October is Key Month for Milk

Although most Dairy producers have received a promise price hike recently, October is also gearing-up to be a crunch month for the dairy industry, with many farmers set to view the price they get that month as being the barometer for how well their processor is doing in capitalising on record commodity dairy prices. Expectations on prices are higher now than they have been for well over a decade . . . and the outlook for dairying is excellent. But have the dairy companies capitalised on the opportunities? Will they be delivering to their farmers a price that they are happy with? And, whatever the price, will it be enough to keep the milk flowing profitably when set against cost price increases?

For farmers in the South West there’ll be no better place to find out the answers to these crucial questions than at the Dairy Show, to be held on 3 October at the Bath and West showground near Shepton Mallet and with continued sponsorship by Dairy Crest & NatWest showing their support for the Dairy Industry. According to Show Chairman Edwin White, the dairying mood will be buoyant if significant prices have been announced; optimistic if they are still in the pipeline, but very tense if farmers believe their buyer isn’t performing up to scratch and the rises they think they are due look as if they won’t be coming through. “The atmosphere could be edgy,” he says. “It will be a very interesting show.”

But things are looking good so far for the South West, he says. All of the milk processors are performing strongly at the moment, with Milk Link having posted good profits recently, Dairy Crest being upbeat about its prospects for this year, Wiseman on track at its Bridgwater dairy, and cheese prices being strong and stocks short. Virtually all of the main milk processors will be at the show.

“Most dairy companies seem to be faring well,” says Mr White. “Most seem to be well set for the future. I just hope they can all get the milk supplies they need to realise their business objectives.”

That’s the main challenge for them as the UK’s output is already well below optimum levels, and that’s even before the industry hits the trough month of November. But Mr White says that presents a huge opportunity for farmers, and is another reason why a visit to the show is essential for dairy farmers.

There will be some big financial incentives to produce a lot of milk in the winter. But the problem could be getting the cows to milk, however, or to get them to do so profitably in light of the wet summer, indifferent forage quality for many and high feed prices – up £40 a tonne on last winter.

“The next month or so will be critical for many dairy farmers as they need the sun to bring out the best in the maize crop. That could make the difference between good or poor milk production throughout the winter months.”

Either way, there will be a multitude of specialists and skills at the Dairy Show for farmers to tap into and seek advice from. Over 230 stands and industry experts including John Alvis of Alvis Brothers, Ian Potter the quota broker, Pete Nicholson of Wiseman and Rex Ward of Milk Link will be sharing their expertise and opinions.

“There is no better place to get the answers to all of the burning questions for the winter,” says Mr White. “All the experts from across the country come to the show, and are always willing to advise and guide. We look forward to seeing a lot of farmers.”

Tickets for the Dairy Show cost £10.00, but £8.50 if bought in advance. They are available from the ticket office on 01749 222222 or buy online from the website, applications must be received by 28th September 2007. 

Anyone wishing to go to the renowned Dairy Industry Dinner (sponsored by Dairy Crest & Lloyds TSB Agriculture) on the eve of the show should contact Jill Cross on 01749 822223.  “This is always sold out well before the event and is one of the few occasions when grass roots farmers can mingle with captains of the industry.”