All things Dairy

Location
cumbria
I undoubtedly get rain envy

Careful what you wish for🙈

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som farmer

Member
Livestock Farmer
Location
somerset
Why is he shutting down two of his dairies?
good question
Why wouldn’t they if there not performing? And I quite agree if your no good get out. But that’s the same in any industry. Am sick and tired of those who can’t thinking none of us can and slagging of the industry and the opportunities it can provide.
we rent, and l/lords won't help, so no major investment here.
quite agree, it is a great industry, and if you are good, money can, and will be made.
But the price paid to us, is never really going to reflect the money invested in it, as with all farming, all guvs require cheap food, and here in the UK, as in many other countries, guvs have been happy to subsidise farmers, to keep food costs down, where that goes wrong, is when processors include that sum, in what they pay us, which of course they shouldn't, but it isn't going to change. Or is it ?
The guv, in it's wisdom, is removing subs from food production, to the environment, so there is no need to 'farm' as before, 'green farming' now. Brexit, covid, and recessions, have all effected the food supply chain, the present cock-up over fuel and drivers, have shown the 'just in time ' policy is not as secure as many businesses will/have found out. So, there is the 'perfect' storm, to give processors, or more importantly their customers, to allow a price rise, to maintain a more secure production base, more home grown.
Whether that will happen, goodness only knows, or greed and avarice reign supreme. What ever the outcome, price paid, will not reflect it's real value, it cannot, or any guv, will risk food riots, and a drop in tax revenue.
With ever increasing regulations, RT EA etc, more farms will fall foul of them, and drop out of dairying, unable, or unwilling to make the necessary investment. There are easier ways to get a return.
 

dinderleat

Member
Location
Wells
that is a massive leap of faith in dairy farming, he obviously thinks there is a profitable future in dairy farming, in Aus. Over here, milk is seen as a loss leader, by the s/mkts, which keeps a very tight lid on prices, l am afraid l would not be prepared to invest massively in dairy, at the moment.
Your past your best🤪 plenty want to have a crack
 

cows sh#t me to tears

Member
Livestock Farmer
It's not just that. It's the over capitalization in their farm that they may or may not get back if they decide to sell one day (I dont think they have any sons in their little tribe....)
Personally I'd rather spend a million$ on more land. Easy to liquidate if you have to and your not constrained to dairying for eternity.
One of the best farms in the district has struggled to sell for the last 4 years. Owned by a Dutch family that moved here to escape the growth constraints of the Netherlands and EU regulations. Over 1000ac , 80 unit rotary. Best soils in the area. All water allocations were offered on a wiwo basis and they couldn't get a bite. Meanwhile crappier dairies were sold to corporate buyers...I just dont understand it...

All other dairies that have shut up shop locally have either converted to cropping or, been bought by neighbors to convert to cropping.
 

In the pit

Member
Livestock Farmer
Location
Pembrokeshire
It all depends what your putting money into
If you’re putting a new parlour in to save time milking or altering the feeding system to save money and lowering your cost of production then it doesn’t matter if you rent or own.
The people with problems are the ones who are putting up sheds and buying cows and taking more and more land to stand still or go backwards
 

cows sh#t me to tears

Member
Livestock Farmer
Here, there is STILL and ALWAYS will be ongoing uncertainty over water allocations though.
Both state and federal government policy is making it harder and harder , especially in drier years.. Then theres competing industries like Almonds , whom have plenty of cash to drive up water prices.
You CAN NOT farm here without water. Even if your zero grazing. You still need either home grown feed or you rely on bought in feed, that person still requires water.
Theres also the small matter of interest rates can only go one way. Once again , I'd rather invest in land that can be liquidated if things get tight rather than risking losing the lot.
 

cows sh#t me to tears

Member
Livestock Farmer
It all depends what your putting money into
If you’re putting a new parlour in to save time milking or altering the feeding system to save money and lowering your cost of production then it doesn’t matter if you rent or own.
The people with problems are the ones who are putting up sheds and buying cows and taking more and more land to stand still or go backwards
There dairy is nearly 20 years old now (as is ours) given the amount of cows they have milked through it in comparison to us, they would most likely need to replace the platform in the coming decade. Which, you cant do if your milking 700+ three times a day.
So chances are a new million dollar plus dairy will be required. Where do you stop?
 

som farmer

Member
Livestock Farmer
Location
somerset
Here, there is STILL and ALWAYS will be ongoing uncertainty over water allocations though.
Both state and federal government policy is making it harder and harder , especially in drier years.. Then theres competing industries like Almonds , whom have plenty of cash to drive up water prices.
You CAN NOT farm here without water. Even if your zero grazing. You still need either home grown feed or you rely on bought in feed, that person still requires water.
Theres also the small matter of interest rates can only go one way. Once again , I'd rather invest in land that can be liquidated if things get tight rather than risking losing the lot.
have always been told, the next major conflict will be over water, and we just treat it as 'normal', even our droughts are pretty mediocre, when compared to other countries.
the next stage for interest rate, it either goes up, or they pay us to borrow, my moneys on the former, but a fast rise, would cause utter mayhem, and we can't afford that.
The next few years are going to be interesting, to say the least, no one is really used to massive change, l think we may have to learn quite quickly !
 

Fools Gold

Member
Livestock Farmer
It all depends what your putting money into
If you’re putting a new parlour in to save time milking or altering the feeding system to save money and lowering your cost of production then it doesn’t matter if you rent or own.
The people with problems are the ones who are putting up sheds and buying cows and taking more and more land to stand still or go backwards
Hard to disagree with any of that though the cost of compliance with new regulations (covered slurry storage, nvz and others) will be the next major financial investment for most regardless herd size, whether owned or rented or farming system and will have none or very little payback.
 

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