Farmer Focus: Is a drop coming in milk costs?

I at all times say there are three huge dangers to any farm enterprise: coverage/regulation, market worth fluctuations and Mom Nature.

We’re simply coming to the tip of an distinctive interval for milk worth.

A decline is on the horizon, with the primary milk worth cuts for greater than a yr throughout some European milk processors. Inevitably, extra will observe.

See additionally: Weak markets and excessive provide squeeze farmgate milk costs

In regards to the writer

Gillian O’Sullivan

Livestock Farmer Focus author
Gillian O’Sullivan milks 100 crossbred cows once-a-day together with her husband Neil and father Michael on Eire’s South-East coast. They function a seasonal calving, grass-based system with milk provided to Glanbia attempting to ship work-life-balance and system resilience.

Averaging 73.5c/l (63p/litre) from our milk processor to the tip of October breaks all types of information.

This, after all, is nice, however excessive milk costs are a double-edged sword for 2 key causes: system drift and work-life stability.

The consolation blanket of a excessive milk worth means the price of milking into the winter for seasonal grass-based techniques is much less of a priority.

The ideas of grass-based dairying are simply that – produce milk off grass with low complement feeding to match milk manufacturing to grass progress.

Key attributes for spring-block techniques are good grassland administration, good inventory expertise and environment friendly and resourceful determination making.

Milk worth is usually a fickle mistress, main producers down a path centered on output.

The rise in enter prices has been vital, however as soon as lined by milk worth, it has been nicely tolerated.

The engaging sway of milk output has led to a drift in the direction of better focus inputs and better prices.

Focus feeding has been nicely in extra of 1t a cow throughout most farms for 2022.

The primary problem is that focus is usually a troublesome dependancy to detox from because the kick of manufacturing is usually a large excessive.

I worry 2023 is about to be a yr with declining milk costs however excessive enter prices. December requires rehabilitation for some to reassess the yr’s efficiency and, if wants be, put a detox plan in place.

We put enormous worth on the eight weeks of downtime for our household farm whereas the cows are dry.

We dried off on the finish of November and turned off the alarm clocks. Household journeys are already booked. Batteries are being recharged.

Regardless of the temptation to exploit into December, it’s time to be disciplined and revel in what has been yr.