International Day of Rural Women: Two DairyNZ Farmers’ Stories
Today, 15 October, is the International Day of Rural Women, which recognises rural women’s contribution to farming, communities and the environment.
The break-even cost of supplementary feed is 3.5% of the milk price, says DairyNZ principal scientist John Roche.
This is revised down from DairyNZ's previously proposed 5% rule because this overestimated the response from the feed, says Roche in his paper 'Resilient farming systems – surviving volatility'.
The paper was put together with Irish scientist Brendan Horan and released earlier this year. Roche presented key findings at a recent Northland Agricultural Research Farm field day.
Roche told Dairy News that the cost of supplementary feed has represented a major change in the cost of production over the last decade.
Analysis in UK, Ireland and New Zealand to determine associations between feeding and cost of production indicate that for every 1c spent on feed, operating expenses increase by 1.3 to 1.6c, the paper says.
"This means that 1kg of supplement must be purchased for considerably less than the value of the milk it produces," Roche and Horan say in the paper.
"Under ideal circumstances, supplementary feeds result in 7.5g MS/MJ ME consumed (ie 80g milksolids/kg DM for a 10.5-11 MJ feed).
However, recent farm systems analyses indicate that onfarm responses are only two-thirds of those achieved in research experiments (~55 g MS/kg DM)."
DairyNZ proposed a '5% rule' to help farmers decide about supplementary feeding: to be profitable, feeds needed to be bought for no more than 5% of the milk price.
"This rule accounts for the increase in non-feed costs, but assumes a response of 80g milksolids/kg DM, 50% greater than the estimated response on the average dairy farm."
If instead the average milksolids response achieved onfarm is used, then the breakeven cost of feed is actually 3.5% of milk price. This means:
at a $6 milk price, supplements must be bought for no more than 21c/kg DM,
at a $5 milk price, supplements must be bought for no more than 17.5 c/kg DM.
Roche says it is also important to consider the amount of supplement the farm system depends upon.
In analysing the requirement for supplement – the risk of exposure to economic forces external to the farmgate – they proposed to limit the use of supplements to no more than 500kg DM/cow.
Farmers are being encouraged to rethink how they manage waste on farm with the launch of ruralwastesorted.co.nz, a new website bringing together practical tips, real farmer experiences and resources.
New Zealand Winegrowers (NZW) is celebrating the India-New Zealand Free Trade Agreement (FTA) coming into force today, bringing New Zealand wine improved access to one of the world’s fastest-growing economies.
New Zealand’s red meat sector has welcomed the India-New Zealand Free Trade Agreement taking effect, which removes India’s 33% tariff on New Zealand sheepmeat.
More than 95 per cent of New Zealand’s forestry and wood exports to India can now enter tariff free as the New Zealand-India Free Trade Agreement comes into force today.
Federated Farmers is backing Feilding High School’s call to keep Agriculture and Horticultural Science as a standalone subject in Year 11.
Food and fibre exports have returned a billion- dollar bonus to the country.
OPINION: It seems Canterbury processor Synlait is still in the doldrums.
OPINION: Get offside with New Zealand First leader Winston Peters at your own peril.