What makes a top performing dairy herd?

The UK’s highest performing dairy herds achieved 68% more profit a cow than the average dairy farm in 2014-15, according to the Farm Business Survey.

This equated to annual profits of £450 more a cow for the top performing quarter of dairy farms in the year to March 31 2015.

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These same farms achieved 45% higher incomes than the average UK dairy farm, a difference of £102,340.

The median milk price for this time was 29.5p/litre and while average prices have since fallen by almost 10p/litre, other factors are a stronger determinate of profitability says Rachel Lawrence, land economy researcher at the University of Cambridge.

“The top 25% aren’t receiving a vastly higher milk price, but their productivity and returns on spending mean they are proof there’s still the potential for excellent profits in dairy

“Being in the top 25% isn’t about the biggest yields or herd sizes. It’s about knowing your own system inside out and maximising every penny you get back from every pound you put in.”

Ms Lawrence adds there is just a 7.3% difference in dairy farm debt between the top 25% and the average farm, showing spending is relatively similar across the board.

“The top 25% aren’t receiving a vastly higher milk price, but their productivity and returns on spending mean they’re proof that there’s still the potential for excellent profits in dairy.”