Milk output increases
Promar's Milkminder costed herds report from October 2017 shows a 5.2 per cent year-on-year increase in average milk production to 1.670 million litres per herd per year.
Nigel Davies, Promar's National Consultancy Manager said that this is a very significant increase when compared to the 12 months prior to October 2016, when average output for same herds stood at 1.587 million litres.
"This data mirrors the increases seen elsewhere globally over the past 12 months," he says.
If this annual rate of increase was to be sustained, then in just four years' time, by 2021, the average Milkminder herd would be producing well over two million litres.
"While added margin does not by itself lead to greater profit or a better cash position, then aided by the increase in milk prices during the 12-month period prior to October 2017, the average producer in the sample reported an additional herd Margin Over Purchased Feed (MOPF) of £86,803," Nigel said.
"Analysis of the data shows that although £78,902 of this figure was milk price dependant, £7,901 resulted directly from added output and greater efficiency," he explained.
