As dairy farmers consider their options regarding the mid-term review, increasing yield per cow is high on the agenda, says Promar International consultant Andrew Connah. FARMERS need to examine the true cost of producing marginal litres before embark ing headlong down this route. With downward pressure on milk prices it is understandable that farmers are looking to produce more litres as a means of spreading overheads and generate sufficient profits to cover private drawings, reinvestment and tax. Th e mid-term review will only heighten interest in this strategy and with some justification. With the dairy premium element of the Single Farm Payment being based on quota held on March 31, 2005, there win be a temptation to push production this year.
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