setting up a new dairy farm

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Setting up a new dairy farm Teagasc, Moorepark

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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 Presentation

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Page 1: Setting up a new dairy farm

Setting up a new dairy farm

Teagasc, Moorepark

Page 2: Setting up a new dairy farm

Introduction

Income Scale Debt Land Rent

Labour efficiency Capital costs/cow

Page 3: Setting up a new dairy farm

Income/Scale/level of debt

Assumptions 420 kg ms /cow 2.8 cows/ha €2 /kg ms cost €400 /ha land rental

Page 4: Setting up a new dairy farm

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

Page 5: Setting up a new dairy farm

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

Page 6: Setting up a new dairy farm

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

Page 7: Setting up a new dairy farm

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

Page 8: Setting up a new dairy farm

Capital costs of a dairy farm

Stock Milking facilities Paddocks, Roadways, Water (tunnel) Soil fertility, Reseeding Slurry storage Winter accommodation Machinery/Other housing

Page 9: Setting up a new dairy farm

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

Page 10: Setting up a new dairy farm

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

Page 11: Setting up a new dairy farm

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

Page 12: Setting up a new dairy farm

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

Page 13: Setting up a new dairy farm

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

Page 14: Setting up a new dairy farm

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

Page 15: Setting up a new dairy farm

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

Page 16: Setting up a new dairy farm

Other Capital Investment

Machinery € 50-€1000 /cow Other housing €150/cow Silage pit 7 m3/cow @ €12/m3

Page 17: Setting up a new dairy farm

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

Page 18: Setting up a new dairy farm

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