 |
|||
|
|||
|
|||
Milking the Profit Opportunity with Cornwall FarmersThursday 13th Decemeber 2007"We are already half a billion litres under quota according to British Dairying's quota profile and with milk prices in the mid 20's for most producers and the incentive price for some in the mid 30's, there has never been a better opportunity to produce profitable milk!" stated Tom Mann Cornwall Farmers' Blend Manager. OK, so it's not all good news as global raw material markets are driving feed costs significantly higher but, like milk, the markets are simply reacting to supply and demand. Even taking into account higher feed prices the outlook for profitable milk production looks set fair. In the table we have forecast the likely effect of an increased milk price (a conservative rise of 5ppl) and an increased concentrate price (+£50/tonne) on margin over purchased feed for the average BOCM PAULS Costed Herd. This results in a healthy increase of £45,000 MOPF for the average costed herd. Based on figures shown and armed with the knowledge that milk buyers can't get enough milk in the main and that quota is not an issue, increasing milking yields surely make sense. We are all aware that concentrates drive milk yield but are those extra litres profitable? Well, if you paid £200/tonne for feed and it takes you as much as 0.5kg of feed to get an extra litre of milk, the cost of the feed will be 10p. Set that against current milk prices of around 25 to 27ppl and for probably the first time ever - the Milk Price:Feed Price ratio has broken the 2:1 level. Using the average BOCM PAULS Costed Herd as an example, increasing milk yield from 7,542 to 8,000 litres with a milk price of 23.91ppl, would increase MOPF for the herd by an additional £11,129, or MOPF per cow by £84, even after accounting for the additional concentrate cost. Feeding to produce more milk therefore looks like a no-brainer. Turn on the taps! However, the reality of dairy farming is somewhat more complex and less predictable. The above forecasts assume that factors such as forage quality and availability present no obstacles to animal performance. Grass silage quality for 2007 is certainly a mixed bag, with both some good and mediocre silage available for the coming winter. In general, dry matters are lower than last year, with similar crude protein levels and lower 'D' values. Taking into account silage intake potential and the lower 'D' value means that energy supply for milk production might be down by as much as 10MJ, the equivalent of around 2 litres of milk. What this means of course is that we must all do our nutritional sums carefully to ensure cows are fed profitably. There is, after all, no point in throwing concentrates at your cows assuming you're simply turning the handle on a money making machine. Feeding extra only makes sense if it pays! At Cornwall Farmers we will help you maximise your profitability from additional feeding, using tools like BOCM PAULS Quota Plan, Dairy Herd Manager, Dietplan Dairy Pro and our new Milk Price Feed Price model, which evaluates the likely effects of changes in milk and feed prices. And we're not just talking about the feeding of compounds BOCM PAULS and Cornwall Farmers are in a unique position to supply compounds, blends, straights and wet feeds throughout the territory. If you're serious about milk and want to ensure that you get the most out of this year's forage, then Cornwall Farmers are ready and waiting to accept your challenge. For further nutritional advice please contact Cornwall Farmers Tom Mann or the Feed & Forage Customer Service Desk on 0845 2255922 |
    |
||
