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17th February, 2019

Costs of milk production in North of Ireland

On a farm visit outside Derry a client informed me of a survey detailing the current profitability of milk production on dairy herds in Northern Ireland.  On this client’s farm, the current cost of milk production is 18 pence per litre.  The average cost of milk production on 50% of farms in the North was 25 pence per litre.  With the current milk price close to 30 pence per litre, there are 25% of farms either making little or no money per litre of milk produced on the farm.  On the farm visited with a cost of 18 pence per litre to produce milk, the profit per cow last year was approximately 1,000 pounds sterling per cow.  However, they forecasted the profit this coming year with increased costs for energy, feed etc., would drop by 300 pounds per cows.  Unfortunately, on many dairy units in the North of Ireland, the profitability of the business in the current year will be in negative territory because of inefficiencies and poor management.