High costs for farmers

Milk price stable, “but the margin is smaller”

29-year-old Sophia Spath from Hitzendorf took over the farm in 2021

(Bild: Pail Sepp)

Every year, Styrian farmers take World Milk Day on June 1 as an opportunity to discuss the situation. Although the price is currently stable, high construction costs and interest on loans are a particular challenge for young dairy farmers. Digitalization is becoming increasingly important - this also promotes a better work-life balance.

At least three hours in the morning and three hours in the evening just for milking - and that for two: that used to be the daily workload for dairy farmer Sophia Spath (29) from Hitzendorf. "In 2021, my husband and I took over the farm and decided to buy a milking robot," she explains.

A system like this costs 200,000 euros to purchase, plus high ongoing energy costs. In return, Spath and her family's everyday life with their 60 dairy cows is now completely different: "I can do all the work in an hour and a half in the morning on my own." While the machine is milking, Spath can scatter the feed and take care of other things. This gives the mother of a young daughter more time - and a better quality of life.

Connected to the barn with her cell phone
Her cows also wear collars that measure vital signs - so Spath can tell if a cow is getting sick two days before the illness breaks out. This saves follow-up costs and improves milk quality. The disadvantage? "You're constantly looking at your cell phone or tablet to see how the cows are doing. You're virtually always available, even when you're on the move."

Figures and data on the Styrian dairy industry

• There are3631 dairy farms in Styria
• A third have closed their barn doors for good since 2010
• On average, a dairy farmer in Styria has 25 cows
• In comparison: in Germany there are 94, in Denmark 248
• The amount of milk delivered has risen from 539,422 tons in 2021 to 541,678 tons in 2023 On average, each farm delivers 150 tons of milk per year
• The export quota of dairy products has risen from around eight percent to over 50 percent since Austria joined the EU

According to the Chamber of Agriculture, 291 robots milk cows in Styria. Only eight percent of farms use them - but the trend is rising sharply, with a further 17 percent saying in a survey in 2021 that they want to purchase such a device. "This does not replace farmers, but supports them," says LK President Franz Titschenbacher. Productivity is increasing thanks to technology because the machines are taking over manual tasks from people.

Franz Spath, Andreas Radlingmaier, Franz Titschenbacher and Jakob Karner

(Bild: Pail Sepp)

"The market situation is stable"
The industry representatives gathered at this year's World Milk Day were more relaxed than they have been for a long time. "The market situation is currently stable," says Titschenbacher. At the peak of inflation, the milk price was 58 cents per liter, now it has fallen to 48 cents. Compared to pre-corona times, that's a lot, as the milk price has been bobbing around between 28 and 38 cents since 2012.

Does that leave farmers with more in their pockets? "In absolute terms, yes, but not in relative terms," says Jakob Karner, Chairman of Obersteirische Molkerei, because "construction costs and interest on loans have risen so much that it is hardly possible to build new barns anymore". Franz Spath, CEO of Steirermilch, agrees with him: "The margin has narrowed."

Around three to four percent of dairy farms are still being lost every year. "Love of the profession is one thing," says Andreas Radlingmaier from Ennstal Milch. "Business management is the other."