Dairy profits up 1% ahead of squeeze

Dairy farm profits grew by just 1% last year, and profitability looks set to be squeezed further in 2009/10, according to accountant Old Mill Rural Services.

A benchmarking survey of the firm’s clients in the south-west showed average net profits excluding the single farm payment were £42,550 per herd.

Sharp rises in feed and contractors’ costs all but offset increases in milk sales, the firm said.