New highlight in sight for dairy farmer

It remains a challenge to keep up with all the new developments in dairy farming. At the same time, it is difficult to estimate how individual companies are performing. On average, however, the Countus Dairy Index shows a positive picture again and there is even a small peak to come.

De Countus Dairy Index was compiled in collaboration with DCA and shows a further increase. For a while it looked as if everything had been done in mid-April, but a number of unexpected twists succeeded in improving the result. In week 17, the return again reached a level of 125,80 points.     

Search for a good marriage
The prognosis shows that there is more to it. It continues to a level of about 129 points between weeks 20 and 23. After that, the Index drops back under the influence of lower prices for the milk fat. It is therefore the fat component that continues to support the milk price. The mood in the protein remains moderate. Without a good marriage between these 2 components, it remains difficult for the milk price to achieve better performances. 

Of course, not only the milk price plays a role. The prices for slaughter and sausage cows are also making a strong comeback. That helps now that the LU scheme still forces dairy farmers to dispose of cattle. Export heifers also command higher prices. Until April 28, it was possible to steer to an optimal milk supply to a large extent. The situation is now changing due to the number of young herds. It is no longer a GVE scheme, but a dairy cow scheme. It immediately creates an obstacle for the export of pregnant heifers.

Adjust strategies
Due to the changes and the chance that the rules will change again, under the guise of the Phosphate Reduction Regulation 2017, there is no other option than to adjust the strategies. In any case, the Countus Dairy Index indicates that there is enough room to pre-sort for the rights that will be introduced on 1 January 2018.   

Herman van den Pol

Herma van den Pol has been with us since 2011 Boerenbusiness and has developed over the years into a market expert Milk & Feed. In addition, she can be seen weekly in the market flash about the dairy market.

h.vandenpol@boerenbusiness. Nl

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