Milk Price Tracker

[Quasarasara]

By how much is that worth as a premium?

 

[Homesy]

If skim milk powder is trading at £1/kg I will have an artic load to feed my calves on for the next 5 years. Hi skim, 50%, calf milk powder is £40 for a 20kg bag.

 

[BELOWAVERAGE]

your a better man than most if you think you could ride 2 months at 6ppl, anytime of the year, the commitments on any dairy farm are excessive any month. I would venture to say only a tiny proportion of dairy farmers would be able to ride it without taking on substantial extra debt. I know I couldn't do it without financial help.

Further to what I said earlier, over the last 12 months we've had several bank managers, land agents and consultants through our door and every one without exception, has said change nothing, as in their opinion I had my costs shaved to the bone, they also said at all costs avoid robots and mixer wagons and high cost systems, as the future is going to be very volatile price wise, and people operating those types of system are in for a rough ride. After the last lot of low prices when it was 16ppl about 5 years ago, I was speaking to the then council land agent, he said his view of which were his best tenants and farmers had changed, as he'd thought the best ones were the ones driving new tractors and had all the kit, but when the sh1t hit the fan, it was those who couldn't pay the rent, as they were financed to the hilt, and had no manoeuvrability.

 

[pappuller]

Further to what I said earlier, over the last 12 months we've had several bank managers, land agents and consultants through our door and every one without exception, has said change nothing, as in their opinion I had my costs shaved to the bone, they also said at all costs avoid robots and mixer wagons and high cost systems, as the future is going to be very volatile price wise, and people operating those types of system are in for a rough ride. After the last lot of low prices when it was 16ppl about 5 years ago, I was speaking to the then council land agent, he said his view of which were his best tenants and farmers had changed, as he'd thought the best ones were the ones driving new tractors and had all the kit, but when the sh1t hit the fan, it was those who couldn't pay the rent, as they were financed to the hilt, and had no manoeuvrability.

Firstly, I would take the opinions of a procession of consultants and land agents with a pinch of salt, they have no better a crystal ball than you or I.
I run a relatively high cost system with both robots and a mixer wagon but if you run a high cost system you must match that with a high output or else it will never stack up even in a good time.
Volatility is something that has dictated farmgate prices since time began, it's called supply and demand.
But it is going to see bigger swings going forward of that there is no doubt.
Not all low cost operations are profitable but neither are all high cost systems loss making, any banko worth his salt will judge each farm on its ability to repay debt whatever the system.

 

[jackrussell101]

Turnover is vanity, Profit is sanity

 

[BELOWAVERAGE]

Firstly, I would take the opinions of a procession of consultants and land agents with a pinch of salt, they have no better a crystal ball than you or I.
I run a relatively high cost system with both robots and a mixer wagon but if you run a high cost system you must match that with a high output or else it will never stack up even in a good time.
Volatility is something that has dictated farmgate prices since time began, it's called supply and demand.
But it is going to see bigger swings going forward of that there is no doubt.
Not all low cost operations are profitable but neither are all high cost systems loss making, any banko worth his salt will judge each farm on its ability to repay debt whatever the system.

What the bank managers were saying was, when they go up a farm drive for the first time, they'd rather see a gate tied up with string, than a new tractor, as it normally meant the money was staying rather than going out. Your high cost/ output appears far more profitable than my low cost/output, but in a 6ppl couple of months at this time of year I'd get by, where as your costs would still be there. I was talking to a chap who milks with robots recently(bit off topic, sorry) and has done for some time, he said the first 8 litres off every cow every day just goes towards paying for the running of the robots, would that be about right ?

 

[pappuller]

What the bank managers were saying was, when they go up a farm drive for the first time, they'd rather see a gate tied up with string, than a new tractor, as it normally meant the money was staying rather than going out. Your high cost/ output appears far more profitable than my low cost/output, but in a 6ppl couple of months at this time of year I'd get by, where as your costs would still be there. I was talking to a chap who milks with robots recently(bit off topic, sorry) and has done for some time, he said the first 8 litres off every cow every day just goes towards paying for the running of the robots, would that be about right ?

Your bank managers gate/new tractor comparison is a bit random I think.
But my robots cost me 4litres/cow/day purchase and servicing, the other 36 litres is pure profit [emoji23][emoji23][emoji23]

 

[Sid]

I was talking to a chap who milks with robots recently(bit off topic, sorry) and has done for some time, he said the first 8 litres off every cow every day just goes towards paying for the running of the robots, would that be about right ?

After feed costs maybe ?

What does your parlour and labour attached to it cost per day?

 

[vantage]

I’m just off out to polish up my DB after I’ve tied my trousers up with string.

 

[Alex72]

Thank god Yew tree's 2nd drier is burning away taking alot of the food service milk out of the equation

Last I heard it wasn’t running yet.

 

[Beef farmer]

I’m just off out to polish up my DB after I’ve tied my trousers up with string.

2nd hand string I hope.

 

[buffalo_soldier]

I have tied up pallets instead of gates.
Bank manager will have a fit if he comes here?

 

[pappuller]

I have tied up pallets instead of gates.
Bank manager will have a fit if he comes here[emoji23]

Some manufacture garden fences out of pallets, next level efficiency in my eyes.[emoji85]

 

[jackrussell101]

Where does County Milk milk go? Has anyone heard how they are fairing?

 

[BELOWAVERAGE]

After feed costs maybe ?

What does your parlour and labour attached to it cost per day?

No he definitely said up keep, no feed.
I'll come back on my costs (if thats ok)
I 'll shut up now, as I'm obviously the idiot.

 

[buffalo_soldier]

Some manufacture garden fences out of pallets, next level efficiency in my eyes.[emoji85]

On with some repairs and maintenance at the moment. Getting it summer Thatchers ready. Kerching....

 

[pappuller]

No he definitely said up keep, no feed.
I'll come back on my costs (if thats ok)
I 'll shut up now, as I'm obviously the idiot.

Don't think anyones called you an idiot, just pointing out that whatever the system there are good and bad operators.
I'm 110% sure your costs are way lower than mine, that's not up for debate but coming back on track 2 months at 6ppl is something that no one wants to face. But I know some have and worse.

 

[Sandpit Farm]

What the bank managers were saying was, when they go up a farm drive for the first time, they'd rather see a gate tied up with string, than a new tractor, as it normally meant the money was staying rather than going out. Your high cost/ output appears far more profitable than my low cost/output, but in a 6ppl couple of months at this time of year I'd get by, where as your costs would still be there. I was talking to a chap who milks with robots recently(bit off topic, sorry) and has done for some time, he said the first 8 litres off every cow every day just goes towards paying for the running of the robots, would that be about right ?

What I hear from this is that advice would be to minimise risk by not engaging in finance without 'return on investment' being factored in. I would say that is good advice. It is about change, not standard practice. If finance is paid off in the better times, refinancing to upgrade regularly is a minimal outlay and that is how high tech high output systems make it work, it is incremental and risk is assessed amongst the fixed costs of producing that litre of milk. Calculating a return on 'tenant type capital' is a good way to do this and if you can find a way to get to 20%, that would be exemplary.

Tying that gate up with string may save the cost of a cow chain/hinge but it could take 10 minutes of your time per day. Workout how much that time is worth and you will soon see that the investment in the chain/hinge is worth it. You get a return on your investment. Obviously, this is just an analogy but there you go.

The other would be a high yielding dairy may change their mixer wagon and tractor every year - it is the most used bit of kit on the farm, breakages would be costly if not in warranty and it would be catastrophic if it wasn't reliable. Going from a 1yr old set up to new is a much smaller step than going from an old Leyland and 1 tonne mixer box to a new 10 tonne system..

 

[BELOWAVERAGE]

After feed costs maybe ?

What does your parlour and labour attached to it cost per day?

Including £2000 depreciation on parlour(£20,000 over 10 years) and assuming all milking done by milkers at £14 per hour, including, elec, paper towel,liners-changed twice a year,chemicals, oil, but no parlour maintenance as I do all of that myself, 52 pence per cow per day, the labour portion of that is 30 pence.

 

[Farmer Keith]

Including £2000 depreciation on parlour(£20,000 over 10 years) and assuming all milking done by milkers at £14 per hour, including, elec, paper towel,liners-changed twice a year,chemicals, oil, but no parlour maintenance as I do all of that myself, 52 pence per cow per day, the labour portion of that is 30 pence.

The big win with parlours is they will easily do 25 years so long as cow numbers don’t change drastically, how old has anybody ran a robot to? Is 15 years possible?