Margin over purchase feed per cow pays off
Margin over purchase feed per cow pays off
CONCENTRATING on margin over purchased feed per cow is the key to improving profitability, according to ADAS in its Milk Cheque annual report, presented at this weeks South West Dairy Show.
Results for the milk year ended Mar 31, 1997 show that the best overall financial performance was achieved by herds measured on this basis. According to the report, the top 10% of herds in this category achieved a margin over purchased feed and quota cost of £733 a cow.
"This was worth, on average, an extra £8000 per herd compared to the top 10% based on milk yield or MOPF per litre, and was £13,000 higher than the top 10% of herds based on milk from forage," said report author, Ian Powell. "This analysis gives a strong indication that the highest profit is likely to be achieved by targeting MOPF per cow rather than any other parameter."
The ADAS report also includes an analysis by milk buyer for the last milk year. Milk Marque producers, who made up 61% of the sample, had an average herd size of 106 cows, yielding 6080 litres and receiving 24.54p/litre.
Other buyers included Avonmore, Unigate, Northern Foods, The Milk Group and MD Foods, all of which were characterised by larger herds (up to 184 for MD), higher yields (up to 7487 litres, also for MD) and better milk prices (up to 26.1p/litre for Unigate). MOPF per litre and per cow were all higher.
The report also highlights a noticeable change in the calving pattern among ADAS costed herds, with a marked shift away from summer calving, as producers aim to get more milk from forage.
"The profile of milk production shows a marked increase in spring production, with a real trough in supplies developing in August and September," said Mr Powell. "With a 6p/litre milk price difference in favour of July and August, producers will need to look critically at their production pattern to see if there is scope to cash in on these premium summer prices."n