Focus Will Be Put on Dairy Farm Production Economics; Milk Matters DELYTH DAVIES

Article excerpt

WITH the publication of DairyCo's next Milkbench+ report tomorrow there will be reinforced focus from the dairy farming industry on production costs.

Calculating the cost of production for milk is a tricky area.

Production systems are diverse - at DairyCo there is the long-held agreement that with 12,000 dairy farmers in GB we have 12,000 different farming systems.

During the milk price protests of 2012, it became clear that there was a need for a greater degree of common ground on the ways the industry calculates the cost of production.

DairyCo and The Royal Association of British Dairy Farmers (RABDF) hosted a meeting with farming unions, government representatives and the key consultancies to discuss the range of approaches.

To help the discussions, DairyCo conducted a comparative study which highlighted the main similarities and differences between benchmarking and costing systems to provide a better understanding of the components of each.

Following an initial meeting in late 2012 where significant progress was made, another meeting is scheduled for later in 2013 to progress the project. …