Total revenues will increase by 222,000 euros in 2022 compared to the previous year due to higher milk and livestock prices. The total costs will increase by 105,000 euros due to higher feed, fertilizer and energy prices, reports Wageningen Economic Research.
The material costs such as those of machines, tools and buildings are also increasing, partly due to higher maintenance costs. Due to the good earnings, overdue maintenance may be committed and replacement investments made.
More milk
Milk production per farm will increase by 37,000 kilos in 2022, or 4 percent, compared to 2021. This brings the production to more than 1 million kilos per farm. The increase in production is the result of a 3 percent increase in the number of dairy cows per farm and a 1 percent increase in milk production per cow.
More than half of the cost increase is due to animal feed and fertilizer. The costs of the purchased animal feed rose by 36 percent, of which 5 percent was due to a higher amount of concentrated feed. The price of fertilizer even increased by 230 percent.
Fuel costs are rising by more than 47 percent and electricity costs are almost doubling. Total energy costs will increase by almost 14,000 euros in 2022. The researchers also assume that 20 percent of dairy farmers in 2022 still had a long-term energy contract, the price of which has not changed.