There is no doubt the most recent milk price cuts in England have forced a good number of farmers to look pessimistically at 2018 milk price.

However, there are a number of issues currently in the mix that will decide milk price over the coming months. Not all are pointing to milk price going down.

The issues are: Christmas demand for butter is high; New Zealand is beginning to get very dry, which could reduce growth and yield per cow; and EU country restrictions and reducing EU milk prices should start to limit individual countries in the EU.

It may be for some of these reasons the GDT auction lifted this week for the first time in a number of weeks.

It is fair to say for those completing budgets for 2018 take your average price over five years as the barometer and it’s always better for budget purposes to plan for lower prices.

For new entrants to milk, many are using a figure of €4/kg milk solids (27c/l to 28 c/l) base price and VAT and extra milk solids come on top of that figure.

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