FG BUY&SELL        FARMERS WEATHER       ARABLE FARMING        DAIRY FARMER      FARMERS GUARDIAN        AGRIMONEY        OUR EVENTS        MEMBERSHIP BENEFITS        BLOGS        MORE FROM US
You are here: News > Insights
Search

You are viewing 1 of your 2 free articles

You’ll need to join us by becoming a member to gain more access.
Already a Member?

Login Join us now

Phil Latham: Weather prayers answered, but some worries about the dairy market

Insights

I think I must have done something good to be rewarded with the last two weeks weather – it is that or my silent prayers have been answered.

Twitter Facebook

The fields are drying out, first round of fertiliser’s on, and the slurry injector has not stopped moving so the tide is finally turning in the slurry lagoon. All we need now is a bit more warmth for the grass to really get moving.

 

With all the challenges we have had in the last two years I am looking to focus on growth again, which is much more positive than adapting to the loss of a milk cheque or a chunk of your herd to TB. These two factors made it look like we specialised in a uniquely unprofitable system of low output, high input, a system not normally favoured by bank managers.

 

This year as our heifers come in the herd should grow again and we are using some new tactics to increase yield from grass with new software to analyse grass growth, so hopefully we will lower our cost base and increase farm output too.

Take-home messages

A few weeks ago I attended my first NFU conference. It was an excellent couple of days. I think my take home messages were the world inventory for food is running lower each year, which will no doubt stimulate prices and political interference; that political interference and protectionism have a history of making markets dysfunctional; that markets need transparency to work for buyer and sellers; and that in the supermarket world, the big growth area is in Aldi and Lidl, with only Sainsburys doing well out of the big five.

 

On the one hand, farming looks like it is the place to be according to Wall Street investor Jim Rogers, with him forecasting good times and fast cars for all of us, but on the other hand we see in the last few weeks big supermarkets trying to create additional footfall by increasing ‘value’ to customers by reducing four-pint poly packs. They may ease their consumer’s consciences by stating their farmers get a fair price, but that is only on the liquid milk sold, which is a small proportion of the dairy products sold through stores.

 

So the underlying trend looks upward for some commodities, but in the short term I am dismayed there may be a new round of price cuts for dairy as the big supermarkets try and compete for market share.

Twitter Facebook
Rating (0 vote/s)
Post a Comment
To see comments and join in the conversation please log in.

More Insights

Stepping up milk from forage with improved management

Attention to detailed grazing and forage conservation management is helping the Mason family’s 10,300 litre organic herd in Herefordshire to take 40 per cent of total milk from forage. Farmers Guardian reports.

Making 5,000 dairy cows pay in South Africa's desert

A KEEN focus on data and analytics has enabled the Loubser family to maximise production from their 5,000-head dairy in the extreme conditions of South Africa’s Western Cape.

New mastitis threat going undiagnosed - we take a look at the symptoms and treatments

A new type of udder infection could be going widely undiagnosed on-farm and could be to blame for recurrent mastitis cases, as Aly Balsom finds out.

First generation farmer is creating Damn Delicious produce from grass

Michael Shannon uses a meticulous business approach to create his distinctive beef brand. Danusia Osiowy reports.

'I find sharing tups a useful way of getting into better breeding'

Believing the Texel breed is the UK’s number one commercial terminal sire, Ben Vernon has his sights set high both for his flock and the breed. In the second of a series celebrating young breeders, Jonathan Long visits Derbyshire to find out more.
FG Insight and FGInsight.com are trademarks of Briefing Media Ltd.
Farmers Guardian and FarmersGuardian.com are trademarks of Farmers Guardian Ltd, a subsidiary of Briefing Media Ltd.
All material published on FGInsight.com and FarmersGuardian.com is copyrighted © 2016 by Briefing Media Limited. All rights reserved.
RSS news feeds