Our analysis of the 2020/21 season shows over 40% of milk destined for the liquid market and 55% for manufacturing fell below target butterfat levels, resulting in farmers missing out on £38 million of additional income.
Our analysis of the 2020/21 season shows over 40% of milk destined for the liquid market and 55% for manufacturing fell below target butterfat levels, resulting in farmers missing out on £38 million of additional income.
A further £17 million was lost by the 64% of farmers on manufacturing contracts who fell short of target protein levels.
Patty Clayton, lead dairy analyst said: “I’d encourage farmers to work out a simple budget to understand whether the income generated by increasing solids outweighs the costs.
“Global demand for solids on the rise so, depending on your milk buyer, increasing milk solids is likely to be a positive long-term decision.”
For milk destined for manufacturing, the typical base level for butterfat is slightly higher at 4.2%, and around 55% of the milk delivered for manufacturing fell below this. Meeting desired butterfat targets would have generated around £38m of additional income for farmers.
Farmers on liquid contracts do not typically achieve payments for surplus protein but may incur added costs to produce it. Despite this, over 40% of milk destined for this market exceeded the typical base level of 3.3%.
Manufacturers usually pay for milk delivered above a base value of 3.4% for protein. Around 64% of milk supplied missed this target, forfeiting an estimated £17m in payments.
“At current payment rates, an all-year-round calver producing 1.5 million litres a year would generate £3,600 of additional revenue per year by increasing their butterfat content from 4.0% to 4.1%. This could be as much as £5,400 per year depending on your contract,” says Patty.
“It’s important for farmers to assess their individual circumstances and pricing schedules before making any decisions. Our handy checklist suggests the key steps to follow when thinking about making changes that will increase constituents.”
Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.
1.
2.
3.
4.
5.
eDairy News Spanish
eDairy News PORTUGUESE
The most visited dairy news website in the world.
