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From Biology to Profit making the farm business work Dairy Business of the Year, June 22 nd 2011

From Biology to Profit

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Page 1: From Biology to Profit

From Biology to Profit making the farm business work

Dairy Business of the Year, June 22nd 2011

Page 2: From Biology to Profit

“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-)

Page 3: From Biology to Profit
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Page 7: From Biology to Profit

A miracle

happens

Feed her moreMilk

Cow

Make a profit

Page 8: From Biology to Profit

Source: David Beca, Redsky

As pasture harvest increased, OpEx declined

Page 9: From Biology to Profit

Return on assets increases with increase in pasture harvested

Source: David Beca, Redsky

Page 10: From Biology to Profit

Operating profit/ha vstonnes DM pasture eaten/ha

Page 11: From Biology to Profit

Operating profit/ha increases with increasing pasture harvest

Page 12: From Biology to Profit

Breakdown of expenses

Page 13: From Biology to Profit

Only Point

Supplements should only be used to manage pasture better

not to “feed cows better”

Page 14: From Biology to Profit

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

Page 15: From Biology to Profit

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

Page 16: From Biology to Profit

Optimum rotation length

Page 17: From Biology to Profit

Optimum rotation length

Page 18: From Biology to Profit

Optimum rotation length

Lee et al. 2010

Page 19: From Biology to Profit

Leaf 1 Leaf 2 Leaf 3 Leaf 4

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

Delay grazing

Optimum rotation length

Lee et al. 2010

Page 20: From Biology to Profit

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

Page 21: From Biology to Profit

Targeted reseeding

Clark et al., 2010

Page 22: From Biology to Profit

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

~$33,000/100 ha

Clark et al., 2010

Targeted reseeding

Page 23: From Biology to Profit

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

Page 24: From Biology to Profit

Source: David Beca, Redsky

Stocking rate

Page 25: From Biology to Profit

Stocking rate

Macdonald et al. 2008

Page 26: From Biology to Profit
Page 27: From Biology to Profit

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

Page 28: From Biology to Profit

Maintains optimal post-grazing residuals

Reduces pasture growth

Page 29: From Biology to Profit

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

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