TWO years worth of analysis on a dairy operation at Woodlawn via Lismore has proven a high percentage of home-grown feed can help insulate producers against inevitable market downturn.
Andrew Wilson and Kelly Boyd, with a 250 cow operation, applied to take part in the first Northern Rivers Resource Efficiency Focus Farm Project, funded by Dairy Australia and the Australian Government as part of the Profitable Dairying in a Carbon Constrained Future project.
At a time when milk producers are struggling to rein-in costs to meet ever tightening market demands the project found favour with local producers, six of whom joined program, along with four from related industries, to contribute to the discussion.
Mr Wilson and Ms Boyd, both fourth generation dairy farmers with a pioneering history in the Wilson Valley, were already running their operation with an emphasis on home grown feed but took advantage of the project to help decide their future direction. All they had to give in return was some of their business data for economic analysis and a willingness to be open with their support group.
“We really wanted to know if we should expand our herd to 300 cows and was that going to make good financial sense,” recalled Mr Wilson.
The initial ‘laying bare’ of their financial situation proved daunting at first but once they got used to being poked and prodded by Victorian dairy consultant Phil Shannon they found the subsequent analysis very useful.
Part of the program involved testing soil and modifying fertiliser regimes which saved money and reduced greenhouse gas.
Efficient use of feed and fertiliser not only saves money, said Hunter-based dairy consultant Marguerite White. “This project also demonstrated that such practice will reduce greenhouse gases.”
Independent soil tests were showed nutrient levels under pasture at the Woodlawn farm were ‘luxurious’ and so they pulled back on fertiliser, applying urea only at planting. The annual result saved the operation $15,000.
Norco agronomist and focus farm advisor Bill Fulkerson said greater efficiencies in summer pasture management were realised by planting appropriate species, like kikuyu and setaria and retaining forage quality by providing the right fertilizer mix, topping the pasture post grazing when necessary and maintaining an appropriate grazing interval.
“Andrew believed this was one of the key things for increased milk production without increasing feed costs,” Mr Fulkerson said.
Consultant Phil Shannon directed attention off the paddock and into the books, telling his dairy students to seriously question whether new equipment was ever needed.
“A lot of dairy farmers are working so hard they don’t see the direction they are headed and their shift to intensifying a farm can be gradual,” he warned. “Suddenly they are locked into debt and depreciating machinery costs and away from pasture.
“The Kiwis always ask ‘how much less’ while farmers in NSW and Victoria tend to ask ‘how much more’.”
Mr Wilson decided the purchase of a new pasture topper was worth the investment to start up after every two grazing rotations because it saved time and diesel when compared to a mulcher.
The group did an economic exercise looking at a feed mill to process grain for the milkers and with Andrew’s herd size and situation it was ‘definitely a goer’, recalled Mr Fulkerson.
Ms White said a further option to improve herd digestion and reduce methane burps was to add vegetable oil to the grain ration – something that could be done with a feed mill.
Mr Wilson and Ms Boyd are considering that investment, after some priority spending on their house. But they balk at the suggestion of a concrete feed pad and roof.
“If I spend $1m on concrete and steel I’ve got to ask myself, ‘will I ever get that back?’,” said Mr Wilson.
Other initiatives included installation of the computer program, Easy Dairy herd recording and together with input from veterinarian Ray Austin worked to improve reproductive performance of the Mr Wilson’s cows.
Maintenance of pasture as a primary source of feed was the critical message of the focus farm project but at the same time the Wilsons were encouraged to experiment - such as with grain rations in the dairy. For example an extra kilo on top of a cow’s 4kg ration delivered an extra litre of milk equating to an extra 15 cents Income after the price of grain had been subtracted.
“When you look at it that way you realise that’s money for jam,” said Mr Wilson.
But they found two extra kilos of grain failed to produce enough extra milk to cover the extra cost and the season played a big factor in how the results varied.
At the close of this study consultant Mr Shannon encouraged all dairy farmers do assessment of their farm and to participate in the dairy farm monitor program lead by NSW DPI. The annual program collects production and financial data to undertake farm level and industry wide analysis.
A new focus farm has just commenced on Pat Neal’s dairy at Oxley Island Road via Taree. The first open day will be on November 22, from 10 am to 2 pm. RSVP by phone or text Marguerite White on 0447 500 415.
