Higher milk prices give reason for more optimism at Thornton Grange Farm

Morrisons' recent decision to fall in line with other major retailers and raise milk payments (FW, 30 May) was welcome news for Mr Chapman. This added an extra 0.2p/litre, which combined with an additional 0.5p/litre from Arla, brings the farm's current milk value to almost 27p/litre. However, he feels there is still room for improvement.

"The June increase was welcome, but milk prices should be achieving a consistent rolling average of 30p/litre. This is the sort of figure we need to help us pay off previous investments, and ensure that we are in a position to fund future development."

The planned move from 140 cows to 180 by the end of this year has affected all aspects of the business, he continues. The £20,000 dry cow housing and "hospital" quarters is complete, and Mr Chapman is now under pressure to review slurry storage capacity to cope with the expanding herd.

NVZs

Apart from a small area of about 8ha (20 acres), the entire farm falls within a Nitrate Vulnerable Zone. So far, it has been a relatively simple to comply with NVZ regulations, but proposals for a three-month winter "no spreading" period, and 22-week storage capacity will complicate matters, he says.

The present slurry storage facility, an above-ground metal tank purchased in 1976, can only hold three weeks' worth of slurry, and is coming to the end of its useful life. By next summer, Mr Chapman hopes to have installed a clay-lined lagoon, which he estimates will cost about £75,000. Designed to hold 3000cu m of slurry, it will cover approximately 35sq m and be 3m deep.