Break-even milk price and cost of production made simple

Before making changes to your dairy business, it is essential to understand where you stand financially. This practical webinar, the third of four in our milk price support series, focuses on building clarity around your cost of production and break-even milk price, helping you make informed, confident decisions in a volatile market.

We’ll guide you through how to calculate your true cost of production and identify your break-even milk price. We will also explore scenario planning, including what a sustained milk price in the low 30s pence per litre could mean for your business over the next 12 months.

The session will cover the difference between cashflow and margin, and how short-term decisions can influence longer-term tax implications. We will also look at how milk contracts work in practice, including pricing mechanisms and payment structures, so you can better understand how changes in the market feed through to your milk cheque.

What you will gain:

• A clearer understanding of your own cost of production
• Confidence in calculating your breakeven milk price
• Practical insight into planning for different milk price scenarios
• Greater awareness of how contract structures and tax considerations affect your bottom line

We’ll also highlight practical tools and support available via AHDB, including the milk price support hub, milk price calculator and wider business resilience resources.

If you’re a dairy farmer or business partner, don’t miss this opportunity to get greater clarity on your farm’s financial resilience and be better equipped to plan for the year ahead.

This webinar is part of a four-part series focused on milk prices, designed to give dairy farmers practical tools and resources to manage their business with confidence.