Each year, the economic values in the C.O.W. are reviewed. The values are derived from Teagasc’s Moorepark Dairy Systems model. The C.O.W. requires 2 sets of market predictions, one for the current lactation season and a second prediction on future lactation prices. Given the current market milk price increase as well as the current high costs associated with production (e.g. fertilizer prices), the C.O.W. will be updated to reflect this movement being experience by the dairy sector this week.
Last year the current lactation economic values were based off a milk price of 30.5c/litre, whereas the C.O.W. will now use a higher milk price of 34.5c/litre for the current lactation traits in the index. The future lactation traits will continue to use economic values derived from a milk price of 30.5c/litre. Net replacement cost values are also set off the current market price values.
The most notable differences are the increase in value in fat (from €2.08 to €2.68/kg) and protein (from €5.87 to €6.90/kg) and the increased cost of late calving per day after the 21st of February (from €4.00 to €4.57/day).
The next review of the economic values for the C.O.W. is scheduled for January 2023.