Milk prices have risen across the country this week, and the milk price indicators for next spring are looking good – much better than this time last year, anyway. With many farmers starting into budgets for 2017, what milk price to use will be a key decision. Ornua is pointing to a milk price of 30c/l for next spring, but the reality is that nobody can say for sure.

I would always budget conservatively, both on output prices and yield. If the budget works on lower prices and output, it will work even better at higher prices or more output. The long-term milk price average is closer to 27c/l. This year was a tough year, and hopefully next year will be better, but there will be a hangover on many farms from 2016. In a lot of these cases, structural change to the cost base is required, or else every year will be tough.

In this week's dairy management notes, Aidan Brennan also looks at the steps involved in tubing cows and making the decision to milk on.