Let's shout out the positives for 2018

Despite the milk price increases for 2017, there is potential for a downturn this year. Year in year out farmers have to grapple with short term challenges while considering longer term strategic issues for their businesses.

On a day-to-day basis the focus is on what they can influence from behind the farm gate. Expenditure, production continuation that does not compromise next season, careful financial planning, bench marking and the retention of good staff all have to be managed.

The volatility seen in the dairy industry over the last decade is likely to remain a feature of the sector. Over time, the real price paid for commodities reduces year on year. In real terms, farmers were receiving over 70p/litre in the mid-1970s, but just a third of that in 2016.

Then of course there is Brexit. I personally think it provides an opportunity for the dairy sector to reduce imports and increase exports if current exchange rates remain. Establishing Brexit, whether positive or negative, will be helpful for most dairy businesses and without doubt there will be greater competition in the future as the government continues to pursue the cheap food policy.

As ever such a policy means that farmers have to intensify and make more from less. Invariably we are seeing increased herd sizes but less manpower. With a focus on both business management and farming there often aren’t enough hours in the day. Lack of time is always an issue and this is where outsourcing can be the most cost effective option in terms of productivity and profitability.

Trimming a lame cow is a skilled and time consuming job which is essential to maintain and improve returns. It is a job that can be done by a professional foot trimmer, saving time and money. A well thought out and planned foot care programme will have a positive impact on many key performance indicators, including productivity, longevity, health and ultimately profitability.

In 2018 let’s focus on the positives! UK dairy farmers have the land, weather, skills and passion to create world class dairy products. We often moan about the weather and with the wet conditions at the moment it’s hardly surprising that we complain about too much rain – but when you consider global pressures on irrigation, we really are in a good place.

The dairy sector, as well as our agricultural Industry as a whole, has a lot to shout about and we should be proactively adding value, continually promoting the many positive virtues of UK farm standards, animal welfare standards and quality British food.

So my conclusion – yes we can be optimistic about the coming year, despite the inevitable challenges which lie ahead.

Nick Challenor is the owner of ND Challenor Professional Livestock Services.