Costs per kilogram of milk

Ensuring that the calf benefits from a good-quality rearing period will ensure healthy animals in the future that produce the best possible yield. 
Calculations show that: 

1. Calf housing represents only 0.6% of the total cost of milk (0.22/34.5 EUR cents)

2. Calf housing represents only 4% of the total rearing costs (€2,000/€48,000).

The calculation 

Basic principles

• 100 dairy cows, with 9,000 kg of milk per cow
• 60 youngstock animals, with calving age at 24 months
• 30% replacement
• Depreciation of calf housing: 15 years
• 10% annual costs (7% depreciation, 3% interest on total amount invested)

Basic principles of calculation

• 105 calves born annually, of which 100 live births.
• Keep 30 calves for replacement, housed in igloos (up to 3 weeks) and
• in group igloos (up to 12 weeks)
• Keep 70 calves for fattening, housed in igloos (up to 3 weeks)
• The following is required: 15 igloos and 3 group igloos
• 15 igloos with accessories (costing €500)                                                             €7,500
• 3 group igloos with accessories (costing €2,500)                                               €7,500
• Lay concrete paving in farmyard (150 m² at €30 per square metre)           €4,500
• Rainwater drainage                                                                                                             €500

Total investment:                                                                                                                         €20,000

Interest and depreciation per annum: 10% = €2,000
At an annual milk production of 900,000 kilograms, this is: €0.222 per 100 kg of milk, i.e. 0.22 EUR cent per kilogram of milk,
despite the farm's total annual rearing costs being around €48,000 (30 heifers x €1,600 per heifer)