Dairy producers face rising costs amid fodder shortages and energy spikes

Dairy producers in Slovakia and the Czech Republic are facing significant economic pressure due to rising production costs and fluctuating market prices. In Slovakia, raw cow milk prices have dropped from nearly 50 cents per kilogram to 37.5 cents by August, while production costs have surged.

Alexander Pastorek, chairman of the Slovak Union of Primary Milk Producers, noted that climate-related issues have severely impacted fodder yields. For example, alfalfa yields dropped from 30 tons per hectare to 10.9 tons, causing the cost of alfalfa hayage to rise by over 140 percent. Additionally, corn silage costs have more than doubled, increasing total feeding costs by approximately 600 euros per cow annually. Rising fuel prices, approaching the 2-euro per liter mark, are expected to add another 16 million euros in costs to the sector.

In the Czech Republic, the recent trend of declining food prices may be temporary. Global commodity markets show signs of reversing downward trends for wheat, corn, and milk. Experts warn that rising energy costs—affecting everything from tractor fuel and fertilizer production to supermarket refrigeration—will likely pass through the supply chain, eventually leading to higher retail prices for consumers.