Farmer Focus: Supply and demand dynamics apply to milk too
Colin Murdoch © Jeff Holmes I remember the scene: standard grade maths class, 1998. We were learning simple laws of economics: supply and demand; keep everything in balance.
Did no one else get that lesson? It must be one of agriculture’s most frustrating habits. When the price goes up suddenly, we over-produce, and the market comes crashing down with a thump.
But this time, the only thing that appears to be falling fast is the milk price. Retailers aren’t exactly blameless though, with price hikes in the shops leading to falling demand. The perfect storm.
See also: Cost of living puts pressure on farmgate prices in 2023
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We probably buffer-fed a little harder last year to keep yields up, but didn’t change much, and didn’t increase parlour cake at all. It’s a simple system of grass, silage and blend.
Our base milk price will drop 2p/litre from 54.5p/litre – we get a bonus for fat on top.
I say the public have had cheap food for too long. Food is not valued properly, and welfare standards aren’t appreciated.
Many farmers are fed up to the back teeth with being told that what they produce can be grown in a laboratory or milked from a nut.
It seems farming has no answer to the false propaganda spoon-fed to the mainstream media.
Regarding the farm, winter hasn’t been that great up here. We’ve had to take every opportunity to keep slurry tanks down, but a recent spell of dry weather is more encouraging.
We have quite a lot of grass cover and I’m hopeful of starting to zero-graze shortly.
The protein boost would be a welcome addition, as the cows are not performing as well as last winter on silage that has analysed almost the same.
Our calving interval has slipped to 405 days, so we’re carrying too many stale cows.
This is due to a combination of wanting to get back to all-year-round calving, older cows and, perhaps, a 10-year-old heat detection system. A replacement may soon be due.
Another disappointment was missing the Farmstrong Scotland tour when it was in Ayrshire. It has become clear we all need to help each other stay on top of our mental health.
It’s not easy talking about it. but it certainly helps. I don’t just mean farmers, but those involved more widely in agriculture too.