Dairy output up, but margins down

DAIRY farmers have increased output to offset milk price cuts, lifting revenue by over 12,000, but margins are still down, says feed manufacturer, Bibby.

Costings for 600 herds carried out by the company show milk prices fell by 1.5p a litre in the year ending Mar 31.

To compensate, producers improved yields by 200 litres a cow to average 6,600 litres and increased herd size to 106 cows.

That more than covered the potential loss of almost 10,400.

But, despite cost control and improvements, margin over purchased feed fell by 67 a cow to 952, in line with expectations.

“These figures show that farmers can, and are, maintaining their milk incomes through greater output,” says Paul Horsnall, Bibbys farm costings manager.