This is being achieved on some dairy farms at present. In Northern Ireland we can produce milk for 10ppl. At present there are some farms with variable costs of 4ppl and others with fixed costs of 3ppl. Total production costs under 10ppl have been recorded on some farms in the past year. Farmers must avoid high cost production systems as they will be difficult to change if milk prices stay at their current level or fall even further.
Detailed records are a vital starting point in bringing down costs.
Specific areas can then be targeted for improvement. Remember, due to market pressures, dairy farmers in New Zealand have had to produce milk for less than 8ppl to remain in business.