How best to increase output?

Viewtodiefor

Just looking to get yer ideas on how ye would go about increasing output.
Current situation
47 cows
7 dry good cows fat
11cows double suckling r triple sucking some beef cows in this
5 milker s to calf
Milking 24 cows
6 maiden heifers bulking for next yr
31 weanlings left out usually fatten for factory.
Filling 33000 gal quota aiming for 40000 incl fleximilk this year. Bought 7 cows last month these are included in figures.
Have land to expand quota an issue
Have parlor and tank to expand
We usually keep all calfs rear to beef

What would you do to expand in this situation? Don't want to borrow much keep it tight as I can live on a little for next two yrs.

leg wax

i think you need to talk to who buys your milk and see what their plans are first before you can know what direction to go.

Tipp Man

How much land have you at the parlour and in outside blocks?

It seems to me that quota doesn't really apply to under 77,000 gallons as once you are Cat 1 then you will get the flexi you need

If you had 40 cows and calf to year and half (or beef if you have accomadation) with low borrowings you'd be doing ok i reckon

Viewtodiefor

Tipp Man wrote: »

How much land have you at the parlour and in outside blocks?

It seems to me that quota doesn't really apply to under 77,000 gallons as once you are Cat 1 then you will get the flexi you need

If you had 40 cows and calf to year and half (or beef if you have accomadation) with low borrowings you'd be doing ok i reckon

Well tippman, have 70 acres parlour block and around 28 in two blocks a mile n half away. Teagasc advisor says hit 40k gallons this yr not sure bout the no quota if under 77k gallons

Tipp Man

Viewtodiefor wrote: »

Well tippman, have 70 acres parlour block and around 28 in two blocks a mile n half away. Teagasc advisor says hit 40k gallons this yr not sure bout the no quota if under 77k gallons

My point on the no quota is that it seems you could get as much flexi as you need when you are Cat 1

40 to 50 cows and calf to beef would seem to be the way forward for you for a few years - maybe think about hitting 75 or 80 a few years after the quota is gone.

If cattle prices stay decent you could make plenty of money at that

Viewtodiefor

Tipp Man wrote: »

Viewtodiefor wrote: »

Well tippman, have 70 acres parlour block and around 28 in two blocks a mile n half away. Teagasc advisor says hit 40k gallons this yr not sure bout the no quota if under 77k gallons

My point on the no quota is that it seems you could get as much flexi as you need when you are Cat 1

40 to 50 cows and calf to beef would seem to be the way forward for you for a few years - maybe think about hitting 75 or 80 a few years after the quota is gone.

If cattle prices stay decent you could make plenty of money at that

I know what your saying but cat 1 only got around 8000 gallons this year and probably the same next according to teagasc man. So I'll be limited there which is a pain in d ass!

Farmer Pudsey

Do a three year plan at present it looks like quota is gone in 2016 I think so aim for that a few dairy farmers I talked to all seem to agree that 70-80 cows is all that is manageable by one farmer your farm is ideal a 70 acre block with 28 acres within a managable distance for for silage, outside grazing or a bit of tillage to maximise your return it looks like post milk quota production right's will be a big thing.
What was the price of quota in the last exchange in your area would it be economical to buy some.
All your focus should be on trying to increase your dairying side as you might as well be milking 70 cows as 30.

Viewtodiefor

Farmer Pudsey wrote: »

Do a three year plan at present it looks like quota is gone in 2016 I think so aim for that a few dairy farmers I talked to all seem to agree that 70-80 cows is all that is manageable by one farmer your farm is ideal a 70 acre block with 28 acres within a managable distance for for silage, outside grazing or a bit of tillage to maximise your return it looks like post milk quota production right's will be a big thing.
What was the price of quota in the last exchange in your area would it be economical to buy some.
All your focus should be on trying to increase your dairying side as you might as well be milking 70 cows as 30.

That's wht I'm worried bout how much processing rights wil be if I don't buy quota. Was 46cent last round does it make sense at this price to buy?? Hell of an outlay n then buy cows, agree I may swell milk 70 as 30 not much difference

Tipp Man

You'd be well sick if you bought milk @50 cent a litre and then the coop decided to base supply on your shareholding - and that is a very real possibility - my own personal opinion is that this is in fact the likely scenario

Personally i'd be trying to avoid 2015 as my target - chances are there will be a large increase in milk coupled with a nice fall in price. It is hard to know how things will level out - i think the years 2015-2018 will be turbulent in milk - so why aim for expansion into a turbulent market?? Afterall everybody is aiming for 2015 as some kind of Mecca in milk - reminds me of lemmings in some ways

I personally would milk your 30-40 cows - rear the calves and see how things pan out up to 2018 and then once things steady up then look to increase your cows if you want to/if it is profitable. 30-40 cows rearing 30-40 calves is a very cushy "lifestyle" and will give you a decent living. More cows doesn't necessarily mean more profit (especially if you need to invest) but it does guarantee more work

Timmaay

Tipp Man wrote: »

You'd be well sick if you bought milk @50 cent a litre and then the coop decided to base supply on your shareholding - and that is a very real possibility - my own personal opinion is that this is in fact the likely scenario

I don't get ya here, based on existing shareholdings from now, or your shareholdings in the current production year?

One thing is for sure, its all a major major stumbling block for any dairy farmers at the minute, we cannot plan at all for the future until the processors stop dragging their heels and make a definite plan for the future.

Tipp Man

Timmaay wrote: »

I don't get ya here, based on existing shareholdings from now, or your shareholdings in the current production year?

One thing is for sure, its all a major major stumbling block for any dairy farmers at the minute, we cannot plan at all for the future until the processors stop dragging their heels and make a definite plan for the future.

i mean that you could need a certain number of shares to supply a certain amount of milk - so for example 1 share for every 100 gallons of milk you want to supply. Your supply in 2015 could be competly unrelataed to the quota you hold today or next year

Viewtodiefor

Tipp Man wrote: »

You'd be well sick if you bought milk @50 cent a litre and then the coop decided to base supply on your shareholding - and that is a very real possibility - my own personal opinion is that this is in fact the likely scenario

Personally i'd be trying to avoid 2015 as my target - chances are there will be a large increase in milk coupled with a nice fall in price. It is hard to know how things will level out - i think the years 2015-2018 will be turbulent in milk - so why aim for expansion into a turbulent market?? Afterall everybody is aiming for 2015 as some kind of Mecca in milk - reminds me of lemmings in some ways

I personally would milk your 30-40 cows - rear the calves and see how things pan out up to 2018 and then once things steady up then look to increase your cows if you want to/if it is profitable. 30-40 cows rearing 30-40 calves is a very cushy "lifestyle" and will give you a decent living. More cows doesn't necessarily mean more profit (especially if you need to invest) but it does guarantee more work

I think you may be right here, if this is the case then it is likely there will be a large rise in the share prices post any announcement on this! My basic outline at the minute will be increase to 40 in the next year and a few more maybe ten and hold at that to see what happens this will require minimum investment in milking facilities and housing apart from a few extra units which i have already sourced cheaply and a bigger tank which i hope to change for a couple of thousand. Going to put in new roadway alright and paddocks but my attitude to these is the need doing anyway and will help with grass management.

Tipp Man

Viewtodiefor wrote: »

I think you may be right here, if this is the case then it is likely there will be a large rise in the share prices post any announcement on this! My basic outline at the minute will be increase to 40 in the next year and a few more maybe ten and hold at that to see what happens this will require minimum investment in milking facilities and housing apart from a few extra units which i have already sourced cheaply and a bigger tank which i hope to change for a couple of thousand. Going to put in new roadway alright and paddocks but my attitude to these is the need doing anyway and will help with grass management.

sound like you already have a decent idea in your head. I like it - some lads go nuts trying to increase as much as possible as fast as possible. Slow and steady wins the race though. If you can get to 45-50 with minimal expense then that's definately worth doing.

5live

Tipp Man wrote: »

sound like you already have a decent idea in your head. I like it - some lads go nuts trying to increase as much as possible as fast as possible. Slow and steady wins the race though. If you can get to 45-50 with minimal expense then that's definately worth doing.

+1 with that

Farmer Pudsey

There seems to be a perception that Co-op share's will be the production rights, I do not believe so. There are 2 types of milk processors in Ireland. PLC and Co-op, the plc will definitly go for existing quota + a %. I believe that either Kerry or Glanbia have indicated already. Co-op have not indicated as yet I cannot see it being entirely based on shareholding existing quota will count, I cannot see non producing shareholders geting producing rights, however I can see above quota production rights costing

I believe in expansion if you can afford it when the first quota exchanges started alot of hurlers on the ditch complained about the price quota bought at 12-18 cent a litre seems cheap now. Having said that I would not pay 46 cent a litre also I would not expand rapidly. However over the years the farmers that have expanded prudently have survived how often do you see farmers who expand have to sell land due to debt one in fifty? When you look around it is the guys that expand and invest that seem to be getting on.
It is the world market that decides milk prices Ireland is one of the few countries in Europe that will expand milk production rapidly as we can grow grass I know it is not cheap to grow however it is not as expensive as feeding maize and soya also housing cost are lower due to due to our system. Even if we expand by 50% over 2-3 years it will only add a fraction of a % to world milk production. Even at 28 cent a litre a dairy cow is much more profitable than sucklers or any dry stock enterprise.

viewtodiefor
I be more inclined to be phaseing out the sucklers be prepared for one bad year in the next five and one good remember all farming is a cycle and all you have to do is not over borrow.
Check with your co-op what they plan post 2015 you have an advantage that some people getting into milk have not got
1 a suitable grazing platform
2 a critical farm size within a suitable distance
3 already involved in milk production