From Biology to Profit making the farm business work

Dairy Business of the Year, June 22nd 2011

“Insanity: Doing the same thing and expecting a different result”

Albert Einstein (1879-1955)

“It is not the strongest of the species that survives, nor the most intelligent. It is the one that is the most adaptable to change”

Charles Darwin (1809-1882)

“If you don’t like change, you’ll like irrelevance even less”

General Eric Shinseki (1942-)

http://www.map-of-uk.com/images/map-of-uk.gif

A miracle

happens

Feed her moreMilk

Cow

Make a profit

Source: David Beca, Redsky

As pasture harvest increased, OpEx declined

Return on assets increases with increase in pasture harvested

Source: David Beca, Redsky

Operating profit/ha vstonnes DM pasture eaten/ha

Operating profit/ha increases with increasing pasture harvest

Breakdown of expenses

Only Point

Supplements should only be used to manage pasture better

not to “feed cows better”

Using supplements to improve pasture management

1. Grow as much pasture as possiblei. Optimum rotation length

ii. Targeted re-seeding

iii. Optimise soil fertility

iv. Targeted use of nitrogen

2. Optimise pasture utilisationi. Optimum stocking rate

ii. Targeted post-grazing residuals

iii. Minimise substitution rate

Using supplements to improve pasture management

1. Grow as much pasture as possiblei. Optimum rotation length

ii. Targeted re-seeding

iii. Optimise soil fertility

iv. Targeted use of nitrogen

Optimum rotation length

Optimum rotation length

Optimum rotation length

Lee et al. 2010

Leaf 1 Leaf 2 Leaf 3 Leaf 4

10-15% 30-40% 45-55%

Delay grazing

Optimum rotation length

Lee et al. 2010

Using supplements to improve pasture management

1. Grow as much pasture as possiblei. Optimum rotation length

o Use supplements to delay grazing to grow more grass

ii. Targeted re-seeding

iii. Optimise soil fertility

iv. Targeted use of nitrogen

Targeted reseeding

Clark et al., 2010

• You can’t manage what you don’t measure!

~$33,000/100 ha

Clark et al., 2010

Targeted reseeding

Using supplements to improve pasture management

1. Grow as much pasture as possiblei. Optimum rotation length

ii. Targeted re-seedingo Use supplements/crops to allow pasture renovation

iii. Optimise soil fertility

iv. Targeted use of nitrogen

2. Optimise pasture utilisationi. Optimum stocking rate

ii. Targeted post-grazing residuals

iii. Minimise substitution rate

Source: David Beca, Redsky

Stocking rate

Stocking rate

Macdonald et al. 2008

Using supplements/crops to improve pasture management

1. Grow as much pasture as possiblei. Optimum rotation length

ii. Targeted re-seeding

iii. Optimise soil fertility

iv. Targeted use of nitrogen

2. Optimise pasture utilisationi. Optimum stocking rate

ii. Targeted post-grazing residuals

iii. Minimise substitution rate

Maintains optimal post-grazing residuals

Reduces pasture growth

In summaryTo maximise profit:

• Use supplements to help manage pasture• not to “feed cows better”

– increase stocking rate and allow greater DIM– lengthen the rotation to grow more pasture– facilitate targeted reseeding– maintain optimum post-grazing residual