Monitoring performance is key to managing your dairy business
January 22, 2026
In recent months there has been a downward pressure on milk price. As margins get tighter it increases the importance of monitoring herd performance and costs of production. CAFRE offers a range of business support tools that can help you to do this. These include the CAFRE Benchmarking system and the ‘Dairy Margin Over Concentrate’ calculator.
Recording and monitoring performance data is a key management practice on the McNaughton family farm in North Antrim. Ciaran, alongside his father Sean, manages a herd of 70 dairy cows on a housed robotic system. The cross bred herd comprises Holstein/Fleckvieh cows. The business is focused on driving milk output and maximising efficiency of milk production. Online tools are available to support key business management decisions necessary to achieve average yields of 12,000 litres per cow.
Dairy margin over concentrate (DMOC) is a useful financial tool. It measures what margin is left after the most significant cost of purchased concentrates is deducted from the monthly milk income. Dairy margin is calculated monthly and keeps track of concentrate feeding within the herd.
With the CAFRE benchmarking system farm businesses can benchmark to either gross margin or net margin levels. Gross margin includes milk and stock sales income less variable costs such as feed, forage, animal health, breeding and sundries. Completing a benchmark to a gross margin level gives a good picture of some of the largest variable costs on farm.
Full benchmarking, to a net margin level, also includes the fixed costs and gives a more detailed picture of the dairy business and provides data to allow for informed analysis and decisions. It also determines the net margin of the business and the total cost of production when a family labour adjustment is applied. To discuss any of these CAFRE business tools do not hesitate to contact your local CAFRE Dairy Adviser.