• Look back at 2022 financial costs - ways to improve..
• Have a meal feeding plan per day, per month, to control the annual amount per cow.
• Use slurry and protected urea to save on fertiliser bills this year.
• Apply N, P, K and particularly lime now to meet requirements.
• Milk record in 2023 – a ‘must do’ resolution!
• Cow and calf care must be prioritised in February.
• Bulling heifer targets: start now to achieve your targets.
• Plan to use contractors more this year.

LOOK BACK AT 2022 AND SET ABOUT REDUCING COSTS

It makes us feel good to look back, particularly in a good year, driven mainly by milk price, even though costs were high. But lessons must be learned. The following is summary of my groups:

• Milk price increased by 21.51c/L to 64.94c/L due in greater part to better markets but fat increased by 0.04 per cent (% F) while protein increased by 0.03 per cent (% P).
•  – the highest milk price achieved was 70.1c/l. Fixed milk price reduced some farmers’ price down to 52.2c/l – an awful cost to those farmers.
• The kg milk solids (MS) produce increased by only 7kg with a small increase in meal quantity (a large increase in cost), while the kg MS per kg cow body weight increased from 89 per cent to 92 per cent of cow body weight. This is pretty good but a lot of meal is being fed - 2.05kg meal per 1kg MS - whereas the target is 1kg or less.
• The total and comparative costs of producing a kg MS increased from €2.71 and €2.08 to €3.46 and €2.39, respectively. This represents an increase of 27.7 per cent and 14.9 per cent respectively. This is a very big concern going forward and all farmers must now plan to reduce them in 2023. 
• Comparative profit per kg MS increased from €2.15 to €3.16 an increase of 47 per cent.
• Somatic cell count (SCC) decreased by 28,000, cow cull rates were over 22 per cent (up 2 per cent). 
• Grass utilised remained the same at 9.9 tonnes DM/ha, even though stocking rates decreased a little, both overall and on milking platform (MP). 
• Feed efficiency (kg MS produced off farm per tonne dry matter available) remained more or less the same at 77.3 (compared with a target of 90). This is an interesting figure which is driven by: feeding the correct meal levels at the correct time of year; having cows that can respond to meal feeding; age of herd; and quality of grass and meal.      
• It is interesting that this group of farmers increased EBI and cow fertility by over €9 each. This is one of the few ways of insulating yourself against input cost and milk price volatility.

Based on George Ramsbottom’s summary of the early profit monitors analyses, the following are the figures achieved by the very best farmers in Ireland, and should be the barometers all dairy farmers should aspire to:

• Gross output: stocking rate (SR) = 2.59; ratio of cows: replacements = 79%; % F = 4.51; % P = 3.73; milk price = 64.32; and gross output = 64. 32c/l.
• Variable costs (c/L): total = 18.35; contributed by: meal = 8.03; fertiliser = 3.65; vet/medicine = 1.15; breeding = 0.75; contractor = 1.93; other variable costs = 2.83.
• Fixed cost: total = 10.42; contributed by: labour = 1.90; machinery = 1.29; car/phone/ESB = 1.34; depreciation = 2.79; leases = 0.95; interest = 0.40; other fixed cost = 1.76.
• Total costs: 28.8c/l 
• Net margin: per litre = 35.55; per cow = €2240; per ha = €5801.

Looking at my farmers who measure grass growth with PastureBase, (as all farmers should do), the following summary will be of interest:

• The yield of grass in 2022 is down 0.72 tonnes dry matter (DM) per hectare to 12.48 tonnes. What contributed to this?
• In 2022, we came into the spring with 30kg more cover, 973kg DM, but carried higher pre-grazing covers all through 2021 at 1,439 (spring), 1,421 (summer), and 1,736 (autumn).
• The grazing season in 2022 was 280 days, three days longer than 2021.

Grass utilised per hectare: using a Moorepark programme, anyone can get it and it is easy to input the data, I have come up with the following information:

• Farmers utilised more grass in 2022 v 2021, 9.89 compared with 9.78 tonnes DM. This indicate they managed grass a little better, being slightly higher stocked on milking platform with a lower overall stocking rate.
• The percentage grass (home grown grazing and silage) in the diet was 82 per cent in 2022 compared with 84 per cent in 2021 – that means when you don’t grow the grass, you substitute with meals. The target for max profit is 90 per cent.
• As mentioned above, the feed conversion efficiency, kg MS/ tonne DM, was 77.33 while my target is 90. You can conclude from this that there is big scope for improvement here. 
• The grazing season was 255 days in 2022 – one day longer than in 2021. You will notice the difference between this and PastureBase, 255 v 280 days. This programme takes into account the calving pattern of the herd, so if cows are not calved they will not be let out. Hence, the lower figure.
• Interestingly, they spent a whopping €1,039/ha on fertiliser compared with €593 in 2021 – the higher fertiliser price being the main reason.

A lot of good messages can be derived from these stats, albeit from a very small number of the top farmers. But with projections for fertiliser and meal prices set to remain high this year, dairy farmers would need to control inputs a lot better. Milk price is projected to decrease to 50c/l or lower, therefore, spend on the basis of this.

MEAL FEEDING LEVELS TO REDUCE ANNUAL QUANTITY

• Farmers must take active actions to reduce meal feeding from an average of 1,200kg/cow/year.
• Table 1, suggestions by my discussion groups, outlines various levels of meal that can be fed each month depending on the annual meal feeding goal they wish to achieve. One farmer who compiled some of these figures is making great profit/cow from feeding 770kg and achieving 515kg MS/cow. He said nobody should need to feed more than 900kg per cow per year. Look at the meal feeding in Table 1 for 900kg and noone could say cows are underfed.

Table 1: Suggested meal feeding and % protein levels per month to achieve various annual meal feeding targets. [Source: discussion groups]

• Why are farmers feeding so much/too much meal annually?

The usual excuses are:

• • Not enough grass in spring and autumn – controllable
  • Grass not good enough in summer – controllable
  • Cows won’t go in-calf in May-June (myth)
  • Milk price is great (no logic!)
  • It helps cashflow, particularly, in spring and late autumn (myth)
  • Surprisingly honest reasons arose:
  • Feeder calibration was 20-30 per cent incorrect – controllable
  • Staff took it on themselves to “feed whatever they wished” (become the boss)
  • Feeders need adjusting for various types of feed– controllable
  • “I never really planned the amounts” – controllable
  • Quantity being fed was never adjusted for availability of grass (Controllable)
  • Too slow to react when grass became plentiful – controllable

The return on feeding extra meal to increase yield is only 3-4 per cent according to Moorepark.

USE SLURRY INSTEAD OF NITROGEN

There is no doubt but that with nitrogen being so expensive and with environmental pressure, we need to adopt practices that help us reduce the amount of bag N we use. The following suggestions should be practised:

1. Apply a max of 29kg/ha (23 units/acre) in spring of protected urea to the area planned for bag N. Where slurry is not being used, use bag N.
2. Use slurry strategically instead of bag N, as it contains 6-8 units N, 5 units P and 30 units K per 1,000 gallons if the slurry dry matter is 7-9 per cent.

• 2,500 gallons/acre on the 40 per cent to be grazed from March 17 to end of first rotation.
• 2,500 gallons on the first 30 per cent of area grazed from let out to 1st March.
• 2,500 gallons on the 30 per cent area grazed from March 1-17.

3. Apply bag Nitrogen 4 to 6 weeks after the first application – the higher the stocking rate (SR), the shorter the period; but with good use of slurry, you should be able to get to April 1 with one bag of protected urea.
4. Replace some of the bag N with slurry for first cut silage.
5. Make as much 1st cut silage as possible as this saves on N as well as reducing overall contractor costs.
6. Diluting slurry with soiled water will increase the efficiency of utilisation of N in the slurry.
7. Avoid making a second cut silage if possible – hence, the need to do winter feed budgets early.
8. Plan to build grass cover by extending the rotation from mid-July to late-July.
9. Keep records of quantities and dates of application N on PastureBase – then study the outcomes,
10. White clover has the potential to halve the amount of bag N used – so plan to sow in April-May.
11. Sow (in April-May) red clover on ‘outside’ land because you will grow 16-18 tonnes grass DM/ha with little or no nitrogen – a ‘no brainer’; but order both white and red clovers NOW as they are likely to be scarce.

• Remember the following facts (research) on nitrogen use efficiency on grassland. It is:

• • 63 per cent - when the pH, the Phosphate (P) and Potash (K) are optimum;
  • 54 per cent - when P is deficient;
  • 57 per cent - when K deficient; 
  • 53 per cent - when P & K are deficient;
  • 35 per cent - when P, K and lime are deficient.

• I hope you can deduct from this the element having the greatest effect! LIME – a 28 per cent reduction in the efficiency of N.

• All soils have background N (averaging 140 kg/ha) and it won’t be released to its max without lime.
• The message is clear for 2023 – bring ALL fields up to pH 6.5 this year. No excuses about weather, grass cover, silage – plan to make it happen.
• Phosphorous and potash must be brought up to Index 3 and 4 levels so as to grow adequate grass with less nitrogen – be convinced. 
• More meal is not the solution to less N as the following economic annual returns show:

• • Increased soil P & K levels = 152 per cent return;
  • Reseed full farm in eight-year cycle = 96 per cent return;
  • Increasing meal to increase milk = 3.2 per cent;
  • Increasing N, which we now cannot do = 48 per cent. 

• I can’t understand why we are so committed to meal at the price of it and less to applying lime, P, K and sulphur.

MILK RECORD IN 2023

Many farmers, as a result of major expansion over the last few years, are overstocked in the milking parlour with 20 per cent “bad cows” in the herd. Money can be made by clearer thinking on this dilemma. By weighing cows in June - July, inserting the data on ICBF, you will be able to rank the cows based on kg milk solids produced per kg cow body weight.

Take the case of 100-cow farmer producing 450kg MS per cow, making an average profit/cow of €1,500, with the lowest 10 cows doing 340kg each and a profit of €700/cow. We did a partial budget on the scenario of selling off the 10 “bad cows”:

• • On the negative side he will lose the profit on 10 cows - €7,000.
  • On the positive side he will “save” 55 tonnes DM (10 x 5,500) or 63.21 tonnes meal equivalent, which is worth €25,284. He would be milking one row of cows less - a saving of 20 minutes/day for 280 day or 93 hours at €20 per hour, equals €1,860.
  • Therefore, for a decision of doing less work he will be €20,144 better off. He will also have 10 extra cows, probably late calvers, to sell at probably €1,200 each, which can be put to productive use.
  • The 90 cows remaining will only have to milk 38kg MS more each to make up the “loss” of 3,400kg MS produced by the 10 cows sold. A ‘no-brainer’ decision!

• Do you appreciate the value of using the word ‘average’ to make decisions? This farmer’s average figures per cow for his 100-cow herd were; 400kg MS; 4 per cent fat and 3.5 per cent protein; and profit per cow was €800. Once you know the average, you should do something with the figure, as I have demonstrated with the kg MS.
• Do milk recording in 2023 so that you have the knowledge to identify the “bad cow”. Arising from this, you will have the cows’ own worth (COW) which will identify the most profitable cows for you in the herd for the next 5-7 years. You will also know your best cows so that you can breed “your best to the best”. This is a terribly important concept to increase EBI, fertility and particularly percentage fat and protein.

COW CARE

• Make sure all dry cows are getting 2-3 oz per head of a good dry cow mineral. Easy to slip up on this as you are now heavily focused on milch cows.
• Make sure cows and heifers, within 2-3 weeks of calving, are kept on very clean cubicles – their immune system is very low as there are increased amounts of infectious bugs around.
• Lame or cows tender on the feet should be looked after now. Get the FRS to do this job because you are too busy and don’t know the job well enough. Farmers tell me that the best practice that they have found for reducing lameness was astroturf on the roadway.
• Encourage daytime calving by feeding silage during the night only (removing leftovers in the morning). For this to work well, cows should be exposed to this feeding routine for 7-10 days before calving. Keep those cows and cows with ‘tender’ feet in a straw ‘maternity’ shed. Talk to a neighbour who might be interested in doing night-time calving for yourself and a neighbouring dairy farmer for €150/night. The advantages are immense!
• Do not rush in with the jack at calving.  Why? ‘Damaged’ cows will not go back in calf. ‘Infected’ cows (easily done with hands and equipment) will be slower to go back in calf. The worst outcome could be a ‘downer’ cow.
• Feed a little meal (0.5 to 1kg) for two weeks before calving:

• • Heifers, in particular, benefit from this.
  • Allows you move on to full meal feed within days of calving.
  • Slowly increase meal feeding after calving (7-10 days) because the cows’ intake is low and a lot of meal relative to roughage will result in acidosis and other problems.
  • Post calving this year, farmers should feed 2-4kg meal with grass and minimum silage. Very heavy covers exist now on some farms, but most farms have lower overall covers… confirm for yourself.
  • Farmers should be restricting the quantity of good silage being eaten by late calvers in very good body condition by feeding 2-3kg DM of straw. Cows calving in BCSs greater than 3.3 are at great risk of loosing more that 0.5 BCS from calving to mating which will result in both submission and pregnancy to first service being reduced by up to 50 per cent and 20 per cent, respectively.

BULLING HEIFER CARE

A very high proportion of our heifers going to the bull are underweight and calving down under target weights. As the bulling weight targets of most heifers on the May 1 must be 320+kg and they are likely to put on 0.8kg/hd/day between February 1 and then, they now should weigh at least 250kg.

• • For every kg they are less than that, they must be fed 4-5kg meal. If they are 30kg below target, they must get 120-150kg meal (16-18 per cent P) between now and May 1
  • , or 1.5 kg/hd/day over the whole period, or twice that over half the time.
  • With excellent care, aggressive meal feeding, delayed bulling until 20th May and then synchronising them, you will be able to serve heifers that now would be considered very small at 200-210kg.
  • This is a very good option if you are planning to sell these animals or expand.
  • Let all out to grass in early February, feeding meals to those who require it.

SHORT NOTES

• Colostrum early is the most important way to prevent calf rearing problems associated with scours and pneumonia. Follow the 1, 2, 3 rule:

• • Use colostrum from the first milking for the first calf feed.
  • Give colostrum within two hours from the calf’s birth.
  • Give at least three litres.
  • Give another two litres within the next six hours.
  • A stomach tube (done correctly) alleviates some of the feeding problems. Most farmers now use it as a time saver and it guarantees consumption of two to three litres in that first feed.
  • To check the quality of the colostrum, use a refractometer.

• Because February is a crucial month to set things up for the year, discussion groups should meet on farm for a quick technical meeting to check what is happening on each other’s farms so as not to make mistakes that are preventable.

• • If your farm cannot run for two hours while you are away something is wrong with the way you organise things.
  • However, by using technology, we can stay in touch by using WhatsApp or a Zoom chat to stay on top of technical issues and overcome current challenges.

• Consider using contractors more in 2023, because of on-farm labour shortage, for:

• • Dehorning calves,
  • Feeding out silage and cleaning yards twice per week;
  • Spreading fertilisers in bulk and slurry with the umbilical system (the only way to do it!);
  • Contract rearing of calves and heifers;
  • Contract labour for all or some farm chores (large units);
  • All reseeding work;
  • All lameness preventative care;
  • All capital investment work; farmers must refrain from this as it is putting huge strain on the labour to run the farm and efficiencies suffer and personal health suffers.

The four legs to our 2023 table are: consolidating, communication, control and cash.