The below graph is a pictorial summary of the comparable farm profits (CFP) of dairy herds in the Wessex area, for the year ending March 2017. The comparable farm profits exclude rent, finance and BPS but include depreciation and a charge for unpaid family labour. Each blue dot on the graph represents a dairy farm’s yield per cow and the red dot in the same column represents CFP per cow. The farms are ranked, left to right, by yield per cow. The straight light blue continuous line of best fit shows the average line of profit per cow. The computer generates this line of best fit and estimates that there is a 0.4% chance of increasing profit per cow by increasing yield per cow and vice versa.

No betting person would lay a bet of such low odds, yet lots of dairy farmers increase milk yields per cow in the assumption that profit per cow will follow. Here is the proof that it doesn’t. Yes, 2016/17 was a lower milk price year and with higher milk prices the odds improve as a higher yielding cow will increase profitability faster than a lower yielding one.

This sample of dairy farms includes all dairy systems, from once a day to three times a day milking, organic, robotic milked, block and all year round calved herds.

Next time you are being sold some product or service to increase yield per cow, ask how much extra profit per cow it will generate! The proof of the outcome is in the bottom line profits.

To read the full Cost of Production Report, please click the following link: https://davebardgett.files.wordpress.com/2017/11/mcop17-final-om-3.pdf

For more information, contact Gerard Finnan at gerardfinnan@fcgagric.com