setting up a new dairy farm
DESCRIPTION
Setting up a new dairy farm. Teagasc, Moorepark. Introduction. Income Scale Debt Land Rent Labour efficiency Capital costs/cow. Income/Scale/level of debt. Assumptions 420 kg ms /cow 2.8 cows/ha €2 /kg ms cost €400 /ha land rental. Income. Income. Labour efficiency targets. - PowerPoint PPT PresentationTRANSCRIPT
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Setting up a new dairy farm
Teagasc, Moorepark
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Introduction
Income Scale Debt Land Rent
Labour efficiency Capital costs/cow
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Income/Scale/level of debt
Assumptions 420 kg ms /cow 2.8 cows/ha €2 /kg ms cost €400 /ha land rental
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Income
milk price €/kgms = €4.00
Level of debt/cow 60 100 140 180
own land €0 50,400 84,000 117,600 151,200
own land €2,000 38,400 64,000 89,600 115,200
own land €4,000 26,400 44,000 61,600 79,200
rented land (€400/ha) €0 41,829 69,714 97,600 125,486
rented land (€400/ha) €2,000 29,829 49,714 69,600 89,486
rented land (€400/ha) €4,000 17,829 29,714 41,600 53,486
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Income
milk price €/kgms = €3.20
Level of debt/cow 60 100 140 180
own land €0 30,240 50,400 70,560 90,720
own land €2,000 18,240 30,400 42,560 54,720
own land €4,000 6,240 10,400 14,560 18,720
rented land (€400/ha) €0 21,669 36,114 50,560 65,006
rented land (€400/ha) €2,000 9,669 16,114 22,560 29,006
rented land (€400/ha) €4,000 -2,331 -3,886 -5,440 -6,994
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Labour efficiency targets
Target 20 hr/cow/yr 1 operator + relief : 125 cows Family farm+ relief: 170 cows 2 operators minimum relief : 200+ cows 3 operators minimum relief : 300+cows
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Features of Labour efficient systems
Simple system Calving to grass Compact calving Robust cows suited to system Minimum supplement Single enterprise Contract heifer rearing Contractor for all machinery operation Suitable infrastructure
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Capital costs of a dairy farm
Stock Milking facilities Paddocks, Roadways, Water (tunnel) Soil fertility, Reseeding Slurry storage Winter accommodation Machinery/Other housing
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Soil fertility/ reseeding
1 cow requires 4.8 t feed/yr Old non-ryegrass pasture (6-10t/ha/yr) New ryegrass, high fertility (12-18 t/ha/yr)
Soil Fertility Soil test €25/sample Lime €22/t- (5 t/ha) K 40-120 kg/ha (~€1.00/kg) P 0-70 kg/ha (~€2.50/kg)
Reseeding Grass seed €100/ha Tilling €100-300/ha Sprays €50/ha
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Milking parlours Costs-
steel& concrete work - €4,000 - €7,000/unit Plant - €1,200-€8,000 /unit- Milk tank €1.7 - €2.5/l- Feeders €400-€1,500/unit- ACR’s €400-€1000/unit
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No. of units
<100 cows Second hand 10-12 units
100-200 cows – 16-22 units : 1 person milking
200-300 cows – 22-30 units : 1+ ACR’s or 1.5 milkers
300-450 cows – 30-44 units : 2 +/- ACR’s
>450 cows – Rotary + €1,500-€2,500/unit
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Grazing infrastructure Layout
Mapping €15-20/ha Paddock size Roadways-cow flow Water
Roads Width – 100 cows : 4m, +50 cows: +1 m Length – 25 - 50m/ha (shape & size) Depth 0.3 m (2 t/m3) Surface dust .05 m Cost €12-€16/m3 material Digging/laying €4/m3
Tunnel €30-€50K
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Grazing infrastructure Water
Troughs (2 gals/cow) (€1.50-€1.10/gal) Piping (<100 cows:25 mm, 100-200: 38 mm Pumps (€1,500) Storage (>20 gals/cow) Total Cost €350-500/ha
Fencing 80-150 m/ha Cost 1 strand - €1-1.50/m
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Slurry storage
Slurry storage: 5.28-6.3 m3/cow (legal requirement)
EBT €15/m3 : €100/cow (site specific) Lined lagoon €30/m3: €180/cow Steel/concrete tanks €50/m3: €300/cow Slatted tank €125/m3: €660/cow
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Winter accommodation
Feed passage €250-€400/cow space
Cubicles €900-€1300/cow
Wintering pad €8-€12/m2 ( 10-18m2/cow)
Kale Similar feed cost Eliminate housing cost Very useful as part of reseeding programme
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Other Capital Investment
Machinery € 50-€1000 /cow Other housing €150/cow Silage pit 7 m3/cow @ €12/m3
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Capital costs of a dairy farm/cow
Stock €1,400 Milking facilities €1,000 Paddocks, Roadways, Water (tunnel) €500 Soil fertility, Reseeding €310 Slurry storage €180 Winter accommodation €250 Machinery/Other housing €500 Total €4,140
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Conclusion
Borrowing capacity at high efficiency own land - €4,000/cow Rented land- €2,000/cow
Capital cost of Greenfield site – minimum €4,000/cow Don’t compromise efficiency To cut costs focus on non productive assets
Machinery, Winter housing, milking automation