Opportunity options on family farm

[beefandsleep]

Global market location the product comes from is irrelevant

Sorry, rubbish. There is plenty of money being made from U.K. Milk just not by the farmer. If processors wish to continue in business they have to have your milk, if there is a local oversupply they don't have to compete for it, if there is a local shortage they have to bid it higher and reduce their margin.

 

[Headless chicken]

Sorry, rubbish. There is plenty of money being made from U.K. Milk just not by the farmer. If processors wish to continue in business they have to have your milk, if there is a local oversupply they don't have to compete for it, if there is a local shortage they have to bid it higher and reduce their margin.

To a point yes but they're not going to pay over the odds if they can get it cheaper over the water.

 

[beefandsleep]

the figures for dairy are impressive, £1100/cow gross margin just now, £250 for suckler, £50/ewe?

You could keep 4 suckers for the feed of your £1100 margin cow with a fraction of the fixed costs.

 

[Bossfarmer]

You could keep 4 suckers for the feed of your £1100 margin cow with a fraction of the fixed costs.

the 1100 margin is after feeding costs

 

[Fergieman]

Have you got a milk buyer lined up yet @Bossfarmer ?

 

[beefandsleep]

the 1100 margin is after feeding costs

Yes, I realise, be a pretty low yielding cow otherwise. What are your projected fixed costs per litre? Vet, labour, power, the list goes on.

 

[Bossfarmer]

Yes, I realise, be a pretty low yielding cow otherwise. What are your projected fixed costs per litre? Vet, labour, power, the list goes on.

Im just going on the figures i was quoted for the current milk price a dairy cow is leaving about £150/cow net profit before sfp a suckler is -£100 ish so 250/cow difference all in

 

[jockthethistle]

and on and on and on .... jtt

 

[beefandsleep]

Im just going on the figures i was quoted for the current milk price a dairy cow is leaving about £150/cow net profit before sfp a suckler is -£100 ish so 250/cow difference all in

So less than 2p swing on the milk price? Proceed with caution.

 

[Bossfarmer]

So less than 2p swing on the milk price? Proceed with caution.

I believe the figures are based on 26ppl which would be a rough 5 year av?

 

[beefandsleep]

You quoted current milk price before. Just be careful that's all I will say, budget on worse case and if you can weather that then go for it boss.

 

[pappuller]

I believe the figures are based on 26ppl which would be a rough 5 year av?

A little optimistic I think I d budget on 24/25 and stress test at 20ppl, then carry on with the suckys and corn mon

 

[Bossfarmer]

You quoted current milk price before. Just be careful that's all I will say, budget on worse case and if you can weather that then go for it boss.

Ill stick with sucklers unless the subs go as i get £85/calf beef sub just not and £32/calf for the beef efficiency scheme

 

[Kiwi Pete]

It's down to the fact that dairy is so volatile and with very little room for manoeuvre in a downturn, you can be locked in a cycle of loss making production because you simply have to have that milk cheque coming in to keep the plates spinning. Beef finishing is vastly lower risk as the margin is made when the next batch of cattle is bought. If you can't see a profit in them at the start you can sit tight and wait a month or too with low overheads and cash coming in from sales of cattle in the pipeline. Growing your own feed is key and you have the flexibility of crops or grass depending on the relative profitability of each.
Added to the above I came to the conclusion a while ago that as a milk producer you will only make as much money as you are allowed by the processors and retailers and that will only just be enough to keep you milking in hope of the better years which now seem fewer and further between. There have been fortunes made in dairy in the past but those days are finished. The future is high risk with low returns and I'm out.

I cannot like this post more, you mind if I keep it?

 

[Kingofgrass]

after some earlier posts on other threads I think you have redeemed yourself fully with this post I more than like it

I'm Not one for beating round the bush,very straight talking

 

[Kingofgrass]

Yes, I realise, be a pretty low yielding cow otherwise. What are your projected fixed costs per litre? Vet, labour, power, the list goes on.

That's like asking someone how much money you got in your bank account
Put it like this,if you had to start from scratch and borrowing the money I know which farming method I would pick because the others,the money just isn't there to repay the borrowed money!

 

[pappuller]

S

I'm Not one for beating round the bush,very straight talking

Ditto

 

[Will Blackburn]

I believe the figures are based on 26ppl which would be a rough 5 year av?

If you include supermarket suppliers.

 

[Fergieman]

@T C whats your thoughts on the ecomonics of starting a dairy from scratch.

 

[T C]

@T C whats your thoughts on the ecomonics of starting a dairy from scratch.

Depends what "from scratch" is - a couple of robots is a similar cost to a mid sized combine. Suckler cow to dairy heifer means livestock capital is broadly equal.
I could get closer to world market prices with milk delivered to the consumer than I could with beef.
Simply 24ppl would struggle here 30ppl would fly !!
Today beef is looking better than it has for a while where as milk looks poorer.