Gippsland - How Now Gippy Cow
January 2011 Edition
GippsDairy Focus Farms
Field Day Information from Willow Grove and Nar Nar Goon
Willow Grove Focus Farm
Mick and Paula Hughes operate this Focus Farm. At the field day in December key areas of interest were: feeding the cows including working to maximise pasture consumption, the summer fodder crop paddocks of chicory and the farm financial budget - how were they tracking?
Their goals are:
Primary long term goal - farm ownership
Medium term goals
- Maximise profit per hectare on the total area the business is operating (ie milking and turnout combined). The emphasis to be placed on maximising home grown feed while reducing all costs
- Significantly improve the mastitis situation in the herd. Mick and Paula are already working with Dr Rod Dyson in relation to this goal
- Lower the current empty cow rate of around 12 per cent to below 8 per cent.
The farm is 85 hectares (5 hectares adjacent to the Blue Rock Dam and has been taken over by Southern Rural Water). The turnout area is 57 hectares. Both the farm and the turnout block are leased.
Current stock numbers are
- 315 milkers
- 98 two year olds
- 100 heifer calves
Mick, Paula and their family have been on the farm since the 2006/2007 season.
To achieve the long-term goal the Support Group concluded that Mick and Paula need to maximise assets and net worth through cow numbers firstly, and consider off farm investment. The alternative to off farm investment is to shift to a farm that would allow cow numbers to go to 600 plus.
The farm analysis data shows a steady progression towards their medium goal with cow numbers up to 315, production per hectare targeting 780kg milk fat/ha. (1373kg milk solids/ha. in 2010/11) and pasture consumption heading towards 10tDM/ha over the total area operated (farm + turnout).
Net worth (Asset Gain) has increased by 374 per cent since starting on the farm and 114 per cent in the last 18 months. This is predominantly due to stock numbers starting at zero and now totalling 513 head, with a steady reduction of debt.
Budget
Mick and Paula work on a budget each year. The 2010/11 budget predicted a surplus available to cover debt servicing, living, tax and capital expenses of $130,596. This was in fact less than the amount required to meet the above payments. The amount required is $169,034. This is after loans were returned to principal and interest payments.
The current updated budget to the end of October predicts a surplus of $144,733. The budget is updated each month so advice given can take into account the actual budget position.
The key assumptions behind the 2010-11 budget were:
- 320 cows producing 221kg butterfat, 168kg protein (389kg milk solids) at $8.27/kg butterfat equivalent. Approximately 36cents/litre or $4.70/kg milk solids.
- Normal cull cow and calf sales
- Historical farm operating costs with the main feed cost assumptions being:
- 1.5t grain/cow @ $200/t to end December and $250/t post December.
- 60 tonnes urea @ $650/tonne on the milker area.
- 2 applications of urea - potash fertiliser blend on the turnout.
- Pasture consumption to 10tDM/ha across the milking area.
- Pasture consumption to 8.0tDM/ha across the turnout area.
- 200 tonne of purchased hay at $240/t.
Farm Cash Flow Budget 2010-2011.
| Budget. | Cumulative Total. | Cumulative Total. $ per cow |
|
|---|---|---|---|
| Farm receipts | |||
| Milk | 554,039 | 592,031 | $1,879 |
| Cull cows | 38,190 | 42,801 | |
| Calves | 3,188 | 2,934 | |
| Share dividends | 525 | 1,997 | |
| Other farm income | 4,842 | 4,709 | |
| Total Income | $600,784 | $644,472 | $2,046 |
| Farm Costs. | |||
| Herd Costs | |||
| A I | 10,307 | 11,855 | 38 |
| Herd test | 74 | 0 | 0 |
| Herd health | 26,776 | 32,627 | 103 |
| Calf rearing | 14,033 | 14,312 | 45 |
| Total | 51,190 | 58,794 | 186 |
| Shed costs | |||
| Shed power & heat | 6,297 | 7,042 | 22 |
| Dairy supplies | 19,051 | 18,548 | 59 |
| Total | 25,348 | 25,590 | 81 |
| Feed Payments | |||
| Fertiliser | 0 | ||
| Nitrogen | 49,972 | 61,568 | 195 |
| Fodder | 64,871 | 64,871 | 206 |
| Agistment & rent | 42,936 | 43,657 | 138 |
| Concentrates | 101,250 | 106,020 | 336 |
| Fuel & oil | 10,966 | 10,538 | 30 |
| Weed & pest control | 3,699 | 3,366 | 11 |
| Other | 10,619 | 9,398 | 34 |
| Total | 284,313 | 299,418 | 946 |
| Overhead costs | |||
| Labour | 16,000 | 14,865 | 47 |
| Administration | 11,787 | 10,805 | 34 |
| Rates | 0 | 0 | |
| Veh reg & ins | 6,427 | 6,427 | 20 |
| Repair & maint | 15,739 | 24,776 | 78 |
| Farm lease | 59,334 | 59,064 | 187 |
| Total | 109,287 | 115,937 | 366 |
| Total costs | $470,138 | $499,739 | $1,586 |
| Difference | $130,596 | $144,733 | |
Nar Nar Goon Focus Farm.
Geoff and Debbie Bramley own this farm. Michael and Ancret Shipton have been sharefarming (50-50) there since July 2008. They were previously dairy farming in New South Wales and have considerable experience in a range of farming systems.
Michael and Ancret's Goals for their first 3-5 years are:
- To increase our income by:
- Maximising milk production and feeding efficiencies.
- Increase our asset by:
- Debt reduction.
- Adding value to our livestock through improved genetics.
- Increasing livestock numbers.
Some of the main challenges being faced to achieve these goals are:
- Getting the balance right between consuming as much pasture as possible with out compromising milk production. Michael says they don't want to cut feed costs if it means they end up with hungry cows.
- Settling the new herd in and contending with mastitis and health problems.
- Arranging the calving pattern to maximise returns. Calving this year starts late January with approx two thirds calving late summer early autumn and one third in spring. At the time of their field day in December there were cows being dried off, while others were being mated (AI to 20 Dec then bulls out to 20 Jan.).
Farm features include:
- 120ha dryland home farm with adjoining leased land of 66ha (5 year lease), and 140ha underdeveloped land (min. 2 year lease). The latter area is the site for the new Pakenham Racecourse. It is being used for rearing replacements, dry stock and fodder production.
- The home farm is predominantly under perennial pasture with large areas resown to new pasture species autumn 2010.
- Current stock numbers are 280 cows, 84 rising two year olds, and 80 rising one year olds.
- The dairy is a modern 50 stand rotary. They have a 150 cow feed pad that is used to feed fodder and by-products to the milking herd (potato mash and orange pulp fed last season).
- A fulltime farm worker is employed, plus a weekend milker.
Farm financials 2010-2011
The budget is based on the herd producing 91,899kg Protein from a 3.42 per cent test, and 108,565kg Fat from a 4.03 per cent test.
Farm Budget 2010-2011.
| Budget and Actuals to Nov. | |
|---|---|
| Farm Income: | |
| Milk | $1,265,868 |
| Cull cows | 35,000 |
| Calves | 5,200 |
| Total Income | $1,306,068 |
| Farm Costs. | |
| Herd Costs: | |
| A I, Vet, Calf rearing etc | 59,000 |
| Total | 59,000 |
| Shed Costs: | |
| Shed power | 20,400 |
| Dairy supplies | 6,000 |
| Total | 26,400 |
| Feed Costs: | |
| Fert, lime, fowl manure | 61,000 |
| Cont. fodder, sowing | 55,000 |
| Lease | 42,375 |
| Concentrates, grain | 209,664 |
| Seed | 17,000 |
| Fuel & oil | 9,000 |
| Weed & pest control | 5,500 |
| Water | 4,010 |
| Total | 403,549 |
| Overhead costs: | |
| Labour | 51,000 |
| Administration | 8,400 |
| Phone | 2,340 |
| Repair & maint | 12,000 |
| Other | 8,400 |
| Total | 82,140 |
| Total costs | $571,089 |
| Difference | $734,979 |
Note: The $734,979 is not farm profit. It is the amount available for servicing debt, capital expenditure, tax, and personal drawings etc.
The Focus Farm Project is an initiative of GippsDairy and is funded by the Geoffrey Gardiner Foundation, Dairy Australia and GippsDairy.
For more information about the Focus Farm project, or copies of the notes from these field days contact: John Gallienne Mobile 0407 863 493.
