Gippsland - How Now Gippy Now - August 2010 Edition
GippsDairy Focus Farms
Have You Started To Setup Production and Financial Budgets for 2010/11?
In the last issue of How Now Gippy Cow two budgets for the coming financial year were shown, In this issue two more examples are provided. The first is from Denison - an irrigated dairy farm and the second is from Middle Tarwin in South Gippsland – a dryland farm , however like so many in that part of the region - very wet this winter.
Note: that the Operating Surplus shown in these farm budgets is not farm profit. It is the amount available to cover debt servicing, living costs, taxation and capital development.
Denison Focus Farm.
The Focus Farm families Graeme and Chris Anderson along with their son Ross and daughter- in -law Kelly, and the Support Group discussed a production and financial budget for this farm business. It is expected that it will be revised many times – at this stage it is being referred to as the ‘Draft’ budget, reports facilitator Craig McWhinney.
The milking area has 120 hectares effective grazing area that is all under irrigation. Two nearby blocks comprising 28 hectares of irrigation, plus a 122 hectare a dryland area are used for young stock, dry cows and fodder conservation.
Some assumptions in their draft budget are:
- 460 cows producing 510 Kg MS (milk solids)/cow.
- Stocking rate is 3.83 cows/ha. (Estimated pasture consumption in 2009/10 was 12.7tDM/ha).
- Feeding 1.5t/cow triticale. Budgeting on a cost of $230/t through to 31 Dec, then $250/t to 30 June 2011, plus 450kg/cow wheat/canola mix @ $350/t. (Percentage imported energy in 2009/10 was 34.7 percent)
- Income is based on opening price (no step ups).
- Most inputs are expected to be the same as last year, however fertiliser application has increased, and repairs and maintenance has been decreased.
Farm Income Total $ Per Cow
Milk income 1,059,143 2302
Cull cows 36,323 78
Calves 7,545 16
Other farm income 5,142
Total Farm Income $1,108,153 $2,396
Farm Costs
Herd costs:
AI 16,301 35
Herd test 3,427 7
Herd health 26,064 56
Calf rearing 44,736 97
Total Herd Costs $90,528 $195
Shed Costs
Shed power and heating 23,474 51
Dairy supplies 14,774 32
Total Shed Costs $38,248 $83
Feed Costs
Fertiliser 45,000 98
Nitrogen 63,500 138
Fodder 25,000 54
Lease 22,100 48
Grain/concentrates 255,946 556
Irrigation 51,500 111
Fuel and oil 22,196 48
Weed and pest 2,500 5
Other 8,356 18
Total Feed Costs $496,098 $1,076
Overhead Costs
Labour 53,590 116
Labour and lease 127,097 276
Administration 7,244 15
Vehicle Reg and Insurance 19,163 41
Repairs and Maintenance 63,538 138
Rates 9,210 20
Other 1,595 3
Total Overhead Costs $282,437 $609
Total Payments $906,311 $1,970
Operating Surplus $201,842 $438
Current stock on hand for 2010/11
Autumn calved & carry over cows 210
Spring calving cows 217
Spring calving 2 y/o heifers 75
Total 502 cows
2010/11 Expected Stock Numbers and Feeding Program
|
|
Milking cow numbers |
Litres/cow/day |
Grain feeding kg/cow/day |
||
|---|---|---|---|---|---|
|
|
|
|
Triticale |
Wheat/Canola |
|
|
July |
210 |
23 |
5 |
1.5 |
|
|
August |
310 |
20.8 |
5 |
1.5 |
|
|
September |
420 |
23.8 |
5 |
1.5 |
|
|
October |
460 |
24.5 |
5 |
1.5 |
|
|
November |
460 |
23.5 |
5 |
1.5 |
|
|
December |
460 |
21 |
5 |
1.5 |
|
|
January |
400 |
20.1 |
5 |
1.5 |
|
|
February |
270 |
23.8 |
5 |
1.5 |
|
|
March |
310 |
21.8 |
5 |
1.5 |
|
|
April |
400 |
20 |
5 |
1.5 |
|
|
May |
450 |
17.9 |
5 |
1.5 |
|
|
June |
380 |
15.8 |
5 |
1.5 |
|
|
Total/cow |
|
6,380 |
1,500 kg/cow |
450 kg/cow |
|
Total litres = 2,935,000, Total kgBF = 129,140, Total kg Prot = 105,660.
Middle Tarwin Focus Farm.
At Middle Tarwin Rod and Lyndell Cope along with staff Dianne and Phil went over their proposed budget for 2010/11 with their Support Group at the July meeting.
Facilitator Matt Harms has incorporated the ideas discussed into the budget outlined below.
Some assumptions behind the figures are:
- Feeding 1.75t/cow grain, plus 340kg/cow concentrate blend.
- Providing 200kg/cow high quality hay.
- Pasture consumption at 10.6tDM/ha, or 4.3tDM/cow.
- Maximum herd size 430 cows stocked at 2.49cows/ha.
- Production at 239,940 kgMS for the year, or 558kgMS/cow
- Milk price for this budget is $4.70/kgMS.
Farm Income $ Total
Milk Income 1,127,718
Stock sales 29,500
Calf sales 6,772
Rebates 22,000
Total Farm Income $1,185,980
Farm Expenses $ Total
Herd Costs
AB and Test 17,200
Animal health 33,110
Yearlings 4,975
Calf rearing 3,864
Total Herd Costs $59.149
Shed Costs
Shed Power 12,974
Pump costs 1,095
Dairy supplies 12,705
Total Shed Costs $26,775
Feed Costs
Fertiliser ($549ha) 95,000
Grain/pellets ($240t) 180,084
Effluent ($46/ha) 7,927
High quality hay ($270/t) 8,618
Profeed ($400/t) 51,600
Pasture silage 40,000
Lease 15,000
Lime 10,000
Calf feed 18,229
Lease fertiliser ($264/ha) 8,450
Pasture/crop 22,800
Fuel and oil 17,544
Other 7,113
Total Feed Costs $503,262
Overhead Costs
Rates 6,467
Farm vehicles 7,345
Farm insurance 7.403
Repairs and maintenance farm 50,000
Repairs and maintenance plant 11,676
Other Overheads eg Admin 30,000
Total Overhead Costs $112,894
Labour Costs
Gross wages 118,500
Workcover 3,535
Superannuation 10,665
Relief milker 10,000
Protective clothing 1.478
Total Labour Costs $144,178
Total Farm Costs $846,258
Operating Surplus $339,732
Percentage of farm income on production costs: 71.4 percent.
Total production costs $3.53/kgMS.
Financial Indicators Per Cow Per Ha
Income 2,758 6,855
Herd costs 138 341
Shed costs 62 154
Feed costs 1,170 2,909
Overhead costs 263 652
Labour (paid) 335 833
Finance costs 26 63
Gross margin 1,388 3,450
Operating surplus 790 1,964
Budget surplus 532 1,323
Total labour (Paid and Imputed) 586
People Productivity: Labour
Paid hours 4,800
Imputed hours 4,320
Total Hours 9,120
Kg MS/hour 26.3
50 hour labour unit 3.5
Kg MS 50 hour labour unit 68,404
The Focus Farm Project is an imitative of GippsDairy and supported by Gardiner Foundation and Dairy Australia. For more information about the Focus Farm project please contact John Gallienne Mobile 0407 863 493.
