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On the Economic Situation of Farmers

 


Due to growing world population and changing dietary habits, especially in developing countries, the demand for agricultural products, (particularly for milk and meat products) has grown considerably in recent years and forecasts predict that this trend will continue in the future.


Worldwide meat consumption

Source: ILRI



Dairy products consumption growth

Source: OECD/FAO (2011)


But does that actually mean bright prospects for milk and meat producers as rising demand leads to higher market prices and therefore increased farm incomes? Unfortunately, things are not quite so simple.

The pressure on farmers increases and they are faced with rising input costs: fuel, fertilizer, plant protection products, concentrates (grain, soya) and land rental etc. In addition, commodity markets face high volatility so leading to greater uncertainty and making forward planning more complicated.



World Market prices (€/TON)

Source: Barenbrug



Milk prices Evolution

Source: Dutch Agriculture and Horticulture Organisation




Here you can find the list of references >

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