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Farmers are told to challenge suppliers
A DAIRY management system has reported that the margin over purchased feed (MOPF) fell by £30,200 over the 12 months to May this year.
Ian Powell, director of The Dairy Group, said in May 2012 the rolling margin was £1,669 but by May 2013 had fallen by £151 per cow to £1,518 per cow.
At the same time the rolling milk price increased by 0.8ppl, whereas the rolling feed cost increased by 1.5ppl.
Last year’s poor weather had a huge impact on cow performance and the cost of milk production.
Mr Powell said: “The margin over purchased feed only reflects part of the decline in dairy herd performance.
“Our provisional analysis of dairy accounts for the year ending March 2013 indicates that the cost of production increased by 4.7ppl, but it will be a few more months until we have sufficient accounts data to confirm.
“To restore just the lost £151 per cow margin over purchased feed would require a milk price increase of 2ppl paid on all the litres produced in the year ending May 2013.”
However, Mr Powell said, the results did show a small £3 per cow improvement in the margin, indicating some recovery.
“We should also start to see the purchased feed cost fall with rapeseed meal now about £200/t and wheat at £150/t – down 23pc and 32pc respectively,”
“It is important for dairy farmers to challenge their feed suppliers to make sure they benefit from the lower feed prices.”
The MCi system showed the 12 month rolling average yield decreased by 471 litres to 7,604 litres per cow.
The average feed rate rose by 0.03 to 0.35 kg per litre, with the average milk price up by 0.8ppl to 28.9p. The rolling average MOPF per litre was 19.9ppl – 0.8ppl lower than a year ago.
- The MCi is the The Dairy Group’s dairy management system.
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