Milk Price III

Bass you're way off on your figures.

I run a JEX herd, majority of them in their second lactation last year. I work off farm so there is probably a tax built into my costs for that but the cost per litre was 30c/l plus 10c/l for labour. That labour covers all the milking from March 17th to the end of the year and feeding silage every morning from September on. Cost of loan repayments is 7c/l.

Contract rearing costs are included in the 30c for all maiden heifers.

I've excluded capital costs, 3c/l, that's probably the standard investment required every year

That was just for the sake of splitting them out to compare with the 18c figure. It's ridiculous that costs are quoted ex wages and finance costs. As though we can just dismiss them

Bass's figures could be right on a lowly stocked no further investement type farm...Maybe one nearing retirement and having reduced numbers...

Look at 150 acres owned 70 cows milking, utilising 7 tonnes grown (extended grazing/minimal silage) 4,500 litres delivered.

Milk price 44c less 18c costs..26c/l profit or €81,000

Same farm stocked at 3.5 (175 cows) conventional utilising 12 tonnes 950kg meal, contract rearing, exporting slurry and buying some silage will deliver 5,500l and run costs of 29c.

Milk price 44 less 29 or 15c profit yields €144,000

You forgot about using the 50kg fertilizer bags as insulators, plate cooler packed in last month here and replacing it will be half a cent a litre alone for repairs, bord bia lad out the other day and have a open tank fenced with 5 foot sheep wire around the top walls, need to put 7ft security fencing around it in the next 30 days to pass audit, theirs another half a cent in repairs/maintenance, our in euro terms 12k out the gate, just to stand still and keep going

Interestingly figures out today maybe for a non dairy farmer I might not have been too far wide of the mark. Probably a lot close than the high cost BSing that is going on.

Average dairy farm incomes last year are accessed to be 151k.

https://m.independent.ie/irish-news/average-dairy-farm-incomes-jump-to-150884-but-cattle-rearing-incomes-fall-to-9408/a653463852.html

It's interesting in that the average dairy herd is 90 cows. Assuming that the average herd is milking 5.3k litres. I think the average milk price last year was 62c/L giving a average cow cost of 31.5c/L.

Cow turnover= 0.62*5300=3286

Profit = 151k/90= 1677/cow

Cost/cow =3286-1677=1609

Cost/L=1609/5300= 30.4c*L.

Now I think as pulled up on a cost of 18c/L on an owned farm no borrowings and I gave that figure which might have been a bit low based on an 80-90 cow herd. We had lads saying that 35c/L would be the lowest

Here we have the average at near enough 30c/L accross all system. Assuming that some heavily geared systems with land rented, substantial borrowing's and labor costs are 20c/ L above that. It a fair assumption that a farmer with owned land that has used TAM's to support investment ( 80-100k every 5-6 years maybe double it if in a partnership with a son or daughter) and on decent lads as I indicated in my posts will be shaving 8-19c/ L off them costs.

The big question is it that including or excluding tax avoidance or lifestyle sending within the system.

The one thing I have always learned. Take no notice of an accountant figures they are for the taxman and the calculator never lies on averages

Bass it’s ok to admit to not actually knowing everything about everything instead of trying to make up figures to make yourself sound right, we won’t think any less of you!

You just worked out the costs at 30.4 cent and then somehow managed to convince yourself that 30.4 is very close to the 18 you quoted.

You were 70% out, it probably wouldn’t have been possible to have been any further away without trying to be wrong!!

You’ve clearly been bitten with a bit of white gold envy…your costings were and still are ridiculous.

As pointed out to you 30.5c/l is at the very low end of average costs for last year and would be an exception as opposed to the rule. I’m sure it doesn’t need to be pointed out to you the gap between 30 and 18…anyway you’re clearly looking for a reaction from members of the thread who more than likely the majority of which will be under pressure this year given the way it’s panned out and the burden of last years tax bill then to compound this.

Dairy farmers don’t need to listen to people like yourself pontificate that they will have a margin of 20c/l this year also…now that is BSing as you say.

Last year was an exceptional year this year has been the converse as if often the case with farming no matter you’re enterprise, swings and troughs.

You wouldn't eat to be going it for the money anyway. Just when everything starts to go well there is always something to crop up.

Agree …..crock of **** figures that have no place in public print …..those surveys should be binned by anyone that receives the.

Costing the guts of 17k a year for relief milkers doing 5 milkings a week here , in and out in 2 hours summer and 2 and a half winter as does cubicles and scraping up when cows housed, totally discounting your own labour our sons and daughters working on farm is a utter pisstake and no other industry would publish figured ommiting it