Speaking at the Genus Farming for the Future Conference, at Murrayfield on Tuesday, Derek Gardner of Promar Interenational, said that while feed bills have increased 44% over the past year, and are likely to remain high until the next harvest, next autumn, the top 25% of dairy farmers are achieving profit margins of £949 per cow or 11.2p per litre. This compares to the average of £548 per cow or 6.7p per litre.
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According to the Promar figures, the average specialist dairy farmer with 200 cows, produces yields of 8141litres with bought in feed costs working out at £717 per cow with forage costs of £109 per cow to give an operating profit of £548 per cow or 6.7p per litre. This figure has been worked out before subsidy income, rent, finance and depreciation expenses.
In contrast, the top 25% of producers by milk sales per litre per cow had 230 cows yielding 9602litres with bought in feed and forage costs working out at £894 and £116 respectively giving an operating profit of £670 per cow or 7.0p per litre. And, the top 25% by profit per cow milked 184 cows yielding 8500litres with bought in feed and forage costs of £674 and £101 per cow respectively, giving an operating profit of £949 per cow or 11.2p per litre.
See this week's The Scottish Farmer for the full story, out November 24.