Basil DoonanFarm Management Group

Objective“Developing and demonstrating large scale dairy farm practices that are robust, profitable and environmentally and socially

sustainable”

HistoryTDDF agreement signed with VDL June 07Sharefarmers appointed 26th June

By this time 100 cows had calvedCalving started 1st JulyVery difficult to alter the outcome

Our bed was made

Two clear objectives Year 11. Make money

These systems have historically been profitable

We didn’t want to under perform Cost owners or sharefarmers money

2. Prioritise profit for future performance Tying for a quantum leap

Basics might be obvious

The Farm

Farm area 400 hectares

Cows milked 850

Dairy 50 unit rotary

Milk solids target 213,800kgMS

Dryland pasture target 8.8tDM/ha

Rainfall 1,050mm

Identified issuesMain areas for improvement

Unhealthy herdBelow optimum cow condition (calving)Below optimum APCUnder-grown heifers and cowsBelow ideal soil fertilityLanewaysRyegrass staggers

Always start at the bottomThe most fundamental improvements give

the biggest returnsHeifersSoil fertilityLaneways

Financial BenchmarksTarget Actual

ROC 7.5% 6.1%

EBIT $0.44m $0.37m

Income $1,38m $1.23m

Expenses $0.94m $0.86m

Year 1 performance

Financial

Year 1 performance

ROC not too badBut largely due to milk price (13% higher than

budget)Major achievement was reducing costs by

$100kLabourPurchased feedNitrogenOther bits and pieces

Production BenchmarksTarget Actual

Milksolids production (kg)

231,150 181,300

Milksolids/cow (kg) 281 221

Milksolids/ha (kg) 628 492

Condition score (calving) 5 4.6

Peak production (kg MS/cow)

1.3 1.4

Lactation (days) 280 240

Pasture utilisation (t) 8.8 7.4

Year 1 performance

Production

Year 1 performance

Small heifers and cows resulted in:100 cows herd recorded zero production in February

100 cows producing less than 6 litres Despite 15 kgDM/cow

Significant lameness in early lactationCows separated and milked OAD

January all cows affected by ryegrass staggersMissed autumn break by 2 weeks (40-60 lactation

days)$150,000 to this season?

2 and 3 yo animals increased weight by 70 kgIncreased condition by 15 kg$130,000

Animal Benchmarks07-08 season 08-09 season

Target Actual Target Actual

CS calving 5 4.6 5 4.9

Heifer Lwt (kg)

420 320 420 340

Cows peak 950 820 850 800

APC 2100 1900 2000 2000

6 WICR 70% 68% 70%

100 day NICR

<13% 8% <10%

Year 1 performance

Environmental BenchmarksTarget Actual

Nitrogen use (kg/ha) <200Applied to min run-off

2171 run-off event

Effluent Applied to 20% areaPonds empty

Bypass system

10%?Ponds 70% full

Completed

Year 1 performance

HRM BenchmarksTarget Actual

OHS plan Plan complete Audit completedPlan mostly

implemented

Training Skills audit completed

Training plan developed

CompletedCompleted

Position descriptions (SFs)Other staff

WrittenPDs being written

First meeting complete

First meeting complete

Performance (SFs)Other staff

Performance reviewPerformance reviews

Completed x 2None yet

Year 1 performance

TrainingPasture management and coaching

TIARLameness workshop

SVSCalf rearing

TIAR

Prioritised spendingYoung stock

95% of terminal weight (Now 465kg Lwt)Cow herd

Culled all unhealthy and unsuitable animalsLaneways

$60,000 spent $40,000 capital

Soil fertilityOlsen P 14 to 20K from 150 to 200

$20,000 capitalCalf paddocks

3 new paddocks $3,000 capital

The year aheadWe have a healthy herd

Adequate geneticsWe have fewer undersized heifers

Bigger proportion of pasture to productionThey’re in good condition (0.3 CS)

Bigger proportion of pasture to productionMost laneways are repairedCalf paddocks are in placeOur Sharefarmers are settled

The year aheadStocking rate still low

Inability to feed much concentrateCost control still focus

Herd fertile and short calving spreadLactation days still concern

Due primarily to pasture growth and staggers

Year 2 to date

Year 2 to date

SummaryLast years performance ok

Much of the performance fixedMilk price provided a boostDidn’t bid up cost structure

We have laid the foundation for this yearFewer small heifersNo unhealthy animalsBetter lanesBetter soil fertilityBetter trained labour

Lots of good information out to industryLooking to gain increased relevance