Production costs on farms have risen significantly since the end of last year, with some inputs experiencing a 134% increase.
With production cost increasing and there being a possibility that they will increase further, it is time to look at your less productive cows.
The cost of production will vary from farm to farm, so knowing where you stand, first and foremost, is important. Once you know this, you can determine which cows need to be producing to be financially viable.
Production costs
The cost of production on every farm has increased, by how much will depend on the farm and the system.
Some research from the Irish Farmers’ Association (IFA) noted that the cost of production on your average 89-cow herd, suppling 500,000L of milk, has increased by at least 11.24c/L.
These figures were based on a farm that spreads 35t of chemical fertiliser, feeds 100t of concentrates, harvests 100ac of silage and uses 4,500L of diesel.
In general, milk prices have moved up in line with the increased cost being experienced by dairy farmers.
The average best price paid to farmers in March 2021 was 34.85c/L, in March 2022 it is looking like most farmers will receive a base price of 47c/L.
Culling cows
But this does not take away from the fact that cows that are not producing should not remain in the herd.
Cows that are not achieving the level of production you require should be removed from the herd; cows that are close to it should also be looked at.
It has been said on more than one occasion that this year is not the year to keep passengers.
Determine the cows that are not performing within your herd and make a decision about their future.
The way that costs have gone on farms means it is not viable to keep these animals around.
If a cow is not performing and is costing money to keep, she should not remain in the herd.