A milk producing business
The opportuni5es and challenges
January, 2016
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Henden Manor Estates A milk producing business The opportuni5es and - - PowerPoint PPT Presentation
Henden Manor Estates A milk producing business The opportuni5es and challenges January, 2016 1 Overview Henden is ~500 acres (~370 acres arable & grazing), the land being undula5ng clay The strategy is to produce high quality milk
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– High standards of both staff and animal welfare and safety – Working well within all regula8ons imposed, including caring for the environment – Being transparent in all that we do – Being financially sustainable
– 260 cows in the herd (vs. 140 as a UK average), of which 230 are milked twice daily – 210 “followers” – We calve through the year to try and achieve level produc8on; we do not “block” calve
– Yield per cow in milk should average some 31.4 litres per day (~10,100 litres per cow per year)
– 1,440 tonnes of concentrates & minerals (0.56kg per litre) – 3,300 tonnes of bulk feed (1.28kg per litre)
– 4.7 work exclusively for the dairy business – 1.3 work on the estate – 0.5 provides the administra8ve support needed
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>5mm litres capacity
(grass & maize silage and wholecrop)
19,000 litres capacity
84 stalls 88 80 stalls 86 stalls
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Reservoir Drainage direc8on Reservoir
Key:
Approx estate boundary Approx main courses Approx other courses Main feed growing areas Grazing areas (summer) Underground courses
Note:
Henden also owns 18 acres
fields a quarter of a mile to the east of its boundary
We prac5ce crop rota5on Ground is undula5ng clay
(“lameness” at Henden = 12%; na5onal average = ~36%)
* England
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farm years
Pre 1990 1998-2006 2007-2009 2010 2011 2012 2013 2014 2015 2016 Parlour Milk Tank Cow barns & aprons Lighting & fans Heifer barns Calving barns Bulk feed clamps Dry food store General storage barns Drainage in farm yard Solid waste area Liquid waste area Reservoir Land drainage Office Equipment
(£'000)
Property £183 £395 £185 £852 £682 £118 £155 £19 £225 Equipment £159 £224 £323 £139 £193 £157 £217 £74 £35 Total Investment £342 £619 £508 £991 £875 £275 £372 £93 £260
2 4 6 8 10 12 14 F e e d L a b
r O t h e r D a i r y P r
e r t y M a i n t e n a n c e V e t & M e d i c i n e s B e d d i n g U B l i B e s O ffi c e / A d m i n A I / S e m e n
7 * Es5mated for the year 2015/16 (revenue and costs do not include Estate management ac5vi5es and related income) ** Sample guided from data for 2014/15 provided by an outside source, but updated by Henden for 2015/16 using Farmgate price for milk sales and hopefully educated guesswork for costs
< Most farms are losing money at the opera5ng level < Most farms have not invested in property & equipment Notes:
Henden’s costs
37% 17% 14% 8% 6% 5% 4% 4% 3% 2%
ppl
Henden * UK Sample **
ppl ppl
Milk sales 32.18 23.89 Livestock sales 2.54 2.15
Total Dairy Income 34.72 26.04
Purchased feed
Bulk feed
Bedding
AI/ Semen
Vet & Medicines
Other Dairy costs
Total Dairy costs
Labour & "Drawings"
Utilities
Property
Machinery/Maintenance
Office/Administration
Total non Dairy costs
Total costs
Operating cash flow 1.81
Depreciation
Operating loss before ROC
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(needs to close by, ideally adjacent)
(s5ll learning!)
(no money has been taken out to date)
– Improve aden8on to detail – Think outside one’s own main role on the farm
(would be a new business) * Of relevance to buyers of milk
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