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New tool to help farmers improve dairy returns

Some milk producers could benefit financially from taking a closer look at their delivery profile and milk quality when set against the terms of their contract, AHDB Dairy has said. 
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The tool gives an assessment of how a change to any aspect of their milk profile will impact price
The tool gives an assessment of how a change to any aspect of their milk profile will impact price

Launching a new online tool, the Milk Price Calculator, AHDB Dairy senior market analyst Patty Clayton said it enabled dairy farmers to input the specific details of their milk and check if there was potential to increase the income available from their particular contract.

 

The tool gives a quick assessment of how a change to any aspect of their milk profile will impact on the price paid, she said.

 

“Making the most of what you have got when margins are tight is crucial and asking basic questions could help you keep your business on track,” added Ms Clayton.

 

“While dairy farmers may not be able to change milk buyers at the moment, it may be possible for some to achieve higher prices for their milk by better matching what is in the bulk tank to what buyers pay the most for.

 

“By entering the before and after farm data into the calculator, you are able to get two sets of outputs, allowing you to compare the differences and clearly see how changes impact your milk price.”

 

 

NFU dairy chairman Michael Oakes said many producers had already carried out this kind of exercise, either themselves or with their consultant.

 

But there were also plenty who had not, and he believed any tools which could enable farmers to assess how they might improve returns had got to be a good thing.

 

“It might be a combination of tweaks which could make a positive difference and every little helps,” he said.

  • AHDB Dairy, as part of the Decisions4Dairy initiative, is running a series of one-day What If workshops designed to test out different ways to adapt to the current challenges in the market. Attendees benefit from working with specialist consultants and sharing experiences with other farmers.

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