Liquid milk 40cpl cost of production

The average liquid milk producer has been spending 40c to produce a litre of milk over the past two years, according to an accountant’s report at the recent Fresh Milk Producers 2016 Conference.

Commissioned by FMP, Barry Murphy, an accountant with FDC, said when a modest labour cost of €45,000 per annum per full-time family farmer is taken into account, 40c per litre is the total cost.

He said labour and capital expenditure need to be included when analysing profitability of any business.