Ireland has lowest cost of dairy production - EDF

Ireland has the lowest cost of dairy production in Europe, according to an analysis by the European Dairy Farmers (EDF) organisation.

The EDF collates costs of production figures from their members across Europe. Ireland has 14 farmers in the EDF and the Irish branch is facilitated by Micheal O’Leary, in Teagasc Moorepark. There are over 300 farmers in the organisation across Europe.

The organisation standardises costs of production figures between the different countries, and allocates an economic cost to the capital employed, for example, a rent cost is attached to all land, whether owned or leased. Interest charges are standardised also.

While the costs of production figures are accurate for the members of the EDF, they are not a definitive guide to costs of production in their country, they merely represent a snapshot of the costs on the EDF members’ farms. That said, by virtue of the fact that the EDF members record and analyse their costs, it could be said that they are above average farmers.

Lowest and highest costs

Ireland has the lowest costs at 25c/l, well below the EDF average of 35c/l. The next lowest was Germany at 32c/l. Thereafter, costs of production were fairly consistent between the countries, but the Netherlands had the highest costs at 38c/l.

Of course, having the lowest costs of production in Europe will be cold comfort to the Irish farmers who are currently receiving a milk price below the costs of production. In fact, the milk price received by the Irish farmers in the group was one of the lowest in the EDF in 2015 at 31c/l. Average milk price in the other countries was 36c/l.

The figures on costs of production were presented by Steffi Wille Sonk, one of the researchers with the EDF.

This year’s congress is being held at La Baule in France and is being attended by 350 farmers from across Europe. The three day congress is a series of farm walks, workshops and presentations by experts.

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