Most dairy farmers do not know their cost of production, according to new figures from the Royal Association of British Dairy Farmers.

The RABDF questioned over 600 milk producers at this year’s Dairy Event. Most said they did not know accurately the cost of producing a litre of milk, suggesting an average figure of 17.7p/litre.

But nearly two thirds admitted they did not know their production costs. “This figure is 10% higher than when we surveyed at the event two years ago,” said RABDF chief executive Nick Everington.

“These figures make alarming reading when a recent RADBF/NFU survey found that the cost of milk production has increased to about 21p/litre, with the average producer price just 17.3p/litre.”