Milk production continued to decline

Milk production continued to decline for the fourth consecutive year. Milk production fell by about 20 million litres (-0.8%) from 2005. The milk volumes delivered from farms to dairies fell in the first half year by 0.3% and in the second by about one percent. The 2006 milk production volume (2,343 mill. litres) is the lowest since the compilation of comparable statistical records began in the1950s. Despite the decline in total milk production, domestic production continues to exceed consumption.

Of total milk production, dairy milk accounted for 2,279 million litres and on-farm usage for about 64 million litres. On-farm milk usage includes direct milk sales, own food consumption, for home made butter and cheese, as well as milk fed to domestic animals. Of dairy milk, 1.2% or 26.5 mill. litres was organic milk. Organic milk production fell by 2.4% from the previous year.

There were approx. 13,900 milk producers in December, of which 123 produced organic milk. Last year, about 1,450 farms, a good 9% of all dairy farms, discontinued milk production. Dairy cattle numbers, which stood at 298,500 at the start of December, declined by 4.6% compared to the same time the year before. The average yield per cow rose to about 7,650 litres last year.

Decline in milk producer prices halted

Milk producer prices in 2006 remained almost at the levels of the previous year. The producer price of standard milk (fat content 4.3% and protein content 3.3%) exclusive of producer subsidies and dividends was 32.93 c/l, or 0.2% below the 2005 level. Owing to a rise in milk protein content, the producer price of milk with medium fat and protein content rose by 0.3% on the year before. Dairies paid the producer on average 33.38 c/litre for medium milk.

Over the last ten years, the nominal producer price of standard milk reached its peak in 2003. Compared to this, the average 2006 price levels were down by 5.6%.

The price obtained by the producer is also affected by the dividends paid at the end of the calendar year, as well as by the production subsidies paid on the basis of produced milk volumes (Southern Finland national subsidy and northern subsidy). They have not been taken into account in the present figures. In 2006 the average production subsidy amounted to 7.47 c/l. The statistical analysis of last year's dividends will be completed in late spring. In 2005 the average dividend amounted to 2.22 c/l.


Egg production down

Last year's total egg production was 56.7 million kilos. This is about 2.6% below the previous year's volume. The quantity of eggs received by egg packers was 56.1 million kilograms. Direct egg sales and consumption in farms' own kitchens totalled 0.6 million kilos. Egg production underwent growth over the past three years, but there was a downturn in volume last year.

Of the eggs received by packers, 53 million kg were class A eggs and 3.1 million kg class B. Of the class A eggs, 85.6% were produced in hen houses with battery cages, 12.2% in barn-type hen houses and 2.2% came from organic poultry farms. Compared to the year before, the volume of barn eggs grew (18.1%), while those from caged hens (-3.7%) and organic eggs (-3.5%) declined.

Slight upturn in egg producer prices

While total production declined, there was a slight upturn in egg producer prices in 2006. However, looking at the producer price (class A) over a ten-year period, it was still low: only in 2005 and 1997 were the nominal prices lower. The best prices over the review period were in the year 2000, last year's producer price was about a quarter below this.

Packers paid producers on average EUR 60/100 kg for eggs from caged hens, EUR 72/100 kg for barn eggs and EUR 177/100 kg for organic eggs. The price differentials between eggs produced by the different methods decreased com-pared to 2005: the producer price of eggs from caged hens was up (4.7%), while those of barn eggs (-7.7%) and organic eggs (-3.3%) declined.

The information on milk volumes received 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

Actuary Sanna Vuorisalo, tel. +358 (0)20 77 21 379
Researcher Elina Seppälä, tel. +358 (0)20 77 21 313
Email: firstname.lastname@mmmtike.fi


Price and ordering information

The statistical reports (dairies, egg production and egg producer prices) for 2006 are available to order. The price is EUR 14.03/report + postage & packing EUR 6.10 (incl. VAT). The reports may be ordered by telephone on +358 (0)20 77 21 208 or by email: tietopalvelu@mmmtike.fi

Tike (Information Centre of the Ministry of Agriculture and Forestry) milk production statistics show total milk production last year of 2,343 million litres. This was down by 0.8 percent on the previous year. Milk producer prices remained roughly at the 2005 levels. Total egg production fell to 56.7 million kilos. Egg producer prices saw a slight upturn following a three-year downward trend.