This is a subscriber-only article
The milk statement for the month of September just landed this week and the farm was paid for almost 167,000 litres of milk for the month just gone. Interestingly, the farm has supplied very close to this volume of milk for the last three months (July, August and September).
From the milk statement, it is possible to see the Glanbia base price (at 3.3% protein and 3.6% fat) for September was 26c/litre including VAT. However, for the Greenfield farm, when you include all the fixed milk price adjustments, the benefits of higher milk solids and VAT, the September net price was 34.5c/litre.
This 34.5c/l average price will be adjusted downward slightly (1c to 2c/litre) for the downward fixed milk price adjustments, but the value of high solids is very clear.
If we strip out the fixed milk price component of the price, the milk price for the majority of milk supplied was 33.8c/litre including VAT (Glanbia calls this the manufacturing price).
The average price paid out to Glanbia suppliers was 29.7c, so the clear benefit of better milk solids we got for every extra litre delivered over the Glanbia group average was 4.1c/litre for September. So what solids were delivered?
In terms of milk solids for September, the Glanbia group average was 4.39% fat and 3.77% protein (8.16% solids). The Greenfield farm averaged 5.11% fat and 4.13% protein (9.24%) on grass alone. For more detail, see Figure 1 below (click on the image for full-size graph).
Somatic cell count for the month averaged 144,000 cells/ml and TBC averaged less than 10, except for one result at the end of August where TBC went to 107 on one collection.
In terms of milk yield, the cows are holding milk very well, delivering about 1.4kg of milk solids per cow. Remember, these cows are not getting meal and yet, on average, they are delivering 14 litres per cow per day and the most recent fat and protein was 5.52% and 4.43% respectively, with lactose at 4.66% and cell count 140 cells/ml. Compare this to your own compact spring-calving herd.
This yield for the time of year is all the more impressive when you consider there are 30 cows on once-a-day milking (10% of herd). The once-a-day herd has lame cows, about 10 cows not in calf and any cow that is low in condition score. They are run as a separate herd.
There were 330 cows milking for September and that is down to 314 for October, with some of the cows not in calf already sold. So far this year, the cows have been fed about 225kg of meal per cow and about 285 bales during the dry period or the equivalent of 190kg dry matter as baled silage per cow.
High growth rate
This week, growth rate is back down to 20kg per day. Farm grass cover has dropped to about 810kg across the farm.
With a few of the cull cows gone now, the farm is stocked at 2.6 cows/ha. Growth rate was exceptional at about 40kg/day on average for the last two weeks.
In fact, growth rate through September has been very good and has allowed the farm build grass to over 450kg per cow by late September. Remember, in mid-August the farm was down to less than 150kg of grass per cow as dry weather reduced growth rate to a trickle. The herd was on round bales (8kg to 10kg silage dry matter per cow), 2kg of meal and grazed grass.
Also, it is worth remembering the last bag of nitrogen went out in early September, so to get a growth rate like that seven or eight weeks after the last bag of nitrogen went out is remarkable.
To summarise, about 30 to 35 units of bag nitrogen per acre has been spread since 1 August on Greenfield Kilkenny. I know many other farmers who have spread over 80 units of bag nitrogen per acre over the same period. Will those farmers stay out longer at grass? Will they get a higher growth rate for the next two weeks or higher winter grass growth? Will they get a higher grass growth rate next spring? It will be very interesting to see what happens in Kilkenny anyway.
Now also remember, as discussed above, the farm was in drought territory with growth rate on the floor for early August. Obviously, the bag nitrogen spread in July was sitting on the surface and was only activated when the rains arrived in mid- to late August.
Also, there must be some mineralisation of soil nitrogen happening to get those growth rates. The other point worth noting is the fact there is good clover in the paddocks at the moment and it is clearly helping the grass growth rate.
Autumn grazing plan
The plan is to graze 70% of the farm between early October and 1 November. This means that 84ha have to be grazed out properly, with the target to close the farm at a grass cover of 700kg DM/ha, with grazing finished for early December. The last of the slurry went out using the umbilical system and dribble bar. Not alone is the umbilical efficient, but it saves the farm roadways from heavy machinery.
Speaking of roadways, a section of the main farm roadway where there is high traffic was lifted up and resurfaced – the net cost was about €7,000. Almost the same amount (€6,000) has been spent on managing lameness in the herd this year, so this brings some perspective on the importance of keeping roadways right, especially at this time of the year, as more rain and muck with long walks make walking harder on cows.
Revised whole farm budget
Recently, the whole farm budget was updated to account for updated milk volumes, milk prices and to factor in any additional costs that were not foreseen at the start of the year.
At the start of the year, the prediction was the business would lose about €11,000 in 2016. The most recent summary figures suggest total output for the farm is expected to come in at €575,000 with total costs of €571,000.
Effectively, it means the farm is expected to just about break even or maybe generate a slight profit. These figures include all labour, all bank interest repayments, land rental and all production costs.
To compare with owned Irish dairy farms with relatively low debt levels, the profit before interest and land rent would be €94,000 or about €300 per cow for 2016. As you know, it’s 100% paid labour on this farm, costing the business about €90,000 per year.
The big variable costs are silage and slurry contracting at €42,872, dairy cow feed at €20,310, fertiliser at €57,000, contract rearing at €76,000 and herd health and lameness treatments at €32,610.
The big fixed costs are bank interest and loan capital repayments at €80,000 and wages and associated costs at €90,000. The €125,000 fund created in the very high milk price years (2011 and 2013) still exists.
The herd is just now completing year seven of a 15-year lease, as cows first started milking on this farm in spring 2010.
SHARING OPTIONS: