Decline in milk production continues
Milk production last year totalled 2,244 million litres, which is slightly under two per cent, and approximately 43 million litres, less than in 2007. Total milk production has now been on the decline for the sixth year running.

Dairy milk accounted for 2,188 million litres of total milk production. The average fat content of dairy milk rose to 4.21 per cent and its protein content fell to 3.43 per cent. Production of organic milk increased by just under five per cent on 2007, totalling about 28 million litres and accounting for just over one per cent of dairy milk production. On-farm usage totalled approximately 56 million litres. On-farm usage includes milk used in food management and farm cheese production, milk given to livestock, and direct sales.

The number of milk producers fell by just under seven per cent during 2008, with the total number standing at about 11,890 in December. The rate of milk producers ceasing production slowed in 2008, as the number of producers fell by eight per cent in 2007. There were, however, 130 more organic milk producers than in 2007.

In December, the number of dairy cows totalled 288,350, which is half a per cent more than a year earlier. The average yield fell to 7,767 litres per cow.

Milk producer prices reach record high
Milk producer prices rose for the second consecutive year. The producer price of standard milk (fat content 4.3% and protein content 3.3%) exclusive of producer subsidies and adjustment payments was 42.37 cents per litre last year, that is, 23 per cent higher than in 2007. The producer price of milk with an average fat and protein content rose by an equivalent rate. Dairies paid producers an average of 42.99 cents per litre for such milk.

Milk producer prices were at a record high since Finland joined the EU. This goes for both nominal and real prices. According to the real price time series, prices last peaked in 1995. The real price level in 2008 was 6–8 per cent higher than in 1995.

The price received by producers is also affected by adjustment payments at the end of the calendar year and production subsidies paid on the basis of produced milk volumes. They have not been taken into account in these figures. The average production subsidy in 2008 was 7.35 cents per litre. Statistical analysis of last year’s adjustment payments will be completed in late spring. The average adjustment payment in 2007 was 3.96 cents per litre.

Egg production rising
In 2008, total egg production increased by just over two per cent to 58.3 million kilos. Egg production has been increasing for the last couple of years and production volumes in 2008 were the largest in eight years. Packing plants received 57.7 million kilos of eggs, while on-farm usage accounted for 0.5 million kilos.

Of the eggs received by packing plants, 54 million kilos were Grade A eggs and about 3.5 million kilos Grade B eggs. Of the Grade A eggs, 79% were produced in hen houses with battery cages, 19% in barn-type hen houses and 2% came from organic poultry farms. In recent years, the volume of eggs produced by caged hens has declined, while the volume of barn eggs has increased by an equivalent amount.

Egg producer prices up by about one fifth on 2007
Egg producer prices have risen for the third year running. Last year, producers were paid an average of EUR 96 per hundred kilos of Grade A eggs – a fifth more than in 2007.

Packing plants paid producers an average of EUR 88/100 kg for eggs from caged hens, EUR 103/100 kg for barn eggs and EUR 236/100 kg for organic eggs. The price differentials between different production methods increased on 2007: the price of organic eggs rose the most (+24%) and the price of eggs from caged hens the least (+17%).

The nominal producer price of Grade A eggs was at a record high since Finland joined the EU. However, price trends differ when nominal prices are converted into real prices using the consumer price index: last year's real price remained 4 per cent lower than in 2000, when the real price of Grade A eggs last peaked.

Background to the statistics
The data on milk producer prices, producer numbers and milk volumes received by dairies is based on surveys conducted among dairies. The data on egg producer prices and volumes received by packing plants is based on surveys conducted among packing plants. Data on on-farm usage of milk and eggs is collected from farmers using an annual sampling study.

For additional information
Price statistics: Researcher Elina Seppälä, tel. +358 (0)20 77 21313
Production statistics: Actuary Sanna Vuorisalo, tel. +358 (0)20 77 21379

E-mail: forename.surname@mmmtike.fi

Monthly statistical reports are also available, and may be ordered by telephone on +358 (0)20 77 21 208 or by email: tietopalvelu@mmmtike.fi