Dairy
farming in a new environment
Ian
McCluggage,
Head of Dairying and Pigs Development Branch
Greenmount Campus
College of Agriculture, Food and Rural Enterprise
Antrim
Northern Ireland
A Northern Ireland perspective
Other quotas on milk production!
Farmers will feed more cereals
Better breeding for the future
Greenmount Dairy Benchmarking
Improving productivity and lifestyle
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A Northern
Ireland perspective
Similar to
all farmers throughout Europe, Northern Ireland dairy farmers find themselves
in a new era in agriculture. This has been fashioned by EU policy seeking
both environmental and rural sustainability. Future farm profitability
will be dictated by the market place.
Free market
economics always seek to maximise returns against the most limiting resource.
Therefore milk producers must make decisions on the system and scale of
enterprise mix, taking into account what is limiting efficient production
on their own farm.
There are
two routes to remain competitive, either produce milk cheaper than others
or target quality milk for high value markets. For Northern Ireland the
first road is not an option due to lack of industry scale. Therefore quality
milk must be delivered competitively to the processor who meets customer
expectations with profits shared equitably along the supply chain.
By ensuring
they are adhering to ethical production systems, farmers allow consumers
to enjoy milk or dairy products and the clean and diverse countryside
in which it was produced. This policy is essential and can secure an improved
and sustainable return from the market place - but there must be trust
and true integration within the supply chain.
Following
the introduction of milk quotas in 1984 a limit was placed on potential
expansion on the majority of dairy farms. However due to a combination
of accessibility, profitability and farmer ability the milk quota held
on Northern farms has increased by almost 40 per cent over the past 12
years. This, combined to the additional allocation of 1_ per cent of milk
quota to the UK as part of the Mid Term Review, has ensured a plentiful
supply of quota. Current low purchase and lease prices mean that quotas
are unlikely to restrict future expansion.
Other quotas
on milk production!
However
other limiting factors or "quotas" now exist. Land has always
been a constraint on our dairy farms. This is due to its expense, quality,
availability and accessibility. Grazeable acres and the logistics of moving
cows and machinery on busy roads is encouraging farmers to opt for at
least a partially housed system.
The litres
sold per hectare can be increased with purchased feed substituting for
grazed grass in the cows diet. This may be contrary to the views held
by many, where grass is considered the cheapest feed for cows. However
this is only true where high yields of quality grass are grown and more
importantly utilised.
Several on-farm
studies have estimated that only 65 to 70 per cent of the grass grown
is utilised by the grazing animal. Recent work by ARINI Hillsborough and
CAFRE Greenmount has supported these findings. The data has shown there
is little difference in the full economic cost of many of the forages
used, with grass costing over £75 per tonne of dry matter (DM).
No feed input
is "cheap" and they must all be utilised efficiently for profitable
milk production. Plant breeders have put significant effort into enabling
forage maize to be grown in a marginal climate. Grass breeding must receive
the same focus improving yield, sward density, persistency, drought resistance
and ensuring ease of management for better utilisation throughout the
growing season.
At the time
of writing the detail contained within the Nitrates Directive Action Programme
has not been finalised. However current and pending environmental legislation
will require some farmers to carefully review their present system of
milk production and make appropriate changes.
This Action
Programme will limit stocking rates on some farms as a result of total
nitrates output per cow and the organic nitrates loading limit per hectare.
At an organic nitrate loading of 170kg/ha this is equivalent to a stocking
rate of 1.8 to 1.9 CE/ha (CE=Cow Equivalent) or just over two CE/ha if
the farm rears its own replacements. If organic nitrates was the only
environmental limit, yield per cow could increase through higher feeding
to enable total milk sales/farm to grow.
However of
particular relevance to Northern Ireland is the role of excess phosphorus
in the eutrophication of water. It will be necessary for farmers to be
in phosphorus balance in the future. To minimise the environmental impact
of phosphorus leaching from the soil the measure introduced may limit
the level and type of concentrate fed on farm in conjunction with the
use of zero phosphorus compound fertilisers.
Farmers
will feed more cereals
As purchased
concentrates are a major source of phosphorus this may place a "quota"
on the level of feed and require improved nutritional efficiency of the
total diet. Will this change the make-up of diets fed? Yes. Cereals have
a low phosphorus content and it is likely farmers will try to harness their
potential in future as an alternative forage or as part of a Total Mixed
Ration (TMR).
Do dairy
farmers have the necessary skills to grow a 10 tonne/ha crop of winter
wheat? Will contract growing of cereals or alternative forages be a viable
option? Certainly with the present level of interest several dairy farmers
are considering these options, allowing them to concentrate on what they
know best - managing a herd of high performing cows.
Better breeding
for the future
Genetic improvement
continues to offer solutions but must be appropriate to the farming system
or other problems will arise. Have some farmers paid too much attention
to the show ring? Research has clearly shown the link between body condition
and fertility. Angularity, height at the shoulder and "dairyness",
are these key performance traits for the commercial farmer?
Longevity
is essential and encompasses a number of the important traits required,
including health e.g. mastitis resistance, lameness, combined with milk
yield, compositional quality and a high fertility index - in essence a
"happy cow".
Greenmount
Dairy Benchmarking
From our
Benchmarking results it takes £900 to rear a dairy heifer to the
point of calving and a target of 40,000 litres lifetime production is
necessary to reduce the depreciation charge against the herd and improve
profit. The lifting of the beef export ban allows cull cows to re-enter
the beef market. Live exports will also recommence and coupled to the
reduction in suckler cow numbers will increase calf and cull cow values.
With lower milk price improving the value of all output from the herd
will help profitability.
Improving
productivity and lifestyle
Quality labour
is becoming a scarce resource on large farms and a target of at least
600,000 litres per labour unit has been set. To ensure a quality family
lifestyle, time and management skills need to be improved. If the potential
of the contractor, nutritionist, consultant, employed labour and farmer
can all be harnessed then improvements in productivity can be achieved.
If not then labour will be a real quota.
Balancing
all these factors at farm level will be key. While it is difficult to
generalise for each individual situation, the system, which appears to
offer the best opportunity for farm development, is a high output forage-based
system. The associated targets are 8,000, 8,500 litres (+1750 gallons)
sold per cow per year from less than two tonnes of concentrate at 4.2
per cent butter fat and 3.5 per cent protein with a replacement rate of
less than 25 per cent and direct costs of production including family
labour of 15 pence per litre (ppl).
However to
achieve the results and benefits from such a system will require new innovative
thinking coupled to a flexible and adaptable business attitude to the
management of the whole farm. A "can-do attitude" with a positive,
realistic approach will ensure continued success. It is essential that
the milk producer of the future enjoys farming, is rewarded for a quality
product and can invest time and money in the business and farm family.
In summary
the key components for a successful dairy business are:
Focus
on year on year growth of output and return on capital;
Concentrate on key areas and harness
the skills of others;
Continually develop business management
skills;
Encourage new thinking onto the
farm to challenge "this is the way I have always done it" mentality
- farming needs innovation;
Target top 25 per cent performance
from a high output forage system;
Benchmark to know how you and
the farm are performing;
If you are comfortable in a different
business environment invest off farm where a profitable and mature business
is current managed - this will provide a new challenge and may encourage
the next generation to realise the potential in farming
Adopt a "can do" attitude,
with a positive realistic approach to problem solving; and,
Enjoy your chosen profession and
invest your time wisely.
How
to cite this article
McCluggage, Ian (2006).
[On-line] UK: Available:
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© Copyright September
2006. All rights reserved. W M A Mullan.
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