Spring calving producers are 0.5 c/litre better off
Nevertheless, higher average yields have kept the overall income level from winter milk ahead.
Per litre, even on the most efficiently run farms, the top producers in spring milk production have a higher net return than their winter producing counterparts.
Analysis of Profit Monitor farms carried out by Teagasc Specialist George Ramsbottom has shown that spring producers are 0.5 c/litre better off, on average. These results came from 660 spring producing herds and 130 winter milk production herds during 2005. They show that the average spring producing herd had a net margin of 11.62 c/litre, compared to 11.08 c/litre for the average winter production herd. The top 20% of spring producing herds has a margin of 15.53 c/litre compared to 15.25 c/litre for winter producers. The bottom 20% had a net margin of 6.79 c/litre in spring production and 6.13 c/litre in winter production. Variable costs were significantly higher on winter producing farms, averaging 9.15 c/litre for winter milk and 7.96 c/litre for spring herds. Fixed costs were 9.68 c/litre, compared to 8.14 c/litre for spring herds. Outlining the results in Teagasc’s To-Day’s Farm publication, Mr Ramsbottom said that the average winter milk producer had a net profit of €678 per cow compared to €616 per cow for spring producers.
Despite lower profit per litre, higher yields in winter herds made the difference. He said factors such as land area base, land quality and labour availability should also be taken into account when deciding which system is best for a farm.
