The war in Ukraine and inflation will cost dairy farms in Italy an average of €90,129, with production costs up 111% in the first half of 2022 compared to 2020, according to a report by Crea Politiche e Bioeconomia. It documents the difficulties of an agricultural sector facing an unprecedented crisis, exacerbated by drought. The increases, calculated by the researchers on the basis of eight cost items, are linked to the exceptional rise in average business expenditure on electricity (+€35,000) and fuel (+€6,000). The north-western part of the country, which has the highest increase in costs (over €138,000 per farm), is the one with the smallest percentage increase (+106%), while the south (+129%) and the islands (+138%) have the largest relative increases. It is estimated that one in four farms may have to close.
