OpenFields

1557: Dairy cash flow, weather and milk and feed prices

This paper is taken from “Difficult times ahead... The potential impact of milk price cuts, feed price increases and adverse weather, on dairy farm cash flow in the current milk year”, a discussion document prepared by Kite Consulting

Year of Publication2012

Kite Consulting calculations for a typical dairy farm breaking even last April show the possible impacts of recent milk price cuts, poor weather and high feed costs. Currently (mid-July), before the cut in milk price, cash flow has worsened by £3,600 a month. If the August price cuts are imposed this will go up to £6,500 a month and further to more than £7,500 a month as feed price increases bite. This would increase costs to 31ppl to produce losses of over 6.5 pence for every litre produced. If the situation doesn’t change we could lose more than 10% of our dairy industry.

This item is categorised as follows

Additional keywords/tags

Organisation Logo for RuSource Briefings

RuSource Briefings is a free rural information service for anyone working in the countryside

Website

What Next...?

This is a brief summary of an item in the OpenFields Library. This free online library contains items of interest to practitioners and researchers in the agricultural and landbased industries.