Farm –Retail MarginsFarm –Retail MarginsComparison between Comparison between

Irish and FrenchIrish and French Dairy Industries Dairy Industries

Michael Keane UCCMichael Keane UCCVincent Cahen ToulouseVincent Cahen Toulouse

August 2009August 2009

OutlineOutline CheeseCheese

• Irish cheese: CheddarIrish cheese: Cheddar• French cheese: EmmentalFrench cheese: Emmental• Comparison Comparison

ButterButter• IrelandIreland• FranceFrance• Comparison Comparison

Liquid milkLiquid milk• IrelandIreland• FranceFrance• Comparison Comparison

CheeseCheese

Irish cheese: CheddarIrish cheese: Cheddar

Retail vs. Agricultural

Monthly Average Prices for Cheese (€/ Kg)

€0

€1

€2

€3

€4

€5

€6

€7

€8

€9

€10

€11

€12ja

nv-9

5

jan

v-9

6

jan

v-9

7

jan

v-9

8

jan

v-9

9

jan

v-0

0

jan

v-0

1

jan

v-0

2

jan

v-0

3

jan

v-0

4

jan

v-0

5

jan

v-0

6

jan

v-0

7

jan

v-0

8

jan

v-0

9

Month

Avera

ge P

rice (

€/

kg

)

Retailagricultural

Source CSO

Irish cheese: CheddarIrish cheese: Cheddar

Marketing Margin for Cheddar Cheese (€)

€0

€2

€4

€6

€8

€10

€12

janv-95

janv-96

janv-97

janv-98

janv-99

janv-00

janv-01

janv-02

janv-03

janv-04

janv-05

janv-06

janv-07

janv-08

janv-09

Marketing margin

Source CSO

Irish cheese: CheddarIrish cheese: CheddarEstimated farm share of the retail price

marketing Margin for cheddar cheese % of retail received by the Farmer

0

5

10

15

20

25

30

35

40

janv-

95

janv-

96

janv-

97

janv-

98

janv-

99

janv-

00

janv-

01

janv-

02

janv-

03

janv-

04

janv-

05

janv-

06

janv-

07

janv-

08

janv-

09

month

%

Marketing Margin for Cheddar Cheese % of Retail Received by the Farmer annual average

0%

10%

20%

30%

40%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

Source CSO

French cheese: EmmentalFrench cheese: EmmentalRetail VS agricultural prices, cheese emmental (monthly)

0

2

4

6

8

10

janv

-96

janv

-97

janv

-98

janv

-99

janv

-00

janv

-01

janv

-02

janv

-03

janv

-04

janv

-05

janv

-06

janv

-07

janv

-08

janv

-09

month

euro

s/kg

retail price

agricultural price

Retail VS Agricultural prices, cheese emmental (annual)

0123456789

10

year

euro

s/kg

retail price

agricultural price

Source CSO

French cheese: EmmentalFrench cheese: Emmental

Marketing margin (monthly)

0,000,501,001,502,002,503,003,504,004,50

month

euro

s/kg

Marketing margin (annual)

0,000,501,001,502,002,503,003,504,004,50

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

dateyear

euro

s/kg

Source CSO

Marketing margin

French cheese: EmmentalFrench cheese: Emmental

Estimated farm share of the retail price, emmental (annual)

0%10%20%30%40%50%60%70%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

Estimated farm share of the retail price

Source CSO

Comparison Comparison

Retail prices of cheese (annual)

02468

101214

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to d

ate

year

eu

ros

/kg

French (emmental)

Irish (cheddar)

Source CSO

ComparisonComparison

Marketing margin for cheese (annual)

0,00

2,00

4,00

6,00

8,00

10,00

12,00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

dateyear

euro

s/K

g

French

Irish

Source CSO

ButterButter

Irish butterIrish butter

retail vs agricultural prices for butter (€/Kg)

0,0

1,0

2,0

3,0

4,0

5,0

6,0

janv-

95

janv-

96

janv-

97

janv-

98

janv-

99

janv-

00

janv-

01

janv-

02

janv-

03

janv-

04

janv-

05

janv-

06

janv-

07

janv-

08

janv-

09

retail

agriculture

Source CSO

Irish butterIrish butter

Annual margin graph (€)

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

Marketing marginMarketing Margin for Butter (€)

€0,00

€0,50

€1,00

€1,50

€2,00

€2,50

€3,00

€3,50

janv-95

janv-96

janv-97

janv-98

janv-99

janv-00

janv-01

janv-02

janv-03

janv-04

janv-05

janv-06

janv-07

janv-08

janv-09

Source CSO

Irish butterIrish butterEstimated Farm share of the retail price

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

jan

v-9

5

jan

v-9

6

jan

v-9

7

jan

v-9

8

jan

v-9

9

jan

v-0

0

jan

v-0

1

jan

v-0

2

jan

v-0

3

jan

v-0

4

jan

v-0

5

jan

v-0

6

jan

v-0

7

jan

v-0

8

jan

v-0

9month

pe

rce

nt

marges

Estimated Farm Share of the Retail Price for Butter (%)

Estimated Farm share of the retail price, annual average

20,0

30,0

40,0

50,0

60,0

70,0

80,0

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to da

te

Year

%

Source CSO

French butterFrench butterRetail VS Agricultural prices, Butter (monthly)

0,001,002,003,004,005,006,007,008,00

janv

-96

janv

-97

janv

-98

janv

-99

janv

-00

janv

-01

janv

-02

janv

-03

janv

-04

janv

-05

janv

-06

janv

-07

janv

-08

janv

-09

month

euro

s/K

g

retail price

agricultural price

Retail VS Agricultural prices, butter (annual)

0,001,002,003,004,005,006,007,008,00

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to d

ate

years

euro

s/K

g

retail price

agricultural price

Source CSO

French butterFrench butterMarketing margin

Marketing margin (monthly)

0,00

1,00

2,00

3,00

4,00

5,00

janv-

96

janv-

97

janv-

98

janv-

99

janv-

00

janv-

01

janv-

02

janv-

03

janv-

04

janv-

05

janv-

06

janv-

07

janv-

08

janv-

09

month

euro

s

Marketing margin (annual)

0,00

1,00

2,00

3,00

4,00

5,00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

euro

s

Source CSO

French butterFrench butterEstimated Farm share of the retail price

Estimated farm share of the retail price % (annual)

0%

10%

20%

30%

40%

50%

60%

70%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

dateyear

Source CSO

ComparisonComparisonRetail price

Retail prices of butter (monthly)

012345678

janv

-96

janv

-97

janv

-98

janv

-99

janv

-00

janv

-01

janv

-02

janv

-03

janv

-04

janv

-05

janv

-06

janv

-07

janv

-08

janv

-09

month

euro

s/kg French

Irish

Retail prices of butter (annual)

012345678

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

euro

s/kg French

Irish

Source CSO

ComparisonComparisonMarketing margin

Marketing margin for butter (annual)

0,00

1,00

2,00

3,00

4,00

5,00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

euro

s/kg French

Irish

Source CSO

ComparisonComparisonEstimated farm share of the retail price

Estimated farm share of the retail price (%)

0,000,100,200,300,400,500,600,700,80

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

%

french

Irish

Source CSO

Liquid milkLiquid milk

Irish liquid milkIrish liquid milk

retail VS agricultural prices for liquid milk

0

0,2

0,4

0,6

0,8

1

1,2

jan

v-9

5

jan

v-9

6

jan

v-9

7

jan

v-9

8

jan

v-9

9

jan

v-0

0

jan

v-0

1

jan

v-0

2

jan

v-0

3

jan

v-0

4

jan

v-0

5

jan

v-0

6

jan

v-0

7

jan

v-0

8

jan

v-0

9

Month

eu

ros

/Lit

re

retail price

farm price

annual average prices

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009 t

o d

ate

year

eu

ros/l

itre

agricultural annual price

annual retail price

Source CSO

Irish liquid milkIrish liquid milkMarketing margin

Marketing margin for liquid milk €/L

0,000,100,200,300,400,500,600,700,800,90

janv

-95

janv

-96

janv

-97

janv

-98

janv

-99

janv

-00

janv

-01

janv

-02

janv

-03

janv

-04

janv

-05

janv

-06

janv

-07

janv

-08

janv

-09

marketing marges

Annual marketing margin for liquid milk €/L

0,000,100,200,300,400,500,600,700,800,90

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to da

te

annual marketingmargin euros/L

Source CSO

Irish liquid milkIrish liquid milkEstimated farm share of the retail price

0%

10%

20%

30%

40%

50%

60%

janv

-95

janv

-96

janv

-97

janv

-98

janv

-99

janv

-00

janv

-01

janv

-02

janv

-03

janv

-04

janv

-05

janv

-06

janv

-07

janv

-08

janv

-09

Estimated Farm share of the retail price for liquid milk

Estimated Farm Share of the Retail Price for Liquid Milk (%)

0

10

20

30

40

50

60

70

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

dateyear

%

annual average

Source CSO

French liquid milkFrench liquid milk

Retail VS Agricultural price, liquid milk (Annual)

00,20,40,60,8

11,21,4

year

euro

s/L retail price

agricultural price

Source CSO

French liquid milkFrench liquid milkMarketing margin

Marketing Margin (monthly)

0,00

0,20

0,40

0,60

0,80

1,00

1,20

month

eu

ros

Marketing Margin (annual)

0,00

0,20

0,40

0,60

0,80

1,00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

eu

ros

Source CSO

French liquid milkFrench liquid milkEstimated farm share of the retail price

Estimated farm shre of the retail price, liquid milk (annual)

20%

22%24%

26%

28%

30%32%

34%

36%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

dateyear

Source CSO

ComparisonComparisonAgricultural prices : Liquid and manufacturing milk

Agricultural prices for liquid and manufacturing milk (euros/L)

0,000,050,100,150,200,250,300,350,40

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to d

ate

year

eu

ros

/L

Irish liquid milkFrench milkIrish manufacturing milk

Source CSO

ComparisonComparisonRetail prices of liquid milk in Ireland and France(Monthly)

00,20,40,60,8

11,21,4

janv

-96

janv

-97

janv

-98

janv

-99

janv

-00

janv

-01

janv

-02

janv

-03

janv

-04

janv

-05

janv

-06

janv

-07

janv

-08

janv

-09

month

euro

s/L

French

Irish

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to da

te

year

euro

s/L

French

Irish

Retail prices of liquid milk in Ireland and France(Annual)

Source CSO

ComparisonComparisonMarketing margin

Markentig margin for liquid milk (annual)

0,000,100,200,300,400,500,600,700,800,901,00

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

to d

ate

year

eu

ros

/L

french

Irish

Source CSO

ComparisonComparisonEstimated farm share of the retail price

Estimated farm share of the liquid milk's retail prices

0%5%

10%15%20%25%30%35%40%45%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009to

date

year

%

French

Irish

Source CSO

ReferencesReferences

CSO/NMA for Irish dataCSO/NMA for Irish data Agreste and INSEE for French dataAgreste and INSEE for French data