EU dairy farmers see margins fall by a quarter

Published 31 March 15

Gross margins for EU dairy farmers have declined by around 25% between 2014 and 2013 according to latest Milk Market Observatory estimates. However, this drop could have been greater if operating costs hadn’t declined over the same period.

Milk prices were estimated to be 14% lower in the final three months of 2014 than in the same period in 2013.  However, operating costs were approximately 7% lower year-on-year, helping to mitigate some of the impact of the drop in milk prices.

EU gross margin

 *The gross margin is defined as revenues from milk and milk products only less operating costs Revenues from cattle sales or subsidies are excluded as are labour, land and capital costs.