Higher milk balance with lower yields and costs

Dairy farms have managed to further reduce costs in the last 4 quarters, from July 2019 to June 2020. Despite the decline in yields, the average dairy farm managed to achieve a higher milk balance. 

Alfa Accountants en Adviseurs reports this in an analysis of the results of the dairy farms that the company has in its customer base. The so-called litigation costs have decreased by an average of €12 over the 15.450-month period. That is €1,34 less in costs per 100 kilos of milk compared to a year earlier. This is mainly driven by a decrease of €1,26 on own feed costs.

The best companies saved a whopping $57.026 on litigation costs. Alfa Accountants links this fact to, among other things, craftsmanship. The dairy farms were also able to save on cultivation costs. The quarter of the companies with the lowest cultivation costs was €6.161 cheaper than the average of €15.799, reports Alfa Accountants.

Rising balance despite revenue decline
The dairy farms have kept a sharp focus on costs, also because the revenues declined in the 'broken financial year'. Due to the pressure on the milk price, milk yields fell by an average of €0,42 to €37,52 per 100 kilos of milk. Other yields also decreased by €0,14 per 100 kilos of milk. On average, that is a declining return of €7.837. Because the costs have been reduced considerably, the dairy farmers have managed to achieve a positive balance.

Averages
The average affiliated dairy farm that Alfa Accountants calculates with milks 118 cows, produces 1.152.508 kilos of milk, keeps 61 head of young stock and uses 61 hectares of land. Milk production on the farms has increased by an average of 51.838 kilos of milk compared to last year.

Jorine Cosse

Editor at Boerenbusiness who studies the dairy, pig (meat) and feed markets. Jorine analyzes the roughage market on a weekly basis and periodically the compound feed market.

j.cosse@boerenbusiness. Nl

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