Tike statistics show a drop in milk production last year of a good two percent to 2,287 million litres. Milk producer prices were up on the previous year. Real prices, on the other hand, remained 7 - 9 percent below the top prices in the last decade. The volume of egg production remained almost the same as the year before, or 57 million kilos. The nominal egg producer prise rose by a quarter from the year 2006. However, the real price remained 15 percent below the top prices in the last decade.

Decline in milk production accelerated last year

Milk production last year stood at 2,287 million litres, which is a good two percent less than the year before. Of total milk production, dairy milk accounted for 2,226 million litres and on-farm usage and direct sales for 61 million litres in all. The volume of milk supplied to dairies fell in the first half of the year by a percentage unit and in the second half year by almost four percent, compared to the corresponding periods in the previous year. Production of organic milk increased slightly on the year before, totalling 27 million litres last year. The average fat content of dairy milk rose to 4.18 percent and protein content to 3.46 percent.

The volume of 2007 milk production is the lowest since comparable records began in the1950s. The most milk was produced in the 1960s, when the maximum volumes reached 3,700 million litres.
The number of milk producers fell during last year by eight percent, and the total number of producers in December was about 12,800. Of the milk producers, 118 produced organic milk. At the beginning of December, the number of dairy cows stood at about 287,500, which is almost four percent fewer than a year earlier. The average yield of the cows grew by a couple of percent to 7,800 litres per cow.

Milk producer prices strengthened

Milk producer prices rose from the year 2006. The producer price of standard milk (fat content 4.3% and protein content 3.3%) exclusive of producer subsidies and adjustment payments was 34.36 cents per litre last year, or four percent higher than in 2006. The producer price of medium fat milk rose slightly more than that of standard milk, due to an increase in the protein content of the milk. Dairies paid the producers on average 35.09 cents per litre for medium fat milk, or five percent above the 2006 price.

Over the last ten years, the nominal producer price of standard milk reached its peak in 2003. Compared to this, the average 2007 price levels were down by two percent. When nominal prices are converted into real prices using the consumer price index, price development looks different: the real price of standard milk peaked at the beginning of the reference period. Last year’s real price level was 9 percent lower than this.

The price obtained by the producer is also affected by the adjustment payments at the end of the calendar year, as well as by the production subsidies paid on the basis of produced milk volumes. They have not been taken into account in the present figures. In 2007 the average production subsidy amounted to 7.35 cents per litre. The statistical analysis of last year’s adjustment payments will be completed in late spring. In 2006 the average adjustment payment was 3.46 cents per litre.

Egg production volume remained almost unchanged

Last year’s total egg production was almost the same as the year before, or about 57 million kilos. The quantity of eggs received by egg packing plants fell by a good two percent to 55 million kilograms, whereas the volume of direct sales of eggs rose from the year before to two million kilos. The quantity of directly sold eggs last year also includes eggs exported unpackaged.

Of the eggs received by packing plants, 52 million kilos were class A eggs and 3 million kilos class B eggs. Of the class A eggs, 84% were produced in hen houses with battery cages, 14% in barn-type hen houses and 2% came from organic poultry farms. Compared to the year before, the volume of barn eggs grew (15%), while those of eggs from caged hens (-5%) and organic eggs (-5%) declined.

Egg producer price up for the second year running
The egg producer price has risen for the second year running. Last year, producers were paid for class A eggs on average EUR 79.86 per hundred kilos, or almost a quarter more than in 2006.
Packing plants paid producers on average EUR 75/100 kg for eggs from caged hens, EUR 85/100 kg for barn eggs and EUR 190/100 kg for organic eggs. The price differentials between eggs produced by the different methods decreased compared to the previous year: the producer price of eggs from caged hens rose proportionally the most (+26%), while that of organic eggs (+8%) rose the least.

Looking at the nominal producer price of class A eggs over a ten-year period, it reached its peak in the year 2000. Last year’s price level was seven percent lower in comparison. Converted to real prices, the difference is even greater: last year's real price remained 16 percent lower than the 2000 price.

The information on milk volumes taken by dairies, milk producer prices and producer numbers are based on surveys conducted among dairies. The information on egg volumes received by egg packing plants and producer prices are based on surveys conducted among packing plants. The data on on-farm usage and direct farm sales of milk and eggs are collected from farmers through an annual farm survey conducted as a sampling study.

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

Email: etunimi.sukunimi@mmmtike.fi

Statistical information is published in Tike’s Matilda information service: www.matilda.fi. Monthly reports of the statistics are also available, and may be ordered by telephone on +358 (0)20 77 21 208 or by email: tietopalvelu@mmmtike.fi