UK: Kingshay Report Highlights Positive Trends Amid Challenging Year
Source: The DairyNews
Despite an unprecedented year, the dairy sector has reasons for optimism, according to a recent report by Kingshay. The study reveals that although milk prices fell to an average of 36.49p per litre in July 2023, they have since seen a steady recovery. However, these prices still fall short of covering the full production costs or providing adequate returns for family labor, as noted in the report.
The report also highlights the fluctuations in milk prices, with the gap between the highest and lowest prices peaking at 13.8ppl in March 2023, before narrowing to 11.6ppl by the end of March.
Kingshay’s senior farm services manager, Kathryn Rowland, commented, “The UK milk market is evolving as retailers and consumers demand more. With the increased focus on climate change, it is crucial that the market can deliver premiums to offset the extra costs and efforts on-farm. Processors like First Milk are already offering premiums for regenerative farming practices, and we anticipate a wider range in pricing within and between contracts moving forward.”
Examining trends over the past decade, the report shows a slight increase in average milk yields, maintaining in the mid-8,000 litres per cow range. Notably, milk solids have reached a record 646kg per cow, marking an almost 11% increase over the past ten years, outpacing the 5.4% rise in milk yield. This improvement is attributed to producers focusing on feed efficiency and meeting milk contract requirements.
Average herd sizes have grown year-on-year, now averaging 219 cows compared to 185 in 2014. Stocking rates have also increased, reaching 2.39 cows per hectare compared to 2.25 a decade ago.
Adverse weather conditions led to a 3% decrease in milk from forage last year, with an average of 2,691 litres per cow. However, Scotland saw a 16% year-on-year increase, defying the trend.
Herd health has generally improved, with mastitis cases down to an average of 26 cases per 100 cows, indicating better management, facilities, breeding, and recording practices. Conversely, lameness increased by four cases per 100 cows to 37, likely due to poor weather in 2023/24 affecting grazing access and leading to longer housing periods. Mobility scores remained stable, with 5.9% of the herd scoring 2 or 3, suggesting changes in lameness recording practices.
Fertility trends have normalized after the hot summer of 2022/23 disrupted oestrus cycles. The calving interval has narrowed to 393 days, with days to first service at 70, slightly longer than the previous year. The 200-day not-in-calf rate dropped to 12%, while the infertility culling rate matched the previous year's 6.7%. The cost of an extended calving interval decreased from £5.89/day per cow to £4.88/day due to lower milk prices and feed costs.
Efficiency varies widely across production systems, with year-round calving herds focusing on housing achieving the highest margin per cow (£2,495 per cow), and autumn/split block calving herds with a grazing focus achieving the highest margin per litre (29ppl).
Organic herds experienced similar trends in milk prices, with the margin over purchased feed per cow dropping by 13.9% to £2,048 from £2,380 the previous year. Despite this, organic herd sizes have grown by 19% over the past decade, now averaging 243 cows.
Kingshay’s senior farm services manager, Kathryn Rowland, commented, “The UK milk market is evolving as retailers and consumers demand more. With the increased focus on climate change, it is crucial that the market can deliver premiums to offset the extra costs and efforts on-farm. Processors like First Milk are already offering premiums for regenerative farming practices, and we anticipate a wider range in pricing within and between contracts moving forward.”
Examining trends over the past decade, the report shows a slight increase in average milk yields, maintaining in the mid-8,000 litres per cow range. Notably, milk solids have reached a record 646kg per cow, marking an almost 11% increase over the past ten years, outpacing the 5.4% rise in milk yield. This improvement is attributed to producers focusing on feed efficiency and meeting milk contract requirements.
Average herd sizes have grown year-on-year, now averaging 219 cows compared to 185 in 2014. Stocking rates have also increased, reaching 2.39 cows per hectare compared to 2.25 a decade ago.
Adverse weather conditions led to a 3% decrease in milk from forage last year, with an average of 2,691 litres per cow. However, Scotland saw a 16% year-on-year increase, defying the trend.
Herd health has generally improved, with mastitis cases down to an average of 26 cases per 100 cows, indicating better management, facilities, breeding, and recording practices. Conversely, lameness increased by four cases per 100 cows to 37, likely due to poor weather in 2023/24 affecting grazing access and leading to longer housing periods. Mobility scores remained stable, with 5.9% of the herd scoring 2 or 3, suggesting changes in lameness recording practices.
Fertility trends have normalized after the hot summer of 2022/23 disrupted oestrus cycles. The calving interval has narrowed to 393 days, with days to first service at 70, slightly longer than the previous year. The 200-day not-in-calf rate dropped to 12%, while the infertility culling rate matched the previous year's 6.7%. The cost of an extended calving interval decreased from £5.89/day per cow to £4.88/day due to lower milk prices and feed costs.
Efficiency varies widely across production systems, with year-round calving herds focusing on housing achieving the highest margin per cow (£2,495 per cow), and autumn/split block calving herds with a grazing focus achieving the highest margin per litre (29ppl).
Organic herds experienced similar trends in milk prices, with the margin over purchased feed per cow dropping by 13.9% to £2,048 from £2,380 the previous year. Despite this, organic herd sizes have grown by 19% over the past decade, now averaging 243 cows.
