Geoff Taylor Project manager People amp Business Farmers Forum April 2015 Why farmers tell us they are building barns Greater level of control over system Manage issues f or example ID: 171285
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Slide1
Barns in New Zealand Dairying
Geoff Taylor
Project manager: People & Business
Farmer’s Forum
April 2015Slide2
Why farmers tell us they are building barns!
Greater level of control over system
Manage issues,
for example:wet soilswinter pasture damageAchieve genetic potential of cowsAddress performance issues, e.g. in-calf ratesManage environmental regulationTo grow their business without purchasing landSlide3
What’s DairyNZ doing?
Our aim is to help the farmer:
Make an informed decision
Build it right Manage it wellSlide4
What’s
DairyNZ
doing?
1. Pastoral 21
Investigating use of barns to help achieve productivity growth without increasing footprint.
2.
System Choice
Helping farmers to determine if building a barn is right for
them.
3
. Animal Health & Welfare
Generating
a set of
guidelines and resources
to help ensure facilities are built and managed with an animal and human
focus
4.
Feed Right & System Optimisation
Looking at how feeding strategies can be developed and implemented leading to continued profitability and sustainability.Slide5
System Choice
Take homes:Slide6
System Choice
Take
homes
Be sure a barn is the best way to achieve your goalsSlide7
Reducing Footprint?
Pre-barn N Loss (
kgN
/ha)
Post-barn N Loss (
kgN
/ha)
Diff
Case Study 1
14
23
-64%
Case Study 2
10
11
-10%
Case Study 3
43
56
-30%
Case Study 4
28
27
4%
Case Study 5
8
7
13%
Case Study 6
40
31
23%Slide8
Reproductive performanceSlide9
System Choice
Take
homes
Be sure a barn is the best way to achieve your goalsTotal investment = cost of barn + 30-50% Slide10
Costs can be hidden
Cost of Barn
Total Capital
Cost
Diff
Case Study 1
$2,102
$3,160
50%
Case Study 2
$2,573
$4,181
62%
Case Study 3
$2,994
$3,733
25%
Case Study 4
$3,302
$4,731
43%
Case Study 5
$4,000
$6,744
69%
Case Study 6
$1,440
$2,161
50%Slide11
System Choice
Take
homes
Be sure it’s the best way to achieve your goalsTotal investment = cost of barn + 30-50% Operating profit is not sufficient measureSlide12
Use the right tools
Option 1
Option 2
Change in Operating Profit / Ha
$225
$498
Change in Operating
Return on Assets
0.20%
0.20%
Net Present Value / Ha
$828
-$891Slide13
System Choice
Take
homes
Be sure it’s the best way to achieve your goalsTotal investment = cost of barn + 30-50% Operating profit not sufficient measureSkill requirements are different!Slide14
How does variability arise?
In practice:
Making 2 decisions:
0.95 x 0.95 = 0.90But making 4 decisions:
0.95 x 0.95 x 0.95 x 0.95 =
0.81Slide15
Looking at a barn?
Make sure
you
get what you think you are paying forDo your figures carefullyAnalysis is very farm specificBuilding & system design must be animal focussedMake sure your team has the required skill
Not all about the money
EYES WIDE OPENSlide16
What’s DairyNZ doing?
Pastoral 21:
Investigating use of barns within the farm system design to help achieve productivity growth without increasing footprint to meet environmental targets.
Take homesN-loss has been reduced by up to 50% in some cases Intensification reduces this benefit
The amount of effluent generated is enormous
!Slide17
What’s DairyNZ doing?
System Optimisation & Feed Right
These projects are looking at how integrated feeding strategies can
be developed and better decisions can lead to continued profitability and sustainability.
Take homes
If nutritional messages are confusing you, you are not alone!
A 1,500 -1,600
kgDM
/ha residual will increase pasture grownSlide18
What’s DairyNZ doing?
Animal Health & Welfare
Generating a set of resources to help ensure facilities are built and managed with an animal and human focus
Take homesCode of practice for design due out soon
The capex/
opex
trade-off can be deceiving
The drop test will tell you about cow comfort
Hygiene or hand towels – you choose Slide19
What’s DairyNZ doing?
System Choice
Helping farmers to determine if building a barn is right for them, both in terms of achieving their goals and generating a positive return on capital invested.
Take homesThe cost of building = Cost of barn + 30-50% Be sure it is the best way to achieve your goals
Barns are depreciating assets
Regulation not clear – being a first mover is risky