Thursday, 13 September 2018 11:55

New fat index prompts fresh look at profits

Written by  Kim Robinson, Northland Dairy Development Trust coordinator and farm consultant
Cows on the grass-only farm. Cows on the grass-only farm.

A new three-year trial by the Northland Dairy Development Trust (NDDT) is looking at options for farmers to manage the fat evaluation index (FEI) in a variable climate. 

It follows a recently completed imported feed trial at the Northland Agricultural Research Farm (NARF) in Dargaville. This looked at how farmers could reduce their reliance on imported feed by comparing two farmlets using only home-grown feed (pasture only farmlet and cropping farmlet) with a third farmlet importing PKE to fill feed deficits (PKE farmlet).  

Production and profit were measured on each of the 28ha farmlets and during the first two seasons the pasture only farmlet matched the PKE farmlet for profit despite lower production. However a wet spring in the third year had a huge impact and the pasture only farmlet finished the season with much lower production and profit than the PKE farmlet.

The cropping farmlet struggled, needing 20-25% of the farm in crops (maize, turnips and fodder beet) and had the lowest profit in all three years, highlighting the cost of losing ground to growing crops on the milking platform.

The table above shows the milksolids production and profit for each of the farmlets.These results confirmed that inputs of PKE can be very profitable during short periods of feed deficit. Strict decision rules are followed to get high responses to the supplement (over 100g MS/kg DM of PKE). 

The introduction of a fat evaluation index (FEI) this season by Fonterra is likely to restrict PKE feeding, and farmers are considering either cutting PKE out of their systems or feeding more expensive supplements during times of high demand.

The new NARF trial looks at the profitability of these strategies under another three-farmlet comparison.

The 84ha farm has been randomly split again into three 28ha farmlets of similar soils and pastures. The pasture only farm has 2.7c/ha and can only feed pasture silage made on farm.  The PKE only farm has 3.1c/ha and can feed PKE to fill deficits as long as FEI is acceptable. The PKE plus farm also has 3.1c/ha but can buy other supplements to add to the PKE if FEI levels are limiting. 

The pasture only and PKE only farms will test other options and impacts of managing feed supply shortages such as OAD milking, early culling, drying off, etc. The PKE plus farm will compare using other imported supplements such as soya hulls or DDG to fill feed gaps. The system trial allows all costs to be captured and the extra labour and capital requirements of each system will be included in the analysis. 

FEI

The Fat Evaluation Index has been developed by Fonterra to monitor the likely effect of PKE feeding on the composition and manufacturing properties of milkfat produced on farm. Farmers receive an FEI classification for each consignment of milk, based on a rolling six-day average screening test. If this result is over a certain threshold, the milk will be tested via a more accurate method and demerit grades may be applied.

 

Kg MS/ha

Profit $/ha

 

15/16

16/17

17/18

15/16

16/17

17/18

Grass only farm

870

965

893

787

2761

2470

Cropping farm

1049

1053

887

433

2300

1928

PKE farm

1028

1118

1128

733

2887

3224

For more details or to follow the regular trial updates go to www.nddt.nz or follow NDDT on Facebook.

• Kim Robinson is Northland Dairy Development Trust coordinator and farm consultant.

More like this

NDDT now webinars

The annual Northland Dairy Development Trust (NDDT) conference will now be run as a series of webinars.

Young couple show how it’s done

A young dairy farming couple have increased their equity by at least $500,000 in two-three years on a less-than-ideal Far North farm and despite two years of low dairy payout.

Young couple show how it’s done

A young dairy farming couple have increased their equity by at least $500,000 in two-three years on a less-than-ideal Far North farm and despite two years of low dairy payout.

Featured

Sheep drench resistance costly

Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.

» Latest Print Issues Online

Milking It

Papal visit

OPINION: European farmers are going to extreme lengths to have their message heard.

Thai egg tarts

OPINION: The hustle and bustle of one of Bangkok's most popular fast food outlets may feel a world away from…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter