Competitiveness of the EU dairy industry

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Competitiveness of the EU dairy industry

72

In Germany and France the number of cows of specialised farms has not increased

but the added value has, perhaps due to higher milk prices, but also by

forward integration on the farms, that is, making consumer products themselves.

In Italy, the United Kingdom and the Netherlands the added value development

is in line with the scale increase of the farms.

The added value per employee shows that this indicator has increased most

in the countries with scale increase. In Germany and France the added value per

employee has not risen as much as in the other countries.

The cost price at farm level per litre of milk in the EU is higher than in other

parts of the world (LEI, 2002). This is mainly due to the costs of milk quotas,

animal welfare regulations and the relatively high costs of land and labour.

Among the competitors the cost price is lowest in New Zealand, Australia and

South American countries like Brazil and Argentina. Within the EU the cost price

is highest in the mountain areas like the Alps. Compared with the distance to the

global cost price, the cost price does not differ much between the UK, France,

Denmark and the Netherlands.

Figure 7.9 Added value per employee at specialised dairy farms

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Source: FADN.

Germany

France

Italy

United Kingdom

Netherlands

2000 2001 2002 2003 2004 2005

Poland

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