The cost of keeping a dairy cow in the Border, Midlands and Western (BMW) region, and across the entire country, has significantly increased in 2022.
The rising cost of inputs on farms has been highlighted throughout late-2021 and into 2022, with this impacting the cost of production.
The rising cost of production and how much it costs to keep a dairy cow in 2022 was highlighted at the recent Ballyhaise Dairy Open day.
Cost of keeping a dairy cow
Speaking at the event was Trevor Dunwoody, a Teagasc dairy adviser based in Co. Monaghan. He outlined some of the increased costs facing dairy farmers.
He said costs have significantly increased on farms, but that good milk prices have allowed farmers to maintain their margins.
He said that the estimated cost of keeping a cow in 2022 is €2,069, an increase of €591/cow or €70,920 in a 120-cow herd.
According to Trevor, this means an increased milk price of €1.18/kg of milk solids (ms) or 9.5c/L – 10c/L on average across the year – which is currently being achieved on the majority of farms.
2017 2021 Difference 2017-2021 Assumptions 2022 vs. 2021 Projected 2022 Meal €/cow 255 345 +90 +56% 538 Fertiliser €/cow 117 130 +13 +127% 295 Contractor €/cow 96 117 +21 +22% 143 Other costs €/cow 742 886 +144 +23% 1,093 Total costs €/cow 1,210 1,478 +268 +40% 2,069 Milk solids kg/cow 440 487 +47 +2.7% 500 Milk price €/kg MS 4.69 5.03 +0.34 +33% 6.69 Farm stocking rate, LU/ha 2.14 2.18 +0.04 +0.5% 2.19
Investments
Trevor said that for many farms, large capital investment is unlikely to be made in 2022 due to the rising costs.
So investments that are made need to either improve production or significantly save on labour.
“I think that it is absolutely critical that any investments that are planned have a high return in terms on labour efficiency or productive efficiency on farms,” he said.
He advised farmers to focus on nutrient management, grass measuring, removing low-performing cows from the herd and cash budgets.
With the rising cost of chemical fertiliser, slurry has never been as valuable, so maximising its use is important.
Trevor added that establishing clover and correcting soil pH should be a priority in 2022.
According to Trevor, every €1 investment in lime returns €8 in pasture production.
He added that grass measuring is key to maximising the benefits of grazed grass on farms.
Farmers were also advised to focus on improving herd genetics and remove poor-performing cows from the herd.
“Input costs are expected to rise by about 40% this year, at the moment high solids milk is returning a good revenue,” the advisor said.
“The key message is to stay focused on the good technical efficiency, good farming practices – don’t complicate it.
“Get your soil fertility right, use your milk recording and use your grass measuring.”