Farmers considering a change in production system can see how their cash flow and milk cheque will be affected by using AHDB Dairy’s upgraded online Milk Price Calculator.
The enhancements to the Calculator support AHDB’s recently announced ‘Optimal Dairy Systems’ approach, which suggests farmers should focus on either all year round or block calving.
Other improvements make it easier for farmers to adjust elements of their milk profile, such as butterfat content or delivery profile, and see how these changes affect their revenues.
Patty Clayton, AHDB Senior Analyst, says: “The decision for a dairy farm to change system needs careful planning, of which finances and cash flow are a big part. We want to ensure AHDB tools help to simplify the decision and give easily comparable information.”
Most milk buyers pay premiums or apply penalties for seasonal profiles, so there can be a significant difference in cash flows throughout the year for all-year-round (AYR) and block calving systems.
As price variations differ significantly across milk contracts, farmers are advised to run their own numbers through the calculator and use the forecasts as a guide.
You can find the Milk Price Calculator on our website at dairy.ahdb.org.uk/milk-price-calculator
