Milk production rising, producer prices falling

2009 saw an upswing in milk production, which increased by one per cent to 2,264 million litres. At the same time, milk producer prices fell by 10 per cent. Fewer eggs were produced in 2009 than in 2008, and egg producer prices also fell. These figures are based on the latest statistics compiled by Tike (Information Centre of the Ministry of Agriculture and Forestry).
Upswing in milk production
Milk production had been decreasing for the previous six years before picking up slightly in 2009. 2,264 million litres of milk were produced, which is 25 million litres, or about one per cent, more than in 2008.
Dairies received 2,215 million litres of milk. Organic milk production increased by just under five per cent on 2008, reaching 29 million litres. Farms used about 49 million litres of milk. On-farm use primarily denotes milk that is used in food management or given to livestock.
The number of milk producers decreased by just under six per cent during the year. In December 2009, milk producers numbered 11,244 – 650 less than in 2008. There were 123 organic milk producers.
There were 285,830 dairy cows in December 2009, which is just under one per cent less than in December 2008. A dairy cow’s average yield rose to 7,850 litres per cow compared to 7,770 litres in 2008.
Milk producer prices down ten per cent
In 2009, milk producer prices fell by 10 per cent on 2008. Producers received an average of 38.82 cents per litre of milk in 2009.
In spite of this fall, the 2009 nominal producer price was the second highest of the 2000s. The producer price hit a peak in 2008, when it stood at 42.99 cents per litre of milk.
The price obtained by producers is also affected by adjustment payments made after the end of the calendar year, and also by production subsidies paid on the basis of the volumes of milk produced. These have not been taken into account in the present figures. In 2009, the average production subsidy amounted to 7.32 cents per litre. The statistical analysis of last year’s adjustment payments will be completed in late spring. In 2008, the average adjustment payment was 1.80 cents per litre.
A slump in egg production
Last year saw the production of the fewest eggs since the mid-1960s. Production decreased by 7.5 per cent to 53.9 million kilos. The reduction was partly influenced by a salmonella epidemic. The greatest fall in production was seen in the third quarter (–10%), but it slowed in the fourth quarter (–4%). Packaging plants received 53.4 million kilos of eggs. Direct sales from farms and on-farm use accounted for about 0.5 million kilos.
Of the eggs received by packaging plants, 94 per cent were class A eggs and 6 per cent class B eggs. 75% of class A eggs were produced in hen houses with battery cages, 22% in barn-type hen houses and 3% came from organic poultry farms. The volume of eggs produced by caged hens declined (–12%), while the volume of barn eggs (+12%) and organic eggs (+12%) increased. The production volumes for caged hens include eggs from hens kept in enriched cages.
Downswing in egg producer prices
After rising for three years, egg producer prices experienced a downswing in 2009. Producers were paid an average of EUR 90 per hundred kilos of class A eggs, which is 6 per cent less than in 2008.
In 2009, packaging plants paid producers an average of EUR 83/100 kg for eggs from caged hens, EUR 91/100 kg for barn eggs and EUR 251/100 kg for organic eggs. Compared to 2008, the greatest fall in producer prices was seen in barn eggs (–11%). The producer price for eggs from caged hens went down by 6 per cent, while the price for organic eggs went up by 6 per cent.
In spite of this fall, the 2009 nominal producer price of class A eggs was the second highest of the 2000s. The highest producer price, EUR 96/100 kg, was paid in 2008.
Background to the statistics
The data on milk producer prices, producer numbers and the milk volumes received by dairies is based on surveys conducted among dairies. The data on egg producer prices and the egg volumes received by packaging plants is based on surveys conducted among packaging plants. Data on the on-farm use of milk and eggs is collected from farmers using an annual sampling study.
The statistical tables associated with this press release are available on our Matilda agricultural statistics service. See: Producer Prices of Agricultural Products, Dairy Statistics, Total Milk Production and Egg Production.
For more information, contact
Price statistics: researcher Elina Seppälä, tel. +358 20 77 21313
Production statistics: actuary Sanna Vuorisalo, tel. +358 20 77 21379
E-mail addresses are in the format: forename.surname@mmmtike.fi
