Farmers’ profits and losses

The most profitable dairy farmer in 2020 had an annual net profit of DKK 1.4 million. The least profitable reported a net deficit of DKK 74,000.

These figures come from a report compiled by accounting firm Numo, which outlines the finances of dairy farmers in the 2016-2020 period.

The average annual net income of the 21 dairy farmers registered in 2020 was DKK 264,000.

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In 2020, Faroese dairy farmers had an average long-term debt of DKK 917,000. The highest debt was DKK 6.3 million. A few of the farmers were debt-free.

The report predicts that there will be seven fully automated cowsheds by the end of 2022.

Many of the country’s cowsheds are old and worn out, and according to Búnaðarstovan (the Agency for Agriculture and Aquaculture), only four cowsheds comply with future requirements for animal welfare.

Structural changes needed

It is not inconceivable, the report adds, that most dairy cow facilities will need to be fully automated in order to remain profitable, and this will require substantial investment.

By introducing structural efficiency measures such as increased automation and using more straw fodder to reduce food costs, it is possible to make dairy farming more profitable and attract the necessary investments, the report concludes.

Read the Faroese version of this article here.

More Faroese News in English.