Storing milK: With calving at full tilt on most farms, there will be lots of milk produced over the next few weeks that cannot be sold due to being within the withdrawal period for dry cow therapy. While it can’t go for processing, it can be fed to calves. Rather than dumping what isn’t fed, it would make sense to store it and feed it back later. The opportunity cost of dumping this milk is around 24c/l, as this is the cost of milk replacer or taking milk from the bulk tank, so each 200l barrel of milk is worth €50.

What is the best way of storing this milk?: The simplest way is to turn it into yoghurt. Firstly, you need to make the starter culture. Do this by pouring the contents of a tub of natural yoghurt into a bucket of warm milk and leaving for about 24 hours in a warm place, such as a hot-press or under a red lamp. Then add this to a barrel of milk, stirring every few hours to turn into yoghurt. Transfer a bucket or two of this yoghurt to each new barrel of fresh milk. The big issue with yoghurt treatment surrounds the use of antibiotic milk. Where high quantities of antibiotic-treated milk are used, a culture may not be formed.

Purchasing: From speaking to farmers who are buying fertiliser this week, it seems that more and more merchants are offering extended credit terms for fertiliser. Some are offering delivery now and payment next June or July. While attractive, just be aware that there is no such thing as free money.

Generally, the cost of credit is factored into the price, even though no interest might be charged. When getting quotes, find out how much it costs for payment later in the year, and how much it costs for payment up front now. From a cashflow point of view, it might still make sense to pay a little more now to get the credit, especially if you are working off the overdraft and there are other draws on this money.

Stock price: Despite the drop in milk prices, demand for good dairy stock is still high. At Fermoy last Friday and in Thurles yesterday, good young cows, calved or close to calving, were making €1,300 to €1,600 each. At these prices, those with high stocking rates really need to question their system this year.

If milk prices are going to be low, why take a risk with carrying high stocking rates and leaving yourself open to having to buy in extra meal and silage when you can get good money for stock now, and run a lower-cost operation during the year?

If selling stock, the preference would be to sell later-calving cows, but naturally the demand and value of these is less, at around €1,000. Remember, if buying or selling it costs about €1.80/day in feed costs to keep a dry cow on silage.

See www.farmersjournal.ie/sale-199963 for more.