Promar predicts dairy profit rise

By Robert Harris

DAIRY farmers should earn an average of 2.5ppl more this milk year compared with 2000/01, says Promar International.

Better prices, together with greater milk output, a depressed quota market and low interest rates, will boost business performance in 2001/02, says Tim Archer, Promars national finance consultant.

Turnover on the average 100ha (240 acre) dairy farm is likely to rise by 27,300 to 217,700 this year, he predicts in Promars latest farm business accounts annual report.

Although overheads will rise by about 14%, pushing total costs to 184,800, that will still leave a profit of 32,900 after depreciation.

Last milk year, the average Promar-costed farm earned 17,600.

But the top 25% made 2.6 times that amount. “They have planned their resources efficiently to maximise output and turnover,” says Mr Archer.

• Milk Price Review, updated 1 October, 2001 (large file – allow time to download)