Milk price formula: Revalled production cost indicators

The CNIEL "production cost" observatory is enriched with new data providers and more operations surveyed.The results are refined and organic farms have their production cost indicator and cost price.

For conventional plain operations, in 2019, the indicators are € 499 per 1000 liters for the production cost and € 403/1000 l for the cost price.The increase between 2019 and 2018 is minimal, because the high rise in the food purchasing position is notably offset by a significant drop in the mechanization post.

For mountain operations, between 2019 and 2018, the observatory shows a significant increase in indicators: + € 21 in production cost at € 644/1000 l;and + 22 € cost price at 483 €.This flight is mainly due to food, work and mechanization purchasing stations.

For organic farms, between 2019 and 2018, the increase is marked: + € 12 in production cost at € 764/1000 L;and + 13 € cost price at € 547.

"Repeated droughts and the increase in wage costs related to the transfer of dairy farms explains this increase between 2018 and 2019", deciphers Daniel Perrin, secretary general of the FNPL.

As a reminder, the CNIEL has implemented this national observatory for cow's milk production costs in France, based on data made available by management centers and farming consulting organizations, with technical supportof the Livestock Institute (Idele).The cost prices must serve as a basis in annual commercial negotiations between mass distribution and its suppliers.

The cost of production (CP) is the sum of the charges mobilized for the milk workshop: real charges observed (operational and structure), depreciation and a flat -rate remuneration of production factors, in particular the workforce of operators atheight of 2 minimum wage per unit of labor dedicated to the milk workshop.It takes into account all the means to mobilize to produce milk (real rate).

The cost price (PR) is the difference between the cost of production of the milk workshop and the amount of aid and other products assigned to this workshop.It constitutes a point of comparison with the price of milk with a real content.

A high difference between production cost and cost prices

The difference between the cost price and the production cost is significant for mountain operations and organic: € 161/1000 L and € 217 respectively with data 2019.This difference is explained to two-thirds by aid, and a third party is due to the other products in the milk workshop (reform, calf)."Brought back to the 1000 liters, the aid and the joints of mountain and organic systems are higher than in the conventional plain system", underlines the Idele.Mountain and organic systems being less productive, their level of help and joint product (reforms, calf) is less diluted by the volume of milk when you express "for 1000 liters".