Drivers of production cost in a quota free environment Cathal Mc - - PowerPoint PPT Presentation

Drivers of production cost in a quota free environment

Cathal Mc Aleer

Abolition of quota

• The abolition of milk quota in April 2015 will

enable an increase in sales.. OF:

• Concentrates
• Feeder wagons
• Buffer feeding ingredients
• Antibiotics
• Mineral ‘cocktails’ etc

• Northern Ireland:
• Quota has not been binding in NI since 1995

Northern Ireland

• Output per cow has increased to 6500 litres

3.24% Protein 4.01% Butterfat SCC: 228 (‘000/ml)

(Source: DARDNI, CSO)

• Herd size has increased from 62 – 90 cows
• ‘Output per cow’ has become key focus

– Assumed but not proven this drives margin

Effects of increasing output/cow

• Reduced milk from forage= concentrate driven milk
• Decline in grassland management

– Pre grazing covers in excess of 2500kgsDM/ha – Residuals 350-600kgsDM/ha

• Infertility increasing

– wide calving spread – Acceptance of extended lactations – dependency on outside assistance - ‘RMS’ etc

• Sales people gaining hugely

Herd Nutrition: myths and realities

Add to cost Drive Profit Myths Reality

18% dietary crude protein required 16% Balance Protein & Energy

Herd Nutrition: myths and realities

Add to cost Drive Profit Myths Reality

18% dietary crude protein required 16% Balance Protein & Energy Too cold in spring for turnout Grass allocation/rumen fill is key

Herd Nutrition: myths and realities

Add to cost Drive Profit Myths Reality

18% dietary crude protein required 16% Balance Protein & Energy Too cold in spring for turnout Grass allocation/rumen fill is key Performance drops at turnout Performance highlights grass quality issues

Herd Nutrition: myths and realities

Add to cost Drive Profit Myths Reality

18% dietary crude protein required 16% Balance Protein & Energy Too cold in spring for turnout Grass allocation/rumen fill is key Performance drops at turnout Performance highlights grass quality issues Farms too heavy for early grazing Spring – 90 days Infrastructure essential

Herd Nutrition: myths and realities

Add to cost Drive Profit Myths Reality

18% dietary crude protein required 16% Balance Protein & Energy Too cold in spring for turnout Grass allocation/rumen fill is key Performance drops at turnout Performance highlights grass quality issues Farms too heavy for early grazing Spring – 90 days Infrastructure essential Breeding sufficient for solids payment, tweak diet Breeding dictates 60% of solids

• utput – must breed for fat and

protein

Calving Pattern

• Average calving interval approx. 410-420 days

– Predominantly year round calving – Data on fertility performance is seriously lacking

• Result:
• Overfeeding late lactation cows
• Increased labour demands
• Less ‘Peaks’ per lifetime
• Youngstock grouping issues
• Creates feeding difficulties during winter

Calving Pattern

• Factors effecting infertility
• Effect of lameness and SCC on fertility
• Prolonged housing period – heat expression
• Poor nutritional management
• Reluctance to cull empty cows
• Genetics
• How is infertility being addressed
• It is not being addressed!
• Heat detection software
• Crossbreeding???

Business Targets

• Retain maximum amount of milk cheque
• Simplified, profitable system that is repeatable
• Good quality of life
• Industry leader – attract young people to

industry

So how do we get there…?

Nutrition

• Control inputs and costs
• Educate yourself on nutrition

– Maximise energy intake – Balance dietary protein – Balance dietary fibre – Adequate vit/mins

• Its not that complicated!

Improving grass utilisation

• Planning:

– Grass budgeting spring summer autumn – Soil fertility – Silage quality

• Implementation:

– Weekly grass measurement – Grass allocation – Minimise poaching – Supplementation

Lessons learned within a quota environment

• Quota has curtailed expansion – do not lose

experience gained during this time

– Efficiency before scale – Keeping feed costs down – Controlling capital spend – Culling low performance cows

In conclusion

• Grass measurement important to ALL dairy

farmers

• Must educate ourselves on feed & nutrition
• Have to control calving pattern
• Excellent advisory body – NI prime example of

a non research-driven industry

• Profitability must be the driving factor

Thank you for your attention!