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Livestock & Forage
Balmesh silage video 2022.
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<blockquote data-quote="Cowabunga" data-source="post: 8114885" data-attributes="member: 718"><p>Unless the farm is very intensive with the fields not too far away, the benefit to cost ratio has become very much more marginal or even unfavourable unless the price of milk rises at least as much as to cover the increased costs. This cannot be taken for granted.</p><p>Making a few simple assumptions, <strong>for every million litres</strong>...</p><p></p><p>a 1ppl difference in milk price = +/- £10,000</p><p>+/- £20 concentrate cost = +/- £7000</p><p>+/- 50,000 litres production @ 40p = +/- £20,000</p><p></p><p>The increased milk income must be very carefully measured against the increased contractor costs of doing maybe 30% extra acres consisting of five cuts compared to three higher yielding cuts. For grazing animals the area and yield per acre of each cut declines as the season progresses of course and the later cuts may, in an average year, be more prone to drought.</p><p></p><p>Concentrate cost has already reached £400/ton which is a rise of £110/ton since Winter contracts. That’s already over £38,000 per million litres increased costs for many farms and by next Winter I expect another £100/ton on the cost which will add, on average, another £35,000 per million litres to make a total of well over £70,000 in <strong>increased</strong> costs from bought feed alone per million litres next Winter.</p><p>A 4ppl increase in milk price by October from the current price will add £40k to income to offset £35k in feed cost assuming £500/ton which hardly leaves enough to cover all the other increased costs such as energy and contractors and labour and so on.</p></blockquote><p></p>
[QUOTE="Cowabunga, post: 8114885, member: 718"] Unless the farm is very intensive with the fields not too far away, the benefit to cost ratio has become very much more marginal or even unfavourable unless the price of milk rises at least as much as to cover the increased costs. This cannot be taken for granted. Making a few simple assumptions, [B]for every million litres[/B]... a 1ppl difference in milk price = +/- £10,000 +/- £20 concentrate cost = +/- £7000 +/- 50,000 litres production @ 40p = +/- £20,000 The increased milk income must be very carefully measured against the increased contractor costs of doing maybe 30% extra acres consisting of five cuts compared to three higher yielding cuts. For grazing animals the area and yield per acre of each cut declines as the season progresses of course and the later cuts may, in an average year, be more prone to drought. Concentrate cost has already reached £400/ton which is a rise of £110/ton since Winter contracts. That’s already over £38,000 per million litres increased costs for many farms and by next Winter I expect another £100/ton on the cost which will add, on average, another £35,000 per million litres to make a total of well over £70,000 in [B]increased[/B] costs from bought feed alone per million litres next Winter. A 4ppl increase in milk price by October from the current price will add £40k to income to offset £35k in feed cost assuming £500/ton which hardly leaves enough to cover all the other increased costs such as energy and contractors and labour and so on. [/QUOTE]
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Balmesh silage video 2022.
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