Getting to grips with cost of production must be among all dairy farmers’ priorities if they are to establish a sustainable and profitable business capable of withstanding future volatile global markets, according to the Royal Association of British Dairy Farmer.
“An estimated 60% of dairy farmers are not aware of their true costs of production, according to a consensus of leading dairy consultants, a percentage figure which has not improved over the last 10 years,” says RABDF policy director, Tim Brigstocke.
“Unless they start to measure production costs and ensure that figure takes in to account family labour and provision for retirement, then they will remain unable to fully understand the true profitability of their businesses.
“We would also urge all dairy farmers to know exactly what their milk buyer wants in terms of volume, profile and constituents, in other words they must know their contract and how to maximise milk price. Finally, they must have a five year plan that is realistic and achievable in order to be able to accurately budget income and expenditure in a potential volatile marketplace.”
