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.

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