Small increments in the milk price have enabled dairy farmers to pull through some unprecedented challenges over the past 12 months.
That was the main point highlighted from this week’s Kingshay Dairy Costings Focus report.
However, while there have been small increases, it points out that the average still does not cover the full cost of production or provide a fair return for family labour for many.
MORE NEWS | ABP Prism 2030 reduces on farm carbon footprint
In July 2023, the average milk price was 36.49p, but, the market has seen some huge fluctuations peaking at 13.8ppl in March 2023 before narrowing to 11.6ppl in March 24.
“It’s clear the UK milk market is changing as retailers and consumers demand more,” said Kathryn Rowland, senior farm services manager at Kingshay, who added that the report drew on data from 1068 conventional herds and 83 organic herds using its costings service for the period ending March 2024.
“Given the increased focus on climate change, it is essential that the market can deliver premiums to cover the extra effort and costs on-farm. Milk processors like First Milk are already offering premiums for regenerative farming practices and going forward, it is likely that the range in pricing even within contracts – let alone between them – is going to widen.”
Average milk yields remain in the mid 8000 litres/cow range and milk solids have hit a new high of 646kg/cow – most likely due to producers focusing on feed efficiency and fulfilling their milk contract requirements, the report says.
Average herd sizes have increased by two head, year-on-year, and now stand at 219 cows compared to 185 in 2014. Stocking rates have also seen a rise, reaching 2.39 cows/hectare compared to 2.25 a decade ago.
Horrendous weather has meant that milk from forage has decreased by 3% on last year, to 2691 litres per cow – although Scotland managed to buck the trend with a 16% year-on-year increase.
Herd health has improved in nearly all areas too. Mastitis cases have fallen to an average of 26 cases per 100 cows, indicating better management, facilities, breeding and recording.
However, lameness has seen an increase – up four cases per 100 cows to 37. Mobility scores remain identical to last year, with 5.9% of the herd scoring 2 or 3, suggesting changes in lameness recording practices.
Fertility trends have returned to normal following the hot summer of 2022/23, which negatively impacted oestrus cycles.
Calving interval has narrowed back to match 2021/22 levels at 393 days, with days to first service at 70 – one day longer than in 2021/22. The 200-day not-in-calf rate, at 12%, was one percentage point below 2021/22, while the infertility culling rate dropped back to match the previous year’s 6.7%.
The cost of an extended calving interval has dropped from £5.89/day per cow to £4.88/day, mainly due to lower milk prices and feed costs.
Efficiency varies widely across production systems, with all-year-round calving herds with a housing focus producing the greatest margin per cow (£2495 per cow) and autumn/split block calving herds with a grazing focus the highest margin per litre (29ppl).
Similar trends in milk prices were seen in organic herds, with the margin over purchased feed per cow dropping by 13.9% to £2048 compared to £2380 the previous year. Although organic herds are much larger compared to conventional, herd size has also grown by 19% over the past decade to 243 cows.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here