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<o:shapedefaults v:ext="edit" spidmax="1026"/> </xml><![endif]--><!--[if gte mso 9]><xml> <o:shapelayout v:ext="edit"> <o:idmap v:ext="edit" data="1"/> </o:shapelayout></xml><![endif]--> </head> <body lang=EN-GB link=blue vlink=purple style='tab-interval:36.0pt'> <div class=WordSection1> <p><a href="index.html">DairyNI</a></p> <table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0 width=521 style='width:390.75pt;mso-cellspacing:0cm;mso-yfti-tbllook:1184;mso-padding-alt: 0cm 0cm 0cm 0cm'> <tr style='mso-yfti-irow:0;mso-yfti-firstrow:yes'> <td width=205 nowrap colspan=3 valign=bottom style='width:153.75pt; padding:0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='mso-fareast-font-family:"Times New Roman"'><br> <strong>Production Costs 2011</strong><o:p></o:p></span></p> </td> <td width=126 nowrap colspan=4 valign=bottom style='width:94.5pt;padding: 0cm 0cm 0cm 0cm'> <p><o:p>&nbsp;</o:p></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>Pence per litre</strong></p> </td> </tr> <tr style='mso-yfti-irow:1'> <td width=175 nowrap valign=bottom style='width:131.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=62 nowrap valign=bottom style='width:46.5pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> </tr> <tr style='mso-yfti-irow:2'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p>Meal Costs</p> </td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=189 nowrap colspan=4 valign=bottom style='width:5.0cm;padding:0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.56p</span><o:p></o:p></span></p> </td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>8.47</strong></p> </td> </tr> <tr style='mso-yfti-irow:3'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p>Forage Costs</p> </td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=189 nowrap colspan=4 valign=bottom style='width:5.0cm;padding:0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Down <span class=SpellE>0.1p</span> (less alternative forage)<o:p></o:p></span></p> </td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>1.61</strong></p> </td> </tr> <tr style='mso-yfti-irow:4'> <td width=175 nowrap valign=bottom style='width:131.25pt;padding:0cm 0cm 0cm 0cm'> <p>Vet Costs</p> </td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=68 nowrap colspan=2 valign=bottom style='width:51.05pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>No change<o:p></o:p></span></p> </td> <td width=57 nowrap valign=bottom style='width:42.7pt;padding:0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>1.15</strong></p> </td> </tr> <tr style='mso-yfti-irow:5'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p>Other Dairy Costs</p> </td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=68 nowrap colspan=2 valign=bottom style='width:51.05pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><u><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.1p</span><o:p></o:p></span></u></p> </td> <td width=57 nowrap valign=bottom style='width:42.7pt;padding:0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong><u>1.66</u></strong></p> </td> </tr> <tr style='mso-yfti-irow:6'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p><strong>Variable Costs</strong></p> </td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=68 nowrap colspan=2 valign=bottom style='width:51.05pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><b style='mso-bidi-font-weight:normal'><span style='font-size:10.0pt;mso-fareast-font-family:"Times New Roman"'>Up <span class=SpellE>0.53p</span><o:p></o:p></span></b></p> </td> <td width=57 nowrap valign=bottom style='width:42.7pt;padding:0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>12.88</strong></p> </td> </tr> <tr style='mso-yfti-irow:7'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p><strong>Overheads</strong></p> </td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=252 nowrap colspan=5 valign=bottom style='width:189.0pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.54p</span><o:p></o:p></span></p> </td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>8.18</strong></p> </td> </tr> <tr style='mso-yfti-irow:8'> <td width=175 nowrap valign=bottom style='width:131.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=16 nowrap colspan=2 valign=bottom style='width:12.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=62 nowrap valign=bottom style='width:46.5pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> </tr> <tr style='mso-yfti-irow:9'> <td width=268 nowrap colspan=5 valign=bottom style='width:201.0pt;padding: 0cm 0cm 0cm 0cm'> <p><strong><u>Milk production costs <span class=SpellE>excl</span>' depreciation</u></strong><u><o:p></o:p></u></p> </td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><u><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>1.07p</span><o:p></o:p></span></u></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong><u>21.06</u></strong></p> </td> </tr> <tr style='mso-yfti-irow:10'> <td width=175 nowrap valign=bottom style='width:131.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='mso-fareast-font-family:"Times New Roman"'><o:p>&nbsp;</o:p></span></p> </td> </tr> <tr style='mso-yfti-irow:11'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p>Heifer rearing costs</p> </td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.16p</span><o:p></o:p></span></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>3.68</strong><b><o:p></o:p></b></p> </td> </tr> <tr style='mso-yfti-irow:12'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p>Average Drawings/Tax</p> </td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.3p</span><o:p></o:p></span></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>2.6</strong></p> </td> </tr> <tr style='mso-yfti-irow:13'> <td width=175 nowrap valign=bottom style='width:131.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> </tr> <tr style='mso-yfti-irow:14'> <td width=205 nowrap colspan=3 valign=bottom style='width:153.75pt; padding:0cm 0cm 0cm 0cm'> <p>Loan Capital &amp; HP Repayments</p> </td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.59p</span><o:p></o:p></span></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>2.54</strong></p> </td> </tr> <tr style='mso-yfti-irow:15'> <td width=205 nowrap colspan=3 valign=bottom style='width:153.75pt; padding:0cm 0cm 0cm 0cm'> <p>Less Income from stock sales</p> </td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>0.3p</span><o:p></o:p></span></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong>-1.91</strong></p> </td> </tr> <tr style='mso-yfti-irow:16'> <td width=205 nowrap colspan=3 valign=bottom style='width:153.75pt; padding:0cm 0cm 0cm 0cm'> <p><strong><u>Breakeven milk price</u></strong></p> </td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><b style='mso-bidi-font-weight:normal'><u><span style='font-size:10.0pt;mso-fareast-font-family:"Times New Roman"'>Up <span class=SpellE>1.8p</span><o:p></o:p></span></u></b></p> </td> <td width=64 nowrap valign=bottom style='width:48.0pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong><u>27.97p</u></strong></p> </td> </tr> <tr style='mso-yfti-irow:17;mso-yfti-lastrow:yes'> <td width=190 nowrap colspan=2 valign=bottom style='width:142.5pt;padding: 0cm 0cm 0cm 0cm'> <p><strong>Average milk price</strong></p> </td> <td width=15 nowrap valign=bottom style='width:11.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap colspan=2 valign=bottom style='width:47.25pt;padding: 0cm 0cm 0cm 0cm'></td> <td width=127 nowrap colspan=3 valign=bottom style='width:95.25pt;padding: 0cm 0cm 0cm 0cm'> <p class=MsoNormal><span style='font-size:10.0pt;mso-fareast-font-family: "Times New Roman"'>Up <span class=SpellE>1.85p</span><o:p></o:p></span></p> </td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'></td> <td width=63 nowrap valign=bottom style='width:47.25pt;padding:0cm 0cm 0cm 0cm'> <p align=center style='text-align:center'><strong><u>27.36p</u></strong><b><u><o:p></o:p></u></b></p> </td> </tr> <![if !supportMisalignedColumns]> <tr height=0> <td width=175 style='border:none'></td> <td width=15 style='border:none'></td> <td width=15 style='border:none'></td> <td width=1 style='border:none'></td> <td width=62 style='border:none'></td> <td width=6 style='border:none'></td> <td width=57 style='border:none'></td> <td width=64 style='border:none'></td> <td width=63 style='border:none'></td> <td width=63 style='border:none'></td> </tr> <![endif]> </table> <p><o:p>&nbsp;</o:p></p> <p><b style='mso-bidi-font-weight:normal'><u>Comment and Analysis on 2011<o:p></o:p></u></b></p> <p>At the beginning of the year we thought that breakeven milk price would be 28.5ppl, but did not anticipate the improvements we have seen in feed efficiency in 2011 which thankfully held down the cost increases.</p> <p>Big changes apart from feed prices have been more bank repayments (banks are taking their money <span class=GramE>back,</span> and HP monthly payments are getting bigger as machinery prices rise) and higher drawings. The drawings comes from rising costs of living, which we all know about, and also bigger tax payments</p> <p>However costs have risen sharply and it just seems that dairy farmers profits have been rising very slightly during 2011, <span class=GramE>only</span> to fall in 2012 again. Already we are seeing rolling average margins fall at time of writing (early March 2012).</p> <p>Recent analysis on 2011 figures shows the following:-</p> <p style='margin-left:36.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='mso-fareast-font-family:"Times New Roman"'><span style='mso-list:Ignore'>1.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><![endif]><span style='mso-spacerun:yes'> </span>A positive correlation between milk from forage and farm profit. The increase in profit comes fastest when milk from forage is around the 1500-2000 litre mark.<span style='mso-spacerun:yes'>  </span></p> <p style='margin-left:36.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='mso-fareast-font-family:"Times New Roman"'><span style='mso-list:Ignore'>2.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><![endif]>A positive correlation between milk yield per cow and profit, but once milk yield goes over 8500 litres there is a fast tailing off of profit rises. This is probably due to cows not lasting as long and replacement costs going up as yield rises.</p> <p style='margin-left:36.0pt;text-indent:-18.0pt;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='mso-fareast-font-family:"Times New Roman"'><span style='mso-list:Ignore'>3.<span style='font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><![endif]>The most surprising outcome has been the relationship between profit and herd size. Our most profitable herds as a group are those around 150-200 cows, with many herds becoming less profitable as they grow beyond this. This is only an average and doesn t apply to any particular herd. However the falling profits beyond this point are probably due to the following common afflictions of large herds</p> <p class=MsoNormal>Keeping more and more cows indoors as the herd outgrows its grazing platform</p> <p class=MsoNormal>Drawing silage and slurry further and further distances</p> <p class=MsoNormal><span class=GramE>Dumping slurry on fields nearest the yard, causing problems for grazing palatability; high potash in silage etc.</span></p> <p class=MsoNormal>Greater reliance on outside staff</p> <p class=MsoNormal>Overcrowding, <span class=GramE>which is a massive handbrake on cows.</span></p> <p><a href="2011%20dairy%20costings%20results.html">2011 Dairy Costings</a></p> <p><a href="2011%20forage%20costs.html">2011 Forage Costs</a></p> <p><a href="index.html"><span class=GramE>home</span></a></p> </div> </body> </html>