Farmer Focus: Milk price cuts amount to 12.5p/litre this year 

Things are suddenly go go go!

March was wet, relentlessly wet, and it held back our spring work. We only managed to spray herbicide on the maize fields and sneak the first lot of nitrogen onto the wheat by the start of April. 

Other than that, March comprised jobs we are often too busy to do once summer comes – vaccinating cattle, changing liners, dehorning (I even relined the diet feeder last week). 

See also: Dairy farmers face losses as milk prices fall to 40p/litre

About the author

Tom Stable

Tom Stable and family, Ulverston, Cumbria, milk 300 Holsteins twice a day, producing milk for Arla and ice cream for their Cumbrian Cow brand. The 215ha operation, of which half is rented, grows grass, maize, and winter wheat. Cows average 10,800 litres.

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So hopefully, as it dries we can get on; ploughing and fertiliser are on the list, as I’m sure they are for many. We have maize to drill, but no spring cereals this time, so that will help simplify things. 

We will take down our cubicle shed at the end of April. Measurements have been taken this week (we are joining up three sheds, so there is less margin for error than normal).

Maintenance in the old shed has been lacking since we decided to dismantle it. Tired mattresses and damaged cubicles make it less than ideal. 

Grass growth has been slow, so my early April turnout has been pushed back. However, cows are doing well, and I’m not over-keen to kick them out to grass.

They are averaging 35 litres at 4.1% butterfat and 3.3% protein. Good fertility performance and lower mastitis levels than normal have made milking a pleasure. 

The milk price is not such a happy thought. I knew the price was still under pressure and I knew to expect another drop for April’s milk, but I wasn’t expecting the text from Arla to say it would be down 5.3p/litre. 

When the market rose, we were told the good long-term supermarket contracts with set prices meant we would not see the first increases.

But this hasn’t done much to halt the decline. Our price has fallen 12.5p/litre this year and is now at about 38p/litre for May.

However, it could be said that these contracts delayed the drops. Markets were negative in quarter four of 2022, but we only saw the price drops in quarter one of 2023. 

The cuts are severe, and although some are talking of a quick recovery, there is no sign of this in the futures markets. The high cull cow price is our only help.