November 29, 2006

Over 60 percent of UK dairy farmers unaware of costs survey

More than 60 percent of dairy producers do not know their cost of milk production, while those that hazarded a guess underestimated the real cost, according to a survey.

About 60 percent of UK dairy farmers from more than 600 questioned at this year's Dairy Event by the Royal Association of British Dairy Farmers (RABDF), revealed they were unaware of their total production costs, figure a 10-percent higher than the survey at the same event two years ago, noted RABDF chief executive Nick Everington.

The figures made an alarming reading when a recent joint RABDF/NFU survey found that the cost of milk production had increased to about 21 ppl, with the average producer price being just 17.3 ppl, he explaiend.

It is imperative to help producers identify opportunities to make savings and improve overall efficiency. This would further enable them to understand their business well, he added.