The Farmers Mart Apr/May 2014 - Issue 33 | Page 34

DAIRY Dairy Farm Costing from a Vet’s point of view By Rose Jackson BVSc DBR MRCVS Vet and Medicine Costs –vDisease Costs The top three costs for a dairy farmer are: • Feed (8.9ppl) • Labour (4.8ppl) • Replacement costs (3.3ppl) Note that Vet costs are not on this list! Vet and Medicine costs in the UK range from 0.5-2.0ppl. It will obviously vary from farm to farm but average costs for our clients are around 0.8ppl – this is based on a 260 cow 9500l herd on fortnightly routine visits. So basically only 10% of your feed costs! But what are you getting for your money? ‘an extra £2’ Regular fertility visits help to keep your calving interval down; national average calving interval is 424 days but a sensible target is 409 days. For every day a cow exceeds a 409 day calving interval, she is costing you an extra £2. It is a complicated equation and will vary between farms but this is made up of increased feed costs, lost milk from the next lactation and the fact that she is taking up space that could be filled by a high yielder. Cows with longer calving intervals also 34 Apr/May 2014 FarmersMart have an increased risk of being culled and so this will impact on your replacement costs. Another big cost in terms of disease is mastitis and high cell counts. An average cost of mastitis is around £200 and cows with a SCC over 200 will be losing 0.5l milk per day. Example: A 250 cow, 9000l herd with 84 mastitis cases/100 cows/ year and an average herd SCC of 234 with 20% of the herd over 200 will have the following annual costs. • £42 000 mastitis costs • 25l per day in lost milk due to cell count £2737 (at 30ppl milk price) • This doesn’t even include penalties for SCC if it was to creep up above 250 Taking time with your vet to carry out the DairyCo mastitis plan has been shown to reduce clinical mastitis by 30% which could save this farmer £12 600 per year. Although we use average figures, it is most useful to work out how much mastitis is costing you on your farm – our vets have access to simple disease cost calculators to work out how much disease and infertility is costing you. Feed Costs In the previous section, we mentioned that feed costs represent the most significant cost for dairy farmers at an average of 8.9ppl. Costs will vary massively between systems as grass based low yield farms will obviously have much lower costs than year round housed mixed ration fed units. Forage quality is the main driver for the quantity of purchased feed so it may pay to spend a little on silage additives in order to reduce the need for concentrate feed down the line. There are still costs associated with conserved forages though such as contractors and fertilizers etc so you will get better margins if you can maximise the amount of milk you get from grazed grass. There are also costs associated with feeding a mixed ration – purchasing, maintaining and running a feed wagon, tractor and load-all accounts for around 1.5ppl including depreciation. Monitoring your margin over purchased feed (MOPF; i.e. monthly milk cheque less monthly feed bill) per cow per month is a useful exercise – a target figure is £150. Looking at the details of what you are actually feeding and what return it can give you can pay off. For example, your nutritionist recommends that you start feeding RP10 at 0.5kg/cow/day to increase your butter fats from 3.9% to 4.1%, you have 250 cows giving 28l, is it worth it? • RP10 is £800/Tonne which is 40p/cow/day • The increase in butter fat is only worth 11p/cow/day • Therefore, unless the price of RP10 came down to £220/ Tonne, it is not worth including it in the ration! Although many farmers feel forced to be constantly chasing more milk and so push stocking densities to the limit, there are other ways to increase efficiency of production and your vet should be a key role in implementing this on your farm. ‘many farmers feel forced to be constantly chasing more milk and so push stocking densities to the limit’ Rose Jackson BVSc DBR MRCVS graduated from Bristol in 2004 and subsequently joined the farm team at Scarsdale Vets. She gained the DBR (diploma in bovine reproduction) from University of Liverpool Vet School in 2010. Her areas of clinical interest are cattle fertility including bull fertility examinations, and farmer training including DIY AI training courses. Rose became an Associate Partner at Scarsdale Vets in May 2011. To read more, visit www.farmers-mart.co.uk