Does Milk production pay?

Walterp

Member
Location
Pembrokeshire
There seem to be two groups of dairy farmers at the moment:

Those that want to expand as they are making a good profit and those that want to cease production as they are making a loss.

How can there be such huge differences in both attitude to the job and profit margiin?

Mr Alan Boucher, Trehws, used to hold forth about this when doing FAWL inspections. I'll never forget his explanation that it was all about 'balance'. The difference between success and failure is about striking the right balance between:

1. borrowed capital and equity;

2. owned land and not-always-available, rented, silaging or maize ground;

3. family labour and employed labour;

4. the commitment of the older generation and the enthusiasm of the up-and-coming one;

5. the quest for milk yield and the need to reduce costs.

Get the balance right and you can out-farm anyone. If it's not right, it can be tipped over by any combination of poor circumstances.

What would Julie and me do if one of our children wanted to milk cows (which'd be points 3 and 4 answered)? First thing'd be to sell up everything and look to relocate, then do the sums and see what could be afforded, how much could we justify borrowing, then decide whether to go out to New Zealand or the US or stay in the UK. The answers to these questions would determine whether, where and how you'd go about it.
 

jimmer

Member
Location
East Devon
there is a vast difference between milk prices to suppliers in different parts of the uk and dont underestimate how much power a big producer has when he says i have an artic load of milk for you every day and i am two miles from the main road or motorway
but are these big producers more profitable well it depends if you put profit against the massive borrowings they have to be that size
if you are in the right location with the right soiltype then spring calving low cost is prob most profitable
on heavy/wet soils with late turnouts block autumn calving will prob be best, and so on
 

Nearly

Member
Location
North of York
At my level, agricultural profitability is about what you choose not to include in the figures.
My father (and I) milked for 50 years and the only thing we walked away with was the increased value of the land. Yes it put me (+2) through school and uni but what am I if I choose to ignore the education it gave me. ;)
I sometimes think of going back into milk production but not for long.
2.15pm an a Sunday, just going to watch son playing sport. Don't have to think of who's going to be milking.
I'm out.
 

Thick Farmer

Member
Location
West Wales
Mr Alan Boucher, Trehws, used to hold forth about this when doing FAWL inspections. I'll never forget his explanation that it was all about 'balance'. The difference between success and failure is about striking the right balance between:

1. borrowed capital and equity;

2. owned land and not-always-available, rented, silaging or maize ground;

3. family labour and employed labour;

4. the commitment of the older generation and the enthusiasm of the up-and-coming one;

5. the quest for milk yield and the need to reduce costs.

Get the balance right and you can out-farm anyone. If it's not right, it can be tipped over by any combination of poor circumstances.

What would Julie and me do if one of our children wanted to milk cows (which'd be points 3 and 4 answered)? First thing'd be to sell up everything and look to relocate, then do the sums and see what could be afforded, how much could we justify
borrowing, then decide whether to go out to New Zealand or the US or stay in the UK. The answers to these questions would determine whether, where and how you'd go about it.

I agree with your thinking, but I want to stay put, so if milking doesn't stack up in West Wales, then I won't do it...
 

SFI - What % were you taking out of production?

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  • 100% I’ve had enough of farming!

    Votes: 7 3.7%

Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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