Shropshire Farming Talk: Dairy Dynamics – Riding the waves of UK milk prices
The UK's dairy industry is currently undergoing a positive shift with a welcomed increase in milk prices, offering dairy farmers a glimmer of hope as they step into the new year.
However, the dairy sector resembles a game of snakes and ladders, susceptible to frequent and drastic fluctuations that prompt the question: is meaningful progress truly being achieved?
BOOM: The boom phase saw the average farmgate milk price reach an unprecedented high of 51.60ppl per litre in December 2022, driven by tight supply and escalating production costs.
BUST: Unfortunately, the subsequent bust followed suit, with prices plummeting to an average of 36.48ppl by June 2023, marking a significant 29.3 per cent drop in just five months.
This tumultuous period left dairy farmers grappling with minimal opportunities for substantial profits, compounded by elevated input costs, retailer adjustments, and the escalating climate crisis, leading many to contemplate leaving the industry.
Amid these challenges, the resilience and adaptability of the dairy industry shine through.
Despite the inherent instability and relentless challenges, the focus remains on what can be controlled to ensure economic sustainability. While external factors disrupt the industry, there is room for optimism and opportunity amidst the turmoil.
Emphasising the proactive approach, one controllable element is foot trimming – an investment, not a cost.
Even in tough times, when the temptation to cut costs arises, foot trimming remains a crucial investment. It offers returns by preventing lameness, which can otherwise lead to reduced production and fertility, as well as posture and mobility issues, ultimately impacting profitability.
In the ever-changing landscape of the dairy industry, controlling what can be controlled is essential, ensuring readiness for every conceivable challenge.
Nick Challenor is the owner of ND Challenor Professional Livestock Services.
