Labour Cost per Litre

jerseycowsman

Member
Livestock Farmer
Location
cornwall
About 3.5/4 pence, nearer 4.includes me and dad. Do our own umbilical/fert fencing etc. Took an extra man on the last year to make things easier, and I definitely see the financial Benefit and actually enjoy the job now, which in my opinion is what it’s all about. We all have a life, which is just ideal 👌👌
I think we could do with help, but I’m so tight fisted and I worry about having to find them things to do in quiet periods and I like having the farm to myself in between milkings!
 

frederick

Member
Location
south west
yeah includes me as I draw a decent salary, lots of litres and fast milking times help, all scraping is auto, But it’s all horses for courses and don’t start me on my electric 🥴
Could you expand a bit more on your system you really are in a league of your own.
If you do 3million litres that's 75k so basically only enough for a herdsman and one other. Which would require the milking operation to be one man at all times.
Don't you do the bulk of your mowing and landwork yourself as well?
 

Sandpit Farm

Member
Livestock Farmer
Location
Derbyshire
I have heard the following benchmarks spoken about:

£ Output/labour unit - I think £250k is the ideal but I think lower has to be better in this market
Litres/labour unit - I have seen industry figures of 750k but 500k seems more sensible and realistic
Hrs/cow - 25 would be a target worth aiming for but many will be higher than that.

I know farms who are producing over 1M litres per person working there. That is simply not sustainable IMO and you need to seriously consider your health if you are doing that.

My problem with it is whether you do your own contracting or not. It has a huge bearing. But if you have a discussion group and you talk about it, you will almost always get something useful from the conversation
 

Sandpit Farm

Member
Livestock Farmer
Location
Derbyshire
5ppl labour seems a fair average from what I see (with unpaid labour being costed in at £30k annually based on 55 hr week). If we are talking about reducing costs, I'd be nervous about this one
 

coomoo

Member
Can anyone point me in the right direction, I'm trying to find comparable labour costs per litre for different systems. We run a 250 Holstein cow autumn block system, and I need to show the directors how we compare against other systems and wether we should try to increase yield or take a more lower input approach.

Thanks
They wanting you to cut a labour unit?
 

Manager

Member
Mixed Farmer
Many thanks. I think it starts to get confusing when we add in feet, AI and tractor work. We currently outsource feet and AI and the tractor driver splits his time 50/50 between feeding and Arable.
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
2.3ppl for all drawings and casual labour, but..... robots take care of a few more pennies one way or another. Most fieldwork now done in house so power & machinery costs will be higher now but contracting costs are lower.
Cogwod be circa 9.6ppl
 

Wesley

Member
I’m starting to feel we undersell ourselves. We don’t employ anyone other than contractors for harvesting, slurry & cultivations & a foot trimmer so its only family drawings. As said earlier currently under 1.7ppl & hoping when we we’re firing on all cylinders in the robots to be 1.3-1.4ppl & back doing our own foot trimming & more tractor work.
 

Bramble

Member
How much are people putting in for family labour units (or drawings equivalent) I’m working on about £45k per labour unit for family members. Anyone got any idea what figures the supermarket COP contracts use?

Should it be loads more or loads less given the time/hassle/risk we put into the business??
 

supercow

Member
Location
Dumfriesshire
How much are people putting in for family labour units (or drawings equivalent) I’m working on about £45k per labour unit for family members. Anyone got any idea what figures the supermarket COP contracts use?

Should it be loads more or loads less given the time/hassle/risk we put into the business??
I take 800£ a month. More than enough considering all bills paid
 

Bramble

Member
I take 800£ a month. More than enough considering all bills paid
Does the business provide you a house and vehicle?? Even if all the properties within the business are fully paid for you still need to account for the ‘opportunity cost. House/vehicle/bills etc could easily add another £2-2500/month to your family labour cost.

You can’t employ a herd manager for £800/month, even if you give them a free house and vehicle.

Just don’t undervalue your time to the business. There is a big difference between what a farmer should expect to be ‘paid’ and what they actually take out of the business.

Also agree with you, too many variables to consider to make comparisons accurate
 

supercow

Member
Location
Dumfriesshire
Does the business provide you a house and vehicle?? Even if all the properties within the business are fully paid for you still need to account for the ‘opportunity cost. House/vehicle/bills etc could easily add another £2-2500/month to your family labour cost.

You can’t employ a herd manager for £800/month, even if you give them a free house and vehicle.

Just don’t undervalue your time to the business. There is a big difference between what a farmer should expect to be ‘paid’ and what they actually take out of the business.

Also agree with you, too many variables to consider to make comparisons accurate
Yes 800£ A month is just spending money.
 

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