57 222 61 041 67 769 73 977 76 949 65%

Balance subsidies and taxes 11 035 13 321 14 831 14 980 14 956 15 585 16 456 15 946 15 328 14 996 18%

Decoupled payments 0 4 958 9 690 10 504 10 494 10 921 11 333 11 160 10 887 10 544 -

Depreciation 10 467 10 600 11 371 12 064 12 803 13 488 14 142 14 499 15 227 15 723 40%

Farm Net Value Added (FNVA) 27 725 30 057 30 681 38 715 33 693 26 740 36 661 39 612 34 882 39 072 28%

External factors 9 234 9 302 9 620 10 676 11 305 12 119 12 108 12 581 12 897 13 055 37%

Wages 2 841 3 033 3 103 3 256 3 286 4 043 4 072 4 449 4 593 4 877 55%

Rent 3 546 3 484 3 574 3 853 3 761 4 055 4 129 4 209 4 386 4 488 23%

Interest 2 847 2 785 2 942 3 566 4 257 4 020 3 907 3 923 3 918 3 691 34%

Balance invest. subs. and taxes -75 15 46 -170 -71 571 149 -19 36 -30 12%

Farm net income (FNI) 18 415 20 770 21 107 27 870 22 317 15 193 24 702 27 012 22 021 25 988 24%


Own capital unpaid cost 5 528 4 234 4 617 5 236 3 579 8 388 5 928 4 283 4 259 5 092 -5%


(RFL)15 836 20 108 19 945 27 126 22 779 10 824 24 073 29 073 22 577 26 688 40%

%spe.farms with positive RFL 85% 90% 89% 91% 88% 71% 88% 90% 85% 87% -1%

142136

120

147130

93

125134

111139

147

0

50

100

150

200

250

300

350

400

450

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

Re

venu

es

Opera

ting c

osts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



323 316304

349 348

291

334359 353

394

261 263 269291 311

288 300 317 334 351

61

53

35

58

37

2

33

42

19

42

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t


Total revenues from milk Operating costs + depreciation + external factors Net margin with coupled payments




323 316304

349 348

291

334359 353

394354 349 356

377394

376 382 392410

431

-31-34

-52

-28

-46

-85

-49

-33

-57

-38

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/tMilk specialised farms - net economic margin


43 44 46 47 49 47 49 49 50 53

72 71 71 6971

63 64 63 6465

20 16 16 18 1225 18 13 12

15

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II EU N13

EU N13 Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014/

2007

Sample farms 4000-<5000 5000-<5000 4000-<5000 5000-<6000 4000-<5000 5000-<6000 5000-<6000 7%



Forage area - ha 8 9 9 11 11 10 10 19%

Dairy cows - LU 8 9 9 10 10 9 9 11%

Rented UAA - % 49% 48% 46% 51% 49% 48% 48% 1%

Total labour - AWU 1.95 1.92 1.80 1.77 1.73 1.57 1.55 -14%

Family labour - % 88% 85% 87% 84% 84% 85% 85% -2%

Milk per ha fodder area - t/ha 4.3 4.4 4.5 4.3 4.3 4.5 4.5 0%

Milk yield - kg/cow 4 864 4 812 4 904 5 016 5 061 5 067 5 036 5 315 4% 9%



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014/

2007

Revenues

Price 286 300 227 270 301 290 319 326 12% 14%

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0 0 - 0%

National aids 3 4 3 4 5 5 6 5 62% 91%


Production costs

Feed 87 97 75 85 99 103 106 93 19% 7%

homegrown feed 44 47 38 42 49 51 53 47 17% 8%

purchased feed 43 49 36 43 50 52 53 46 21% 7%

Herd renewal purchases 3 3 2 2 3 3 3 3 17% -2%

Milk levy 0 0 0 0 0 0 0 0 -100% -

Other specific costs 18 18 13 14 15 14 15 15 -10% -20%

Specific costs 108 117 90 101 116 121 124 111 15% 2%



Contract work 7 10 8 8 9 9 9 9 8% 19%

Taxes 1 1 1 1 1 1 1 1 42% 89%




Gross margin 123 116 82 103 117 101 122 146 5% 18%


payments 126 120 85 107 121 105 128 152 7% 20%


margin 96% 95% 93% 94% 96% 95% 96% 97% 1% 2%


margin 97% 94% 92% 94% 95% 93% 95% 97% 0% 0%

Depreciation 34 38 38 41 40 41 47 17%

Wages 21 25 20 25 25 23 25 11%

Rent 4 4 4 5 5 5 6 40%

Interest 4 5 4 4 4 4 4 2%


Net margin 61 44 17 29 42 27 40 -11%


payments 64 48 20 33 47 32 46 -5%

0%

Family labour costs 87 92 85 83 86 86 94 1%

Own capital unpaid cost 16 10 25 23 16 16 26 14%

Imputed family factors 104 102 111 106 102 102 120 3%

Net economic margin -42 -58 -93 -77 -60 -75 -80 -11%


coupled payments -40 -54 -91 -73 -56 -70 -74 -8%


economic margin 25% 23% 14% 13% 15% 14% 14% -30%


economic margin 42% 34% 19% 27% 34% 31% 29% -1%


2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014/

2007

Total output 10 086 11 520 9 719 13 799 15 889 15 214 16 493 52%


Balance subsidies and taxes 1 639 2 033 2 102 3 043 3 053 2 786 3 134 55%

Decoupled payments 537 711 893 1 328 1 549 1 567 1 871 133%

Depreciation 1 181 1 384 1 468 1 925 1 975 2 011 2 234 54%


External factors 1 059 1 349 1 154 1 685 1 805 1 684 1 832 49%

75


Wages 793 1 017 856 1 267 1 337 1 212 1 322 45%

Rent 136 160 147 237 267 264 310 90%

Interest 130 171 151 181 201 208 200 35%

Balance invest. subs. and taxes 40 109 149 267 252 210 138 101%



Own capital unpaid cost 626 430 1 161 1 301 955 950 1 467 52%


(RFL) 3 196 3 532 2 222 4 278 5 205 4 355 4 406 56%


* Produced from EU10, EU2 and HR extractions

126120

85

107 121105

128

152

0

50

100

150

200

250

300

350

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

Revenu

es

Op

era

ting

costs

2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



289304

230

274

306295

325

225256

210241

260 263279

64

48

20

33

47

32

46

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

EUR/t



76


-150

-100

-50

0

50

100

150

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





289304

230

274

306295

325

328

358

320

348362 365

399

-40

-54

-91

-73

-56

-70-74

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

EUR/t



34 38 38 41 40 41 47

8792

8583 86 86

94

1610

2523 16 16

26

0

50

100

150

200

250

2007 2008 2009 2010 2011 2012 2013

EUR/t



77



e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014

/2007

Sample farms 3000-<4000 4000-<5000 4000-<5000 4000-<5000 4000-<5000 4000-<5000 4000-<5000 4000-<5000 4000-<5000 4000-<5000 3%


% production from specialised farms 97% 93% 94% 96% 94% 92% 91% 94% 94% 91% -2%

Forage area - ha 17 18 19 20 20 20 22 24 23 22 30%

Dairy cows - LU 14 14 14 16 16 17 18 19 19 18 34%

Rented UAA - % 52% 53% 52% 53% 54% 51% 54% 54% 52% 51% 0%

Total labour - AWU 2.10 2.17 2.13 2.22 2.22 2.12 2.18 2.28 2.20 2.21 5%

Family labour - % 80% 77% 79% 76% 75% 78% 76% 75% 77% 78% -2%


Milk yield - kg/cow 5 007 5 183 5 217 5 423 5 485 5 483 5 594 5 695 5 854 5 724 6 137 12% 13%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014

/2007

Revenues

Price 212 240 240 279 296 213 265 297 286 317 321 30% 15%

EU coupled payments (incl. Art.68) 0 1 2 0 0 0 0 0 0 0 0 -80% -

National aids 3 4 6 0 1 2 4 5 5 6 6 23% 1033%


Production costs

Feed 67 69 74 90 103 78 88 104 109 114 99 55% 11%

homegrown feed 36 40 41 49 55 43 45 52 55 57 51 41% 3%

purchased feed 32 29 33 40 48 35 43 52 55 56 49 74% 20%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -

Other specific costs 12 13 13 19 19 13 14 15 16 17 17 29% -11%

Specific costs 82 86 91 112 125 93 105 123 129 135 120 49% 6%



Contract work 6 7 6 7 9 7 8 8 7 8 7 20% 11%

Taxes 1 1 1 1 1 0 0 1 0 1 1 12% 54%




Gross margin 85 97 92 107 98 63 92 102 86 107 131 8% 22%

Gross margin with coupled payments 88 102 100 108 98 64 96 108 91 113 137 8% 27%

%spe.farms with positive gross margin 97% 96% 96% 96% 92% 87% 94% 94% 90% 91% 95% -5% -1%


margin97% 98% 97% 97% 94% 91% 94% 95% 92% 94% 97% -4% 0%

Depreciation 28 33 38 38 42 40 43 43 42 49 34%

Wages 15 23 22 25 30 22 27 27 25 27 34%

Rent 2 4 4 4 5 4 5 5 5 6 74%

Interest 3 4 3 4 6 5 4 5 5 5 41%


Net margin 35 34 25 36 15 -8 12 22 9 20 -46%

Net margin with coupled payments 39 39 33 37 16 -6 16 28 14 26 -39%

Family labour costs 39 46 51 51 65 60 62 56 58 70 35%


Imputed family factors 54 62 72 67 77 84 86 72 71 96 27%

Net economic margin -19 -28 -47 -31 -61 -92 -75 -50 -62 -77 -102%


payments-16 -23 -39 -30 -61 -90 -70 -44 -57 -71 -122%


margin26% 24% 18% 26% 15% 6% 11% 19% 16% 12% -32%


economic margin45% 42% 34% 43% 31% 16% 26% 35% 32% 27% -22%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014

/2007

Total output 12 799 13 894 14 262 19 885 21 678 16 371 20 683 25 153 25 070 25 681 85%



Decoupled payments 576 745 937 1 241 1 578 1 858 2 283 2 743 2 826 3 172 287%

Depreciation 1 691 1 869 2 253 2 609 2 892 2 782 3 174 3 386 3 479 3 693 82%



Wages 1 031 1 449 1 354 1 899 2 343 1 757 2 179 2 426 2 292 2 362 85%

Rent 150 216 210 299 353 293 390 464 457 506 148%

Interest 188 205 192 309 390 330 322 376 406 367 96%

Balance invest. subs. and taxes 93 132 82 104 275 352 505 505 425 248 284%



Own capital unpaid cost 1 117 1 139 1 463 1 424 1 059 2 147 2 334 1 657 1 335 2 533 49%

Remuneration of Family Labour (RFL) 3 602 3 918 4 380 6 616 5 854 3 303 6 204 8 185 7 198 6 112 81%

%spe.farms with positive RFL 85% 84% 89% 93% 89% 76% 89% 93% 90% 84% 3%

88 102 100108

98

64

96108

91 113

137

0

50

100

150

200

250

300

350

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

Reven

ues

Opera

tin

g c

osts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



216

245 247

280297

214

270

302291

323

177205 215

243

281

221253

275 277298

39 39

33

37

16

-6

16

28

14

26

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






216

245 247

280297

214

270

302291

323

231

267286

310

358

304

340 347 348

394

-16

-23

-39

-30

-61

-90

-70

-44

-57

-71

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



28 33 38 38 42 40 43 43 42 49

39

4651 51

65

6062 56 58

70

15

16

20 16

1224

2416 13

27

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-150

-100

-50

0

50

100

150

0

2 000

4 000

6 000

8 000

10 000

12 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU


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




e: estimate



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014

/2007

Sample farms 200-<500 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 65%



Forage area - ha 2 3 2 3 3 3 3 12%

Dairy cows - LU 4 5 5 5 5 4 4 -3%

Rented UAA - % 30% 26% 28% 32% 29% 30% 32% 9%

Total labour - AWU 1.82 1.78 1.62 1.47 1.40 1.25 1.19 -26%

Family labour - % 95% 92% 93% 91% 93% 93% 92% 0%

Milk per ha fodder area - t/ha 4.6 4.5 4.4 4.0 3.6 3.7 3.7 -18%

Milk yield - kg/cow 3 789 3 596 3 712 3 431 3 441 3 267 3 364 3 317 -9% -12%

Milk production - t 15 17 17 16 16 14 14 14 -12% -11%


2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014

/2007

Revenues

Price 304 311 270 293 321 307 326 347 8% 14%

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0 0 - -

National aids 9 12 6 2 2 4 4 4 -61% -53%


Production costs

Feed 78 80 65 71 76 78 73 64 2% -18%

homegrown feed 28 28 25 29 33 34 33 30 23% 5%

purchased feed 50 52 39 42 43 44 40 35 -10% -31%

Herd renewal purchases 1 2 2 1 1 2 2 2 -19% 47%

Milk levy 0 0 0 0 0 0 0 0 - -


Specific costs 96 96 81 86 89 85 80 71 -7% -26%



Contract work 9 12 11 12 13 15 14 15 34% 61%

Taxes 0 1 1 1 1 1 2 2 140% 255%



Total operating costs 137 144 128 139 144 147 142 134 6% -2%

Gross margin 168 167 141 154 177 160 185 213 10% 27%


payments 177 179 147 156 179 164 189 217 6% 23%


margin 96% 96% 97% 95% 98% 98% 99% 99% 2% 3%


margin 97% 96% 95% 95% 98% 97% 97% 98% 2% 1%

Depreciation 24 27 30 29 31 37 37 31%

Wages 10 12 13 15 15 15 15 27%

Rent 3 2 2 4 4 5 5 81%

Interest 2 2 2 1 2 2 2 -5%


Net margin 129 124 94 106 126 102 125 2%


payments 138 136 100 107 128 106 129 -3%

0 0 0 0 0 0 0 -






coupled payments -65 -37 -92 -89 -103 -125 -90 -64%


economic margin 25% 27% 19% 15% 14% 13% 15% -41%


economic margin 41% 41% 31% 29% 31% 28% 34% -17%





2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend 2014

/2007

Total output 4 168 5 007 4 918 6 149 6 675 6 327 7 104 43%


Balance subsidies and taxes 425 614 528 709 802 810 906 61%

Decoupled payments 111 157 195 269 363 432 543 189%

Depreciation 320 419 519 539 574 689 745 60%



Wages 125 171 205 256 256 238 261 51%

Rent 37 37 41 68 71 90 109 134%

Interest 22 31 22 25 26 30 30 15%






(RFL) 1 530 2 329 1 560 2 492 2 808 2 224 2 940 47%


177 179

147156

179 164189

217

0

50

100

150

200

250

300

350

400

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t






313323

276295

323311

330

175 187 176 187 195 205 201

138 136

100107

128

106

129

0

20

40

60

80

100

120

140

160

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

EUR/t



313 323

276295

323311

330

379360 368

383

426 436421

-65

-37

-92-89

-103

-125

-90

-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

EUR/t



24 27 30 29 31 37 37

187 167 162180

212 200 195

16

630

16

19 31 25

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

EUR/t






-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

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II BE

Belgium Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -1%



Forage area - ha 36 37 37 40 40 44 45 47 47 46 27%

Dairy cows - LU 45 44 46 48 49 55 55 56 59 58 28%

Rented UAA - % 75% 76% 75% 75% 74% 75% 74% 75% 73% 74% -2%

Total labour - AWU 1.64 1.65 1.63 1.65 1.66 1.73 1.82 1.80 1.85 1.83 11%

Family labour - % 98% 99% 99% 99% 99% 98% 98% 98% 98% 98% 0%


Milk yield - kg/cow 6 116 6 290 6 353 6 673 6 558 6 766 6 975 7 100 7 200 6 989 7 304 13% 9%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 304 291 289 347 329 252 310 338 308 379 367 16% 6%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 75 68 72 81 96 76 85 97 106 113 93 48% 15%

homegrown feed 29 28 29 31 34 29 28 33 32 32 29 14% -8%

purchased feed 45 40 43 49 62 48 56 64 73 81 64 70% 29%


Milk levy 1 3 0 0 0 0 0 0 0 0 0 -100%


Specific costs 100 95 96 106 121 101 110 124 133 142 120 37% 13%



Contract work 17 18 18 19 21 19 20 22 22 25 23 29% 24%

Taxes 1 1 1 1 1 1 1 1 1 1 1 17% -4%




Gross margin 152 140 138 183 143 96 141 148 109 165 179 -2% -2%


payments164 163 138 183 143 96 141 148 109 165 179

-9% -2%


margin100% 99% 99% 100% 98% 96% 99% 98% 99% 98% 99%

-1% -1%


margin100% 100% 99% 100% 99% 98% 99% 99% 99% 99% 100%

0% 0%

Depreciation 35 38 38 42 47 45 47 49 48 53 36%

Wages 1 1 1 1 1 1 1 1 1 1 17%

Rent 16 17 16 15 15 14 14 16 15 17 -1%

Interest 16 16 15 16 16 16 17 17 16 16 2%


Net margin 83 68 67 109 64 21 62 64 28 78 -22%

Net margin with coupled payments 95 92 67 109 64 21 62 64 28 78-33%




Net economic margin -12 -26 -24 18 -23 -65 -18 -17 -49 -11 -24%


payments0 -2 -24 18 -23 -65 -18 -17 -49 -11

-194%


economic margin34% 30% 28% 52% 30% 11% 29% 34% 13% 39%

-7%


economic margin44% 42% 39% 67% 42% 16% 43% 46% 18% 52%

-8%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 76 259 76 865 80 526 99 583 92 343 83 827 96 592 104 204 108 513 119 915 42%




Depreciation 9 214 9 713 10 686 12 246 13 264 14 736 14 626 15 032 16 647 16 797 64%



Wages 425 249 177 175 201 285 259 342 393 355 28%

Rent 4 192 4 468 4 571 4 627 4 476 4 738 4 606 5 101 5 586 5 438 22%

Interest 4 249 4 204 4 223 4 510 4 446 5 210 5 170 5 237 5 401 4 951 23%

Balance invest. subs. and taxes -937 -963 -1 257 -1 378 -1 432 -405 681 -288 116 -515 78%



Own capital unpaid cost 1 824 785 1 245 2 267 376 4 441 993 743 841 1 557 -19%


(RFL)26 869 29 108 31 626 42 012 30 520 19 524 35 702 33 738 27 381 36 185

11%


164163

138

183

143

96

141148

109

165179

0

50

100

150

200

250

300

350

400

Reve

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



316 314

289

347329

252

310

338

308

379

221 223 222 238265

232 249274 280

301

9592

67

109

64

21

62 64

28

78

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






316 314

289

347329

252

310

338

308

379316 316 313

328352

317328

355 357

390

0-2

-24

18

-23

-65

-18 -17

-49

-11

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



35 38 38 42 47 45 47 49 48 53

88 91 87 8386

7376

7975

84

6 3 4 71

13 32

2

5

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-100

-50

0

50

100

150

200

0

10 000

20 000

30 000

40 000

50 000

60 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II DK

Denmark Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 2%



Forage area - ha 62 61 65 79 83 105 103 102 111 105 70%

Dairy cows - LU 87 95 96 117 115 146 148 141 152 147 58%

Rented UAA - % 31% 20% 26% 27% 26% 26% 28% 29% 30% 27% 13%

Total labour - AWU 1.93 1.96 1.94 2.20 2.20 2.59 2.49 2.38 2.56 2.54 28%

Family labour - % 64% 63% 65% 58% 55% 47% 48% 49% 47% 48% -25%

Milk per ha fodder area - t/ha 11.0 12.5 12.2 12.1 11.5 11.6 12.1 11.6 11.6 12.2 -1%

Milk yield - kg/cow 7 886 8 069 8 399 8 231 8 258 8 404 8 550 8 418 8 576 8 879 9 349 6% 14%

Milk production - t 687 765 809 964 948 1 225 1 266 1 190 1 307 1 305 1 374 68% 43%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 311 308 298 332 386 292 336 371 358 404 417 24% 26%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 90 87 84 92 118 106 96 116 122 136 121 44% 32%

homegrown feed 18 17 17 18 23 21 18 23 24 24 24 38% 34%

purchased feed 72 70 68 74 95 85 78 93 98 112 97 45% 31%

Herd renewal purchases 6 5 6 0 6 5 4 3 2 2 2 -56% -

Milk levy 3 0 0 2 0 0 1 2 0 1 1 -4% -41%


Specific costs 123 116 117 121 155 142 131 152 155 168 153 33% 26%



Contract work 26 26 25 27 32 30 28 30 31 30 30 19% 11%

Taxes 1 1 1 1 1 1 1 1 1 1 1 13% 16%




Gross margin 117 115 108 134 140 64 120 130 112 143 174 13% 30%


payments128 115 108 134 140 64 120 130 112 143 173

10% 29%


margin99% 98% 96% 99% 94% 89% 100% 96% 98% 96% 98%

-1% -1%


margin100% 99% 98% 100% 99% 94% 100% 99% 99% 100% 100%

1% 0%

Depreciation 38 39 37 39 45 46 46 45 43 44 16%

Wages 22 23 21 25 30 34 32 32 32 33 50%

Rent 14 11 13 15 15 15 15 15 16 14 18%

Interest 52 51 49 66 120 87 81 67 59 52 18%


Net margin -8 -9 -12 -11 -70 -117 -53 -30 -39 0 -136%

Net margin with coupled payments 3 -9 -12 -11 -70 -117 -53 -30 -39 0-288%






payments-66 -82 -80 -65 -122 -163 -97 -74 -80 -49

11%


economic margin- 3% 3% 7% 4% - 5% 5% 5% 11%

-


economic margin- 5% 5% 9% 5% - 5% 8% 7% 17%

-





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 139 317 152 253 189 946 237 996 250 945 210 825 262 000 290 961 287 093 303 872 83%




Depreciation 18 956 19 611 20 744 23 453 24 755 27 726 29 736 29 869 28 891 28 317 47%



Wages 10 886 11 683 11 649 15 462 16 697 20 512 21 232 21 399 21 788 21 357 89%

Rent 6 827 5 409 7 517 9 114 8 372 9 071 9 881 10 388 10 734 9 090 53%

Interest 25 167 25 677 26 957 38 858 65 894 52 179 53 114 44 134 39 454 33 442 50%


Farm net income (FNI) 6 016 14 793 20 750 23 878 -13 691 -43 295 -6 166 9 882 5 024 24 296 -6%




(RFL)-3 602 8 110 18 620 32 248 -29 860 -104 024 -22 145 12 359 2 886 32 993

109%


128115 108

134 140

64

120130

112143 173

0

50

100

150

200

250

300

350

400

450

Reve

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



323308 298

332

386

292

336

371358

404

319 317 310343

456409 390 401 396 404

3

-9 -12 -11

-70

-117

-53

-30-39

0

-140

-120

-100

-80

-60

-40

-20

0

20

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






323308 298

332

386

292

336

371358

404

389 391377

397

508

455433 445 438

453

-66

-82 -80

-65

-122

-163

-97

-74-80

-49

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



38 39 37 39 45 46 46 45 43 44

53 54 53

46

48

3737

3836

37

16 1915

8

4

87

55 12

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-200

-150

-100

-50

0

50

100

150

200

-150 000

-100 000

-50 000

0

50 000

100 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II DE

Germany Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 22%



Forage area - ha 42 43 44 45 45 51 52 52 52 52 21%

Dairy cows - LU 44 44 45 47 47 53 54 55 55 57 26%

Rented UAA - % 67% 67% 67% 67% 66% 68% 67% 66% 65% 64% -3%

Total labour - AWU 1.91 1.96 1.96 1.95 1.91 2.09 2.07 2.07 2.02 2.06 5%

Family labour - % 77% 75% 75% 75% 75% 70% 71% 69% 71% 68% -8%


Milk yield - kg/cow 6 844 6 937 7 153 7 136 7 241 7 406 7 547 7 632 7 514 7 674 7 881 9% 10%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 297 290 295 382 305 272 337 343 338 400 339 23% -11%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -

Total revenues from milk 308 290 295 382 305 272 337 343 338 400 336 21% -12%

Production costs

Feed 73 72 76 96 95 79 96 102 115 116 105 51% 10%

homegrown feed 27 28 30 35 34 27 35 33 37 37 34 28% -1%

purchased feed 46 44 47 61 60 52 61 69 78 80 71 65% 16%

Herd renewal purchases 2 2 2 3 3 3 3 3 3 3 3 43% 31%

Milk levy 2 1 0 2 0 0 0 0 0 2 2 -15% 38%


Specific costs 98 96 100 123 122 104 127 135 148 152 140 48% 14%



Contract work 14 14 15 18 18 17 18 18 19 21 20 35% 15%

Taxes 2 2 2 2 2 2 2 2 2 2 2 -8% -6%

Other direct inputs 29 30 29 29 27 25 27 28 26 29 29 -5% -2%



Gross margin 113 101 103 156 87 78 111 107 92 137 92 6% -41%


payments124 101 103 156 87 78 111 107 92 137 90

2% -43%


margin98% 96% 96% 99% 91% 91% 96% 95% 93% 97% 92%

-2% -7%


margin99% 98% 99% 100% 95% 96% 98% 97% 97% 98% 96%

-2% -4%

Depreciation 44 45 45 49 48 46 51 51 50 54 15%

Wages 16 19 18 19 18 20 20 21 19 23 17%

Rent 20 20 20 21 18 17 17 16 16 17 -16%

Interest 10 10 9 10 9 10 9 9 9 9 -6%

External factors 45 49 48 49 45 46 46 46 44 49 -2%

Net margin 24 7 10 58 -6 -14 14 10 -2 34 3%

Net margin with coupled payments 35 7 10 58 -6 -14 14 10 -2 34-19%






payments-40 -62 -60 -15 -67 -87 -44 -40 -50 -25

29%


economic margin13% 9% 9% 30% 9% 6% 18% 20% 14% 30%

105%


economic margin24% 17% 19% 48% 16% 12% 30% 31% 22% 45%

61%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 70 486 71 272 75 496 97 210 83 856 79 837 100 260 107 532 111 578 125 199 58%




Depreciation 11 151 11 133 11 521 12 495 12 922 13 335 15 103 15 638 15 980 16 685 43%



Wages 4 710 5 254 5 266 5 303 5 388 6 643 6 721 7 379 7 175 8 206 49%

Rent 4 986 4 891 4 987 5 213 4 933 5 015 5 066 5 210 5 397 5 575 9%

Interest 2 400 2 282 2 298 2 422 2 482 2 733 2 677 2 728 2 835 2 735 19%

Balance invest. subs. and taxes -631 -712 -806 -1 233 -1 198 -632 -1 123 -1 227 -1 117 -1 206 -65%





(RFL)11 768 15 999 17 617 30 998 14 282 8 307 24 205 26 715 24 052 30 944

80%


124

101 103

156

87 78

111 107 92

137

90

0

50

100

150

200

250

300

350

400

450

Re

ve

nu

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



308290 295

382

305

272

337 343 338

400

272 283 285324 311

286322 333 340

365

35

710

58

-6

-14

1410

-2

34

-20

-10

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






308290 295

382

305

272

337 343 338

400348 353 354

397

372359

381 383 388

424

-40

-62-60

-15

-67

-87

-44-40

-50

-25

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



44 45 45 49 48 46 51 51 50 54

5251 50

5348 43

43 43 44

45

23 18 2020

13 30 15 74

14

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II EL

Greece Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 15-<40 15-<40 15-<40 -

Farms represented 3 120 2 710 2 930 - - - - - - - -

% production from specialised farms 100% 100% 100% - - - - - - - -

Forage area - ha 2 3 4 - - - - - - - -

Dairy cows - LU 26 41 33 - - - - - - - -

Rented UAA - % 54% 63% 61% - - - - - - - -

Total labour - AWU 1.86 2.45 1.93 - - - - - - - -

Family labour - % 73% 68% 77% - - - - - - - -

Milk per ha fodder area - t/ha 39.5 45.8 35.9 - - - - - - - -

Milk yield - kg/cow 4 845 4 792 5 008 - - - - - - - -

Milk production - t 126 196 167 - - - - - - - -


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 336 332 325 - - - - - - - -

EU coupled payments (incl. Art.68) 7 14 21 - - - - - - - -

National aids 1 0 0 - - - - - - - -

Total revenues from milk 343 346 347 - - - - - - - -

Production costs -

Feed 161 150 243 - - - - - - - -

homegrown feed 21 16 23 - - - - - - - -

purchased feed 140 135 220 - - - - - - - -

Herd renewal purchases 0 0 1 - - - - - - - -

Milk levy 0 0 0 - - - - - - - -

Other specific costs 8 7 12 - - - - - - - -

Specific costs 169 157 256 - - - - - - - -

Machinery and building upkeep 2 1 3 - - - - - - - -

Energy (fuel, electricity) 7 7 10 - - - - - - - -

Contract work 7 6 9 - - - - - - - -

Taxes 0 0 4 - - - - - - - -

Other direct inputs 3 3 3 - - - - - - - -

Non specific costs 19 18 29 - - - - - - - -

Total operating costs 188 175 286 - - - - - - - -

Gross margin 148 157 39 - - - - - - - -


payments 155 171 61 - - - - - - - -


margin 94% 100% 77% - - - - - - - -

%milk production with positive

gross margin 99% 100% 71% - - - - - - - -

Depreciation 17 14 21 - - - - - - - -

Wages 10 11 10 - - - - - - - -

Rent 5 5 7 - - - - - - - -

Interest 1 0 1 - - - - - - - -

External factors 17 16 18 - - - - - - - -

Net margin 113 126 0 - - - - - - - -


payments 121 140 21 - - - - - - - -

Family labour costs 37 35 39 - - - - - - - -

Own capital unpaid cost 9 3 8 - - - - - - - -

Imputed family factors 45 38 48 - - - - - - - -

Net economic margin 68 88 -48 - - - - - - - -


coupled payments 75 102 -26 - - - - - - - -


economic margin 65% - - - - - - - - - -


economic margin 80% - - - - - - - - - -





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 31 529 36 432 44 618 - - - - - - - -

Intermediate consumptions 18 641 21 795 34 630 - - - - - - - -

Balance subsidies and taxes 6 151 7 413 8 368 - - - - - - - -

Decoupled payments 0 61 4 911 - - - - - - - -

Depreciation 1 874 1 808 2 804 - - - - - - - -

Farm Net Value Added (FNVA) 17 166 20 243 15 552

External factors 2 071 2 437 2 418 - - - - - - - -

Wages 1 260 1 678 1 230 - - - - - - - -

Rent 661 723 1 010 - - - - - - - -

Interest 150 36 178 - - - - - - - -

Balance invest. subs. and taxes 0 0 2 538 - - - - - - - -

Farm net income (FNI) 15 095 17 806 15 673 - - - - - - - -


Own capital unpaid cost 1 398 687 1 422 - - - - - - - -


(RFL) 19 269 25 429 19 035 - - - - - - - -

%spe.farms with positive RFL 94% - 91% - - - - - - - -

155 171

61

0

50

100

150

200

250

300

350

400

Reven

ue

s

Op

era

ting

co

sts

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ue

s

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era

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co

sts

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ue

s

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era

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co

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ue

s

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era

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co

sts

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ue

s

Op

era

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co

sts

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ue

s

Op

era

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co

sts

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ue

s

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era

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co

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ue

s

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era

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co

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ue

s

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co

sts

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ue

s

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co

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Reven

ue

s

Op

era

ting

co

sts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



343 346 347

0 0 0 0 0

223 206

325

0 0 0 0 0 0 0

121

140

21

0

20

40

60

80

100

120

140

160

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






343 346 347

0 0 0 0 0

268

244

373

75

102

-26

-40

-20

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



17 1421

3735

39

0

10

20

30

40

50

60

70

80

90

100

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

30 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II ES

Spain Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 500-<1000 1000-<2000 1000-<2000 1000-<2000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 -16%


% production from specialised farms 100% 99% 100% 100% 100% - 97% 97% 99% 98% -2%

Forage area - ha 15 16 17 17 16 21 19 21 22 24 41%

Dairy cows - LU 30 31 32 33 35 43 40 42 44 45 42%

Rented UAA - % 45% 41% 40% 38% 37% 43% 46% 47% 51% 46% 15%

Total labour - AWU 1.43 1.39 1.52 1.56 1.62 1.61 1.71 1.74 1.71 1.72 19%

Family labour - % 96% 96% 96% 95% 94% 93% 91% 89% 87% 87% -9%


Milk yield - kg/cow 6 018 6 159 6 560 6 830 6 873 6 934 6 862 7 530 7 213 7 102 7 335 17% 7%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 315 306 299 355 384 298 292 312 311 338 329 4% -7%

EU coupled payments (incl. Art.68) 11 22 1 0 0 0 2 3 4 6 6 -60% 1147%

National aids 0 1 0 0 0 0 0 0 0 0 0 -

Total revenues from milk 326 329 300 356 384 298 294 315 315 345 335 2% -6%

Production costs

Feed 104 105 100 112 136 119 129 138 163 168 129 52% 15%

homegrown feed 8 9 10 9 9 8 10 10 12 12 11 25% 17%

purchased feed 96 95 90 103 126 111 118 128 151 156 118 55% 15%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 121 123 120 136 166 147 158 166 192 193 153 51% 13%



Contract work 4 5 5 5 6 6 7 7 7 8 8 54% 46%

Taxes 0 0 0 0 0 0 0 0 0 1 1 94% 750%




Gross margin 164 153 148 186 177 112 92 103 70 94 125 -43% -32%


payments 175 175 149 186 177 112 95 105 75 101 132 -44% -29%


margin 99% 99% 98% 100% 97% 97% 96% 98% 90% 97% 99% -4% 0%


margin 99% 99% 100% 100% 98% 97% 97% 99% 92% 98% 100% -3% 0%

Depreciation 13 13 17 18 19 18 18 15 17 17 15%

Wages 3 2 4 5 5 6 9 8 10 10 212%

Rent 4 4 4 4 4 4 4 4 5 5 13%

Interest 1 1 1 2 2 2 2 2 2 1 14%


Net margin 143 132 123 158 148 82 60 74 37 62 -57%


payments 154 155 123 158 148 82 62 76 41 68 -57%




Net economic margin 58 64 52 70 55 -11 -30 -1 -39 -14 -131%


coupled payments 69 86 53 71 55 -11 -28 1 -34 -8 -120%


economic margin 55% 65% 68% 70% 61% 37% 23% 36% 19% 33% -53%


economic margin 75% 81% 79% 84% 75% 47% 40% 50% 28% 43% -49%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 51 443 56 887 55 730 65 447 71 899 71 539 61 271 72 737 75 404 79 395 39%



Decoupled payments 0 87 4 468 4 505 4 954 5 901 5 377 5 655 6 016 5 744 -

Depreciation 1 915 2 252 2 848 2 987 3 178 3 868 3 388 3 218 3 686 3 658 51%

Farm Net Value Added (FNVA) 27 045 31 712 29 607 35 587 35 444 31 233 23 627 28 616 22 641 26 665 -12%


Wages 498 442 639 855 880 1 328 1 710 1 824 2 373 2 170 303%

Rent 699 772 622 672 728 964 871 840 1 251 1 047 50%

Interest 212 190 224 283 287 354 294 322 379 316 63%

Balance invest. subs. and taxes -331 -60 161 -114 -30 109 205 82 -25 21 134%

Farm net income (FNI) 25 306 30 248 28 284 33 663 33 519 28 697 20 957 25 712 18 613 23 153 -20%




(RFL) 24 526 30 077 28 178 32 656 31 926 25 682 18 588 25 634 16 867 22 411 -22%


175175

149

186177

11295

10575

101 132

0

50

100

150

200

250

300

350

400

450

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



326 329

300

356

384

298 294315 315

345

172 174 176 198236 216 232 238

274 276

154 155

123

158148

82

62

76

41

68

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






326 329

300

356

384

298 294315 315

345

257243 247

285

328309

322 313

350 35369

86

53

71

55

-11

-28

1

-34

-8

-60

-40

-20

0

20

40

60

80

100

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



13 13 17 18 19 18 18 15 17 17

7463

6472

77 72 7063 58 61

11

67

1516 21 20

12 17 16

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II FR

France Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 -3%



Forage area - ha 57 57 58 61 62 66 70 71 70 71 24%

Dairy cows - LU 43 43 44 46 47 51 52 53 53 54 23%

Rented UAA - % 87% 88% 89% 90% 90% 91% 91% 91% 91% 92% 4%

Total labour - AWU 1.79 1.83 1.81 1.84 1.81 1.92 1.93 1.90 1.90 1.89 5%

Family labour - % 94% 93% 93% 92% 92% 91% 91% 91% 90% 89% -3%


Milk yield - kg/cow 6 285 6 528 6 433 6 559 6 580 6 539 6 799 7 099 6 962 6 911 7 284 9% 11%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 308 300 289 317 347 296 326 345 332 366 375 16% 19%

EU coupled payments (incl. Art.68) 12 22 0 0 0 0 1 1 2 2 2 -86% -78%

National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 81 75 79 86 100 96 91 100 111 118 106 40% 24%

homegrown feed 34 32 33 33 36 37 33 35 38 38 35 14% 6%

purchased feed 47 44 46 52 64 58 59 65 72 80 71 58% 36%

Herd renewal purchases 3 3 3 3 3 3 2 2 3 3 3 -6% -3%

Milk levy 1 0 0 0 0 0 0 0 0 0 0 -75% -91%


Specific costs 96 90 94 101 117 112 107 116 127 135 122 35% 21%



Contract work 25 25 27 27 29 29 28 29 32 35 33 25% 26%

Taxes 3 3 3 2 3 3 3 3 2 3 3 -3% 3%




Gross margin 121 116 97 117 121 81 115 118 93 110 139 -4% 18%


payments 132 138 97 117 121 81 116 120 95 112 140 -11% 20%


margin 99% 99% 96% 98% 98% 94% 98% 98% 95% 94% 97% -3% 0%


margin 99% 100% 98% 99% 99% 96% 99% 99% 97% 96% 99% -2% 0%

Depreciation 56 55 61 61 66 68 66 65 64 72 17%

Wages 4 4 5 5 5 6 5 6 6 7 45%

Rent 19 19 19 19 20 21 20 20 20 21 7%

Interest 10 10 10 10 11 12 12 11 11 11 10%


Net margin 32 28 2 21 19 -25 12 17 -8 -1 -87%


payments 43 50 2 21 19 -25 13 18 -6 1 -87%






coupled payments -28 -19 -72 -52 -51 -102 -53 -45 -69 -66 -52%


economic margin 18% 15% 5% 15% 16% 2% 13% 17% 7% 11% -8%


economic margin 24% 20% 6% 22% 21% 3% 17% 23% 10% 15% -4%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 70 578 71 535 71 555 84 019 91 701 80 968 94 746 106 514 107 042 112 339 53%




Depreciation 14 426 14 567 15 580 16 666 17 944 19 302 19 206 20 088 20 669 22 141 41%


0 0 0 0 0 0 0 0 0 0 -


Wages 1 019 1 204 1 285 1 365 1 417 1 710 1 673 1 820 2 072 2 262 75%

Rent 4 960 5 135 5 147 5 484 5 705 6 114 6 114 6 333 6 458 6 757 28%

Interest 2 634 2 643 2 580 2 868 3 135 3 407 3 390 3 440 3 399 3 410 30%

Balance invest. subs. and taxes 879 956 1 024 1 000 1 112 1 111 1 027 754 864 649 -21%



Own capital unpaid cost 1 052 882 1 232 2 102 707 3 420 800 581 365 891 -42%


(RFL) 16 240 18 327 17 295 22 370 21 852 5 946 25 536 27 448 21 942 19 637 33%


132 138

97117 121

81

116 12095

112 140

0

50

100

150

200

250

300

350

400

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sts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



320 322

289

317

347

296

328346

334

368

276 272 287 295328 321 315 328 340

367

43

50

2

2119

-25

1318

-6

1

-30

-20

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






320 322

289

317

347

296

328346

334

368

347 341361 368

398 397381 391

403

434

-28

-19

-72

-52 -51

-102

-53

-45

-69 -66

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



56 55 61 61 66 68 66 65 64 72

67 6669 66

67 6563 61 61

64

4 35 7

311

3 2 1

3

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II IE

Ireland Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -19%



Forage area - ha 50 51 52 56 55 58 59 57 57 56 12%

Dairy cows - LU 47 49 50 55 54 60 62 62 62 61 27%

Rented UAA - % 20% 21% 20% 21% 22% 23% 25% 23% 23% 22% 13%

Total labour - AWU 1.58 1.58 1.57 1.61 1.59 1.64 1.66 1.62 1.60 1.59 2%

Family labour - % 87% 88% 89% 88% 87% 87% 87% 86% 88% 88% -1%


Milk yield - kg/cow 5 313 5 238 5 422 5 410 5 281 5 108 5 435 5 461 5 235 5 369 5 357 1% -1%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 271 265 257 323 330 229 289 329 304 369 389 26% 20%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 66 67 74 78 97 84 83 90 107 128 118 57% 51%

homegrown feed 30 31 31 32 41 34 34 40 40 46 44 37% 37%

purchased feed 36 36 43 46 56 50 50 50 67 82 74 72% 61%


Milk levy 1 3 0 1 1 0 0 0 3 0 0 -46% -85%


Specific costs 98 101 105 113 133 118 117 127 146 164 155 44% 37%

Machinery and building upkeep 16 17 17 18 19 15 17 17 17 18 18 4% -2%


Contract work 12 13 13 15 15 14 14 15 14 17 17 18% 15%

Taxes 1 1 1 1 1 1 1 1 1 1 1 27% 37%




Gross margin 130 117 106 156 141 58 117 144 101 143 171 10% 9%


payments 141 117 106 156 141 59 118 145 102 144 172 7% 10%


margin 99% 99% 97% 100% 97% 85% 98% 98% 94% 96% 99% -2% -1%


margin 100% 99% 99% 100% 99% 94% 99% 100% 96% 99% 100% -1% 0%

Depreciation 34 35 39 45 50 29 35 27 34 36 -11%

Wages 9 10 10 11 12 11 11 12 10 10 13%

Rent 9 9 9 9 10 10 10 9 10 10 5%

Interest 6 6 7 8 10 8 7 7 6 6 0%


Net margin 72 56 42 84 59 1 53 89 41 81 24%


payments 82 56 42 84 59 1 54 90 42 82 19%

0 0 0 0 0 0 0 0 0 0 -








economic margin 21% 13% 7% 25% 14% - - 15% 8% 25% 17%


economic margin 31% 19% 14% 35% 22% - - 22% 12% 37% 12%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 60 730 60 482 62 398 78 990 85 694 67 124 83 509 97 681 94 195 108 129 63%




Depreciation 8 353 8 303 9 708 11 201 12 487 7 881 9 669 7 641 10 046 10 057 5%



Wages 2 146 2 299 2 345 2 660 2 785 2 828 3 055 3 263 2 901 2 806 32%

Rent 2 397 2 209 2 220 2 491 2 473 2 680 2 829 2 664 2 859 2 791 22%

Interest 1 489 1 490 1 609 1 996 2 443 2 108 1 962 1 973 1 739 1 628 16%

Balance invest. subs. and taxes -538 -794 -918 -847 -305 7 319 -147 -1 177 -1 410 -1 245 -70%





(RFL) 17 428 19 922 16 233 26 810 21 568 3 670 9 756 20 501 14 117 23 555 9%


141

117 106

156141

59

118145

102

144 172

0

50

100

150

200

250

300

350

400

450

Re

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



281265 257

323 330

229

291

330

305

370

199 208 215239

270228 237 240

263288

82

56

42

84

59

1

54

90

42

82

0

10

20

30

40

50

60

70

80

90

100

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






281265 257

323 330

229

291

330305

370306

321 328

357

389370

383 386 385

410

-25

-56

-71

-34

-60

-141

-92

-56

-79

-40

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013



34 35 39 45 5029 35 27 34 36

6978 80

7885

7174

7172 75

3835 34

3934

7072

7650 47

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-200

-150

-100

-50

0

50

100

150

200

0

10 000

20 000

30 000

40 000

50 000

60 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II IT

Italy Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 1000-<2000 500-<1000 500-<1000 500-<1000 500-<1000 -42%



Forage area - ha 24 25 26 19 20 21 22 23 23 21 -10%

Dairy cows - LU 42 42 45 40 37 43 44 45 45 45 5%

Rented UAA - % 56% 56% 58% 54% 61% 58% 61% 62% 62% 63% 10%

Total labour - AWU 2.05 2.07 2.16 2.04 1.73 1.84 1.94 2.03 1.94 1.94 -6%

Family labour - % 85% 86% 86% 87% 87% 82% 82% 80% 81% 81% -5%


Milk yield - kg/cow 6 565 6 875 6 781 6 724 6 512 6 394 6 760 6 924 6 923 6 738 6 886 2% 2%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 379 362 362 384 399 384 404 460 446 447 456 23% 19%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 138 124 109 124 113 114 115 133 143 144 135 13% 9%

homegrown feed 19 18 20 22 21 19 18 19 21 22 21 11% -6%

purchased feed 119 106 90 102 92 95 96 114 122 122 114 14% 12%

Herd renewal purchases 0 0 3 2 1 3 3 2 2 3 3 - 4%

Milk levy 2 1 0 0 0 0 0 0 0 0 0 -100% -


Specific costs 153 138 127 140 136 135 133 153 165 165 156 15% 11%



Contract work 4 4 4 4 3 4 3 4 4 6 5 20% 32%

Taxes 2 2 3 2 5 6 6 6 7 6 6 211% 134%




Gross margin 183 179 187 196 217 199 218 248 216 215 236 24% 20%


payments 194 200 187 196 217 199 221 250 218 218 238 18% 21%


margin 97% 98% 98% 99% 99% 98% 98% 98% 98% 94% 98% -1% -1%


margin 98% 99% 99% 100% 100% 99% 99% 99% 100% 98% 99% 0% -1%

Depreciation 39 41 39 41 40 39 36 38 38 39 -4%

Wages 14 14 15 14 13 18 18 21 20 22 44%

Rent 9 10 10 11 10 10 10 10 10 11 6%

Interest 2 2 2 2 1 1 1 1 1 1 -44%


Net margin 118 112 120 128 152 131 153 178 146 143 34%


payments 129 133 120 128 152 131 156 181 148 145 24%




Net economic margin 1 2 9 13 41 15 35 57 4 15 580%


coupled payments 12 23 9 13 41 15 38 60 6 17 92%


economic margin 28% 28% 29% 28% 33% 28% 30% 32% 29% 26% 3%


economic margin 59% 61% 61% 62% 72% 63% 69% 71% 62% 61% 7%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 73 142 72 183 73 469 75 591 81 411 82 605 88 024 97 766 99 844 97 449 35%


Balance subsidies and taxes 5 377 9 030 9 202 8 257 7 858 7 389 7 673 7 483 7 395 7 426 -6%


Depreciation 6 926 7 216 7 183 7 263 7 597 7 623 7 155 7 607 7 985 7 859 10%



Wages 2 499 2 515 2 677 2 371 2 487 3 481 3 600 4 068 4 050 4 293 61%

Rent 1 528 1 803 1 957 2 064 1 845 1 984 2 001 1 920 2 103 2 080 15%

Interest 334 291 384 359 165 183 189 168 260 258 -32%

Balance invest. subs. and taxes 330 555 785 529 124 447 1 082 124 122 19 -84%





(RFL) 25 353 30 726 33 044 32 361 39 996 35 858 42 949 48 119 36 114 37 832 37%


194 200 187196 217

199221

250218 218

238

0

50

100

150

200

250

300

350

400

450

500

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



390 383362

384399

384406

462448 449

261 250 242 255 247 253 250281 300 304

129 133

120128

152

131

156

181

148 145

0

20

40

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80

100

120

140

160

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200

0

50

100

150

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250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






390 383362

384399

384406

462448 449

378360 353

371358

369 368

402

442 432

12

23

9

13

41

15

38

60

6

17

0

10

20

30

40

50

60

70

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



39 41 39 41 40 39 36 38 38 39

96 92 90 90 98 86 9598 98 100

22 18 21 26 13 31 2322

44 29

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



0

50

100

150

200

250

300

0

10 000

20 000

30 000

40 000

50 000

60 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II LU

Luxembourg Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -9%

Farms represented 860 860 870 860 860 740 740 740 720 750 -15%


Forage area - ha 61 65 67 68 66 75 75 76 82 74 20%

Dairy cows - LU 39 40 40 42 42 49 51 53 55 55 36%

Rented UAA - % 48% 48% 49% 49% 48% 50% 49% 52% 53% 51% 8%

Total labour - AWU 1.68 1.69 1.66 1.70 1.63 1.78 1.80 1.82 1.92 1.82 11%

Family labour - % 93% 92% 93% 93% 93% 92% 91% 92% 89% 90% -3%


Milk yield - kg/cow 7 062 7 221 7 166 7 155 7 044 7 243 7 352 7 593 7 475 7 071 7 819 3% 9%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 317 304 297 351 374 264 293 326 309 358 368 8% 5%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Feed 66 60 62 65 74 70 72 83 90 97 84 43% 29%

homegrown feed 30 30 31 29 33 35 31 34 34 34 30 13% 5%

purchased feed 36 31 31 37 40 34 41 49 55 64 54 71% 48%


Milk levy 3 3 2 2 2 1 3 0 0 0 0 -92% -86%


Specific costs 87 82 83 88 100 93 95 107 114 121 105 35% 20%



Contract work 16 15 16 17 19 17 16 17 18 18 17 14% -2%

Taxes 1 1 1 1 2 1 1 1 1 1 1 -2% -21%


Non specific costs 77 81 83 87 96 82 89 92 92 95 85 16% -3%


Gross margin 152 141 130 176 178 89 109 128 104 142 178 -12% 1%


payments 163 141 130 176 178 89 109 128 104 142 177 -14% 1%


margin 99% 100% 98% 98% 95% 97% 97% 96% 95% 97% 100% -3% 1%


margin 100% 100% 99% 99% 99% 98% 99% 98% 98% 99% 100% -1% 0%

Depreciation 88 95 95 101 106 94 102 98 97 105 8%

Wages 5 5 5 5 5 5 6 6 7 7 37%

Rent 17 19 18 19 18 17 18 18 18 18 -2%

Interest 12 13 14 19 20 12 11 10 10 12 -18%


Net margin 29 9 -2 33 29 -40 -29 -3 -29 0 -187%


payments 40 9 -2 33 29 -40 -29 -3 -29 0 -168%








economic margin 24% 14% 8% 15% 18% - - 9% - 8% -47%


economic margin 33% 21% 12% 25% 27% - - 12% - 13% -43%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 78 880 84 269 118 700 103 152 110 010 92 101 96 548 114 823 112 824 121 906 24%




Depreciation 24 381 26 692 28 084 29 358 31 195 32 641 33 305 34 689 35 685 36 297 35%



Wages 1 423 1 385 1 451 1 500 1 504 1 859 2 162 2 059 2 636 2 592 71%

Rent 4 833 5 117 5 389 5 484 5 455 6 021 5 897 6 133 6 556 6 133 23%

Interest 3 430 3 634 4 098 5 611 5 765 3 984 3 659 3 474 3 806 4 156 2%

Balance invest. subs. and taxes 997 2 826 2 796 4 115 3 147 4 865 4 539 2 635 26 1 484 -37%



Own capital unpaid cost 2 185 849 3 876 7 434 3 803 18 824 4 786 1 646 1 459 3 903 1%


(RFL) 21 558 28 087 25 144 32 161 31 547 -1 016 18 876 36 656 23 182 28 957 19%


163

141 130

176 178

89109

128104

142 177

0

50

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



327304 297

351374

264

293

326309

358

287 295 298319

345304 322 330 337

358

40

9

-2

3329

-40

-29

-3

-29

0

-50

-40

-30

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






327304 297

351374

264

293

326309

358

356 358373

409428 418

402 398 403

439

-29

-55

-77

-58-53

-154

-109

-71

-94

-80

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



88 95 95 101 106 94 102 98 97 105

6161 63

6770

6467

64 6270

8 312

24 1250 13

4 4

10

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-200

-150

-100

-50

0

50

100

150

200

-10 000

0

10 000

20 000

30 000

40 000

50 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II NL

Netherlands Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 6%



Forage area - ha 40 40 42 44 44 48 48 49 49 49 21%

Dairy cows - LU 65 66 68 71 73 80 81 81 83 84 25%

Rented UAA - % 38% 37% 37% 38% 37% 38% 42% 43% 40% 38% 9%

Total labour - AWU 1.61 1.58 1.59 1.63 1.66 1.69 1.70 1.73 1.72 1.74 9%

Family labour - % 94% 94% 94% 93% 92% 92% 91% 89% 90% 88% -5%


Milk yield - kg/cow 7 472 7 569 7 768 7 782 7 815 7 898 8 032 8 023 7 951 7 900 7 836 5% 1%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 313 308 301 358 367 282 351 394 372 431 451 30% 26%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 65 61 64 74 95 79 79 99 108 116 108 70% 47%

homegrown feed 13 14 12 12 16 15 13 16 16 16 16 23% 32%

purchased feed 52 47 52 61 79 64 66 83 92 99 92 82% 50%


Milk levy 2 1 1 2 3 2 2 1 0 5 6 160% 202%


Specific costs 89 84 90 103 130 111 112 132 143 155 148 64% 43%



Contract work 20 20 19 20 21 20 21 23 23 25 26 22% 28%

Taxes 1 1 1 1 0 0 1 1 1 1 1 -28% 20%




Gross margin 144 141 128 169 145 88 151 168 133 177 204 16% 20%


payments 155 164 162 169 145 88 153 168 133 177 198 -1% 17%


margin 99% 100% 100% 99% 99% 95% 99% 100% 99% 99% 100% 0% 1%


margin 100% 100% 100% 100% 99% 97% 99% 100% 99% 100% 100% 0% 0%

Depreciation 38 39 40 41 45 48 51 53 53 54 37%

Wages 4 4 4 4 5 5 5 6 6 6 62%

Rent 16 14 14 15 15 14 17 17 16 18 15%

Interest 34 33 37 42 46 41 41 42 39 37 15%


Net margin 52 52 33 68 34 -21 37 49 19 61 -6%


payments 64 75 67 68 34 -21 39 49 19 61 -37%

0 0 0 0 0 0 0 0 0 0 -








economic margin 18% 21% 13% 34% 14% 4% 18% 26% 15% 35% 44%


economic margin 27% 30% 20% 44% 20% 6% 26% 36% 21% 44% 32%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 119 084 125 119 125 551 150 754 152 740 130 300 163 655 181 806 178 297 201 294 52%




Depreciation 14 700 15 812 16 659 17 326 19 087 22 426 24 167 24 816 25 475 25 377 60%



Wages 1 504 1 493 1 603 1 835 2 027 2 391 2 370 2 916 2 946 3 315 99%

Rent 6 307 5 856 5 724 6 197 6 251 6 770 7 841 8 016 7 683 8 334 34%

Interest 12 915 13 279 14 892 17 641 19 176 19 177 19 229 19 532 18 706 17 184 35%

Balance invest. subs. and taxes -1 444 -594 -1 471 -1 541 -1 683 -768 -606 -996 -508 107 60%





(RFL) 10 387 23 101 23 805 35 505 20 286 -5 321 19 401 33 871 24 561 39 374 71%


155 164 162 169145

88

153168

133

177198

0

50

100

150

200

250

300

350

400

450

500

Re

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



325 331 334358 367

282

353

394372

431

261 256 268 290332

302 314345 353 370

64

75

67 68

34

-21

39

49

19

61

-40

-20

0

20

40

60

80

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






325 331 334358 367

282

353

394372

431376354 362

385

433

399424

436 435462

-52

-24-28 -27

-66

-118

-71

-42

-64

-30

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013



38 39 40 41 45 48 51 53 53 54

80 7476 72

8071

72 7169 69

35

25 18 23

2126

38 1914

23

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II AT

Austria Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 -3%

Farms represented 24 410 27 230 27 970 27 510 29 540 25 280 28 180 27 760 28 090 27 810 5%


Forage area - ha 27 28 28 26 26 28 26 26 28 28 -1%

Dairy cows - LU 16 16 16 16 15 17 16 16 16 17 3%

Rented UAA - % 27% 26% 24% 26% 26% 25% 25% 25% 25% 26% -2%

Total labour - AWU 1.70 1.70 1.67 1.62 1.60 1.65 1.58 1.54 1.56 1.59 -7%

Family labour - % 98% 98% 98% 98% 98% 98% 98% 97% 98% 97% 0%


Milk yield - kg/cow 6 254 6 204 6 371 6 452 6 581 6 396 6 372 6 606 6 730 6 692 6 786 6% 5%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 290 289 293 330 388 294 313 349 339 365 371 21% 12%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 70 66 68 80 89 78 80 92 95 106 102 44% 27%

homegrown feed 27 27 27 33 33 29 30 31 32 34 32 19% -3%

purchased feed 43 39 41 47 57 49 50 61 64 73 70 60% 48%


Milk levy 0 0 0 6 6 2 0 1 8 6 6 - 8%


Specific costs 91 88 91 109 123 105 107 121 133 143 138 47% 28%



Contract work 12 13 13 13 18 14 15 16 16 17 17 27% 27%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -34% -53%




Gross margin 114 106 107 124 150 88 99 118 94 105 117 -3% -6%


payments 124 126 137 124 150 88 106 123 100 110 116 -14% -6%


margin 97% 97% 98% 91% 96% 87% 89% 88% 84% 88% 89% -11% -2%


margin 99% 99% 99% 96% 98% 93% 96% 97% 93% 95% 95% -4% -1%

Depreciation 82 87 89 76 85 87 88 88 91 97 7%

Wages 2 2 2 2 2 2 2 2 2 2 6%

Rent 6 6 6 6 7 7 7 7 7 8 13%

Interest 8 8 7 9 13 9 7 7 7 6 -15%


Net margin 17 2 2 32 43 -17 -4 14 -12 -9 -130%


payments 27 22 32 32 43 -17 2 19 -7 -3 -88%








economic margin 2% - - 5% 7% - 1% 6% 2% 2% 62%


economic margin 4% - - 12% 16% - 3% 15% 5% 7% 117%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 29 412 29 646 32 027 36 593 40 152 33 845 36 012 41 699 41 839 43 916 40%




Depreciation 8 986 8 927 9 587 8 639 9 029 10 278 10 245 10 699 11 493 11 969 24%



Wages 209 197 239 210 224 281 289 246 235 296 20%

Rent 644 651 678 690 729 768 760 789 832 904 28%

Interest 807 806 767 946 1 314 1 052 778 770 840 722 -2%

Balance invest. subs. and taxes -952 -849 -607 -1 312 -77 -208 138 1 410 894 903 233%





(RFL) 7 945 10 384 10 581 12 183 15 743 3 899 10 997 17 135 13 094 13 312 51%


124 126137 124

150

88106

123100 110

116

0

50

100

150

200

250

300

350

400

450

Reven

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



300 309322 330

388

294320

354 344370

273 287 290 299345

311 318 335 351373

27

22

32 32

43

-17

2

19

-7-3

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






300 309 322 330

388

294320

354 344370

434456 468 457

519 518498

477

515

548

-133-147 -146

-126 -131

-224

-178

-123

-171-178

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



82 87 89 76 85 87 88 88 91 97

113131 126

113

138 129 136 128146

153

47

38 51

45

3678

44

15

1822

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-250

-200

-150

-100

-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II PT

Portugal Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -6%



Forage area - ha 14 14 16 15 16 16 18 17 18 17 21%

Dairy cows - LU 23 22 23 26 24 27 29 30 29 28 27%

Rented UAA - % 44% 41% 39% 46% 39% 40% 41% 42% 38% 41% -3%

Total labour - AWU 1.77 1.81 1.74 1.94 1.75 1.71 1.82 1.74 1.77 1.74 -1%

Family labour - % 91% 91% 89% 84% 85% 86% 86% 86% 84% 83% -6%


Milk yield - kg/cow 6 131 6 439 6 417 6 812 6 784 7 032 7 183 7 246 7 419 7 202 7 928 15% 16%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 286 277 264 307 345 280 273 293 290 309 298 8% -3%


National aids 10 0 5 3 8 8 16 16 16 18 15 228% 373%


Production costs

Feed 106 104 101 118 136 116 118 132 142 144 126 34% 7%

homegrown feed 21 19 19 20 24 21 20 22 22 23 21 16% 2%

purchased feed 86 84 82 98 112 95 98 109 119 120 105 38% 7%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 130 128 126 151 162 143 144 158 168 168 150 29% 0%

Machinery and building upkeep 13 14 13 14 13 12 13 12 13 13 12 -5% -11%


Contract work 3 2 4 3 4 5 4 4 4 5 4 51% 23%

Taxes 1 1 1 2 2 1 2 1 1 2 1 74% -33%



Total operating costs 168 169 168 195 208 185 188 202 215 218 192 26% -1%

Gross margin 119 108 96 112 137 95 85 91 75 91 106 -20% -6%


payments 140 130 135 124 154 113 106 111 96 112 125 -21% 1%


margin 99% 98% 99% 95% 99% 91% 98% 93% 98% 96% 99% -3% 4%


margin 99% 99% 99% 100% 100% 99% 99% 98% 99% 99% 100% -1% 0%

Depreciation 30 30 33 32 27 25 23 23 22 24 -26%

Wages 6 7 6 10 9 8 9 8 10 11 50%

Rent 7 6 7 6 6 6 6 6 5 6 -17%

Interest 3 2 2 4 2 3 2 2 2 1 -24%


Net margin 74 63 48 61 92 53 45 53 37 49 -25%


payments 94 85 87 73 109 71 66 73 58 70 -25%

0 0 0 0 0 0 0 0 0 0 -




Net economic margin 1 1 -10 2 32 -12 -17 -17 -34 -23 -848%


coupled payments 22 23 29 14 49 6 4 3 -13 -3 -117%


economic margin 36% 34% 31% 38% 44% 32% 28% 29% 22% 27% -23%


economic margin 65% 59% 54% 62% 73% 48% 40% 48% 34% 42% -31%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 29 753 28 033 29 671 34 966 40 408 39 683 40 572 46 230 47 502 46 177 60%



Decoupled payments 0 645 839 2 725 2 761 3 028 3 145 3 127 3 316 3 172 -

Depreciation 2 874 2 690 3 363 3 426 3 002 3 256 3 121 3 294 3 215 3 282 10%



Wages 596 619 619 1 009 992 1 002 1 170 1 121 1 425 1 477 119%

Rent 663 612 706 633 711 829 852 829 748 832 22%

Interest 240 160 158 350 257 313 232 256 253 147 17%

Balance invest. subs. and taxes 112 232 238 166 177 205 401 913 1 212 866 413%



Own capital unpaid cost 835 762 774 1 142 1 326 2 863 2 393 4 020 4 775 3 944 437%


(RFL) 9 965 9 750 11 125 12 125 15 599 12 115 12 999 13 355 12 114 13 069 25%


140130

135 124154

113 106111

96112

125

0

50

100

150

200

250

300

350

400

Re

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



307 299 303319

362

298 294313 311

330

213 214 216246 254

227 228 241 253 260

94

85 87

73

109

7166

73

58

70

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






307 299 303319

362

298 294313 311

330285276 274

305314

292 290310

324 333

22 23

29

14

49

64 3

-13

-3

-20

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013



30 30 33 32 27 25 23 23 22 24

6555 52 50

5047 47 46 45

49

7

7 6 99 19

15 24 2723

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-40

-20

0

20

40

60

80

100

120

140

160

180

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II FI

Finland Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -10%



Forage area - ha 26 27 29 31 31 35 38 40 38 38 42%

Dairy cows - LU 21 22 23 25 25 29 30 31 29 29 36%

Rented UAA - % 36% 36% 35% 35% 34% 36% 36% 36% 35% 35% -1%

Total labour - AWU 2.09 2.07 2.08 2.06 1.98 2.10 2.06 2.05 2.02 2.04 -2%

Family labour - % 91% 91% 91% 90% 90% 88% 86% 85% 86% 84% -6%


Milk yield - kg/cow 8 143 8 220 8 354 8 602 8 472 8 544 8 572 8 711 8 647 8 683 8 918 5% 4%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 353 328 336 360 438 390 376 411 436 441 426 27% 18%


National aids 101 83 79 78 80 80 82 79 80 80 78 -9% 1%


Production costs

Feed 105 104 103 109 125 116 107 126 140 147 130 32% 19%

homegrown feed 31 32 31 35 38 37 33 40 46 45 41 40% 17%

purchased feed 75 73 72 74 87 79 74 86 94 102 89 29% 20%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 138 137 136 142 159 153 144 163 181 187 168 29% 18%



Contract work 15 16 20 24 30 30 32 36 38 41 40 120% 68%

Taxes 0 0 0 0 0 0 0 0 0 0 0 - -




Gross margin 93 67 65 83 121 86 78 80 75 63 72 -3% -13%


payments 206 172 143 160 201 166 162 162 159 146 153 -10% -4%


margin99% 97% 94% 95% 94% 91% 92% 95% 91% 89% 91%

-5% -4%


margin100% 98% 97% 97% 98% 96% 97% 98% 96% 95% 97%

-2% -1%

Depreciation 91 93 101 104 119 112 109 108 104 107 12%

Wages 12 12 12 13 14 18 18 21 19 22 72%

Rent 9 9 9 10 11 11 11 11 12 11 25%

Interest 11 11 13 18 20 16 13 14 13 12 11%


Net margin -31 -58 -71 -63 -43 -71 -73 -73 -73 -89 -48%


payments 82 47 7 15 36 9 12 9 10 -6 -91%








economic margin- - - - - - - - - -

-



-





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 35 726 34 690 38 008 46 564 56 359 55 929 58 232 66 338 79 833 78 333 107%




Depreciation 9 826 10 384 11 581 13 436 15 520 16 246 16 819 17 407 16 209 16 080 56%



Wages 1 286 1 322 1 380 1 694 1 838 2 574 2 890 3 397 2 974 3 306 143%

Rent 1 042 1 067 1 164 1 422 1 539 1 709 1 829 1 941 2 005 1 750 74%

Interest 1 149 1 247 1 513 2 280 2 611 2 335 1 969 2 227 2 073 1 841 57%

Balance invest. subs. and taxes 90 266 368 652 842 961 1 016 1 027 788 843 267%





(RFL)12 568 12 449 10 549 14 287 19 341 15 019 19 555 19 746 23 221 18 756

74%


206

172143

160201

166 162 162 159146

153

0

100

200

300

400

500

600

Re

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



466433

414438

518

470 460493

519 524

384 386 407 423481 461 448

484 509 531

82

47

7

15

36

9 129 10

-6

-20

-10

0

10

20

30

40

50

60

70

80

90

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






466433

414438

518

470 460493

519 524

611 595625 635

704676

648 663686

716

-145

-162

-210-197

-186

-206

-188

-170 -167

-192

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

800

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013



91 93 101 104 119 112 109 108 104 107

191 182188 177

196180

170 159 167 174

3627

30 35

2635

2920 10

12

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-250

-200

-150

-100

-50

0

50

100

150

200

250

0

5 000

10 000

15 000

20 000

25 000

30 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II SE

Sweden

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 6%



Forage area - ha 70 69 72 70 71 83 78 87 90 91 27%

Dairy cows - LU 43 43 45 52 54 66 58 63 65 66 48%

Rented UAA - % 55% 58% 59% 59% 59% 59% 59% 61% 61% 59% 5%

Total labour - AWU 2.01 1.99 2.00 2.15 2.10 2.29 2.14 2.25 2.26 2.24 13%

Family labour - % 80% 80% 79% 76% 76% 72% 74% 73% 73% 73% -8%


Milk yield - kg/cow 7 954 7 686 8 406 8 361 8 436 8 099 8 357 8 543 8 566 8 619 8 855 7% 6%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 331 324 294 322 359 272 356 386 372 410 400 23% 24%


National aids 0 0 0 0 0 0 0 0 8 8 8 - -


Production costs

Feed 102 96 92 107 128 103 105 130 139 143 133 42% 24%

homegrown feed 25 23 21 26 32 26 23 31 32 34 33 41% 23%

purchased feed 77 73 72 81 96 78 83 99 107 109 100 43% 24%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 126 121 117 132 153 134 144 171 183 185 174 48% 32%



Contract work 30 34 33 36 35 19 23 25 26 26 25 -21% -29%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -




Gross margin 110 96 76 89 101 57 109 103 78 109 113 3% 27%


payments 122 112 99 89 101 57 109 109 87 119 122 -5% 37%


margin93% 91% 88% 90% 93% 80% 89% 89% 84% 91% 92% -3% 3%


margin98% 97% 98% 96% 95% 91% 95% 94% 93% 98% 98% -3% 2%

Depreciation 63 68 63 47 41 41 50 55 58 58 -12%

Wages 25 26 26 25 25 27 29 31 32 32 24%

Rent 11 12 12 12 11 11 14 15 16 16 33%

Interest 17 16 15 17 21 15 15 23 25 24 49%


Net margin -6 -26 -40 -13 3 -37 1 -21 -53 -20 -31%


payments 6 -9 -17 -13 3 -37 1 -14 -44 -11 -229%






coupled payments -138 -158 -148 -130 -103 -127 -106 -122 -155 -133 8%


economic margin- - - - 6% - 5% - - - -


economic margin- - - - 11% - 12% - - - -



Sweden


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 85 539 84 597 86 198 102 733 116 894 98 343 121 864 146 513 158 412 168 846 85%




Depreciation 16 161 15 976 16 602 13 962 12 676 13 387 15 752 18 412 20 355 20 109 21%



Wages 6 618 6 397 6 903 7 520 7 828 8 742 9 107 10 134 11 336 11 158 64%

Rent 3 018 3 014 3 298 3 860 3 563 3 738 4 392 5 137 5 501 5 611 74%

Interest 4 206 3 607 4 018 5 039 6 404 4 892 4 576 7 555 8 733 8 132 106%

Balance invest. subs. and taxes 0 120 40 0 0 340 0 0 0 0 -100%





(RFL)3 705 11 010 9 493 18 545 30 862 6 549 25 044 23 280 10 035 19 707 119%


122112 99 89 101

57

109 10987

119

122

0

50

100

150

200

250

300

350

400

450

Re

ve

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s

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tin

g c

osts

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s

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tin

g c

osts

Re

ve

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tin

g c

osts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



343 341317 322

359

273

356

392 381

419

337 350 334 335 356309

355407 425 430

6

-9

-17

-13

3

-37

1

-14

-44

-11

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t





Sweden

343 341317 322

359

273

356

392 381

419

481499

464 453 463

399

462

515537

552

-138

-158

-148

-130

-103

-127

-106

-122

-155

-133

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013



63 68 6347 41 41 50 55 58 58

125132

118

109104

85

101

102108 110

1816

13

93

5

7

64 11

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II UK

United Kingdom Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 500-<1000 -12%



Forage area - ha 79 85 86 94 92 101 99 101 103 104 23%

Dairy cows - LU 93 94 98 112 109 116 117 119 122 123 28%

Rented UAA - % 39% 40% 38% 41% 39% 43% 44% 40% 41% 41% 5%

Total labour - AWU 2.29 2.36 2.29 2.50 2.47 2.58 2.55 2.58 2.68 2.66 14%

Family labour - % 68% 67% 68% 65% 66% 63% 64% 63% 61% 61% -8%


Milk yield - kg/cow 6 814 6 979 6 909 7 066 7 013 7 013 7 425 7 432 7 215 7 341 7 666 6% 8%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 268 267 261 315 311 262 286 315 341 373 390 29% 24%


National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 75 75 83 97 107 95 99 109 137 138 117 65% 21%

homegrown feed 20 20 20 22 24 22 22 24 28 27 23 30% 5%

purchased feed 54 56 63 74 83 72 78 85 109 112 93 77% 25%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 -100% -


Specific costs 103 105 114 130 138 126 133 144 177 177 154 55% 19%

Machinery and building upkeep 16 16 16 17 17 16 15 10 10 10 10 -37% -42%


Contract work 12 13 14 15 16 14 14 15 16 18 18 23% 17%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -18% -9%




Gross margin 108 102 85 121 109 79 96 116 103 133 174 19% 45%


payments 119 102 85 121 109 79 96 116 103 133 174 15% 45%


margin98% 98% 96% 99% 98% 94% 98% 99% 95% 98% 99%

0% -1%


margin99% 99% 98% 100% 99% 97% 99% 100% 98% 100% 100%

0% 0%

Depreciation 26 26 28 28 29 27 30 31 37 37 30%

Wages 20 22 21 22 20 20 20 21 25 24 11%

Rent 12 10 9 9 8 8 8 8 9 9 -16%

Interest 9 10 10 11 9 5 5 6 7 7 -32%


Net margin 41 34 17 50 44 19 33 50 26 56 43%

Net margin with coupled payments51 34 17 50 44 19 33 50 26 56 29%




Net economic margin -29 -32 -47 -12 -7 -29 -12 8 -21 9 96%


payments -19 -32 -47 -12 -7 -29 -12 8 -21 9 95%


economic margin22% 18% 11% 31% 37% 19% 28% 49% 27% 48%

144%


economic margin34% 29% 18% 46% 48% 33% 42% 64% 40% 63%

105%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 98 037 97 526 102 673 128 923 130 408 117 216 135 174 147 195 153 600 168 640 57%




Depreciation 9 813 9 598 11 117 11 445 11 286 11 469 13 259 13 805 15 606 15 874 48%



Wages 7 822 8 251 8 168 9 181 8 148 8 663 8 888 9 348 10 546 10 168 24%

Rent 4 443 3 562 3 458 3 865 3 023 3 210 3 536 3 385 3 703 3 821 -5%

Interest 3 507 3 578 3 856 4 478 3 360 2 082 2 085 2 653 2 846 3 106 -21%

Balance invest. subs. and taxes 313 347 514 637 589 1 430 535 877 1 134 896 148%





(RFL)19 336 27 565 21 971 40 411 37 313 26 954 37 948 51 226 34 188 49 542

96%


119102

85

121109

7996

116 103133 174

0

50

100

150

200

250

300

350

400

450

Re

ve

nu

es

Ope

ratin

g c

osts

Re

ve

nu

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g c

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Re

ve

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Re

ve

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Re

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osts

Re

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Re

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osts

Re

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osts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



278267 261

315 311

262

286

315

341

373

226 233 244265 267

243 253 265

315 317

51

34

17

50

44

19

33

50

26

56

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






278267 261

315 311

262

286

315

341

373

297 299309

328318

291 298307

362 364

-19

-32

-47

-12

-7

-29

-12

8

-21

9

-60

-50

-40

-30

-20

-10

0

10

20

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



26 26 28 28 29 27 30 31 37 37

48 51 51 4843

37 38 38

42 40

22 15 14 15

9

10 8 5

5 7

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-60

-40

-20

0

20

40

60

80

100

120

140

160

0

10 000

20 000

30 000

40 000

50 000

60 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II CZ

Czech Republic Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -11%



Forage area - ha 186 193 192 209 217 234 250 252 243 258 32%

Dairy cows - LU 94 106 100 108 113 127 136 138 133 139 37%

Rented UAA - % 92% 93% 91% 90% 90% 89% 90% 89% 88% 87% -4%

Total labour - AWU 12.94 13.70 12.73 13.97 13.89 15.10 16.56 15.99 15.33 15.84 20%

Family labour - % 12% 11% 11% 10% 9% 8% 8% 9% 9% 9% -21%


Milk yield - kg/cow 5 835 6 033 6 089 6 288 6 402 6 479 6 621 6 814 7 113 7 073 7 340 17% 17%

Milk production - t 548 639 609 677 721 825 899 942 946 982 1 019 60% 51%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 251 275 276 301 331 241 294 335 310 333 334 22% 11%

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0 0 0 0 0 - -

National aids 0 0 0 0 0 0 14 14 8 8 7 - -


Production costs

Feed 79 86 86 102 111 93 101 112 110 116 106 34% 4%

homegrown feed 41 46 41 43 52 46 48 54 54 57 53 28% 23%

purchased feed 38 40 45 59 59 47 54 59 56 59 53 41% -11%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 97 104 107 124 136 116 125 138 137 142 132 35% 7%



Contract work 9 11 13 14 16 11 12 11 9 9 9 -12% -35%

Taxes 1 1 1 1 1 1 1 1 1 1 1 -57% -62%




Gross margin 76 85 75 72 72 29 56 74 61 67 82 -14% 14%


payments 76 85 75 72 72 29 70 88 69 74 89 -2% 24%


margin94% 94% 91% 93% 90% 72% 87% 94% 85% 92% 94%

-3% 1%


margin97% 98% 94% 95% 91% 74% 92% 96% 93% 90% 93%

-3% -1%

Depreciation 22 25 28 32 37 34 38 38 36 43 54%

Wages 63 72 73 83 95 79 95 96 89 93 34%

Rent 4 6 6 7 8 8 10 10 9 11 86%

Interest 3 3 4 4 6 5 6 6 6 7 81%


Net margin -16 -22 -36 -55 -75 -97 -94 -76 -78 -86 -227%

Net margin with coupled payments-16 -22 -36 -55 -75 -97 -80 -62 -71 -79 -188%






payments -38 -43 -57 -73 -87 -133 -108 -83 -84 -95 -90%


economic margin16% 14% 10% 12% 8% - - 9% 10% 10%

-26%


economic margin17% 18% 11% 9% 5% - - 5% 7% 4%

-65%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 24 596 27 154 27 861 32 246 37 936 30 151 35 613 44 242 43 422 45 271 67%



Decoupled payments 1 386 1 818 2 293 2 648 3 507 3 947 4 595 5 517 5 966 6 581 228%

Depreciation 1 969 2 320 2 715 3 041 3 742 3 685 3 980 4 402 4 509 5 286 102%



Wages 5 728 6 858 7 185 8 122 9 965 8 790 10 188 11 330 11 262 11 592 73%

Rent 390 544 568 667 885 848 1 098 1 209 1 153 1 374 147%

Interest 309 311 375 407 616 533 645 710 748 876 135%


Farm net income (FNI) 2 617 2 284 2 592 3 758 2 275 256 2 550 5 219 3 808 4 406 81%


Own capital unpaid cost 3 610 4 092 3 856 3 069 30 16 952 12 198 5 519 98 2 511 -31%


(RFL)8 058 10 289 13 210 17 256 16 479 7 484 13 946 21 673 19 247 19 744

93%


76 85 75

29

7088

69

74

89

0

50

100

150

200

250

300

350

400

Re

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Revenues

Opera

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2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t


Price EU coupled payments (incl. Art.68) National aids

Feed Other specific costs Non specific costs

Gross margin with coupled payments

251275 276

301

331

241

309

348

317341

267297 311

356

406

338

388410

388419

-16-22

-36

-55

-75

-97

-80

-62

-71

-79

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t




0500

EUR/t






251275 276

301

331

241

309

348

317341288

318332

374

419

374

417431

401

435

-38-43

-57

-73

-87

-133

-108

-83 -84

-95

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

22 25 28 32 37 34 38 38 36 43

12

1212

12

13

11

11 1313

12

1010

9

6

0

26

17 8

0

4

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-150

-100

-50

0

50

100

0

5 000

10 000

15 000

20 000

25 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II EE

Estonia Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 -15%



Forage area - ha 137 134 135 146 145 173 169 178 202 178 37%

Dairy cows - LU 48 51 54 61 61 78 77 81 92 90 71%

Rented UAA - % 70% 68% 68% 66% 61% 62% 64% 64% 64% 63% -7%

Total labour - AWU 5.62 5.79 5.94 5.91 5.52 6.51 5.55 5.79 6.07 5.73 1%

Family labour - % 30% 29% 28% 26% 26% 21% 21% 19% 16% 17% -41%


Milk yield - kg/cow 5 741 6 146 6 670 6 798 7 288 7 308 7 330 7 445 7 777 8 026 8 573 25% 26%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 236 244 237 265 282 207 269 313 294 330 320 31% 21%


National aids 0 0 15 0 0 0 2 2 2 2 2 - -


Production costs

Feed 75 81 89 98 109 80 93 114 119 129 109 48% 12%

homegrown feed 41 44 47 50 58 49 45 50 54 57 49 22% -2%

purchased feed 34 38 41 48 51 31 48 64 65 72 60 78% 26%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 89 96 104 114 129 96 114 136 142 153 133 49% 17%



Contract work 6 11 9 9 12 6 13 15 15 15 15 80% 67%

Taxes 0 1 1 0 0 0 0 0 0 1 0 -30% 170%




Gross margin 97 84 70 91 81 56 80 92 66 85 100 -4% 10%


payments 97 84 85 91 81 56 82 94 68 87 101 -7% 12%


margin97% 86% 91% 83% 80% 77% 92% 84% 80% 84% 89%

-9% 7%


margin98% 98% 98% 94% 91% 95% 97% 96% 90% 93% 99%

-5% 5%

Depreciation 23 22 27 29 37 37 38 40 38 41 68%

Wages 42 47 52 53 62 56 58 61 59 64 30%

Rent 1 2 2 2 3 3 5 5 5 6 194%

Interest 3 4 7 9 13 14 8 9 8 7 69%


Net margin 28 9 -17 -3 -33 -54 -29 -23 -44 -33 -603%


payments 28 9 -3 -3 -33 -54 -27 -21 -42 -31 -372%




Net economic margin 4 -11 -38 -22 -54 -86 -49 -38 -57 -48 -217%


coupled payments 4 -11 -23 -22 -54 -86 -47 -36 -55 -46 -349%


economic margin25% 21% 11% 18% 9% - 9% 12% 9% 11%

-44%


economic margin70% 44% 20% 42% 17% - 12% 24% 16% 18%

-57%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 20 292 22 766 24 603 34 454 39 731 34 556 45 381 54 829 63 301 69 993 178%



Decoupled payments 890 1 120 1 458 1 883 2 467 3 004 3 823 4 286 4 869 5 157 313%

Depreciation 1 912 1 891 2 473 3 419 4 716 5 121 5 546 6 325 7 025 7 692 235%



Wages 3 377 3 990 4 736 6 132 7 777 7 712 8 361 9 490 11 146 12 039 170%

Rent 119 147 219 290 336 465 687 724 904 1 256 494%

Interest 236 358 635 1 037 1 682 1 934 1 247 1 398 1 450 1 320 239%

Balance invest. subs. and taxes 822 396 296 398 2 403 1 761 1 200 2 204 3 080 1 819 369%



Own capital unpaid cost 1 207 80 181 66 10 11 247 3 383 368 1 089 2 473 168%


(RFL) 9 701 8 570 7 509 14 980 16 176 4 610 14 685 19 350 20 366 17 546 122%


9784 85

5682

94

68

87101

0

50

100

150

200

250

300

350

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

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s

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g c

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Re

ve

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tin

g c

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Re

ve

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Re

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2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t





236 244 252265

282

207

271

315296

332

208235

255 268

315

261297

337 338363

28

9

-3 -3

-33

-54

-27-21

-42

-31

-60

-50

-40

-30

-20

-10

0

10

20

30

40

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







236 244 252265

282

207

271

315296

332

232

255275

287

336

293

318

351 351

3784

-11

-23 -22

-54

-86

-47

-36

-55

-46

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



23 22 27 2937 37 38 40 38 41

1920

2019

2115 15

1412

13

50

10

0 17 50

12

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





EU Dairy farms based on 2013 FADN data Annex II HU

Hungary Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 100-<200 40-<100 100-<200 100-<200 -19%



Forage area - ha 33 46 40 76 54 40 62 92 50 44 56%

Dairy cows - LU 29 45 34 71 52 32 55 76 40 36 40%

Rented UAA - % 76% 85% 78% 88% 85% 75% 85% 89% 83% 81% 5%

Total labour - AWU 2.96 5.21 3.41 7.23 5.31 2.98 5.02 7.11 3.55 3.38 21%

Family labour - % 26% 15% 22% 12% 18% 32% 19% 15% 24% 28% 5%


Milk yield - kg/cow 6 107 6 446 6 412 6 934 6 750 6 556 7 127 7 199 7 148 6 749 7 001 11% 1%

Milk production - t 175 289 218 490 349 209 395 544 282 243 252 57% -49%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 257 280 245 292 335 231 265 309 305 332 343 21% 17%


National aids 7 17 30 0 0 0 16 28 21 26 25 42% -


Production costs

Feed 111 79 89 100 118 106 116 146 156 154 132 64% 31%

homegrown feed 31 36 30 43 42 36 33 45 54 50 45 53% 3%

purchased feed 80 43 58 57 76 70 82 101 102 104 87 69% 52%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 131 106 107 168 170 121 134 170 189 189 166 59% -2%



Contract work 10 6 9 9 12 10 9 8 7 9 9 -4% 4%

Taxes 3 3 3 3 3 2 2 4 2 4 3 9% 34%




Gross margin 48 77 63 41 64 34 43 40 32 41 80 -40% 95%


payments 54 94 93 41 64 34 59 68 52 67 105 -22% 157%


margin81% 71% 95% 84% 89% 66% 58% 81% 78% 77% 90%

-5% 7%


margin90% 98% 98% 94% 89% 80% 87% 87% 75% 86% 99%

-13% 4%

Depreciation 23 28 24 22 24 21 25 29 26 31 15%

Wages 45 66 53 63 66 51 56 61 56 66 12%

Rent 6 11 9 12 13 10 16 18 15 18 98%

Interest 12 13 9 10 12 8 7 11 9 8 -18%


Net margin -38 -39 -32 -66 -51 -57 -60 -78 -74 -81 -114%


payments -31 -23 -2 -66 -51 -57 -45 -50 -53 -55 -182%








economic margin34% 28% 14% 21% 23% - 8% 19% 15% 10%

-43%


economic margin18% 16% 18% 8% 20% - 20% 8% 15% 9%

-39%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 29 876 32 968 30 503 44 779 46 376 31 325 40 325 51 095 49 690 46 341 58%




Depreciation 2 614 3 063 2 808 3 187 3 079 2 569 3 483 4 447 3 865 3 948 45%



Wages 5 173 7 382 5 825 9 242 8 671 5 995 7 627 9 120 8 403 8 455 41%

Rent 725 1 194 951 1 599 1 602 1 253 2 172 2 660 2 339 2 303 154%

Interest 1 338 1 408 1 017 1 540 1 616 886 994 1 600 1 395 999 6%






(RFL) 9 718 8 932 6 629 11 520 9 140 5 471 13 450 21 029 16 515 12 019 96%


54

94 93

3459

6852

67 105

0

50

100

150

200

250

300

350

400

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

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s

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tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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tin

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osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

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tin

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osts

2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t



264

297275

292

335

231

280

337326

358

295320

277

358386

288325

387 379414

-31

-23

-2

-66

-51

-57

-45

-50-53

-55

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







264

297275

292

335

231

280

337326

358313332

306

367

404

322343

404 400

451

-50

-35-31

-74-69

-91

-63-67

-74

-92

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

500

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



23 28 24 22 24 21 25 29 26 31

15

9

128

14

1911

9

14

21

4

3

16 1

4

15 7

86

16

0

20

40

60

80

100

120

140

160

180

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-150

-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





EU Dairy farms based on 2013 FADN data Annex II LT

Lithuania Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 14%



Forage area - ha 17 18 16 21 22 24 23 22 25 27 46%

Dairy cows - LU 8 8 7 10 11 14 12 11 12 13 57%

Rented UAA - % 50% 55% 48% 53% 52% 60% 55% 51% 51% 49% -2%

Total labour - AWU 1.57 1.89 1.80 1.88 1.82 2.01 1.87 1.81 1.82 1.94 6%

Family labour - % 95% 87% 92% 85% 85% 75% 81% 81% 83% 80% -11%


Milk yield - kg/cow 4 577 4 657 4 838 5 134 5 103 5 406 5 437 5 482 5 519 5 665 5 933 18% 16%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 168 195 192 241 241 195 247 276 256 305 276 51% 15%


National aids 8 11 12 0 0 0 0 0 0 0 0 -100% -


Production costs

Feed 50 54 56 59 66 65 64 71 70 80 73 38% 24%

homegrown feed 39 41 38 37 41 44 41 41 46 48 44 14% 17%

purchased feed 11 13 18 21 25 22 23 30 23 32 29 106% 37%

Herd renewal purchases 4 2 4 3 2 1 1 1 2 3 3 -45% 3%

Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 60 62 65 69 74 74 73 86 86 99 95 45% 38%



Contract work 2 4 2 3 2 1 1 1 1 1 1 -45% -54%

Taxes 0 0 0 0 0 1 0 0 0 0 0 360% 500%




Gross margin 74 89 81 123 112 75 119 130 111 141 120 56% -2%


payments 82 101 93 123 112 75 119 130 111 141 120 38% -2%


margin100% 99% 97% 100% 95% 91% 94% 94% 91% 91% 89%

-7% -11%


margin96% 99% 99% 100% 98% 97% 98% 98% 97% 98% 97%

0% -3%

Depreciation 16 28 28 31 38 39 49 53 60 62 148%

Wages 3 9 7 12 15 20 16 17 13 19 157%

Rent 2 3 4 4 4 5 5 5 5 7 92%

Interest 1 1 2 5 6 7 4 4 4 4 169%


Net margin 52 49 40 71 48 4 45 50 29 49 -10%


payments 60 60 52 71 48 4 45 50 29 49 -26%








economic margin16% 19% 11% 21% 13% 2% 10% 13% 11% 12%

-22%


economic margin34% 40% 28% 55% 45% 6% 44% 48% 43% 46%

35%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 8 369 7 717 7 467 12 773 14 870 14 937 16 114 17 752 18 685 21 026 144%



Decoupled payments 551 573 704 952 1 330 1 715 1 927 2 047 2 427 2 728 294%

Depreciation 663 1 024 959 1 554 2 104 2 512 2 840 3 055 3 773 3 744 300%


External factors 294 505 490 1 065 1 539 2 230 1 493 1 566 1 495 1 943 288%

Wages 139 369 288 640 939 1 462 952 1 026 875 1 290 301%

Rent 104 100 137 199 265 333 309 312 352 441 224%

Interest 51 36 65 225 334 435 232 229 268 212 367%

Balance invest. subs. and taxes 75 876 931 620 864 1 737 1 681 1 099 1 964 468 88%



Own capital unpaid cost 542 270 193 53 3 3 988 1 718 582 887 1 375 183%


(RFL) 3 669 4 675 4 087 7 023 7 578 3 886 7 483 7 576 7 865 6 911 80%


82101 93

75

119130

111

141120

0

50

100

150

200

250

300

350

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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tin

g c

osts

Re

ve

nue

s

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osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

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g c

osts

2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t





176

207 203

241 241

195

247

276

256

305

115147 152

170193 191 202

227 227256

60 60

52

71

48

4

45

50

29

49

0

10

20

30

40

50

60

70

80

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







176

207 203

241 241

195

247

276256

305

190

227242 248

281298 301 309 313

359

-14-20

-38

-7

-40

-103

-54

-32

-57-54

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



1628 28 31 38 39 49 53 60 62

63

7485

77

8962

75 75 74

85

12

65 1

0 4524 8 11

18

0

50

100

150

200

250

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





EU Dairy farms based on 2013 FADN data Annex II LV

Latvia Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 23%



Forage area - ha 34 32 34 39 41 42 40 42 39 41 23%

Dairy cows - LU 12 11 12 14 15 16 15 16 15 16 33%

Rented UAA - % 34% 36% 38% 42% 41% 44% 43% 44% 44% 45% 24%

Total labour - AWU 2.17 2.19 2.30 2.28 2.22 2.13 2.08 2.18 2.13 2.14 -3%

Family labour - % 78% 77% 75% 71% 68% 67% 72% 69% 72% 69% -9%


Milk yield - kg/cow 4 592 4 807 4 981 5 234 5 253 5 374 5 556 5 585 5 799 5 857 6 190 20% 18%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 189 225 229 263 263 182 236 279 267 289 277 30% 5%


National aids 27 18 32 8 11 30 12 14 23 24 22 -21% 165%


Production costs

Feed 64 69 76 92 94 73 81 97 104 111 99 49% 7%

homegrown feed 45 46 47 52 50 42 43 46 49 53 46 8% -11%

purchased feed 19 23 30 40 44 31 38 51 54 58 52 127% 31%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 77 86 94 111 115 89 99 116 124 134 121 45% 8%



Contract work 5 5 5 6 7 6 6 6 6 6 5 10% -18%

Taxes 0 0 0 0 0 0 0 0 0 0 0 120% 54%




Gross margin 47 70 62 73 60 22 54 69 51 57 64 -1% -12%


payments 74 88 94 82 71 51 66 83 74 81 87 -7% 6%


margin94% 95% 89% 87% 81% 82% 84% 80% 76% 78% 83%

-16% -5%


margin96% 95% 95% 92% 87% 89% 92% 91% 91% 89% 92%

-5% 0%

Depreciation 18 25 33 42 47 44 42 45 43 46 75%

Wages 12 15 19 22 29 26 25 29 27 32 89%

Rent 1 1 2 2 2 2 2 3 3 3 103%

Interest 3 4 5 8 10 7 5 6 5 4 25%


Net margin 12 24 3 -1 -28 -58 -20 -13 -26 -29 -273%


payments 39 42 35 8 -17 -28 -8 1 -3 -5 -106%








economic margin12% 23% 7% 7% 5% - 1% 4% 3% 3%

-78%


economic margin30% 39% 20% 22% 17% - 4% 20% 14% 13%

-48%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 9 160 10 375 11 370 14 773 15 849 13 984 16 015 18 991 19 609 21 379 94%




Depreciation 765 1 029 1 380 2 064 2 455 2 735 2 431 2 684 2 690 2 957 162%


External factors 644 790 1 161 1 663 2 265 2 259 1 883 2 348 2 287 2 713 183%

Wages 483 587 865 1 177 1 657 1 669 1 453 1 817 1 812 2 184 200%

Rent 51 55 81 89 114 137 149 185 180 242 225%

Interest 110 148 215 397 495 454 281 346 294 287 96%

Balance invest. subs. and taxes 299 818 759 1 276 1 016 469 410 1 516 0 0 -19%



Own capital unpaid cost 42 10 14 7 2 2 659 3 205 567 706 1 351 3906%


(RFL)4 197 5 373 6 783 7 598 6 725 3 090 3 725 6 507 4 844 4 816

-1%


74 8894

51 6683

74

81 87

0

50

100

150

200

250

300

350

Re

ve

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Re

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Re

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Re

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s

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Re

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s

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Re

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nue

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Re

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s

Opera

tin

g c

osts

Re

ve

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s

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tin

g c

osts

2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t





215

243261

272 275

212

248

294 289

313

176201

226264

291

240256

293 292318

3942

35

8

-17

-28

-8

1-3

-5

-40

-30

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







215

243261

272 275

212

248

294 289313

230

267

297

335

376

333

363373 377

412

-15

-24

-36

-63

-101

-121-115

-79

-87

-98

-140

-120

-100

-80

-60

-40

-20

0

0

50

100

150

200

250

300

350

400

450

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



18 25 3342 47 44 42 45 43 46

53

66

71

71

85

65 6874 77

79

1

0

0

0

0

28 38 6 8

14

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-150

-100

-50

0

50

100

150

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





EU Dairy farms based on 2013 FADN data Annex II MT

Malta Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 40-<100 65%



Forage area - ha 4 4 4 5 5 5 4 4 4 4 -9%

Dairy cows - LU 56 56 58 67 71 63 60 56 58 54 -1%

Rented UAA - % 87% 85% 86% 84% 85% 84% 85% 86% 85% 86% 0%

Total labour - AWU 2.22 2.18 2.40 2.58 2.54 2.49 2.49 2.36 2.31 2.42 4%

Family labour - % 92% 94% 89% 90% 85% 84% 87% 86% 84% 83% -8%


Milk yield - kg/cow 5 140 5 614 5 619 5 783 5 839 5 564 6 198 6 664 7 052 6 619 6 738 24% 17%

Milk production - t 287 314 324 387 417 349 369 371 406 359 365 23% -6%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 354 331 334 358 449 436 406 463 478 498 497 41% 39%


National aids 0 32 39 34 19 17 7 0 0 0 0 - -


Production costs

Feed 213 217 223 248 278 283 272 304 308 317 282 42% 14%

homegrown feed 4 3 4 4 3 5 2 2 2 3 3 -36% -21%

purchased feed 209 214 219 244 274 278 270 302 307 314 280 44% 15%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 222 227 245 265 295 297 291 328 329 336 301 43% 14%



Contract work 2 2 2 2 2 2 2 2 2 2 2 -6% -1%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -86% -70%

Other direct inputs 6 5 7 5 5 5 6 5 6 7 7 -1% 47%



Gross margin 94 70 50 48 101 82 59 77 89 102 138 25% 187%


payments 94 109 101 82 120 99 67 77 89 102 138 -12% 69%


margin91% 92% 91% 85% 91% 79% 69% 83% 83% 90% 95%

-7% 12%


margin96% 93% 96% 91% 92% 85% 77% 84% 86% 95% 97%

-7% 7%

Depreciation 14 12 12 15 16 35 21 21 22 23 71%

Wages 4 3 5 7 11 12 10 10 10 12 153%

Rent 4 7 3 1 1 1 1 1 1 2 -67%

Interest 2 2 1 4 4 7 6 6 5 6 211%


Net margin 70 45 29 21 69 27 21 39 51 60 4%

Net margin with coupled payments70 84 80 54 88 44 29 39 51 60 -36%




Net economic margin -11 -27 -44 -75 11 -67 -63 -43 -11 -22 7%


payments -11 12 7 -41 30 -50 -56 -43 -11 -22 -982%


economic margin36% - 25% - 40% - 21% 24% 32% 34%

-1%


economic margin49% - 33% - 60% - 37% 40% 50% 47%

11%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 61 269 65 967 64 862 71 425 97 837 78 435 75 113 89 761 101 022 91 321 47%




Depreciation 2 429 2 371 2 221 2 892 3 347 5 677 3 831 3 924 4 461 3 951 76%

Farm Net Value Added (FNVA) 18 592 20 928 19 369 22 747 32 464 15 367 11 489 15 587 16 854 14 971 -19%


Wages 892 705 1 226 1 355 2 149 2 064 1 734 1 916 2 095 2 149 118%

Rent 630 1 226 555 274 190 196 224 262 270 376 -62%

Interest 317 459 268 694 755 1 238 1 087 1 146 1 045 941 200%

Balance invest. subs. and taxes 0 0 0 0 1 699 0 8 617 4 501 2 868 1 969 -

Farm net income (FNI) 16 753 18 537 17 320 20 423 31 069 11 869 17 061 16 764 16 312 13 474 -12%




(RFL)14 290 16 017 16 054 15 240 32 739 7 389 15 190 14 672 16 575 9 767

-12%


94 109 101 99

6777 89

102138

0

100

200

300

400

500

600

Re

ve

nu

es

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era

tin

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Re

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2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t





354371

386 391

468453

414

463478

498

284 287 305337

379409 385 424 427 437

70

8480

54

88

44

29

39

51

60

0

10

20

30

40

50

60

70

80

90

100

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







354371

386 391

468453

414

463478

498

365 358379

433 438

503

470

507489

520

-11

127

-41

30

-50-56

-43

-11

-22

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



14 12 12 15 16

3521 21 22 23

64 57 5960 57

67

63 6153 52

1715 14

36

1

27

22 21

9

30

0

20

40

60

80

100

120

140

160

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II PL

Poland Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 2000-<3000 1%



Forage area - ha 7 9 10 11 11 11 12 13 13 13 46%

Dairy cows - LU 13 12 12 13 13 14 15 16 16 16 31%

Rented UAA - % 25% 24% 26% 27% 31% 29% 29% 29% 28% 29% 14%

Total labour - AWU 1.81 1.77 1.79 1.82 1.84 1.82 1.82 1.91 1.88 1.88 6%

Family labour - % 96% 97% 96% 95% 93% 95% 94% 94% 96% 95% -1%

Milk per ha fodder area - t/ha 8.0 6.0 6.1 6.2 6.4 6.4 6.3 6.5 6.8 6.6 -2%

Milk yield - kg/cow 4 793 4 875 4 956 5 043 5 145 5 173 5 232 5 319 5 483 5 358 5 868 11% 16%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 199 228 237 279 289 206 260 286 276 307 319 31% 14%


National aids 0 0 0 0 0 0 1 1 1 1 1 2140% -


Production costs

Feed 58 64 69 88 100 70 81 96 101 103 90 58% 3%

homegrown feed 36 42 44 55 61 43 47 55 58 59 52 40% -6%

purchased feed 22 21 25 33 39 27 34 41 43 44 39 90% 18%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 70 77 84 104 117 83 95 111 116 120 106 50% 2%



Contract work 6 6 5 6 8 6 7 6 6 7 7 19% 19%

Taxes 0 0 0 0 0 0 0 0 0 0 0 20% 17%




Gross margin 96 109 109 129 114 77 113 122 106 128 160 13% 24%


payments 97 109 109 129 114 77 114 123 107 130 162 14% 25%


margin97% 97% 96% 97% 92% 89% 97% 96% 91% 95% 98%

-3% 1%


margin99% 99% 99% 99% 97% 96% 99% 99% 97% 98% 99%

-1% 1%

Depreciation 27 32 34 35 44 39 41 39 40 48 36%

Wages 2 3 4 5 9 5 7 6 4 5 64%

Rent 1 2 2 2 3 2 3 3 3 3 95%

Interest 2 2 2 3 3 3 3 3 4 4 64%


Net margin 64 70 67 85 56 27 60 71 56 69 -3%


payments 64 70 67 85 56 27 61 72 57 70 -2%




Net economic margin 3 -7 -19 -2 -46 -67 -49 -20 -33 -52 -345%


coupled payments 3 -7 -19 -2 -46 -67 -48 -20 -32 -51 -334%


economic margin32% 27% 23% 29% 16% 8% 12% 22% 19% 15%

-32%


economic margin60% 56% 47% 58% 39% 24% 34% 47% 43% 36%

-23%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 10 729 11 382 13 191 16 668 17 625 12 915 17 005 20 596 20 248 21 106 75%




Depreciation 1 552 1 682 1 911 2 140 2 682 2 395 2 688 2 855 2 942 3 347 78%



Wages 140 150 229 308 608 359 473 481 361 388 137%

Rent 71 78 103 144 175 138 172 210 216 234 162%

Interest 114 97 113 145 185 182 199 207 259 253 122%

Balance invest. subs. and taxes -96 -212 -368 -173 -14 -2 111 37 67 156 138%





(RFL) 3 142 3 341 4 214 6 276 5 221 3 212 5 928 8 168 7 105 6 184 101%


97 109 109

77

114123

107

130

162

0

50

100

150

200

250

300

350

Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

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era

tin

g c

osts

Reve

nue

s

Op

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tin

g c

osts

Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

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era

tin

g c

osts

Reve

nue

s

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Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

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era

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osts

2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t



199

228237

279289

206

261

287277

308

135158 170

194

233

179201 215 220

239

64

7067

85

56

27

61

72

57

70

0

10

20

30

40

50

60

70

80

90

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t






199

228237

279289

206

261

287277

308

196

236256

281

335

273

309 306 309

3593

-7

-19

-2

-46

-67

-48

-20

-32

-51

-80

-70

-60

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



27 32 34 35 44 39 41 39 40 48

40

53 5662

82

7479

71 73

85

21

2531

25

20

20

29

21 16

35

0

20

40

60

80

100

120

140

160

180

200

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-100

-50

0

50

100

150

0

2 000

4 000

6 000

8 000

10 000

12 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





EU Dairy farms based on 2013 FADN data Annex II SK

Slovakia Milk specialised farms

e: estimate


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 40-<100 40-<100 100-<200 40-<100 40-<100 40-<100 100-<200 40-<100 40-<100 40-<100 -19%



Forage area - ha 577 732 811 785 773 633 820 788 768 792 11%

Dairy cows - LU 181 196 207 212 217 189 232 217 216 240 15%

Rented UAA - % 98% 98% 99% 99% 98% 98% 97% 98% 97% 97% -1%

Total labour - AWU 36.05 36.46 37.20 35.60 37.33 27.09 33.09 29.57 29.58 33.87 -15%

Family labour - % 2% 2% 2% 3% 2% 5% 2% 2% 2% 1% 13%


Milk yield - kg/cow 5 272 5 592 5 373 5 852 5 858 5 770 5 618 5 732 6 164 6 318 6 530 12% 12%

Milk production - t 955 1 096 1 113 1 238 1 271 1 088 1 303 1 242 1 334 1 519 1 570 29% 27%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 229 246 258 301 312 224 286 334 315 338 330 35% 10%


National aids 0 0 0 0 0 0 11 13 14 15 15 -


Production costs

Feed 68 69 90 116 143 111 126 153 150 156 146 103% 26%

homegrown feed 32 31 50 62 76 62 74 95 83 80 76 127% 22%

purchased feed 36 38 39 54 68 50 52 58 68 76 70 78% 31%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -

Other specific costs 53 39 21 20 22 28 27 29 25 23 23 -31% 20%

Specific costs 123 111 114 139 166 143 163 190 191 186 176 63% 27%



Contract work 13 19 18 14 17 19 19 29 29 27 26 72% 89%

Taxes 2 2 1 2 2 1 2 1 2 2 2 -2% 53%




Gross margin 34 46 31 76 13 -56 -40 -14 -26 17 28 -121% -63%


payments 34 46 31 76 13 -56 -29 -1 -12 32 43 -83% -43%


margin74% 80% 77% 88% 59% 40% 46% 52% 44% 62% 70%

-32% -20%


margin74% 83% 77% 95% 63% 25% 36% 48% 42% 72% 77%

-31% -19%

Depreciation 71 64 153 132 58 74 94 77 59 56 -34%

Wages 56 77 100 97 110 109 130 120 114 124 53%

Rent 7 9 10 6 7 8 10 10 10 11 18%

Interest 4 3 6 7 9 10 11 10 9 6 104%


Net margin -105 -107 -238 -166 -171 -258 -285 -230 -218 -180 -40%


payments -105 -107 -238 -166 -171 -258 -275 -217 -203 -165 -30%









-



-





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 13 189 16 648 17 036 24 128 24 506 20 333 24 141 33 253 31 995 34 339 112%




Depreciation 3 921 4 281 9 169 9 900 4 076 5 980 6 712 6 526 5 195 4 806 -5%

Farm Net Value Added (FNVA) 456 4 433 -1 291 4 445 6 048 1 438 4 375 7 499 6 587 9 909 567%


Wages 3 084 5 141 5 885 7 287 7 830 8 672 9 182 9 959 10 088 10 574 117%

Rent 363 562 552 452 508 672 725 853 873 1 020 86%

Interest 193 165 340 523 649 794 757 855 813 519 213%

Balance invest. subs. and taxes 0 0 609 494 776 1 233 1 587 1 479 124 213 -

Farm net income (FNI) -3 185 -1 435 -7 461 -3 323 -2 163 -7 467 -4 702 -2 689 -5 062 -1 990 19%




(RFL) 7 016 -2 072 -1 715 72 6 980 2 217 16 486 7 376 -44 -24 799 -641%

%spe.farms with positive RFL 50% 47% 34% 54% 49% - 38% 37% 27% 38% -23%

34 46 31-56 -29 -1 -12

3243

-100

-50

0

50

100

150

200

250

300

350

400

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

Re

ve

nue

s

Opera

tin

g c

osts

2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t



229246 258

301 312

224

297

347329

353

334 353

497 467 483 483

571 564532 519

-105 -107

-238

-166 -171

-258-275

-217-203

-165

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







229246 258

301 312

224

297

347329

353

335363

499 490 487 497

583 568537 525

-107-116

-241

-190-175

-272-286

-221-207

-172

-350

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



71 64

153132

5874

9477

59 56

22

2

3

3

5

3

3

3 2

0

8

121

1

9

9

1

15

0

50

100

150

200

250

300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-350

-300

-250

-200

-150

-100

-50

0

50

100

-30 000

-25 000

-20 000

-15 000

-10 000

-5 000

0

5 000

10 000

15 000

20 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





EU Dairy farms based on 2013 FADN data Annex II SI

Slovenia Milk specialised farms

e: estimate



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 100-<200 -2%



Forage area - ha 13 13 12 13 11 14 16 16 14 15 24%

Dairy cows - LU 13 14 13 13 12 16 18 19 16 16 32%

Rented UAA - % 37% 39% 39% 40% 38% 43% 44% 43% 41% 43% 9%

Total labour - AWU 2.15 2.08 2.05 1.92 1.84 2.01 2.10 2.14 1.88 1.89 -6%

Family labour - % 99% 99% 98% 98% 99% 99% 99% 99% 99% 98% 0%


Milk yield - kg/cow 5 239 5 251 5 057 5 469 5 247 5 368 5 427 5 519 5 484 5 280 5 533 5% 1%



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Revenues

Price 257 255 269 277 321 263 271 310 309 328 340 21% 23%

EU coupled payments (incl. Art.68) 10 19 36 0 0 0 5 6 5 5 5 -75%

National aids 0 0 0 0 0 0 0 0 0 0 0 - -


Production costs

Feed 74 67 73 73 94 84 80 100 103 115 97 48% 32%

homegrown feed 16 20 21 19 26 28 25 31 35 37 32 79% 63%

purchased feed 58 47 52 54 68 57 55 69 68 78 65 37% 21%


Milk levy 0 0 0 0 0 0 0 0 0 0 0 - -


Specific costs 98 92 97 97 119 109 104 125 131 143 124 39% 28%



Contract work 4 4 5 5 7 6 6 8 7 8 8 85% 66%

Taxes 0 0 0 0 0 0 0 0 0 0 0 -100% -




Gross margin 100 107 106 117 119 84 89 103 94 98 131 -6% 13%


payments 110 126 141 117 119 84 94 109 99 103 136 -18% 17%


margin96% 92% 97% 94% 95% 86% 92% 91% 95% 88% 93%

-4% -1%


margin98% 97% 99% 98% 97% 96% 97% 97% 96% 95% 98%

-2% 0%

Depreciation 74 74 78 72 82 78 82 82 87 99 19%

Wages 1 1 2 2 2 2 1 2 2 2 3%

Rent 2 3 4 4 5 5 6 6 6 7 96%

Interest 4 3 4 2 3 2 2 2 3 2 -30%


Net margin 19 25 18 37 27 -3 -3 12 -3 -13 -108%


payments 29 44 53 37 27 -3 3 17 2 -8 -91%








economic margin6% 6% 4% 11% 8% - 2% 6% 2% -

-25%


economic margin16% 19% 14% 28% 28% - 8% 15% 6% -

-36%





2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e

Three

years

average

trend*

Trend

2014/

2007

Total output 11 145 11 898 11 706 20 454 21 125 22 566 24 678 28 866 27 578 27 748 142%




Depreciation 3 507 3 732 3 551 4 027 4 120 4 990 5 473 5 831 6 016 6 651 71%



Wages 68 71 99 96 78 105 88 103 117 128 46%

Rent 103 149 175 219 252 338 401 394 381 476 193%

Interest 176 145 158 119 140 134 144 163 190 168 9%

Balance invest. subs. and taxes 1 788 458 -128 110 415 191 1 136 1 126 816 410 11%



Own capital unpaid cost 880 1 199 1 176 935 70 3 477 2 171 3 361 3 506 4 870 260%


(RFL) 3 662 3 032 2 283 5 601 5 728 1 835 5 059 4 905 3 576 1 395 10%


110 126141

84 94109 99

103

136

0

50

100

150

200

250

300

350

400

Re

ve

nu

es

Op

era

tin

g c

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Re

ve

nu

es

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tin

g c

osts

Re

ve

nu

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Re

ve

nu

es

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tin

g c

osts

Re

ve

nu

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tin

g c

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Re

ve

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es

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tin

g c

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Re

ve

nu

es

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Re

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nu

es

Op

era

tin

g c

osts

Re

ve

nu

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Op

era

tin

g c

osts

2004 2005 2006 2009 2010 2011 2012 2013 2014e

EUR/t



267 274

305

277

321

263276

315 314334

238 230252 240

293266 273

298 312342

29

44

53

37

27

-3

3

17

2

-8

-20

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t







267 274305

277

321

263276

315 314334

368 362

405

363

413435

418 427

466

531

-101-88

-100

-86-93

-173

-142

-112

-151

-197

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



74 74 78 72 82 78 82 82 87 99

112 109129

107119 116 113

84104

118

18 23

25

161

5332

46

50

71

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II BG

Bulgaria Milk specialised farmsMilk specialised farmsMilk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Sample farms 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 200-<500 -10%


% production from specialised farms 98% 98% 97% 93% 89% 98% 93% -5%

Forage area - ha 3 5 9 8 8 7 8 38%

Dairy cows - LU 7 9 13 12 13 13 14 34%

Rented UAA - % 63% 72% 79% 81% 82% 84% 80% 15%

Total labour - AWU 1.83 2.00 2.31 2.13 2.17 2.11 2.22 6%

Family labour - % 80% 68% 61% 64% 67% 64% 63% -7%


Milk yield - kg/cow 3 852 3 780 3 584 3 154 3 137 3 010 3 188 3 178 -17% -18%



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Revenues

Price 254 276 245 270 311 304 323 329 21% 29%


National aids 4 19 10 7 10 23 24 24 74% 580%


Production costs

Feed 104 116 107 124 147 153 147 133 37% 28%

homegrown feed 27 25 25 25 38 36 42 38 51% 44%

purchased feed 77 91 82 99 109 117 105 95 32% 23%

Herd renewal purchases 1 2 0 1 2 3 1 1 137% 105%

Milk levy 0 0 0 0 0 0 0 0 - -

Other specific costs 9 10 11 10 11 11 9 9 3% -1%

Specific costs 114 127 119 136 160 167 158 144 35% 26%



Contract work 10 9 11 6 8 7 7 7 -25% -30%

Taxes 0 0 1 1 1 2 2 2 201% 1387%




Gross margin 102 100 68 84 93 70 92 112 -5% 10%


payments 106 119 78 91 103 94 116 136 3% 29%


margin96% 81% 75% 83% 84% 82% 79% 81%

-2% -16%


margin96% 89% 85% 90% 91% 84% 88% 91%

-3% -6%

Depreciation 15 16 17 18 22 26 27 58%

Wages 15 26 29 33 32 36 36 49%

Rent 4 5 6 7 9 12 14 130%

Interest 2 5 5 4 6 7 7 69%


Net margin 67 47 11 22 25 -10 6 -83%


payments 70 67 22 29 35 13 31 -50%






coupled payments 2 6 -44 -48 -53 -71 -60 -404%


economic margin41% 35% 12% 14% 14% 14% 11%

-56%


economic margin57% 51% 29% 31% 35% 27% 30%

-33%





2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Total output 5 825 7 082 7 796 7 603 8 851 8 990 9 960 34%


Balance subsidies and taxes 320 1 015 1 177 1 423 1 472 1 791 2 240 119%


Depreciation 318 393 485 499 567 693 781 71%


External factors 444 881 1 170 1 130 1 254 1 493 1 641 76%

Wages 317 612 837 819 822 925 997 55%

Rent 84 142 196 203 282 365 442 159%

Interest 43 127 137 107 150 203 202 80%






(RFL) 2 109 2 789 1 515 2 854 2 864 2 779 3 693 46%


106 119

7891

10394

116

136

0

50

100

150

200

250

300

350

400

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

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tin

g c

osts

Re

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nu

es

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osts

Re

ve

nu

es

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tin

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Re

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nu

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Re

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Re

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g c

osts

2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



258

295

255277

321 327347

188228 234 248

286314 317

7067

22

29

35

13

31

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

EUR/t







258

295

255277

321 327347

256

289 300325

373398 407

26

-44-48

-53

-71

-60

-80

-70

-60

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

450

2007 2008 2009 2010 2011 2012 2013

EUR/t



15 16 17 18 22 26 27

68

61 52

66

8075

77

00 14

10

89

14

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013

EUR/t



-100

-50

0

50

100

150

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II RO

Romania Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Sample farms 100-<200 200-<500 200-<500 500-<1000 500-<1000 500-<1000 500-<1000 132%



Forage area - ha 2 2 2 2 2 2 3 7%

Dairy cows - LU 4 4 4 4 4 4 4 -8%

Rented UAA - % 23% 18% 18% 21% 17% 21% 24% 5%

Total labour - AWU 1.82 1.75 1.58 1.40 1.34 1.19 1.13 -29%

Family labour - % 96% 95% 96% 95% 96% 97% 96% 0%


Milk yield - kg/cow 3 774 3 561 3 736 3 507 3 520 3 334 3 405 3 349 -7% -11%

Milk production - t 14 15 15 14 14 12 12 12 -15% -14%


2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Revenues

Price 316 318 274 299 323 308 327 351 5% 11%


National aids 11 11 5 0 0 0 0 0 -99% -


Production costs

Feed 72 73 57 58 59 60 58 49 -12% -32%

homegrown feed 29 28 25 29 32 33 31 28 17% -3%

purchased feed 44 45 32 28 28 27 26 22 -32% -50%

Herd renewal purchases 1 2 2 1 0 1 2 2 -38% 39%

Milk levy 0 0 0 0 0 0 0 0 - -


Specific costs 92 89 74 73 72 66 63 55 -21% -39%



Contract work 9 12 11 13 15 16 16 16 47% 82%

Taxes 1 1 1 1 1 1 2 2 123% 181%



Total operating costs 133 138 119 128 127 127 123 116 -3% -12%

Gross margin 183 180 154 171 196 180 204 234 12% 28%


payments194 191 160 172 196 180 204 234

7% 21%


margin96% 98% 98% 96% 99% 99% 100% 100%

2% 4%


margin97% 97% 97% 96% 99% 99% 99% 99%

3% 3%

Depreciation 26 29 33 31 34 39 40 28%

Wages 9 9 10 10 11 10 10 10%

Rent 3 2 2 3 2 3 4 47%

Interest 2 2 1 1 1 1 1 -57%


Net margin 145 139 109 127 149 128 150 9%

Net margin with coupled payments 155 150 114 127 149 128 1502%






payments-82 -45 -101 -99 -115 -138 -97

-53%


economic margin23% 26% 19% 15% 14% 13% 15%

-39%


economic margin36% 40% 31% 29% 30% 28% 35%

-13%


2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Total output 3 964 4 817 4 683 5 983 6 389 6 004 6 769 42%


Balance subsidies and taxes 437 576 474 613 715 690 751 45%


Depreciation 320 424 522 548 574 689 740 58%



Wages 102 125 153 178 183 154 175 35%

Rent 32 26 29 49 44 57 71 98%

160


Interest 20 21 12 14 10 9 10 -46%

Balance invest. subs. and taxes 0 4 0 0 0 0 0 -





(RFL)1 471 2 294 1 562 2 458 2 803 2 179 2 883

48%


194191

160172

196180

204

234

0

50

100

150

200

250

300

350

400

Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

Op

era

tin

g c

osts

Reve

nues

Op

era

tin

g c

osts

Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

Op

era

tin

g c

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Reve

nue

s

Op

era

tin

g c

osts

Reve

nue

s

Op

era

tin

g c

osts

2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



327 329

279299

323308

327

172 179 165 172 174 180 177

155150

114

127

149

128

150

0

20

40

60

80

100

120

140

160

180

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

EUR/t




327 329

279299

323308

327

409

374 381398

438 445424

-82

-45

-101 -99

-115

-138

-97

-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

EUR/t



161


26 29 33 31 34 39 40

216188 183

208243 229 220

20

733

18

21 3628

0

50

100

150

200

250

300

350

2007 2008 2009 2010 2011 2012 2013

EUR/t



-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

EUR/t of milkEUR/WU





162

EU Dairy farms based on 2013 FADN data Annex II HR

Croatia Milk specialised farms

e: estimate



2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Sample farms 200-<500 -

Farms represented 11 610 -

% production from specialised farms - - - - - - 99% -

Forage area - ha - - - - - - 10 -

Dairy cows - LU - - - - - - 12 -

Rented UAA - % - - - - - - 51% -

Total labour - AWU - - - - - - 2.15 -

Family labour - % - - - - - - 87% -

Milk per ha fodder area - t/ha - - - - - - 5.4 -

Milk yield - kg/cow - - - - - - 4 638 4 901 - 6%

Milk production - t - - - - - - 57 60 - 6%


2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Revenues

Price - - - - - - 333 333 - 0%

EU coupled payments (incl. Art.68) - - - - - - 0 0 - -

National aids - - - - - - 19 18 - -5%

Total revenues from milk - - - - - - 351 350 - 0%

Production costs

Feed - - - - - - 131 111 - -15%

homegrown feed - - - - - - 89 75 - -15%

purchased feed - - - - - - 42 36 - -14%

Herd renewal purchases - - - - - - 1 1 - -5%

Milk levy - - - - - - 0 0 - -

Other specific costs - - - - - - 21 20 - -5%

Specific costs - - - - - - 153 133 - -14%

Machinery and building upkeep - - - - - - 11 11 - -6%

Energy (fuel, electricity) - - - - - - 32 29 - -9%

Contract work - - - - - - 5 4 - -5%

Taxes - - - - - - 8 8 - -5%

Other direct inputs - - - - - - 11 11 - -5%

Non specific costs - - - - - - 68 63 - -7%

Total operating costs - - - - - - 221 195 - -12%

Gross margin - - - - - - 112 138 - 23%


payments- - - - - - 131 155

- 19%


margin- - - - - - 80% 90%

- 13%


margin- - - - - - 90% 95%

- 5%

Depreciation - - - - - - 51 - 0%

Wages - - - - - - 21 - 0%

Rent - - - - - - 7 - 0%

Interest - - - - - - 6 - 0%

External factors - - - - - - 35 - 0%

Net margin - - - - - - 26 - 0%

Net margin with coupled payments - - - - - - 44- 0%

Family labour costs - - - - - - 144 - 0%

Own capital unpaid cost - - - - - - 28 - 0%

Imputed family factors - - - - - - 171 - 0%

Net economic margin - - - - - - -145 - 0%


payments- - - - - - -127

- 0%


economic margin- - - - - - 5%

- 0%



- 0%


2007 2008 2009 2010 2011 2012 2013 2014e

Three years

average

trend*

Trend

2014/ 2007

Total output - - - - - - 17 591 - 0%

Intermediate consumptions - - - - - - 11 972 - 0%

Balance subsidies and taxes - - - - - - 3 648 - 0%

Decoupled payments - - - - - - 3 334 - 0%

Depreciation - - - - - - 2 171 - 0%

Farm Net Value Added (FNVA) - - - - - - 7 096 - 0%

External factors - - - - - - 1 467 - 0%

163


Wages - - - - - - 887 - 0%

Rent - - - - - - 324 - 0%

Interest - - - - - - 256 - 0%

Balance invest. subs. and taxes - - - - - - 0 - 0%

Farm net income (FNI) - - - - - - 5 629 - 0%


Own capital unpaid cost - - - - - - 1 379 - 0%


(RFL)- - - - - - 3 708

- 0%

%spe.farms with positive RFL - - - - - - 80% - 0%

00 0 0

0 0

131

155

0

50

100

150

200

250

300

350

400

Reve

nue

s

Op

era

tin

g c

osts

Reve

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Op

era

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Reve

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s

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s

Op

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tin

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Reve

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tin

g c

osts

2007 2008 2009 2010 2011 2012 2013 2014e

EUR/t



0 0 0 0 0 0

351

0 0 0 0 0 0

307

0 0 0 0 0 0

44

0

5

10

15

20

25

30

35

40

45

50

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012 2013

EUR/t




0 0 0 0 0 0

351

0 0 0 0 0 0

478

0 0 0 0 0 0

-127

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

EUR/t



164


0 0 0 0 0 00 0 0 0 0 0-1400

2007 2008 2009 2010 2011 2012 2013

0 0 0 0 0 0

51

0 0 0 0 0 0

144

0 0 0 0 0 0

28

0

50

100

150

200

250

300

2007 2008 2009 2010 2011 2012 2013

EUR/t



-150

-100

-50

0

50

100

150

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2007 2008 2009 2010 2011 2012 2013

EUR/t of milkEUR/WU





165

EU Dairy farms based on 2013 FADN data Annex II BE RG

Belgium 2013 Milk specialised farms

e: estimate



Vlaanderen Wallonie Belgium

Sample farms 100-<200 100-<200 200-<500

Farms represented 4 220 2 990 7 210

% production from specialised farms 92% 95% 99%

Forage area - ha 37 60 46

Dairy cows - LU 56 61 58

Rented UAA - % 73% 74% 74%

Total labour - AWU 1.79 1.89 1.83

Family labour - % 98% 98% 98%

Milk per ha fodder area - t/ha 11.6 6.4 8.8

Milk yield - kg/cow 7 503 6 313 6 989

Milk production - t 424 382 406



Revenues

Price 385 369 379

EU coupled payments (incl. Art.68) 0 0 0

National aids 0 0 0

Total revenues from milk 385 369 379

Production costs

Feed 112 116 113

homegrown feed 32 33 32

purchased feed 80 83 81

Herd renewal purchases 5 1 4

Milk levy 0 0 0

Other specific costs 24 24 24

Specific costs 142 142 142

Machinery and building upkeep 13 19 15

Energy (fuel, electricity) 16 19 17

Contract work 24 25 25

Taxes 2 0 1

Other direct inputs 15 14 15

Non specific costs 70 77 73

Total operating costs 212 219 214

Gross margin 174 150 165


payments174 150 165


margin98% 98% 98%


margin99% 99% 99%

Depreciation 55 51 53

Wages 1 2 1

Rent 15 19 17

Interest 14 18 16

External factors 30 38 33

Net margin 88 61 78

Net margin with coupled payments 88 61 78

Family labour costs 84 84 84

Own capital unpaid cost 5 4 5

Imputed family factors 89 88 89

Net economic margin 0 -27 -11


payments0 -27 -11


economic margin43% 32% 39%








Total output 128 312 108 477 119 915

Intermediate consumptions 70 738 66 287 68 888

Balance subsidies and taxes 13 009 15 651 14 152

Decoupled payments 10 484 10 412 10 462

Depreciation 18 320 14 733 16 797


External factors 10 323 11 286 10 744

Wages 272 466 355

Rent 5 338 5 561 5 438

Interest 4 713 5 259 4 951

Balance invest. subs. and taxes -1 357 609 -515

Farm net income (FNI) 40 583 32 432 37 123


Own capital unpaid cost 1 653 1 434 1 557


(RFL)39 568 31 650 36 185

%spe.farms with positive RFL 97% 96% 97%

174

150165

0

50

100

150

200

250

300

350

400

450

Revenues Operating costs Revenues Operating costs Revenues Operating costs


EUR/t





385369

379

297 308 301

88

61

78

0

10

20

30

40

50

60

70

80

90

100

0

50

100

150

200

250

300

350

400

450


EUR/t


Total revenues from milk

Operating costs + depreciation + external factors





385

369

379

386

396

390

0

-27

-11

-30

-25

-20

-15

-10

-5

0

355

360

365

370

375

380

385

390

395

400


EUR/t



55 51 53

84 84 84

5 4 5

0

20

40

60

80

100

120

140

160

180

200


EUR/t



-50

0

50

100

150

200

0

10 000

20 000

30 000

40 000

50 000

60 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II DE RG

Germany 2013 Milk specialised farms

e: estimate



Schleswig-

Holstein

Niedersachse

n

Nordrhein-

WestfalenHessen

Rheinland-

Pfalz

Baden-

WurttembergBayern Saarland

Brandenbur

g

Mecklenbur

g-

Vorpommer

n

SachsenSachsen-

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 2000-<3000

Farms represented 4 650 9 770 5 320 2 890 1 840 7 300 32 830 190 410 570 790 410 320 67 280

% production from specialised farms 99% 98% 97% 99% 99% 98% 100% 95% 93% 94% 96% 88% 94% 100%

Forage area - ha 75 62 48 51 64 40 32 84 469 261 208 278 265 52

Dairy cows - LU 81 74 64 48 61 43 35 73 312 248 225 244 280 57

Rented UAA - % 52% 60% 63% 70% 71% 60% 54% 74% 78% 70% 78% 81% 87% 64%

Total labour - AWU 1.93 1.87 1.71 1.71 1.92 1.53 1.51 2.07 16.75 9.66 13.15 12.48 15.63 2.06

Family labour - % 69% 76% 80% 84% 82% 89% 94% 86% 3% 12% 9% 9% 6% 68%

Milk per ha fodder area - t/ha 8.6 9.7 10.7 6.8 7.2 7.5 7.7 6.4 5.8 8.5 9.5 7.4 9.5 8.3

Milk yield - kg/cow 7 918 8 084 8 064 7 250 7 537 6 853 6 911 7 397 8 666 8 896 8 837 8 422 9 029 7 674

Milk production - t 643 600 517 348 463 296 245 541 2 700 2 208 1 985 2 058 2 530 436


Schleswig-

Holstein

Niedersachse

n

Nordrhein-

WestfalenHessen

Rheinland-

Pfalz

Baden-


Brandenbur

g

Mecklenbur

g-

Vorpommer

n

SachsenSachsen-


Revenues

Price 399 395 409 404 414 404 408 405 382 388 380 390 375 400

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0 0 0 0 0 0 0 0

National aids 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total revenues from milk 399 395 409 404 414 404 408 405 382 388 380 390 375 400

Production costs

Feed 106 117 114 106 114 111 117 114 126 126 120 134 134 116

homegrown feed 32 28 25 38 40 41 45 43 41 35 41 44 40 37

purchased feed 74 89 89 68 74 69 72 71 85 91 79 91 94 80

Herd renewal purchases 3 3 7 6 2 1 2 3 5 7 3 5 7 3

Milk levy 0 2 2 0 2 4 4 6 1 0 0 0 0 2

Other specific costs 44 25 27 25 26 26 28 30 38 38 38 32 32 30

Specific costs 154 149 150 138 143 143 150 152 170 171 161 171 174 152

Machinery and building upkeep 26 23 26 29 28 30 31 28 30 25 31 28 30 28

Energy (fuel, electricity) 25 25 28 37 34 34 34 37 34 31 36 35 34 31

Contract work 29 24 27 19 19 20 18 18 13 19 10 17 14 21

Taxes 2 2 1 1 1 1 2 1 2 3 1 2 2 2

Other direct inputs 22 22 24 31 32 33 36 29 28 32 32 30 31 29

Non specific costs 104 96 107 116 115 117 120 113 108 110 111 112 111 110

Total operating costs 258 245 257 254 258 260 270 265 277 281 271 283 285 262

Gross margin 141 151 153 150 156 144 138 140 105 107 109 107 90 137

Gross margin with coupled payments 141 151 153 150 156 144 138 140 105 107 109 107 90 137

%spe.farms with positive gross margin 99% 97% 99% 95% 98% 95% 97% 91% 92% 96% 91% 95% 97% 97%


margin100% 100% 100% 99% 100% 98% 97% 97% 94% 94% 99% 97% 93% 98%

Depreciation 44 43 45 58 57 65 72 66 42 35 45 45 51 54

Wages 16 12 11 12 10 9 6 9 85 56 84 76 86 23

Rent 20 20 21 14 17 16 15 11 17 16 15 23 16 17

Interest 11 11 8 9 8 7 7 11 11 13 7 12 7 9

External factors 46 43 39 35 36 31 28 31 114 86 105 111 109 49

Net margin 51 65 68 57 64 47 38 43 -51 -14 -42 -49 -70 34

Net margin with coupled payments 51 65 68 57 64 47 38 43 -51 -14 -42 -49 -70 34

Family labour costs 35 39 38 64 43 66 74 57 3 10 11 11 8 45

Own capital unpaid cost 12 8 10 5 4 8 31 2 2 3 1 4 1 14

Imputed family factors 47 47 48 69 47 74 106 58 5 14 12 15 8 59

Net economic margin 4 18 20 -12 17 -27 -68 -15 -57 -27 -54 -64 -79 -25


payments4 18 20 -12 17 -27 -68 -15 -57 -27 -54 -64 -79 -25


margin43% 50% 53% 31% 48% 24% 20% - 27% 22% 13% - - 30%


economic margin56% 69% 71% 58% 67% 44% 30% - 26% 28% 10% - - 45%





Schleswig-

Holstein

Niedersachse

n

Nordrhein-

WestfalenHessen

Rheinland-

Pfalz

Baden-


Brandenbur

g

Mecklenbur

g-

Vorpommer

n

SachsenSachsen-


Total output 183 256 165 151 161 200 112 481 131 634 113 646 97 665 146 873 118 886 155 350 106 811 126 245 120 964 125 199

Intermediate consumptions 121 148 105 665 102 384 73 636 83 660 72 095 61 122 95 562 82 616 108 222 72 050 84 483 82 444 81 093

Balance subsidies and taxes 19 282 17 481 17 867 17 190 17 637 14 847 15 284 18 680 21 029 18 516 14 431 21 744 18 274 16 828

Decoupled payments 15 385 12 809 11 532 11 747 12 396 9 862 9 120 16 447 14 794 15 382 10 555 16 821 11 625 11 458

Depreciation 19 852 17 807 17 842 16 306 18 109 18 108 17 086 23 741 12 743 13 724 12 430 14 074 15 877 16 685

Farm Net Value Added (FNVA) 61 538 59 161 58 841 39 730 47 502 38 290 34 741 46 249 44 556 51 919 36 762 49 433 40 917 44 249

External factors 21 377 17 920 16 016 9 779 11 380 8 842 6 683 10 948 34 872 35 604 29 722 36 256 34 134 16 517

Wages 7 082 4 957 4 343 3 119 3 225 2 504 1 370 3 175 26 276 23 671 23 756 25 035 26 699 8 206

Rent 9 429 8 509 8 557 4 214 5 587 4 426 3 676 4 001 5 374 6 811 4 061 7 478 5 199 5 575

Interest 4 867 4 453 3 116 2 446 2 569 1 912 1 637 3 772 3 222 5 122 1 905 3 742 2 236 2 735

Balance invest. subs. and taxes -2 754 -2 817 -2 729 -608 -1 911 -1 671 -1 490 -2 678 698 -57 2 178 715 1 283 -1 206

Farm net income (FNI) 37 406 38 424 40 096 29 343 34 211 27 777 26 568 32 623 10 382 16 258 9 218 13 892 8 066 26 526


Own capital unpaid cost 7 984 4 504 4 885 1 650 1 583 2 672 6 930 843 16 621 10 978 3 245 11 746 3 118 5 622

Remuneration of Family Labour (RFL) 46 394 45 847 45 109 33 152 39 869 28 556 21 301 37 387 80 437 63 170 35 252 28 094 16 052 30 944

%spe.farms with positive RFL 94% 93% 94% 91% 96% 88% 93% 94% 84% 92% 84% 90% 84% 92%

141 151 153 150 156 144 138 140105 107

109 10790

137

0

50

100

150

200

250

300

350

400

450

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Schleswig-HolsteinNiedersachsenNordrhein-WestfalenHessen Rheinland-PfalzBaden-WurttembergBayern Saarland BrandenburgMecklenburg-VorpommernSachsenSachsen-AnhaltThueringen Germany

EUR/t



399 395409 404 414 404 408 405

382 388 380 390375

400

348 330 341 347 350 356 370 362

434401 422 439 446

365

51

65 68

5764

4738

43

-51

-14

-42-49

-70

34

-80

-60

-40

-20

0

20

40

60

80

0

50

100

150

200

250

300

350

400

450

500

Schle

sw

ig-

Hols

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Nie

ders

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Nord

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n

Hesse

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Thueri

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Ge

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EUR/t






399 395409 404 414 404 408 405

382 388 380 390375

400

395377 389

416397

430

476

420439

415434

454 454424

4

18 20

-12

17

-27

-68

-15

-57

-27

-54

-64

-79

-25

-100

-80

-60

-40

-20

0

20

40

0

50

100

150

200

250

300

350

400

450

500S

chle

sw

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Hols

tein

Nie

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Nord

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burg

Meckle

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-V

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mern

Sachsen

Sachsen-A

nhalt

Thueri

ngen

Ge

rmany

EUR/t



44 43 4558 57 65 72 66

42 35 45 45 51 54

35 39 38

6443

6674

57

3

10

11 11 8

4512 8 10

5

4

8

31

22

3

14 1

14

0

50

100

150

200

250

Schle

sw

ig-

Hols

tein

Nie

ders

achsen

Nord

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Hesse

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Meckle

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-V

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Sachsen

Sachsen-A

nhalt

Thueri

ngen

Ge

rmany

EUR/t



-100

-50

0

50

100

150

200

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

Schle

sw

ig-

Hols

tein

Nie

ders

achsen

Nord

rhein

-W

estf

ale

n

Hesse

n

Rhein

land-P

falz

Baden

-W

urt

tem

berg

Bayern

Saarlan

d

Bra

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Meckle

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-V

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om

mern

Sachsen

Sachsen-A

nhalt

Thueri

ngen

Ge

rmany

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II ES RG

Spain 2013 Milk specialised farms

e: estimate



Galicia Asturias Cantabria Pais Vasco Navarra Cataluna BalearesCastilla-

LeonAndalucia Spain

Sample farms 200-<500 100-<200 100-<200 40-<100 40-<100 40-<100 15-<40 15-<40 40-<100 500-<1000

Farms represented 13 420 2 670 1 770 390 270 1 270 240 2 840 760 24 020

% production from specialised farms 100% 100% 100% 100% 100% 99% 100% 100% 100% 98%

Forage area - ha 19 21 37 35 33 38 96 24 21 24

Dairy cows - LU 30 56 49 68 82 90 57 61 90 45

Rented UAA - % 18% 54% 85% 65% 77% 63% 92% 61% 22% 46%

Total labour - AWU 1.40 2.04 1.63 2.37 2.03 2.40 1.65 2.46 1.67 1.72

Family labour - % 96% 88% 93% 81% 80% 63% 88% 71% 95% 87%

Milk per ha fodder area - t/ha 11.7 13.5 7.9 17.4 20.6 20.7 2.8 15.2 18.0 12.5

Milk yield - kg/cow 7 442 5 090 5 972 8 829 8 611 9 231 5 337 6 774 6 624 7 102

Milk production - t 223 283 294 601 704 827 304 413 599 323



LeonAndalucia Spain

Revenues

Price 332 346 347 371 359 349 296 329 353 338

EU coupled payments (incl. Art.68) 8 4 10 7 6 3 8 3 7 6

National aids 0 0 0 0 0 0 0 0 0 0

Total revenues from milk 340 350 357 378 366 352 304 331 360 345

Production costs

Feed 156 175 180 197 178 169 143 162 212 168

homegrown feed 16 7 2 2 10 10 31 17 3 12

purchased feed 140 168 178 195 169 159 112 145 209 156

Herd renewal purchases 5 1 0 4 1 2 0 5 1 3

Milk levy 0 0 0 0 0 0 0 0 0 0

Other specific costs 19 31 15 24 30 34 11 20 11 22

Specific costs 180 206 196 225 209 205 155 187 224 193

Machinery and building upkeep 10 16 15 15 16 17 12 12 3 12

Energy (fuel, electricity) 18 18 17 17 19 18 31 19 16 18

Contract work 8 8 8 5 9 15 6 4 1 8

Taxes 1 0 0 0 0 0 0 0 0 1

Other direct inputs 9 15 12 16 22 18 9 12 14 13

Non specific costs 46 57 53 52 66 68 57 48 34 51

Total operating costs 226 263 248 278 275 273 212 235 258 244

Gross margin 106 83 98 93 84 75 84 94 95 94


payments114 87 108 100 90 78 92 97 102 101


margin98% 91% 100% 99% 100% 96% 96% 95% 98% 97%


margin98% 94% 100% 99% 100% 96% 98% 98% 99% 98%

Depreciation 13 20 17 36 34 29 16 13 6 17

Wages 3 9 5 11 11 20 9 19 2 10

Rent 1 5 7 3 7 7 30 10 1 5

Interest 0 2 1 3 5 3 1 2 0 1

External factors 4 16 13 17 24 31 40 31 2 16

Net margin 89 46 68 41 26 16 29 50 87 62

Net margin with coupled payments 97 50 78 48 32 19 37 52 94 68

Family labour costs 77 71 72 47 28 27 52 67 31 61

Own capital unpaid cost 18 16 11 16 12 17 13 15 10 16

Imputed family factors 95 87 83 63 40 44 65 82 41 76

Net economic margin -6 -41 -15 -22 -14 -28 -36 -32 46 -14


payments2 -37 -5 -15 -8 -25 -28 -29 53 -8


economic margin33% 34% 34% 20% - - - - 66% 33%


economic margin50% 41% 37% 43% - - - - 75% 43%






LeonAndalucia Spain

Total output 64 076 60 798 74 210 102 315 151 907 153 911 83 291 78 333 138 552 79 395

Intermediate consumptions 44 836 45 330 52 773 79 498 119 911 126 032 61 614 53 009 104 492 57 771

Balance subsidies and taxes 7 856 5 297 10 610 13 179 15 142 11 922 13 246 7 869 16 585 8 699

Decoupled payments 4 596 4 387 5 422 8 499 11 950 10 097 8 804 5 716 10 694 5 744

Depreciation 2 351 3 286 3 672 9 822 13 457 10 944 3 842 3 017 2 396 3 658

Farm Net Value Added (FNVA) 24 745 17 480 28 375 26 174 33 682 28 857 31 081 30 176 48 248 26 665

External factors 755 2 652 2 786 4 660 9 387 11 737 9 314 7 095 928 3 532

Wages 502 1 441 1 134 3 031 4 434 7 771 1 902 4 318 706 2 170

Rent 180 843 1 429 929 2 948 2 625 6 998 2 364 222 1 047

Interest 74 367 224 701 2 005 1 340 414 413 0 316

Balance invest. subs. and taxes -39 -372 -230 641 1 047 1 568 61 -337 -394 21

Farm net income (FNI) 23 950 14 456 25 359 22 155 25 342 18 688 21 827 22 744 46 927 23 153


Own capital unpaid cost 3 327 3 126 2 656 5 630 5 966 10 292 3 842 5 001 4 273 4 028


(RFL)21 065 13 237 24 609 21 895 25 643 19 317 20 989 27 206 45 317 22 411

%spe.farms with positive RFL 98% 84% 97% 92% 95% 92% 96% 88% 97% 95%

114

87

108 10090 78

92 97102 101

0

50

100

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200

250

300

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400

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Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Galicia Asturias Cantabria Pais Vasco Navarra Cataluna Baleares Castilla-Leon Andalucia Spain

EUR/t



340350 357

378366

352

304

331

360345

243

300279

330 333 333

267 279 266 276

97

50

78

48

32

19

37

52

94

68

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400


EUR/t






340350 357

378366

352

304

331

360345

338

387

362

393373 376

332

360

307

353

2

-37

-5

-15

-8

-25-28 -29

53

-8

-50

-40

-30

-20

-10

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

450


EUR/t



1320 17

36 34 2916 13

617

77

7172

4728 27

5267

31

61

18

16

11 16

12 17

1315

10

16

0

20

40

60

80

100

120

140


EUR/t



-60

-40

-20

0

20

40

60

80

100

120

140

0

10 000

20 000

30 000

40 000

50 000

60 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II FR RG (1)

France 2013 Milk specialised farms

e: estimate



Champagne-

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-<40 100-<200 100-<200 40-<100 100-<2001000-<2000

Farms represented 1 590 1 910 1 890 900 6 400 710 3 290 3 040 870 3 940 62 810


Forage area - ha 108 56 64 65 78 99 48 107 63 94 71

Dairy cows - LU 59 58 57 62 63 71 53 60 57 47 54

Rented UAA - % 96% 98% 93% 95% 95% 97% 96% 96% 98% 93% 92%

Total labour - AWU 2.17 1.88 1.86 2.32 1.90 2.68 1.89 2.29 2.10 1.75 1.89

Family labour - % 88% 85% 87% 85% 86% 81% 85% 87% 80% 91% 89%

Milk per ha fodder area - t/ha 3.8 7.6 6.1 7.4 5.3 4.9 8.2 4.0 6.5 3.1 5.2

Milk yield - kg/cow 6 978 7 351 6 859 7 758 6 512 6 880 7 418 7 066 7 112 6 132 6 911

Milk production - t 412 424 390 479 411 486 396 425 405 291 372


Champagne-

ArdennePicardie

Haute-

NormandieCentre

Basse-

NormandieBourgogne

Nord-Pas-


Franche-

ComteFrance

Revenues

Price 356 352 364 354 368 362 359 348 357 399 366

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0 0 1 5 2

National aids 0 0 0 0 0 0 0 0 0 0 0

Total revenues from milk 356 352 364 354 368 362 359 348 358 423 368

Production costs

Feed 108 132 123 139 111 158 122 120 143 126 118

homegrown feed 34 29 39 50 37 58 30 41 50 39 38

purchased feed 74 102 84 89 74 100 92 79 93 87 80

Herd renewal purchases 5 1 4 4 4 2 4 3 3 3 3

Milk levy 0 0 0 0 0 0 0 0 0 0 0

Other specific costs 12 15 12 14 13 20 13 13 16 18 14

Specific costs 125 148 139 157 128 179 138 136 162 147 135

Machinery and building upkeep 25 22 20 21 26 24 19 26 28 30 23

Energy (fuel, electricity) 23 19 20 23 20 23 19 24 23 24 21

Contract work 25 23 32 33 36 33 29 28 37 31 35

Taxes 3 3 3 3 3 2 3 3 3 3 3

Other direct inputs 38 33 32 33 34 36 31 36 36 49 39

Non specific costs 114 100 108 113 119 120 101 118 128 138 121

Total operating costs 239 248 247 270 247 299 239 254 290 284 256

Gross margin 117 104 117 84 121 63 120 93 67 133 110


payments117 104 117 84 121 63 120 94 68 138 112


margin98% 98% 96% 90% 98% 86% 94% 88% 96% 93% 94%


margin98% 99% 98% 96% 98% 81% 98% 92% 97% 97% 96%

Depreciation 78 64 71 64 67 69 74 69 73 100 72

Wages 7 7 8 8 9 13 9 8 13 7 7

Rent 26 27 29 17 28 22 22 20 23 31 21

Interest 11 10 14 11 14 12 10 9 9 10 11

External factors 44 43 51 36 51 46 41 37 46 48 40

Net margin -5 -4 -4 -16 3 -52 5 -13 -51 -15 -1

Net margin with coupled payments -5 -4 -4 -16 3 -52 5 -12 -50 -9 1

Family labour costs 78 51 52 60 54 56 48 58 51 76 64

Own capital unpaid cost 3 1 1 1 1 1 1 2 1 4 3

Imputed family factors 80 52 53 61 55 57 49 60 53 80 67

Net economic margin -86 -55 -57 -77 -53 -109 -44 -72 -104 -95 -68


payments-86 -55 -57 -77 -53 -109 -44 -72 -103 -90 -66


economic margin- - - - 11% - 17% - - - 11%


economic margin- - - - 16% - 21% - - - 15%





Champagne-

ArdennePicardie

Haute-

NormandieCentre

Basse-

NormandieBourgogne

Nord-Pas-


Franche-

ComteFrance

Total output 120 277 151 594 143 480 116 696 122 892 114 937 132 705 120 832 118 784 97 910 112 339

Intermediate consumptions 86 761 102 394 93 747 87 620 81 696 92 432 86 196 90 594 90 425 65 739 77 561

Balance subsidies and taxes 22 378 23 112 19 935 17 052 16 321 20 325 16 159 20 728 18 418 18 378 17 496

Decoupled payments 20 850 21 949 20 116 17 054 16 064 19 304 16 539 19 236 16 900 11 919 14 941

Depreciation 26 969 27 772 28 310 21 293 22 960 21 934 27 695 24 246 23 952 23 246 22 141

Farm Net Value Added (FNVA) 28 925 44 541 41 357 24 836 34 556 20 896 34 973 26 720 22 825 27 304 30 134

External factors 15 287 19 254 20 149 12 308 17 129 14 935 15 138 13 140 15 787 11 643 12 429

Wages 2 569 3 213 2 968 2 763 2 932 3 998 3 169 3 018 4 586 1 781 2 262

Rent 8 878 11 867 11 562 6 015 9 562 7 222 8 239 6 922 8 217 7 401 6 757

Interest 3 840 4 173 5 618 3 530 4 635 3 715 3 730 3 200 2 983 2 461 3 410

Balance invest. subs. and taxes 558 455 1 810 571 593 225 553 857 1 092 251 649

Farm net income (FNI) 14 196 25 743 23 018 13 098 18 020 6 186 20 388 14 438 8 130 15 911 18 353


Own capital unpaid cost 895 474 677 344 583 289 605 706 571 1 039 891


(RFL)15 150 29 799 25 994 14 971 20 474 7 377 23 416 15 837 9 604 16 518 19 637


117104

117

84

121

63

12094

68

138

112

0

50

100

150

200

250

300

350

400

450

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

osts

Re

venues

Opera

tin

g c

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Re

venues

Opera

tin

g c

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Re

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Opera

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g c

osts

Champagne-Ardenne

Picardie Haute-Normandie

Centre Basse-Normandie

Bourgogne Nord-Pas-de-Calais

Lorraine Alsace Franche-Comte

France

EUR/t



356 352364 354

368 362 359 348 358

423

368

361 355 368 370 365414

354 360409

432

367

-5-4 -4

-16

3

-52

5

-12

-50

-9

1

-60

-50

-40

-30

-20

-10

0

10

0

50

100

150

200

250

300

350

400

450

500

Ch

am

pagne-

Ard

enn

e

Pic

ard

ie

Ha

ute

-N

orm

andie

Ce

ntr

e

Basse

-N

orm

andie

Bou

rgo

gne

No

rd-P

as-d

e-

Ca

lais

Lorr

ain

e

Als

ace

Fra

nche-C

om

te

Fra

nce

EUR/t






356 352 364 354368 362 359 348 358

423

368

442407 421 431 421

472

403420

461

512

434

-86

-55 -57

-77

-53

-109

-44

-72

-103

-90

-66

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600C

ham

pagne-

Ard

enn

e

Pic

ard

ie

Ha

ute

-N

orm

andie

Ce

ntr

e

Basse

-N

orm

andie

Bou

rgo

gne

No

rd-P

as-d

e-

Ca

lais

Lorr

ain

e

Als

ace

Fra

nche-

Co

mte

Fra

nce

EUR/t



7864 71 64 67 69 74 69 73

10072

78

5152

60

54 56 48 5851

76

64

3

11

11 1

1 21

4

3

0

50

100

150

200

250

Ch

am

pagne-

Ard

enn

e

Pic

ard

ie

Ha

ute

-N

orm

andie

Ce

ntr

e

Basse

-N

orm

andie

Bou

rgo

gne

No

rd-P

as-d

e-

Ca

lais

Lorr

ain

e

Als

ace

Fra

nche-

Co

mte

Fra

nce

EUR/t



-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

Ch

am

pagne-

Ard

enn

e

Pic

ard

ie

Ha

ute

-N

orm

andie

Ce

ntr

e

Basse

-N

orm

andie

Bou

rgo

gne

No

rd-P

as-d

e-

Ca

lais

Lorr

ain

e

Als

ace

Fra

nche-C

om

te

Fra

nce

EUR/t of milkEUR/WU








e: estimate



Pays de la

LoireBretagne

Poitou-

CharentesAquitaine

Midi-

PyreneesLimousin

Rhones-

AlpesAuvergne

Languedoc-

RoussillonFrance

Sample farms 100-<200 100-<200 40-<100 40-<100 40-<100 15-<40 100-<200 100-<200 15-<40 1000-<2000

Farms represented 8 000 11 780 1 410 1 740 3 290 570 5 470 5 280 460 62 810


Forage area - ha 76 55 66 49 53 88 76 72 103 71

Dairy cows - LU 56 57 65 44 42 49 47 42 36 54

Rented UAA - % 93% 89% 95% 84% 82% 77% 92% 82% 83% 92%

Total labour - AWU 1.99 1.85 2.29 1.76 1.60 1.73 1.93 1.61 1.32 1.89

Family labour - % 91% 92% 82% 89% 94% 94% 90% 91% 100% 89%


Milk yield - kg/cow 7 208 7 313 7 441 7 267 6 846 5 793 6 590 5 841 5 293 6 911



Pays de la

LoireBretagne

Poitou-

CharentesAquitaine

Midi-

PyreneesLimousin

Rhones-

AlpesAuvergne

Languedoc-

RoussillonFrance

Revenues

Price 363 361 343 355 352 343 403 376 360 366


National aids 0 0 0 0 0 0 0 0 0 0


Production costs

Feed 110 104 134 160 128 112 129 119 125 118

homegrown feed 41 37 39 51 41 35 38 33 37 38

purchased feed 69 67 96 109 87 77 91 85 88 80


Milk levy 0 0 0 0 0 0 0 0 0 0


Specific costs 123 117 150 184 149 127 149 141 149 135



Contract work 46 36 34 31 35 35 41 30 31 35

Taxes 3 2 3 2 2 2 3 2 2 3




Gross margin 116 128 82 47 74 94 108 102 77 110


payments116 128 82 48 79 100 115 111 89 112


margin97% 98% 89% 73% 74% 100% 97% 91% 100% 94%


margin98% 99% 94% 77% 84% 100% 98% 95% 100% 96%

Depreciation 64 64 56 65 66 63 97 90 85 72

Wages 5 6 12 7 5 5 8 8 0 7

Rent 19 17 19 17 18 14 21 20 16 21

Interest 13 11 10 9 7 9 11 10 9 11


Net margin 15 30 -15 -52 -22 3 -28 -25 -33 -1

Net margin with coupled payments 15 30 -15 -51 -18 9 -21 -16 -21 1




Net economic margin -53 -37 -67 -135 -100 -71 -115 -107 -145 -68


payments-53 -37 -67 -134 -96 -65 -107 -98 -133 -66


economic margin17% 24% - - - - - - - 11%


economic margin23% 27% - - - - - - - 15%





Pays de la

LoireBretagne

Poitou-

CharentesAquitaine

Midi-

PyreneesLimousin

Rhones-

AlpesAuvergne

Languedoc-

RoussillonFrance

Total output 115 931 118 218 120 990 91 505 86 185 84 922 91 424 78 434 74 816 112 339




Depreciation 20 562 21 238 20 078 17 222 16 800 16 309 21 827 19 259 17 803 22 141


External factors 11 907 10 996 14 970 9 248 7 497 7 259 9 208 8 036 5 123 12 429

Wages 1 578 1 796 4 153 2 358 1 232 1 055 1 916 1 561 0 2 262

Rent 6 212 5 683 7 229 4 574 4 601 3 747 4 840 4 339 3 264 6 757

Interest 4 117 3 517 3 588 2 316 1 664 2 456 2 452 2 136 1 858 3 410

Balance invest. subs. and taxes 405 187 64 381 299 60 2 077 1 113 163 649



Own capital unpaid cost 594 770 470 1 550 1 644 1 471 1 170 1 766 2 358 891


(RFL)22 666 26 303 20 596 2 834 9 926 15 560 16 232 15 748 16 381 19 637


116 128

82

4879

100115

11189

112

0

50

100

150

200

250

300

350

400

450

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Pays de laLoire

Bretagne Poitou-Charentes

Aquitaine Midi-Pyrenees

Limousin Rhones-Alpes

Auvergne Languedoc-Roussillon

France

EUR/t





363 361343

356 356 350

410

385371 368

348 331358

407374

340

431401 393

367

15

30

-15

-51

-18

9

-21

-16

-21

1

-60

-50

-40

-30

-20

-10

0

10

20

30

40

0

50

100

150

200

250

300

350

400

450

500

Pays de laLoire





France

EUR/t






363 361343

356 356 350

410385

371 368

416398 409

490

452

414

517

483504

434

-53

-37

-67

-134

-96

-65

-107

-98

-133

-66

-160

-140

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600

Pays de laLoire





France

EUR/t



64 64 56 65 66 63

97 90 8572

66 6550

7872

68

8275 100

64

2 2

1

56

5

5

711

3

0

50

100

150

200

250

Pays de laLoire





France

EUR/t



-150

-100

-50

0

50

100

150

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

Pays de laLoire





France

EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II IT RG (1)

Italy 2013 Milk specialised farms

e: estimate



Aosta Piemonte Lombardia Trentino Alto-Adige VenetoFriuli-

VeneziaLiguria

Emilia-

RomagnaItaly

Sample farms 40-<100 40-<100 100-<200 15-<40 40-<100 40-<100 40-<100 15-<40 100-<200 500-<1000



Forage area - ha 46 35 24 37 9 17 26 16 31 21

Dairy cows - LU 25 49 83 34 10 51 53 18 64 45

Rented UAA - % 85% 82% 76% 94% 16% 65% 59% 61% 68% 63%

Total labour - AWU 1.95 2.08 2.29 2.17 1.06 1.97 2.13 1.27 2.84 1.94

Family labour - % 85% 91% 80% 90% 97% 88% 86% 85% 61% 81%


Milk yield - kg/cow 2 798 6 082 7 442 7 122 6 469 7 126 6 981 4 458 7 262 6 738




VeneziaLiguria

Emilia-

RomagnaItaly

Revenues

Price 488 399 448 494 481 414 399 552 519 447


National aids 0 0 0 0 0 0 0 0 0 0


Production costs

Feed 166 129 128 215 159 155 170 110 168 144

homegrown feed 13 34 23 17 10 19 37 4 14 22

purchased feed 153 95 105 197 149 137 133 106 154 122


Milk levy 0 0 0 0 0 0 0 0 0 0


Specific costs 205 146 149 252 200 179 200 130 189 165



Contract work 2 5 7 2 4 5 11 0 5 6

Taxes 14 3 7 14 23 8 2 2 0 6




Gross margin 196 203 236 141 151 172 127 376 260 215


payments196 206 238 144 154 173 128 376 262 218


margin99% 100% 98% 76% 78% 99% 95% 100% 98% 94%


margin99% 100% 97% 92% 89% 98% 99% 100% 100% 98%

Depreciation 130 48 26 91 143 45 62 62 15 39

Wages 38 11 17 10 7 11 14 24 51 22

Rent 25 11 12 15 3 9 8 3 17 11

Interest 23 0 0 0 4 1 13 0 1 1


Net margin -20 133 181 24 -6 106 30 287 175 143


payments-20 137 183 27 -3 107 31 287 177 145




Net economic margin -351 -13 93 -148 -361 -20 -89 94 31 15


coupled payments-351 -10 95 -145 -358 -18 -88 94 33 17


economic margin- - 54% - - 23% - 54% 46% 26%


economic margin- - 77% - - 61% - 87% 72% 61%






VeneziaLiguria

Emilia-

RomagnaItaly

Total output 30 585 84 255 159 518 79 698 44 223 104 496 109 389 57 831 114 975 97 449



Decoupled payments 909 5 989 10 715 3 283 1 748 5 388 6 640 1 487 5 097 5 791

Depreciation 7 576 9 225 8 911 13 028 11 150 10 449 15 016 6 400 3 017 7 859



Wages 2 123 2 022 5 704 1 518 497 2 612 3 042 2 244 10 058 4 293

Rent 1 399 2 055 3 881 2 022 235 2 047 1 961 356 3 371 2 080

Interest 1 607 10 21 62 413 141 3 175 0 297 258

Balance invest. subs. and taxes 1 226 44 -173 5 -370 613 -262 0 57 19





(RFL)12 559 32 510 79 328 13 619 -217 33 022 14 267 33 204 54 061 37 832


196 206238

144 154173

128

376

262

218

0

100

200

300

400

500

600

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Re

ven

ue

s

Op

era

ting

co

sts

Aosta Piemonte Lombardia Trentino Alto-Adige Veneto Friuli-Venezia Liguria Emilia-Romagna

Italy

EUR/t





488

402

450

498 484

416401

552521

449

508

266 267

470 487

309370

265

344 344

-20

137

183

27

-3

107

31

287

177

145

-50

0

50

100

150

200

250

300

350

0

100

200

300

400

500

600

Aosta

Pie

mo

nte

Lom

bard

ia

Tre

ntino

Alto

-Ad

ige

Ven

eto

Friu

li-V

ene

zia

Lig

uri

a

Em

ilia-

Rom

ag

na

Italy

EUR/t







488

402450

498 484

416 401

552521

449

839

412

355

642

842

434

489458

487 487

-351

-10

95

-145

-358

-18

-88

94

3317

-400

-350

-300

-250

-200

-150

-100

-50

0

50

100

150

0

100

200

300

400

500

600

700

800

900A

osta

Pie

mo

nte

Lom

bard

ia

Tre

ntino

Alto

-Ad

ige

Ven

eto

Friu

li-V

ene

zia

Lig

uri

a

Em

ilia-

Rom

ag

na

Italy

EUR/t



130

48 2691

143

45 62 6215 39

270

122

71

139

250

10594

158104

100

61

25

17

33

105

2026

35

4029

0

100

200

300

400

500

600

Aosta

Pie

mo

nte

Lom

bard

ia

Tre

ntino

Alto

-Ad

ige

Ven

eto

Friu

li-V

ene

zia

Lig

uri

a

Em

ilia-

Rom

ag

na

Italy

EUR/t



-400

-300

-200

-100

0

100

200

300

400

500

-10 000

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

Aosta

Pie

mo

nte

Lom

bard

ia

Tre

ntino

Alto

-Ad

ige

Ven

eto

Friu

li-V

ene

zia

Lig

uri

a

Em

ilia-R

om

ag

na

Italy

EUR/t of milkEUR/WU








e: estimate



Umbria Lazio Abruzzo Molise Campania Puglia Basilicata Sicilia Sardegna Italy

Sample farms 15-<40 40-<100 15-<40 15-<40 15-<40 40-<100 15-<40 15-<40 15-<40 500-<1000

Farms represented 200 990 690 710 1 140 1 910 490 560 540 28 750


Forage area - ha 47 25 18 12 10 18 20 38 32 21

Dairy cows - LU 49 56 25 19 30 29 35 53 74 45

Rented UAA - % 53% 54% 70% 79% 50% 31% 41% 47% 64% 63%

Total labour - AWU 2.28 2.28 2.00 1.48 1.63 1.94 1.79 2.15 2.40 1.94

Family labour - % 93% 66% 86% 96% 82% 85% 82% 69% 90% 81%


Milk yield - kg/cow 6 330 5 618 5 364 5 415 3 785 7 039 4 473 4 479 6 825 6 738




Revenues

Price 418 435 401 398 412 419 410 399 406 447


National aids 0 0 0 0 0 0 0 0 0 0


Production costs

Feed 51 127 63 92 124 190 156 131 143 144

homegrown feed 25 24 17 50 28 24 17 24 18 22

purchased feed 25 104 46 42 96 167 139 107 125 122


Milk levy 0 0 0 0 0 0 0 0 0 0


Specific costs 64 145 71 101 138 204 169 140 157 165



Contract work 4 8 2 6 3 3 1 1 5 6

Taxes 2 8 2 1 17 5 1 8 3 6




Gross margin 298 199 316 244 196 154 189 202 198 215


payments298 200 318 244 196 157 189 204 210 218


margin100% 95% 100% 100% 100% 100% 100% 91% 100% 94%


margin100% 100% 100% 100% 100% 100% 100% 99% 100% 98%

Depreciation 36 47 51 48 40 44 52 41 39 39

Wages 6 31 21 5 23 13 18 29 7 22

Rent 8 4 5 5 6 8 2 6 3 11

Interest 0 0 0 0 0 2 0 0 2 1


Net margin 249 116 240 186 126 89 118 126 147 143

Net margin with coupled payments 249 117 242 186 126 91 118 128 160 145




Net economic margin 111 12 58 20 -27 -57 -13 24 54 15


payments111 12 60 20 -27 -55 -13 26 66 17


economic margin- 36% - 39% - - - - 51% 26%


economic margin- 56% - 66% - - - - 75% 61%






Total output 95 816 90 958 43 964 52 787 44 377 65 303 54 130 70 677 118 436 97 449




Depreciation 7 613 8 960 4 889 5 951 4 211 6 091 6 553 6 889 9 602 7 859



Wages 1 393 6 082 1 845 606 2 050 1 893 2 228 4 623 1 655 4 293

Rent 1 738 821 407 669 585 974 208 982 875 2 080

Interest 0 51 0 14 0 275 0 0 383 258

Balance invest. subs. and taxes 0 64 -174 -116 0 105 -132 0 0 19





(RFL)51 507 44 195 30 037 33 283 20 024 22 194 24 109 39 365 52 465 37 832


298

200

318

244

196

157

189

204210

218

0

50

100

150

200

250

300

350

400

450

500

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts

Reve

nu

es

Ope

ratin

g c

osts


EUR/t





418 424447

398412 421

411 401418

449

169

308

205 212

285330

293 273 259304

249

117

242

186

126

91

118128

160145

0

50

100

150

200

250

300

0

50

100

150

200

250

300

350

400

450

500


EUR/t






418 424447

398412 421 411 401

418

449

307

412387 378

439

476

424

375352

432111

12

60

20

-27

-55

-13

26

66

17

-80

-60

-40

-20

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

450

500


EUR/t



36 47 51 48 40 44 52 41 39 39

102

79

152

145 120104

10777

71

100

36 26

30

2033

42 23

25

22

29

0

50

100

150

200

250

300


EUR/t



-100

-50

0

50

100

150

200

250

300

350

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II PT RG

Portugal 2013 Milk specialised farms

e: estimate



Norte e Centro Acores e Madeira Portugal

Sample farms 100-<200 100-<200 200-<500





Rented UAA - % 20% 66% 41%




Milk yield - kg/cow 7 718 6 332 7 202




Revenues

Price 329 262 309


National aids 0 59 18


Production costs

Feed 155 107 144




Milk levy 0 0 0





Contract work 5 5 5

Taxes 3 1 2






payments96 156 112


margin93% 100% 96%


margin99% 100% 99%


Wages 14 3 11

Rent 2 15 6

Interest 1 1 1


Net margin 49 54 49

Net margin with coupled payments 54 113 70




Net economic margin -27 -14 -23


payments-23 45 -3










Total output 45 853 44 768 46 177



Decoupled payments 4 092 0 3 172

Depreciation 2 925 4 332 3 282



Wages 1 715 541 1 477

Rent 300 2 563 832

Interest 136 176 147

Balance invest. subs. and taxes 297 2 708 866





(RFL)9 481 22 716 13 069


96

156

112

0

50

100

150

200

250

300

350

400



EUR/t





334320

330

280

208

260

54

113

70

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400


EUR/t








334320

330

356

276

333

-23

45

-3

-30

-20

-10

0

10

20

30

40

50

0

50

100

150

200

250

300

350

400


EUR/t



24 25 24

53 46 49

2421 23

0

20

40

60

80

100

120

140


EUR/t



-40

-20

0

20

40

60

80

100

120

140

160

180

0

5 000

10 000

15 000

20 000

25 000

30 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II FI RG

Finland 2013 Milk specialised farms

e: estimate



Etela-Suomi Sisa-Suomi Pohjanmaa Pohjois-Suomi Finland

Sample farms 40-<100 40-<100 40-<100 40-<100 200-<500

Farms represented 2 540 3 360 2 110 2 270 10 270

% production from specialised farms 99% 100% 100% 100% 96%

Forage area - ha 36 34 36 46 38

Dairy cows - LU 31 26 32 29 29

Rented UAA - % 37% 35% 33% 33% 35%

Total labour - AWU 2.12 1.95 2.09 2.02 2.04

Family labour - % 83% 86% 87% 83% 84%

Milk per ha fodder area - t/ha 7.7 6.8 7.2 5.3 6.7

Milk yield - kg/cow 8 871 8 828 8 308 8 646 8 683

Milk production - t 275 232 262 248 252



Revenues

Price 436 432 448 454 441

EU coupled payments (incl. Art.68) 11 0 0 0 3

National aids 44 79 78 128 80

Total revenues from milk 491 511 526 582 524

Production costs

Feed 140 142 149 163 147

homegrown feed 45 44 51 40 45

purchased feed 95 98 97 123 102

Herd renewal purchases 2 2 4 4 3

Milk levy 0 0 0 0 0

Other specific costs 39 35 35 37 36

Specific costs 181 178 187 205 187

Machinery and building upkeep 46 50 53 58 51

Energy (fuel, electricity) 41 42 38 44 41

Contract work 39 44 38 40 41

Taxes 0 0 0 0 0

Other direct inputs 53 62 55 64 58

Non specific costs 179 198 184 205 191

Total operating costs 360 376 371 410 378

Gross margin 76 55 77 44 63


payments 131 135 155 172 146


margin 82% 88% 90% 99% 89%


margin 93% 96% 94% 99% 95%

Depreciation 101 95 109 130 107

Wages 25 21 18 22 22

Rent 14 10 14 7 11

Interest 11 10 14 16 12

External factors 50 41 47 45 45

Net margin -74 -80 -79 -131 -89

Net margin with coupled payments -19 -1 -1 -3 -6

Family labour costs 158 187 175 175 174

Own capital unpaid cost 17 8 18 5 12

Imputed family factors 174 195 193 180 186

Net economic margin -249 -275 -272 -310 -275


payments -194 -196 -194 -182 -192


economic margin - - - - -


economic margin - - - - -






Total output 80 186 73 923 82 194 79 409 78 333

Intermediate consumptions 70 386 67 977 73 383 74 993 71 142

Balance subsidies and taxes 31 867 29 841 32 497 37 949 32 640

Decoupled payments 7 500 5 616 6 157 5 676 6 216

Depreciation 16 343 13 679 16 818 18 623 16 080

Farm Net Value Added (FNVA) 25 324 22 108 24 491 23 741 23 751


Wages 3 943 3 103 2 972 3 200 3 306

Rent 2 379 1 392 2 333 977 1 750

Interest 1 702 1 372 2 219 2 325 1 841

Balance invest. subs. and taxes 859 496 1 137 1 043 843

Farm net income (FNI) 18 159 16 736 18 105 18 282 17 696


Own capital unpaid cost 3 514 1 326 3 322 880 2 213


(RFL)18 520 18 112 17 576 21 159 18 756

%spe.farms with positive RFL 84% 85% 85% 88% 86%

131135

155172

146

0

100

200

300

400

500

600

700

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts


EUR/t


Price EU coupled payments (incl. Art.68)

National aids Feed

Other specific costs Non specific costs


491

511

526

582

524

511 512527

585

531

-19

-1 -1

-3

-6

-25

-20

-15

-10

-5

0

440

460

480

500

520

540

560

580

600


EUR/t







491511 526

582

524

685707 720

764716

-194

-196

-194

-182

-192

-200

-195

-190

-185

-180

-175

0

100

200

300

400

500

600

700

800

900


EUR/t



101 95 109130

107

158 187175

175

174

178

185

12

0

50

100

150

200

250

300

350

400


EUR/t



-250

-200

-150

-100

-50

0

50

100

150

200

0

5 000

10 000

15 000

20 000

25 000

30 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II SE RG

Sweden 2013 Milk specialised farms

e: estimate



SlattbygdslanSkogs-och

mellanbygdslanLan i norra Sweden

Sample farms 200-<500 100-<200 40-<100 200-<500

Farms represented 3 000 1 720 880 5 600

% production from specialised farms 100% 100% 100% 100%

Forage area - ha 84 99 97 91

Dairy cows - LU 68 70 49 66

Rented UAA - % 58% 52% 75% 59%

Total labour - AWU 2.28 2.19 2.19 2.24

Family labour - % 72% 74% 75% 73%

Milk per ha fodder area - t/ha 7.1 6.2 4.0 6.3

Milk yield - kg/cow 8 702 8 735 7 905 8 619

Milk production - t 594 613 388 567




Revenues

Price 413 400 421 410

EU coupled payments (incl. Art.68) 1 0 3 1

National aids 0 1 75 8

Total revenues from milk 415 401 499 419

Production costs

Feed 143 141 151 143

homegrown feed 36 33 28 34

purchased feed 107 108 124 109

Herd renewal purchases 7 8 6 7

Milk levy 0 0 0 0

Other specific costs 34 30 49 34

Specific costs 184 179 206 185

Machinery and building upkeep 31 31 46 33

Energy (fuel, electricity) 30 29 48 31

Contract work 26 24 30 26

Taxes 0 0 0 0

Other direct inputs 24 24 45 26

Non specific costs 111 108 169 116

Total operating costs 294 286 375 300

Gross margin 119 114 46 109


payments120 115 124 119


margin92% 92% 85% 91%


margin98% 98% 94% 98%

Depreciation 57 53 79 58

Wages 31 30 46 32

Rent 18 12 15 16

Interest 24 24 21 24

External factors 73 66 82 72

Net margin -11 -6 -115 -20

Net margin with coupled payments -10 -5 -37 -11

Family labour costs 103 104 167 110

Own capital unpaid cost 13 10 9 11

Imputed family factors 116 114 176 122

Net economic margin -127 -119 -291 -142


payments-126 -118 -213 -133


economic margin- - - -


economic margin- - - -







Total output 174 644 180 249 127 075 168 846

Intermediate consumptions 132 724 140 489 121 144 133 159

Balance subsidies and taxes 23 523 25 744 46 536 27 720

Decoupled payments 14 254 14 182 12 969 14 023

Depreciation 20 921 20 219 17 132 20 109

Farm Net Value Added (FNVA) 44 521 45 285 35 335 43 297

External factors 27 032 24 742 17 815 24 901

Wages 11 600 10 907 10 143 11 158

Rent 6 781 4 762 3 158 5 611

Interest 8 650 9 072 4 514 8 132

Balance invest. subs. and taxes 0 0 0 0

Farm net income (FNI) 17 489 20 543 17 520 18 396


Own capital unpaid cost 6 557 5 060 2 627 5 480


(RFL)17 602 22 758 21 043 19 707

%spe.farms with positive RFL 76% 81% 84% 79%

120115 124 119

0

100

200

300

400

500

600

Revenues Operatingcosts




Slattbygdslan Skogs-och mellanbygdslan Lan i norra Sweden

EUR/t



National aids Feed



415 401

499

419

424 406

536

430

-10

-5

-37

-11

-40

-35

-30

-25

-20

-15

-10

-5

0

0

100

200

300

400

500

600


EUR/t






415 401

499

419

541519

712

552

-126-118

-213

-133

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

800


EUR/t



57 5379

58

103104

167

110

1310

9

11

0

50

100

150

200

250

300

350

400


EUR/t



-250

-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


EUR/t of milk

EUR/WU






EU Dairy farms based on 2013 FADN data Annex II UK RG

United Kingdom 2013 Milk specialised farms

e: estimate



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-<200 500-<1000

Farms represented 2 500 1 070 4 130 2 070 1 320 3 260 14 350

% production from specialised farms 100% 100% 100% 100% 100% 100% 100%

Forage area - ha 109 122 114 90 146 72 104

Dairy cows - LU 127 138 140 118 146 88 123

Rented UAA - % 55% 51% 44% 28% 23% 36% 41%

Total labour - AWU 2.67 3.68 3.08 2.29 2.97 1.90 2.66

Family labour - % 58% 40% 55% 73% 62% 81% 61%

Milk per ha fodder area - t/ha 8.9 9.1 8.9 9.6 7.2 8.5 8.7

Milk yield - kg/cow 7 678 8 038 7 231 7 267 7 193 6 992 7 341




Revenues

Price 369 372 380 361 373 373 373

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0

National aids 0 0 0 0 0 0 0

Total revenues from milk 369 372 380 361 373 373 373

Production costs

Feed 139 137 133 133 148 148 138

homegrown feed 24 27 26 27 29 28 27

purchased feed 114 109 107 107 119 119 112

Herd renewal purchases 5 1 3 2 3 2 3

Milk levy 0 0 0 0 0 0 0

Other specific costs 38 37 40 37 32 26 36

Specific costs 182 175 176 172 183 175 177

Machinery and building upkeep 8 7 8 8 21 16 10

Energy (fuel, electricity) 17 18 17 17 19 18 17

Contract work 17 17 20 17 15 17 18

Taxes 0 0 0 0 0 0 0

Other direct inputs 16 21 18 16 17 13 17

Non specific costs 57 64 63 58 72 64 62

Total operating costs 238 240 240 230 255 239 240

Gross margin 130 132 140 131 118 134 133


payments130 132 140 131 118 134 133


margin97% 97% 99% 100% 95% 99% 98%


margin100% 99% 100% 100% 98% 100% 100%

Depreciation 32 36 34 33 49 44 37

Wages 25 40 29 16 22 11 24

Rent 10 14 10 5 5 10 9

Interest 6 7 8 6 10 5 7

External factors 41 60 47 28 37 26 40

Net margin 57 36 59 70 32 63 56

Net margin with coupled payments 57 36 59 70 32 63 56

Family labour costs 34 31 39 42 43 52 40

Own capital unpaid cost 4 6 6 8 9 11 7

Imputed family factors 38 37 44 50 52 63 47

Net economic margin 19 -2 14 20 -20 0 9


payments19 -2 14 20 -20 0 9


economic margin59% 43% 53% 61% 33% 34% 48%


economic margin73% 46% 67% 73% 43% 61% 63%






Total output 174 174 158 064 166 964 174 885 182 041 159 107 168 640

Intermediate consumptions 120 065 105 413 111 207 120 435 132 639 111 004 115 520

Balance subsidies and taxes 10 597 11 440 11 122 15 291 16 611 12 291 12 337

Decoupled payments 8 823 9 470 8 969 13 176 15 750 11 833 10 680

Depreciation 14 509 14 323 14 277 15 413 23 755 16 946 15 874

Farm Net Value Added (FNVA) 50 197 49 767 52 602 54 328 42 259 43 449 49 583

External factors 18 655 23 482 19 251 12 621 17 421 10 078 17 096

Wages 11 277 15 576 11 854 7 306 10 308 4 131 10 168

Rent 4 584 5 277 3 874 2 552 2 210 3 935 3 821

Interest 2 793 2 628 3 523 2 763 4 903 2 011 3 106

Balance invest. subs. and taxes 956 228 537 1 043 3 252 394 896

Farm net income (FNI) 32 498 26 514 33 888 42 750 28 089 33 765 33 384


Own capital unpaid cost 2 992 6 967 4 523 4 771 7 104 5 641 4 974


(RFL)52 934 59 285 56 768 53 910 38 299 36 111 49 542

%spe.farms with positive RFL 96% 90% 91% 94% 74% 90% 90%

130 132140 131

118134 133

0

50

100

150

200

250

300

350

400

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

Op

era

tin

g c

osts

Re

ve

nu

es

Op

era

tin

g c

osts


EUR/t



369 372 380361

373 373 373

312336 321

291

341309 317

57

36

59

70

32

63

56

0

10

20

30

40

50

60

70

80

0

50

100

150

200

250

300

350

400


EUR/t






369372

380

361

373 373 373

350

373

365

341

393

372

364

19

-2

14

20

-20

0

9

-25

-20

-15

-10

-5

0

5

10

15

20

25

310

320

330

340

350

360

370

380

390

400


EUR/t



32 36 34 3349 44

37

34

31

39

42

43

52 40

4

66

8

911

7

0

20

40

60

80

100

120

140

160


EUR/t



-40

-20

0

20

40

60

80

100

120

140

160

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II HU RG

Hungary 2013 Milk specialised farms

e: estimate



Alfold Dunantul Hungary

Sample farms 40-<100 40-<100 100-<200





Rented UAA - % 74% 91% 81%




Milk yield - kg/cow 6 275 7 142 6 749




Revenues

Price 329 347 332




Production costs

Feed 161 151 154




Milk levy 0 0 0





Contract work 12 7 9

Taxes 4 4 4






payments72 47 67


margin71% 95% 77%


margin81% 88% 86%


Wages 60 75 66

Rent 17 17 18

Interest 6 10 8


Net margin -66 -110 -81

Net margin with coupled payments -39 -84 -55






payments-83 -113 -92


economic margin- - 10%


economic margin- - 9%






Total output 43 783 51 473 46 341







Wages 7 342 10 355 8 455

Rent 2 180 2 299 2 303

Interest 695 1 469 999

Balance invest. subs. and taxes 516 341 391





(RFL)13 173 8 900 12 019


72

4767

0

50

100

150

200

250

300

350

400



EUR/t



National aids Feed



356372

358

395

457414

-39

-84

-55

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450

500


EUR/t







356372

358

439

486

451

-83

-113

-92

-120

-100

-80

-60

-40

-20

0

0

100

200

300

400

500

600


EUR/t



28 30 31

24

1921

21

1016

0

20

40

60

80

100

120

140

160

180


EUR/t



-150

-100

-50

0

50

100

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000


EUR/t of milk

EUR/WU






EU Dairy farms based on 2013 FADN data Annex II PL RG

Poland 2013 Milk specialised farms

e: estimate



Pomorze and

Mazury

Wielkopolska and

Slask

Mazowsze and

Podlasie

Malopolska and

PogorzePoland

Sample farms 200-<500 500-<1000 1000-<2000 200-<500 2000-<3000

Farms represented 10 390 14 920 67 140 11 650 104 100

% production from specialised farms 95% 65% 98% 82% 100%

Forage area - ha 22 15 12 9 13

Dairy cows - LU 21 20 15 11 16

Rented UAA - % 25% 35% 26% 40% 29%

Total labour - AWU 2.07 1.99 1.83 1.83 1.88

Family labour - % 90% 87% 98% 97% 95%

Milk per ha fodder area - t/ha 5.1 8.5 6.6 5.4 6.6

Milk yield - kg/cow 5 436 6 223 5 166 4 696 5 358

Milk production - t 114 125 78 50 85


Pomorze and

Mazury

Wielkopolska and

Slask

Mazowsze and

Podlasie

Malopolska and

PogorzePoland

Revenues

Price 312 310 307 288 307

EU coupled payments (incl. Art.68) 0 0 0 0 0

National aids 0 0 1 15 1

Total revenues from milk 312 310 308 302 308

Production costs

Feed 98 112 103 92 103

homegrown feed 55 56 61 64 59

purchased feed 43 56 42 28 44

Herd renewal purchases 4 3 5 2 4

Milk levy 0 0 0 0 0

Other specific costs 14 14 12 13 13

Specific costs 117 130 119 107 120

Machinery and building upkeep 17 16 15 15 16

Energy (fuel, electricity) 29 26 24 29 26

Contract work 8 9 7 5 7

Taxes 0 0 0 0 0

Other direct inputs 12 14 8 13 10

Non specific costs 66 64 54 62 58

Total operating costs 182 194 174 169 179

Gross margin 130 116 133 119 128


payments130 116 134 133 130


margin93% 93% 94% 98% 95%


margin95% 98% 98% 99% 98%

Depreciation 48 39 50 59 48

Wages 8 13 1 3 5

Rent 3 4 3 3 3

Interest 5 4 3 5 4


Net margin 66 57 76 49 69

Net margin with coupled payments 66 57 76 63 70

Family labour costs 90 75 85 114 85


Imputed family factors 121 104 123 151 121

Net economic margin -55 -47 -48 -102 -52


payments-55 -47 -47 -88 -51


economic margin17% 17% 15% 7% 15%


economic margin33% 36% 37% 24% 36%





Pomorze and

Mazury

Wielkopolska and

Slask

Mazowsze and

Podlasie

Malopolska and

PogorzePoland

Total output 26 169 32 034 19 130 12 483 21 106

Intermediate consumptions 15 141 20 268 10 863 6 982 12 320

Balance subsidies and taxes 4 869 4 371 3 263 3 165 3 592

Decoupled payments 3 463 2 980 2 237 1 638 2 416

Depreciation 4 145 4 126 3 166 2 548 3 347

Farm Net Value Added (FNVA) 11 753 12 012 8 364 6 117 9 031


Wages 711 1 526 102 132 388

Rent 248 384 216 120 234

Interest 441 360 207 184 253

Balance invest. subs. and taxes 114 163 164 150 156

Farm net income (FNI) 10 465 9 905 8 002 5 831 8 312




(RFL)8 813 8 428 5 597 4 333 6 184

%spe.farms with positive RFL 93% 87% 85% 93% 87%

130116

134 133 130

0

50

100

150

200

250

300

350

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Reven

ues

Ope

ratin

g c

osts

Pomorze and Mazury Wielkopolska andSlask

Mazowsze andPodlasie

Malopolska andPogorze

Poland

EUR/t


Price EU coupled payments (incl. Art.68)National aids FeedOther specific costs Non specific costsGross margin with coupled payments

312 310 308 302 308

246 253232 239 239

66

57

76

63

70

0

10

20

30

40

50

60

70

80

0

50

100

150

200

250

300

350




Poland

EUR/t






312 310 308 302 308

367 357 355

390

359

-55

-47 -47

-88

-51

-100

-90

-80

-70

-60

-50

-40

-30

-20

-10

0

0

50

100

150

200

250

300

350

400

450




Poland

EUR/t



48 39 50 5948

9075 85

114

85

31

2938

37

35

0

50

100

150

200

250

Pomorze and Mazury Wielkopolska and Slask Mazowsze andPodlasie


Poland

EUR/t



-100

-50

0

50

100

150

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000




Poland

EUR/t of milk

EUR/WU






EU Dairy farms based on 2013 FADN data Annex II BG RG

Bulgaria 2013 Milk specialised farms

e: estimate



SeverozapadenSeveren

tsentralenSeveroiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria

Sample farms 15-<40 40-<100 15-<40 15-<40 40-<100 15-<40 200-<500

Farms represented 1 370 2 540 2 130 2 470 5 100 2 400 16 010

% production from specialised farms 100% 96% 96% 95% 100% 98% 93%

Forage area - ha 11 11 6 8 5 14 8

Dairy cows - LU 19 13 13 8 13 19 14

Rented UAA - % 77% 81% 73% 77% 74% 90% 80%

Total labour - AWU 2.79 2.16 2.28 2.14 2.02 2.40 2.22

Family labour - % 57% 59% 57% 70% 70% 57% 63%

Milk per ha fodder area - t/ha 4.7 3.3 9.3 3.7 4.2 3.5 4.3

Milk yield - kg/cow 2 681 3 222 4 491 3 764 2 302 3 740 3 188

Milk production - t 51 42 59 31 31 70 44




Revenues

Price 317 299 300 410 334 307 323

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0

National aids 30 22 19 12 29 28 24

Total revenues from milk 346 322 319 422 362 336 347

Production costs

Feed 128 116 124 130 221 130 147

homegrown feed 64 44 46 33 46 31 42

purchased feed 64 72 78 97 175 99 105

Herd renewal purchases 0 2 1 1 0 3 1

Milk levy 0 0 0 0 0 0 0

Other specific costs 16 9 9 8 11 6 9

Specific costs 144 127 134 138 232 139 158

Machinery and building upkeep 16 8 5 14 9 9 9

Energy (fuel, electricity) 29 33 21 27 29 24 27

Contract work 12 11 6 8 6 2 7

Taxes 2 0 4 0 5 2 2

Other direct inputs 18 21 40 30 39 19 29

Non specific costs 77 72 76 78 87 56 74

Total operating costs 221 199 210 217 319 195 231

Gross margin 96 100 90 194 15 112 92


payments125 123 109 205 43 141 116


margin94% 66% 95% 100% 57% 98% 79%


margin88% 91% 92% 99% 70% 97% 88%

Depreciation 11 34 33 38 24 24 27

Wages 57 52 30 37 29 29 36

Rent 14 22 20 13 11 9 14

Interest 1 5 13 6 6 9 7


Net margin 14 -13 -6 100 -56 41 6

Net margin with coupled payments 43 10 13 112 -28 69 31

Family labour costs 91 106 67 92 74 55 77

Own capital unpaid cost 18 16 14 19 14 7 14

Imputed family factors 109 123 81 111 88 63 91

Net economic margin -95 -135 -87 -11 -145 -22 -84


payments-66 -113 -68 1 -116 6 -60











Total output 9 408 9 842 12 654 9 091 8 092 12 356 9 960

Intermediate consumptions 6 245 6 138 8 524 5 136 6 798 7 671 6 761

Balance subsidies and taxes 2 157 3 414 1 951 1 533 1 746 2 966 2 240

Decoupled payments 714 1 127 605 556 527 1 123 751

Depreciation 316 1 044 1 272 834 484 912 781

Farm Net Value Added (FNVA) 5 004 6 074 4 810 4 654 2 556 6 738 4 657

External factors 1 932 2 204 2 405 1 140 999 1 883 1 641

Wages 1 469 1 361 1 114 775 615 1 130 997

Rent 438 698 820 251 260 386 442

Interest 24 145 471 115 125 367 202

Balance invest. subs. and taxes 263 86 487 385 254 33 244

Farm net income (FNI) 3 336 3 956 2 892 3 899 1 811 4 888 3 261




(RFL)4 424 4 662 3 896 4 062 1 789 5 823 3 693

%spe.farms with positive RFL 94% 61% 89% 99% 69% 80% 79%

125123 109

205

43

141116

0

50

100

150

200

250

300

350

400

450

Re

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Re

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Re

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Re

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Re

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Re

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osts

Severozapaden Severen tsentralen Severoiztochen Yugozapaden Yuzhen tsentralen Yugoiztochen Bulgaria

EUR/t



346322 319

422

362336

347

303 312 306 311

390

267317

43

10 13

112

-28

69

31

-40

-20

0

20

40

60

80

100

120

0

50

100

150

200

250

300

350

400

450


EUR/t






346322 319

422

362336 347

412434

387

421

479

329

407

-66

-113

-68

1

-116

6

-60

-140

-120

-100

-80

-60

-40

-20

0

20

0

100

200

300

400

500

600


EUR/t



1134 33 38

24 24 27

91

106

6792

7455

77

18

16

14

19

14

7

14

0

50

100

150

200

250


EUR/t



-150

-100

-50

0

50

100

150

200

250

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000


EUR/t of milkEUR/WU






EU Dairy farms based on 2013 FADN data Annex II RO RG

Romania 2013 Milk specialised farms

e: estimate



Nord-Est Sud-Est Sud-Muntenia Sud-Vest-Oltenia Vest Nord-Vest Centru Romania

Sample farms 100-<200 40-<100 40-<100 40-<100 40-<100 100-<200 100-<200 500-<1000



Forage area - ha 3 1 1 1 2 4 6 3

Dairy cows - LU 3 4 3 3 4 3 6 4

Rented UAA - % 21% 32% 18% 9% 45% 16% 37% 24%

Total labour - AWU 0.88 1.00 1.28 1.26 1.13 1.32 1.24 1.13

Family labour - % 99% 94% 95% 96% 96% 98% 85% 96%

Milk per ha fodder area - t/ha 2.9 7.3 6.1 4.0 4.4 3.3 3.1 3.6

Milk yield - kg/cow 3 055 3 468 3 979 2 917 4 003 3 468 3 516 3 405

Milk production - t 9 15 12 9 16 12 21 12



Revenues

Price 267 306 347 375 389 338 345 327

EU coupled payments (incl. Art.68) 0 0 0 0 0 0 0 0

National aids 0 0 0 0 0 0 0 0

Total revenues from milk 267 306 347 375 389 338 345 327

Production costs

Feed 48 59 76 68 76 49 49 58

homegrown feed 30 19 21 43 46 39 30 31

purchased feed 18 40 55 25 30 10 19 26

Herd renewal purchases 0 5 4 0 0 1 1 2

Milk levy 0 0 0 0 0 0 0 0

Other specific costs 4 11 1 2 4 3 5 4

Specific costs 53 75 81 69 80 53 55 63

Machinery and building upkeep 5 7 8 16 12 16 13 11

Energy (fuel, electricity) 24 19 20 28 19 28 22 23

Contract work 23 17 13 20 12 10 15 16

Taxes 1 2 1 2 1 2 3 2

Other direct inputs 5 9 10 7 6 8 8 8

Non specific costs 58 54 53 72 50 65 62 59

Total operating costs 111 128 134 142 130 117 117 123

Gross margin 157 178 213 233 259 220 228 204


payments157 178 213 233 259 220 228 204


margin100% 97% 100% 100% 100% 100% 100% 100%


margin100% 96% 100% 100% 100% 100% 100% 99%

Depreciation 64 25 29 60 42 25 32 40

Wages 3 8 18 12 7 5 24 10

Rent 4 3 2 1 8 2 7 4

Interest 0 2 0 0 2 0 0 1


Net margin 86 141 164 160 200 188 165 150

Net margin with coupled payments 86 141 164 160 200 188 165 150

Family labour costs 223 154 234 260 201 302 134 220


Imputed family factors 258 168 259 293 230 328 161 247

Net economic margin -172 -27 -95 -134 -30 -141 3 -97


payments-172 -27 -95 -134 -30 -141 3 -97


economic margin6% 20% 13% 23% 35% 12% 27% 15%


economic margin15% 46% 32% 35% 59% 26% 58% 35%



Total output 6 184 7 423 6 257 5 464 9 427 5 921 11 060 6 769

Intermediate consumptions 3 243 3 297 2 885 2 418 3 890 2 721 4 823 3 131

Balance subsidies and taxes 649 1 006 240 392 973 1 028 1 302 751

Decoupled payments 613 339 273 367 760 530 954 519

Depreciation 1 171 589 516 771 988 399 941 740

Farm Net Value Added (FNVA) 2 419 4 544 3 096 2 667 5 521 3 828 6 598 3 648


Wages 50 197 254 146 176 84 606 175

Rent 79 73 32 18 170 34 231 71

Interest 4 27 3 0 59 6 11 10

Balance invest. subs. and taxes 0 0 0 0 0 0 0 0

Farm net income (FNI) 2 287 4 247 2 807 2 503 5 118 3 704 5 750 3 393




(RFL)1 632 3 967 2 424 2 137 4 251 3 305 5 105 2 883


208


157 178

213233

259220 228

204

0

50

100

150

200

250

300

350

400

450

Re

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es

Op

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Re

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Op

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Re

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Re

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Op

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Re

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Op

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Re

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Op

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Re

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nu

es

Op

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Re

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Op

era

tin

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osts


EUR/t



267

306

347

375389

338 345327

182 165 183215

190150

180 177

86

141

164 160

200188

165150

0

50

100

150

200

250

0

50

100

150

200

250

300

350

400

450


EUR/t



267

306

347375

389

338 345327

440

333

442

508

420

479

342

424

-172

-27

-95

-134

-30

-141

3

-97

-200

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

20

0

100

200

300

400

500

600


EUR/t



209


6425 29

6042

25 32 40

223

154

234

260

201

302

134

220

35

14

25

33

29

27

28

28

0

50

100

150

200

250

300

350

400


EUR/t



-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


EUR/t of milkEUR/WU





210

EU Dairy farms based on 2013 FADN data Annex II HR RG

Croatia 2013 Milk specialised farms

e: estimate



Jadranska Hrvatska (Adriatic

Croatia)

Kontinentalna Hrvatska

(Continental Croatia)Croatia

Sample farms 40-<100 100-<200 200-<500





Rented UAA - % 67% 49% 51%




Milk yield - kg/cow 3 897 4 702 4 638




Croatia)



Revenues

Price 380 329 333




Production costs

Feed 135 130 131




Milk levy 0 0 0





Contract work 3 5 5

Taxes 12 8 8






payments162 128 131


margin87% 79% 80%


margin88% 90% 90%


Wages 6 23 21

Rent 4 7 7

Interest 6 6 6


Net margin 37 25 26


payments53 44 44

211







coupled payments-311 -114 -127


economic margin- 5% 5%


economic margin- 30% 29%



Croatia)



Total output 10 034 18 677 17 591







Wages 106 1 002 887

Rent 76 360 324

Interest 102 279 256

Balance invest. subs. and taxes 0 0 0





(RFL)2 039 3 995 3 708


162

128 131

0

50

100

150

200

250

300

350

400

450


Jadranska Hrvatska (Adriatic Croatia) Kontinentalna Hrvatska (ContinentalCroatia)

Croatia

EUR/t





212


396

348 351

343305 307

53

44 44

0

10

20

30

40

50

60

0

50

100

150

200

250

300

350

400

450

Jadranska Hrvatska (AdriaticCroatia)

Kontinentalna Hrvatska (ContinentalCroatia)

Croatia

EUR/t





396348 351

707

462 478

-311

-114

-127

-350

-300

-250

-200

-150

-100

-50

0

0

100

200

300

400

500

600

700

800


Croatia

EUR/t



213


9348 51

324

131 144

40

2728

0

50

100

150

200

250

300

350

400

450

500


Croatia

EUR/t



-400

-300

-200

-100

0

100

200

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 (Continental Croatia) Croatia

EUR/t of milk

EUR/WU





214

Documents

EU dairy farms 2010 reportec.europa.eu/agriculture/rica/pdf/Dairy_report_2015.pdfEU Dairy farms report based on 2013 FADN data Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel,