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Stackyard News Dec 06

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RABDF urges UK dairy farmers to quantify unpaid labour costs

The Royal Association of British Dairy Farmers has reiterated the importance to dairy producers of including a realistic allocation of at least 4ppl for unpaid labour into their dairy enterprise costings.


milking parlour

The statement was made in light of the recent release from the MLC into the true costs of unpaid family labour on cattle and sheep farms.

The MLC study mirrors and substantiates the work done by RABDF in 2005, which determined that on average unpaid family labour equated to an additional 3.81ppl on the cost of milk production.

RABDF chairman, Tim Brigstocke comments: “It is essential dairy farmers make sure their costings reflect the true costs of milk production, which are currently around 21ppl. In order to establish an accurate representation of the financial state of their dairy enterprise, the inclusion of a notional figure in their costings to account for their unpaid labour input is of paramount importance. We suggest introducing a value of at least 4ppl.

“Recent findings from the Dairy Event 2006 survey show that farmers are struggling to quantify their milk production costs from within their diverse businesses, with a large proportion significantly underestimating them,” he says. “We recommend farmers utilise the RABDF Independent Guidelines for Dairy Costing Schemes as a template, a tool which was specifically designed to help dairy farms with their budgeting.”

link David Cameron Acknowledges Plight of Welsh Dairy Industry
link 60% of dairy producers unaware of production costs
link The Dairy Event builds on success

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