An online milk price calculator has been developed by AHDB Dairy to help farmers see if they could get a better price for their milk from their current contract.
The tool allows dairy farmers to input the specific details of their milk, in terms of delivery profile and quality, and check if there is potential to increase the income available.
With milk prices at their lowest level for six years and the opportunities to switch milk buyer almost non-existent, it was important dairy farmers were able to maximise what they get for their milk, said the levy organisation.
Farmers can compare differences based on an AHDB Dairy standard litre or import their own data into the tool.
After importing their own farm’s data, they can then change different parameters, such as butterfat, to see if buffer feeding to increase the butterfat percentage by a few points might be worthwhile.
The system includes information on aligned liquid milk contracts, standard liquid contracts, standard manufacturing contracts and A&B contracts, from buyers such as Arla, Muller, Dairy Crest, Lactalis, Meadow Foods and Graham’s Dairy.