Charles Holt (Lincoln)

AHDB regularly reports on the milk price to feed price ratio (MFPR).  This shows the relationship between milk price and feed price, which is vital as purchased feed costs are by far the largest variable cost on most dairy farms.

So, what has been happening lately?  The long term (five year) average of this ratio is just under 1.25.  It has been at or near this level for a long time – far longer than five years.  This ratio compares the price of milk per litre with the feed price per kilogram.  So, a low figure is bad, and a high figure is good.

Back last winter, the MFPR was around 1.35 to 1.40.  Milk price was high, and so for every Kg of extra concentrate feed the cows were fed, you should have had a reasonable economic response with more milk produced.

Now, however, the story is the opposite.  The ratio fell to around 1.05 in the summer, as milk prices crashed, and feed prices stayed high.  For those at grass, this was not too much of a problem, but it was serious for housed herds who have to feed purchased feeds all year round.

But feed prices are still high and are similar to those prevailing last year.  Feed suppliers have not seen fit to cut prices to mirror the milk price collapse.  So, for every extra Kg of concentrate, you need to produce much more milk to make it economic.

But you can do something about your feed costs.  Are you absolutely sure you cannot reduce them, and feed your cows more efficiently?  Are you getting a top 25% figure for production off forage?  Can you target a top 10% level of achievement?  How much more than 4000 litres from forage can you target?  Now that could be a challenge to take up for your business.   

Contact Charles at charlesholt@fcgagric.com or your local FCG Office, to challenge us or your feed advisor to discuss ways of increasing milk from forage.