Milk Price III

It's a statutory EU obligjation.

It's not taken from accounts and not made up by the farmer.

And as to why the power's that be here allow it to continue..

1. Enough people don't complain.

2. The figures are used for the basis of calcilulation of grant and subsidy aid required to keep rural areas vibrant.

Before we get an answer avout how they seem to be closing RI down...this has nothing to do with DG Enviro..(who are)

Labour as a cost will be included if it paid labour. The idea that something not paid for can be included as a cost is not allowed in any business whether it a farm, pub or shop unless it's in a company structure.

Right here is where a 10cdifference in costs comes from

AGAIN I REPEAT the question asked was ''in an ownd land situation with little or no borrowings what was the cost of production''. I also added that cow numbers were below 100 and little or no kabour

That was the F@@JNG I answered.

The Teagasc figures h

That about 60% of dairy farmers had borrowing and about 40% had no borrowings and that it was medium to longer term loans Average borrowings was 127k assuming 10 years average on loans left( and it's probably lower) it's 3.3c/ L

30 acres rented @350/ acres 2.2c/ L

Heavily stocked system V the farmer stocked at around derogation limit.l of 170 kgs/ HA would it need an extra 10T Fertilizer @850/ ton jast year 1.8c/ L

Ration 250 kgs extra @430/ ton is 2c/L

Minimum paid labour would shave another 1.5c/ L off the the average costs.

Having the ability to maximize the value of culls maybe 250-300/ head on 17 cows 1c/ L

There is 2-3 lads around locally running 80-100 cows on 200 acres with integrated beef spreading fixed machinery, phone, ESB exc at a 70/30 spread probably saves 1-3c/ L.

Dunedin just because you cannot do the figures or access a system different to your own is not a reason to think that nobody else can. So shove your neighbor cousins GF where the sun don't shine and off back to your suckler's.

I am not sneering at accountancy. Rather I am simply pointing out an accountant jobs is to do my accounts with the figures I present not tell me how to run my farm.

KG dairy farmers work hard. However many have been lead down the path of expansion and intensive systems with serious cost systems without the costing of marginal milk.

It's the same as beef. If I followed the Teagasc, FJ or Newford farm I be trying to slaughter 70-80 cattle @20 months if age reseeding, feeding ration during the winter taking 3 cuts of silage etc for maybe 2-3k extra a year and the Newford farm cannot even make a profit to pay either land rental or the labour cost involved

I posted on F&F about a lad who took over the his parents farm and is using targeted slow growth and TAM over the next few cycles of CAP to get to 80-100 cows from about 70. He has retained the beef system they had and a few lads here taught he was @ slavery because he was not targeting to upgrade his parlour from I think it's in the 10-12 unit range at present

Expansion and intensivisation adds cost to any system. With dairy farming the pay back period seems to be longer than many previously considered it would be and costs like labour and other inputs are hitting the bottom line.

Sucession issues and having to have 20-30k to go to the older generation yearly even though they aren't involved in the operation seems to be a afterthought too, have half the farm in my name here, but 2k a month is given to the father for the privilege of farming the other half and he's drawing down 20k worth of a sfp aswell as solely income puts noting into the farm financially, helps out maybe 20 hours a week for half the year and is on holidays the rest/driving lorries....

Lakelands back another cent to 37 ,

What will Kerry drop ??

I agree 100%. Only for the milk here I'd plough it and work full time off farm.

"AGAIN I REPEAT the question asked was ''in an ownd land situation with little or no borrowings what was the cost of production''. I also added that cow numbers were below 100 and little or no kabour"

From Bass's post above, I run such a system, pretty low cost. Any way I work it, even hypothetically by increasing litres on the calculator for dilution while adding in the associated costs, my COP is around 30c.

18c COP is baloney.

"decided by the board" ,

Farmers will bow down in front of them, the same as they’ve always done.

🙄🙄🙄🙄🙄….decided by the board …Yeadh right ….seems our ambition is to be just a shade above everyone else …heard comments sure Lakeland and Kerry are 37/38 we can’t be that far ahead of them …..that should be it now as regards cuts …time now to sort out what we’re been quoted for meal fertilise etc