As predicted, opening milk prices have been less than desirable. This will further push farmers to take a professional business approach to their farm management and many farmers will be looking at ways to increase margin between inputs and outputs.
Speaking with farmers over the last few weeks, there have indeed been a variety of responses to the milk price drop. One key factor in helping to prepare for the year ahead, is sitting down with your factory and calculating your individual farms indicated milk price (remembering that factory opening prices may be higher or lower than your farm’s opening price.) With this information at hand, it helps the farmers to realistically budget for the season ahead. I encourage all readers who have not yet had their field officer put together an income estimation for them, to make this a priority in the coming weeks.
Despite all the doom and gloom surrounding milk pricing, there is still money to be made by the dairy farmer this season. Increased margin may not always mean increasing production, but rather, fine-tuning it. Now is an ideal time to be arranging a meeting with your Reid Stockfeed’s nutritionist to ensure you are maximising the efficiency of your cows and getting the most bang for your buck!