Dont forget overheads
LOWER inputs could save 2p/litre on milk production costs, but only when overhead costs are cut.
John Bax told delegates that cows in SACs Acrehead herds, which compare low with high-input management, showed a potential 2p/litre advantage in production costs. But that was not translated into extra profit because both herds shared the mixer wagon and equipment with the higher input herd. "We could not justify a mixer wagon for the low-input herd on a commercial basis. When you cut right back on machinery costs, reduce machinery needed, spring calve and stop milking for a period in winter, farm profit can be good."
But when aiming for higher yields using higher inputs, the output must be sufficient to cover extra labour and machinery costs, he warned. *