A 120 cow liquid milk production herd requires 892 hours of extra labour input per year compared to a spring calving system. That was the stark message from Teagasc expert Joe Patton, speaking at last Friday’s liquid milk forum in Dublin.

“Many liquid milk farms would be best served by exiting the sector,” he said, noting that 2013 was the first occasion when profit per hectare, per cow and per litre were all higher in spring calving systems.

The Teagasc expert explained that milk productsion costs are, on average, two cent per litre higher in liquid milk herds. Feed and labour costs are the main driver.

“Autumn calving adds 1.6 cent per litre to feed costs, accounting for 80% of the difference between winter and spring calving systems,” he explained.

Interestingly, Joe Patton highlighted the higher “opportunity costs” of an all year round milk production system – the loss of technical efficiency caused by trying to breed cows and calve them at the same times of the year, as well as the physical and mental fatigue that is part of milking for 365 days per year.

“The imposition of a liquid contract complicates decision making,” he told the forum, which was attended by stakeholders from all parts of the fresh milk chain.

The additional labour required to manage a 120 cow liquid milk herd would cost €10,704 if paid labour was employed, he said. In many cases, this labour is family labour. Joe Patton highlighted data from Northern Ireland, which showed that the average dairy farm in that region is making a very low return per hour worked. Data from DairyCo in Britain also showed superior returns from grass based systems.

Joe Patton examined the likely consequences of next year’s removal of milk quotas on the liquid milk sector. He looked at a scenario where more cows are added to the spring calving portion of the herd, leading to less and less “fresh” milk through the winter months.

When it was put to him that land availability around the milking parlour was the main barrier to farmers switching from liquid to spring production, Joe Patton disagreed. “Poor herd fertility is the main issue,” he said. A split calving system allows cows to be carried over from one calving season to the next, he explained.

Full report from the liquid milk forum in this week’s Irish Farmers Journal.