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Jan. 18 (Bloomberg) -- German dairy farmers are contending with a "huge gap" between production costs and the prices they receive, the European Milk Board said.
Production costs in October were 43.06 euro cents ($0.57) a kilogram (2.2 pounds) in northern regions and 51.03 euro cents a kilogram in the south, the Hamm, Germany-based producer lobby said in a report dated yesterday, citing a study it commissioned with the MEG Milch Board. The average price farmers received last year was 31.50 cents a kilogram, according to the report. A farm-gate price of 50 euro cents a kilogram is "essential," the EMB said.
"The study shows clearly the huge gap between production costs incurred and the prices producers are paid," the group said. "These figures are key findings on the way to achieving cost-covering milk prices. For the EMB it is essential that policy-makers use these figures and set up an EU-wide monitoring agency."