fbpx
Print this page
Thursday, 28 July 2016 13:25

University farm proves profits still possible

Written by  Nigel Malthus
Ron Pellow, executive director of Lincoln University’s South Island Dairying Development Centre (SIDDC), presenting LUDF’s production figures to farmers at a focus day at Ashburton. Ron Pellow, executive director of Lincoln University’s South Island Dairying Development Centre (SIDDC), presenting LUDF’s production figures to farmers at a focus day at Ashburton.

The Lincoln University Dairy Farm (LUDF) is showing the way to make a profit even with the depressed world prices for milk solids.

About 320 dairy farmers at a focus days heard how LUDF has produced milk solids for $3.50/kg farm working expenses (FWE) or less -- down from $4.28 and $3.87 in the two previous seasons.

The farm also boasts yields better than 1800kgMS/ha and 520kgMS/cow on imported dry matter feed of only 126kg/cow.

The focus day, examining LUDF's end-of-season financial performance, is one of four the farm holds each year in nearby regions Duntroon, Temuka, Ashburton and Culverden. All other focus days are held at the LUDF farm.

While the figures are not necessarily better than those of other farms, Ron Pellow, executive director of Lincoln University's South Island Dairying Development Centre (SIDDC), says there were "gains and opportunities" farmers could adopt.

LUDF was grateful for the co-operation of seven Canterbury farms whose production statistics were a benchmark for LUDF comparison and "to see if we really are as profitable as we think".

middle of that group of farms but the two standout farms have nearly double or double our profitability. So they've done a combination of things that have significantly improved their profitability relative to the rest of our group including ourselves," says Pellow.

"We are getting better all the time at growing more grass with less input, and feeding that grass more efficiently to our herd, to maximise milk produced and sold, and minimise the amount of feed required for other requirements that don't actually generate milk."

Pellow says a major focus for LUDF is nitrate control. "We are probably ahead of the game well and truly, compared with our benchmark farms, but we made a deliberate choice to operate in that space.

"ECan requires, for example, farms in Selwyn/Waihora to make big changes by 2022. We're largely achieving their requirements now. We're showing farmers how they can achieve some of those future requirements and we're maintaining profitability.

"We have a very high-yielding farm. We get good sunshine hours, we've got good soils, good fertility, good pastures. We can put irrigation water on as required but the biggest constraint often is the amount of nitrogen in the system.

"So if we allowed ourselves to have more nitrogen we'd be able to produce more pasture and produce more milk. We'd have higher income, higher profitability. But we need to balance that in respect of the total environmental outcome."

Pellow says one factor impacting LUDF's profitability was its approach to Johne's disease, compared with the two more profitable farms in the benchmark group. Testing the herd and culling the high carriers of Johne's was having a short-term impact but over the next four to six years should result in fewer cow losses, he says.

"Johne's is a common disease but we are trying to significantly reduce our exposure to it by identifying cows carrying it -- what we call high-shedders. So if we can reduce our high-shedders then we can reduce the risk of transmission of the disease to our young stock."

More like this

Plantain rethink at demo farm

The Lincoln University Dairy Farm (LUDF) is rethinking its approach to plantain, in the face of continued difficulty in realising its expected benefits.

MOU a significant milestone

The signing of a Memorandum of Understanding (MOU) between Lincoln University and Ballance Agri-Nutrients is being hailed as a significant milestone.

SIDE returns to Lincoln

The highly anticipated South Island Dairy Event (SIDE) is returning to Lincoln University.

Rural resilience programme expands

Mental health and resilience programme WellMates is available at Massey University for a second year after research found that it has significantly benefitted participants.

Featured

NZ-EU FTA enters into force

Trade Minister Todd McClay says Kiwi exporters will be $100 million better off today as the NZ-EU Free Trade Agreement (FTA) comes into force.

Deer industry tackling integrated farm planning

Making things simpler, not harder, for deer farmers in farm planning and coping with regulations is Deer Industry New Zealand (DINZ) industry capability manager John Ladley’s current focus.

Online business directory for rural women

Rural Women New Zealand (RWNZ) is launching an online business directory called The Country Women’s Collective to promote and support entrepreneurial rural women.

Sam Neill joins Campaign for Wool

New Zealand actor Sam Neill has joined the Campaign for Wool NZ as an ambassador, lending his name and profile to educate and advocate for New Zealand strong wool.

'Living labs' to tackle emissions

Living labs that bring together expertise at locations around New Zealand are among potential solutions identified by researchers to help the country move towards a more climate resilient future.

National

Council lifeline for A&P Show

Christchurch City Council and the Canterbury Agricultural and Pastoral Association (CAPA) have signed an agreement which will open more of…

Struggling? Give us a call

ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.

Cash flow is king

Cash flow budgeting is going to be critical for dairy farmers in the coming season.

Machinery & Products

New name, new ideas

KGM New Zealand, is part of the London headquartered Inchcape Group, who increased its NZ presence in August 2023 with…