This months linked article's:
THE ECONOMICS OF FEEDING DAIRY COWS AT CURRENT MILK PRICES
Most farmers realise that feed concentrate costs have risen dramatically since the beginning of autumn 2010. The majority of dairy farmers were offered, by their feed suppliers, to contract at prices fixed in September 2010 for periods of 4 to 8 months. For people who contracted for the longer period it has paid off but the enormity of compound and blend prices will be realised in the spring when the new prices come into operation. We estimate (dependant on your individual contract details) that these increases could be anything from £30 - £70 per tonne.
The current raw material market shows little or no decrease for the summer. With the current world market situation being controlled by droughts, floods, more demand from third world countries, speculators and sheer profiteering, how will it affect the production of milk at a time when current prices remain on or below the cost of production. With the possibilities of seasonality reductions, due in the spring on some milk contracts, we know that pushing for higher yields is the most economic way of producing milk but only if it is profitable to do so.
Every farmer should know their own costs of producing a litre of milk and the margins that would be left at the end after all other deductions have been taken into consideration. In the table below we give you a guide to costs and margins based on different concentrate prices and different milk prices. Use it as a guide to your own situation and you will see what money is left to cover all other costs and hopefully some profit!
Table a. Economics with milk price of 25p per litre and feed @ £250/t
| Litres per day | 15 | 20 | 25 | 30 | 35 | 40 |
| Concentrate (kgs/head/day) |
1.5 | 2.5 | 5.0 | 7.5 | 10 | 12.5 |
| Cost of concentrates (£ per day) |
£0.38 | £0.62 | £1.25 | £1.88 | £2.50 | £3.12 |
| Milk Income (£ per day) |
£3.75 | £5.00 | £6.25 | £7.50 | £8.75 | £10.00 |
| Margin over concentrates (£ per day) |
£3.37 | £4.38 | £5.00 | £5.62 | £6.25 | £6.88 |
| Margin over concentrates (per litre) |
22.5p | 21.9p | 20p | 18.7p | 17.8p | 17.2p |
Table b. Economics with milk price of 28p per litre and feed @ £270/t
| Litres per day | 15 | 20 | 25 | 30 | 35 | 40 |
| Concentrate (kgs/head/day) |
1.5 | 2.5 | 5.0 | 7.5 | 10 | 12.5 |
| Cost of concentrates (£ per day) |
£0.41 | £0.68 | £1.35 | £2.03 | £2.70 | £3.38 |
| Milk Income (£ per day) |
£4.20 | £5.60 | £7.00 | £8.40 | £9.80 | £11.20 |
| Margin over concentrates (£ per day) |
£3.79 | £4.92 | £5.65 | £6.37 | £7.10 | £7.82 |
| Margin over concentrates (per litre) |
25.3p | 24.6p | 22.4p | 21.2p | 20.3p | 19.6p |
Table c. Economics with milk price of 23p per litre and feed @ £270/t
| Litres per day | 15 | 20 | 25 | 30 | 35 | 40 |
| Concentrate (kgs/head/day) |
1.5 | 2.5 | 5.0 | 7.5 | 10 | 12.5 |
| Cost of concentrates (£ per day) |
£0.414 | £0.68 | £1.35 | £2.03 | £2.70 | £3.38 |
| Milk Income (£ per day) |
£3.45 | £4.60 | £5.75 | £6.90 | £8.05 | £9.20 |
| Margin over concentrates (£ per day) |
£3.04 | £3.92 | £4.40 | £4.87 | £5.35 | £5.82 |
| Margin over concentrates (per litre) |
20.3p | 19.6p | 17.6p | 16.2p | 15.3p | 14.6p |
What can be seen from the figures show that even at 23p per litre with concentrates @ £270/t a margin can still be made BUT even greater care must be taken with making quality forage so that even in winter at least maintenance + 10 litres is achievable. Also just as important is the ability of rationing concentrates correctly to those animals with potential to produce more and cutting back in later lactation to produce the lower yields from forage alone.
If we at GP Feeds can help you in any way to maximise your profits in this, a time of severe production costs, we will only be too happy to discuss it with you on a strictly confidential basis. We are only a phone call away so don't delay call 01948 661602 today!
Clampfilm -Prices Held for 2nd year in a row!
They said it would never work, but Clampfilm IS now the accepted way to STOP top and shoulder waste!
The secret as all farmers know is an 'air tight clamp is a safe clamp'. An anerobic fermentation is essential for making good silages, it is this fermentation process that uses up the oxygen in the clamp sucking the CLAMPFILM onto the surface of the silage, and in effect 'vacuum-packing' the feed. Normal black silage sheeting is not flexible enough to contact the silage in every dip and hollow, and is also oxygen permeable and therefore rarely forms a complete seal.
CLAMPFILM is a low cost tough 40 micron sheet with very low oxygen permeability, it is laid directly onto the silage which sucks it down to create a secure seal - eliminating top and shoulder waste. Once in place, side sheets are pulled over and a normal silage sheet weighted down on top. CLAMPFILM is stout enough to withstand walking on as it is laid, it can also be pulled back and reused during the season to allow 2nd and 3rd cuts to be added to the clamp.
We have customers who have used it over the last few years and have again already placed there orders for this year. One of the many comments we received about this product is that they have had no waste at all with using CLAMPFILM. Very quick and easy to unroll and spread CLAMPFILM eliminates the time-consuming and laborious salt spreading that many farmers use to overcome the 'top-waste problem'.
CLAMPFILM is available in: 7m (23ft) x 50m (162.6ft) x 13kg Beware of imitations - if it's not green it's NOT ClampfilmUse CLAMPFILM with the right additive and get the best results from your silage. |
Magnesium Reminder
Are you considering turnout? It is worth reminding you that magnesium will be an important and necessary supplement. Remember dairy cows do not store magnesium, so it is important to start feeding higher levels around 10 days before turnout. This can be done in a variety of ways:
- Having higher levels incorporated into your compound feed or blend
- Change to high magnesium mineral
- Have your custom mineral magnesium level increased
- Add magnesium chloride to the water system
- Add Calcined Magnesite to the buffer ration
The modern dairy cow will require the equivalent of at least 25 grams of pure magnesium (or 50 grams of Cal Mag). Here at GP Feeds we increase the levels of magnesium in our compounds as standard ready for the spring.
So, speak to the office or your local agent to determine the best way to meet your cow's needs, we can customise your mineral products to any specific need, and remember that all of the above mentioned options are available through GP Feeds.
Customised MineralsDon't forget here at GP Feeds we specialise is supplying 'Custom Minerals'. We sell more customised minerals than off the shelf - why? Because to have profitable returns from your animals you need to feed the right products. So if you need your forage analysed so that we can recommend a mineral specific to you please give us a call on 01948 661602. |
CS PlusOil 50%, Protein 7.5%, ME 28.0 Mj/kg DM With Megalac at over £800 / tonne on farm, we have our exclusive CS Plus bought very well - so if you are looking for a quality fat, give us a call today on 01948 661602 for a very competitive price. Click here for more information... |
QUALITY PRODUCTS FOR QUALITY PRODUCTION
Contact
Gareth or Rachel (Office)
01948 661602 Fax 01948 871776