A comparison of profitability between farms that milk once or twice a day
J. P. EdwardsDairyNZ, PO Box 85066, Lincoln University, Lincoln 7647, New Zealand. Email: Paul.Edwards@dairynz.co.nz
Animal Production Science 60(1) 102-106 https://doi.org/10.1071/AN18528
Submitted: 28 August 2018 Accepted: 7 November 2018 Published: 3 December 2018
Abstract
To attract and retain quality staff, dairy farming must be competitive with industries offering conventional hours of work. Full lactation once-a-day (OAD) milking is one option that could help achieve this goal. The present study analysed the profitability of milking OAD, using data from commercial farms for the production seasons 2005–2006 to 2015–2016. Once-a-day herds were matched with herds milking twice-a-day (TAD) by district and herd size to create 927 OAD–TAD pairs. Milksolids (MS; kg fat + kg protein) per hectare decreased by an average of 13% after adopting OAD; however, farm working expenses (FWE) per hectare did not decrease, resulting in an increase in FWE per kilogram MS and a decrease in profitability per hectare. Labour efficiency (cows/full time equivalent (FTE)) increased in the OAD herds by an average of only 6%. To investigate this result further, a subset of 33 OAD herds, with at least one season of pre-OAD data, were grouped into quartiles on the basis of their pre-OAD labour efficiency. The operating profit/ha of quartile one (lowest pre-OAD cows/FTE; least efficient) increased by 23% after adopting OAD, with quartile two, three and four decreasing by –1%, –10% and –32%. Quartile one herds had the largest increase in cows/FTE, highlighting the importance of labour efficiency and cost reduction to profit when milking OAD. Some herds in the top quartiles were able to increase cows/FTE. These results indicated that profitability can be maintained or increased after adopting OAD. Whether the lifestyle benefits of OAD are retained when increasing labour efficiency warrants further investigation.
Additional keywords: economics, labour, milking frequency, milking interval, once-a-day.
References
Bewsell D, Clark DA, Dalley DE (2008) Understanding motivations to adopt once-a-day milking amongst New Zealand dairy farmers. Journal of Agricultural Education and Extension 14, 69–80.| Understanding motivations to adopt once-a-day milking amongst New Zealand dairy farmers.Crossref | GoogleScholarGoogle Scholar |
Bird P, Treloar K, Sargeant K, Sheridan J (2016) ‘Interpretation guide for rural professionals.’ (DairyNZ: Hamilton, New Zealand) Available at https://www.dairynz.co.nz/media/5494555/-DairyBase_Interpretation_Guide_for_Consultants_May_2016.pdf [Verified 12 October 2018]
Clark DA, Phyn CVC, Tong MJ, Collis SJ, Dalley DE (2006) A systems comparison of once- versus twice-daily milking of pastured dairy cows. Journal of Dairy Science 89, 1854–1862.
| A systems comparison of once- versus twice-daily milking of pastured dairy cows.Crossref | GoogleScholarGoogle Scholar |
DairyNZ (2017) ‘New Zealand dairy statistics 2016–17.’ (DairyNZ: Hamilton, New Zealand) Available at https://www.dairynz.co.nz/media/5788533/nz-dairy-statistics-2016-17-web.pdf [Verified 4 April 2018]
DairyNZ (2018a) ‘The 5 production systems.’ (DairyNZ: Hamilton, New Zealand) Available at https://www.dairynz.co.nz/business/the-5-production-systems/ [Verified 20 August 2018]
DairyNZ (2018b) ‘About DairyBase.’ (DairyNZ: Hamilton, New Zealand) Available at https://www.dairynz.co.nz/business/dairybase/about-dairybase/ [Verified 20 August 2018]
DairyNZ (2018c) ‘Dairy tomorrow: the future of New Zealand dairying.’ Available at http://www.dairytomorrow.co.nz/ [Verified 27 August 2018]
DairyNZ (2018d) ‘DairyNZ economic survey 2016–17’. (DairyNZ: Hamilton, New Zealand) Available at https://www.dairynz.co.nz/media/5789308/economic_survey_2016-17_web.pdf [Verified 30 May 2018]
Deming J, Gleeson D, O’Dwyer T, Kinsella J, O’Brien B (2018) Measuring labor input on pasture-based dairy farms using a smartphone. Journal of Dairy Science 101, 9527–9543.
| Measuring labor input on pasture-based dairy farms using a smartphone.Crossref | GoogleScholarGoogle Scholar |
Edwards JP (2018) Comparison of milk production and herd characteristics in New Zealand herds milked once or twice a day. Animal Production Science
| Comparison of milk production and herd characteristics in New Zealand herds milked once or twice a day.Crossref | GoogleScholarGoogle Scholar |
Hedley P, Kolver ES, Glassey C, Thorrold BS, van Bysterveldt A, Roche JR, Macdonald KA (2006) Achieving high performance from a range of farm systems. In ‘Proceedings of the 4th Dairy3 conference’. pp. 147–166. (Dexcel: Hamilton, New Zealand)
Taylor G, van der Sande L, Douglas R (2009) ‘Smarter not harder: improving labour productivity in the primary sector.’ (DairyNZ: Hamilton, New Zealand) Available at http://maxa.maf.govt.nz/sff/about-projects/search/05-028/technical-report.pdf [Verified 30 June 2013]
Tipples R, Verwoerd N, Bewsell D, Dalley D, Turner D, Turner D (2007) ‘Social impacts of once-a-day (OAD) milking.’ (Livestock Improvement: Hamilton, New Zealand) Available at http://www.dairynz.co.nz/media/917739/5_social_impacts_of_oad_milking.pdf [Verified 20 April 2016]
