Even with milk prices starting to stabilise it’s more important than ever to review the efficiency of your farm to maximise profit margins. We have outlined six key areas to review to ensure your farm is competitive:  

  • Feed Costs

  • Fertility & Health

  • Youngstock & Replacement Policy

  • Labour & Time Efficiency

  • Energy & Input Costs

  • Benchmarking & Business Decisions 

Feed costs 

Reviewing feed costs is key, as on most dairy farms this accounts for around 25% of the monthly milk cheque. Analysing your feed spend on both a £/cow and pence per litre (ppl) basis will help identify where genuine cost-saving opportunities may exist - we have the tools to review diet costs and benchmark your business.

Cow grouping is a powerful tool to improve feed efficiency. Feeding to yield and stage of lactation ensures nutrients are targeted where they deliver the best return. Making good use of milk recording data and daily yields allows cows to be moved between groups at the correct time, avoiding over- or under-feeding.

Reducing feed wastage is essential, particularly when forage supplies are tight on many farms. Feeding correct portions, managing refusals, and maintaining good clamp management can significantly extend forage stocks while protecting cow performance.

Fertility & health 

Keeping on top of herd fertility, mastitis, and metabolic diseases plays a major role in improving the farm’s bottom line. Poor performance in any of these areas quickly increases costs and reduces overall efficiency.

Depending on the system, each additional empty day typically costs £6 – £10 per cow, driven by higher feed costs, lost milk production, and increased culling risk.

Transition cow management is a critical link between health and fertility performance and should therefore be a top priority on all dairy farms. Small improvements during the transition period often deliver some of the highest returns on investment within the business.

Mastitis cases on average cost £250 - £300 per case so even a small reduction in cases can have a big impact. Key areas to review include:

  • Dry cow management and cubicle hygiene

  • Milking routine consistency & Parlour Operation

  • Teat condition and hygiene

  • Early detection and recording

Youngstock and replacement policy

Reviewing youngstock rearing protocols and the farm true cost of replacements is key as this is an area of any farm which can absorb cash. Everyday a heifer calves after 24 months can cost £2–£3/day, making age at first calving one of the simplest ways to reduce rearing costs and increase business margins. Key areas in heifer rearing management to review include:

  • Calf Nutrition & Early Growth - Quality colostrum and intake levels, consistency, high quality starter feeds and minimising disease levels.  

  • Heifer Growth Rates - Regular weighing, monitoring daily liveweight gains, target a 1kg/day to ensure 55 - 60% of mature bodyweight at first service.

  • Forage Quality - A balanced ration for growth, you do not want heifers to become over or under conditioned.

  • Health & Disease Control - Pneumonia control, vaccination programs and good ventilation/housing hygiene.

It’s important to regularly analysis the true cost of rearing vs buying in, there are other key considerations when buying replacements in such as disease and genetics.

labour and time efficiency 

We are finding with labour shortages, financial pressure and shortening weather windows, farmers are becoming increasingly overwhelmed with the work load and management requirements.


It’s key to identify if there are steps that can be taken to reduce the pressure within the team. If you find yourself doing the following its time to make changes:

  • Find yourself running around putting fires out all day.

  • Are busy but don’t feel like your work has high impact or achieve what is needed.

  • Have a hard time delegating, saying no or don’t trust people to do the job.

  • It takes too long to explain to others, so it’s quicker to do it yourself.

  • Regularly recruiting due a high turnover of staff.

  • Understanding the difference between urgent and important tasks will allow you to plan your time more effectively. This means planning to do important tasks in advance, so you do less firefighting.

    Delegating is key part of managing a team of people and is an area that should be considered carefully. If you get delegation correct, you will save time, money, and feel less stressed!

energy and input costs

Small savings in energy and inputs, when spread across the whole herd, can quickly add up to thousands of pounds per year.

Electricity use is often higher than expected on dairy farms. Simple checks such as ensuring plate coolers are working efficiently, maintaining milk cooling systems, and installing variable speed drives on vacuum pumps can significantly reduce energy consumption.

Hot water systems are another key area, making sure heaters are efficient and only heating what’s needed can cut unnecessary costs.

Water usage is frequently overlooked. Fixing leaks, recycling plate cooler water, and reviewing washdown routines can reduce both water and energy bills.

benchmarking & business decisions 

Understanding your numbers is key to making informed, confident decisions. Benchmarking allows you to compare your farm’s performance against top performing herds and identify where improvements and cost savings can be made.

Looking at key metrics such as cost of production (ppl), margin over purchased feed, and milk from forage helps highlight where profit is being made or lost.

Top performing dairy businesses aren’t always the highest yielding; they are often the most efficient, controlling costs while maintaining strong performance.

You can’t manage what you don’t measure. The most profitable dairy farms know their numbers and act on them.

If you would like to benchmark your farm performance, contact our team today!