Better run farms get better prices

Data from the 2011 Profit Monitor for spring calving herds show that the Gross Output from the top 10% was 39 cent per litre while it was only 34 cent for the lowest 10% which is over €250 per cow difference at similar milk yields, but as the top group usually have higher yields per cow, the difference per cow is much greater. Two cent/l of this difference was accounted for by milk price, mainly based on quality.

The output per litre for the top 10% is almost 3 cent per litre more than the milk price while it was only the same as milk price for the low 10%. This is mainly due to the top group getting better prices for calves and lower replacement costs due to better disease control and management.

Average milk yield per cow in the 2011 Profit Monitor group was 5,065 litres while the top 10% had yields of 5,132 litres per cow and the cows in the low 10% had yields of 4,803 litres. These yield are higher than the average dairy farmer as can be seen in the National Farm Survey. However, they are much lower than some of our most profitable farmers who match cows to quota. There is a huge difference in costs between the top and low Profit Monitor groups particularly regarding feed and veterinary expenses. The Quota situation had a big influence on results for the past few years as many farmers dried off cows early or under fed them.