27 September 1996

MOAF benchmark call

HOME-produced forage costs are now included in a calculation for margin over all feeds (MOAF) in ADASs Milk Cheque Service.

"This will be more meaningful than existing benchmarks such as margin over purchased feed which have not reflected the true cost of producing milk," said ADAS head of dairy development John Summer.

He said the assumption that home-produced forage is cheap may be false. Forage costs varied between region, the dry matter yield of the forage, the cost of growing the crop and the opportunity cost of the land which could be high with IACS-eligible land.

"I urge the industry to come alongside us and adapt the MOAF concept which we hope will become the benchmark for the industry," said Mr Summer.