During peak production periods, dairy operations face significant escalating costs. At the Žabje farm, for instance, milk production requires the consumption of over 300 liters of farm oil daily. According to Andrej Hribar, this represents a substantial additional annual expenditure exceeding 3,000 euros, adding considerable strain to the farm’s finances.
This issue is compounded by the sharp increases in the costs of essential input raw materials, including artificial fertilizers and protein components. Hribar noted that while operational expenses continue to rise, the revenue stream has decreased. Specifically, the price of milk has fallen by 15 cents in just over the last year.
This confluence of factors results in a projected annual deficit of 40,000 euros or more for the farm. The current financial climate is described as alarming by agricultural organizations representing the farming community. These groups have formally requested a crisis meeting involving the three relevant ministries: Agriculture, Infrastructure, and Finance.
Jože Podgoršek, President of the Agricultural Chamber of Chambers, highlighted the severe squeeze on local farmers. The mounting costs mean that the necessary investment to keep farms running is increasing rapidly. The falling price per unit of milk means that the income generated is falling behind the operational needs.
The collective concern among farmers is that without immediate government intervention, the economic viability of many agricultural enterprises faces severe risk, requiring substantial support to cover the mounting losses in euros.
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