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Setting up a new dairy farm

Setting up a new dairy farm. Teagasc, Moorepark. Introduction. Income Scale Debt Land Rent Labour efficiency Capital costs/cow. Income/Scale/level of debt. Assumptions 420 kg ms /cow 2.8 cows/ha €2 /kg ms cost €400 /ha land rental. Income. Income. Labour efficiency targets.

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Setting up a new dairy farm

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  1. Setting up a new dairy farm Teagasc, Moorepark

  2. Introduction • Income • Scale • Debt • Land Rent • Labour efficiency • Capital costs/cow

  3. Income/Scale/level of debt • Assumptions • 420 kg ms /cow • 2.8 cows/ha • €2 /kg ms cost • €400 /ha land rental

  4. Income

  5. Income

  6. Labour efficiency targets • Target 20 hr/cow/yr • 1 operator + relief : 125 cows • Family farm+ relief: 170 cows • 2 operators minimum relief : 200+ cows • 3 operators minimum relief : 300+cows

  7. Features of Labour efficient systems • Simple system • Calving to grass • Compact calving • Robust cows suited to system • Minimum supplement • Single enterprise • Contract heifer rearing • Contractor for all machinery operation • Suitable infrastructure

  8. Capital costs of a dairy farm • Stock • Milking facilities • Paddocks, Roadways, Water (tunnel) • Soil fertility, Reseeding • Slurry storage • Winter accommodation • Machinery/Other housing

  9. Soil fertility/ reseeding • 1 cow requires 4.8 t feed/yr • Old non-ryegrass pasture (6-10t/ha/yr) • New ryegrass, high fertility (12-18 t/ha/yr) • Soil Fertility • Soil test €25/sample • Lime €22/t- (5 t/ha) • K 40-120 kg/ha (~€1.00/kg) • P 0-70 kg/ha (~€2.50/kg) • Reseeding • Grass seed €100/ha • Tilling €100-300/ha • Sprays €50/ha

  10. Milking parlours • Costs- • steel& concrete work - €4,000 - €7,000/unit • Plant - €1,200-€8,000 /unit • Milk tank €1.7 - €2.5/l • Feeders €400-€1,500/unit • ACR’s €400-€1000/unit

  11. No. of units • <100 cows • Second hand 10-12 units • 100-200 cows – • 16-22 units : 1 person milking • 200-300 cows – • 22-30 units : 1+ ACR’s or 1.5 milkers • 300-450 cows – • 30-44 units : 2 +/- ACR’s • >450 cows – Rotary + €1,500-€2,500/unit

  12. Grazing infrastructure • Layout • Mapping €15-20/ha • Paddock size • Roadways-cow flow • Water • Roads • Width – 100 cows : 4m, +50 cows: +1 m • Length – 25 - 50m/ha (shape & size) • Depth 0.3 m (2 t/m3) • Surface dust .05 m • Cost €12-€16/m3 material • Digging/laying €4/m3 • Tunnel • €30-€50K

  13. Grazing infrastructure • Water • Troughs (2 gals/cow) (€1.50-€1.10/gal) • Piping (<100 cows:25 mm, 100-200: 38 mm • Pumps (€1,500) • Storage (>20 gals/cow) • Total Cost €350-500/ha • Fencing • 80-150 m/ha • Cost 1 strand - €1-1.50/m

  14. Slurry storage • Slurry storage: 5.28-6.3 m3/cow (legal requirement) • EBT €15/m3 : €100/cow (site specific) • Lined lagoon €30/m3: €180/cow • Steel/concrete tanks €50/m3: €300/cow • Slatted tank €125/m3: €660/cow

  15. Winter accommodation • Feed passage • €250-€400/cow space • Cubicles • €900-€1300/cow • Wintering pad • €8-€12/m2 ( 10-18m2/cow) • Kale • Similar feed cost • Eliminate housing cost • Very useful as part of reseeding programme

  16. Other Capital Investment • Machinery € 50-€1000 /cow • Other housing €150/cow • Silage pit 7 m3/cow @ €12/m3

  17. Capital costs of a dairy farm/cow • Stock €1,400 • Milking facilities €1,000 • Paddocks, Roadways, Water (tunnel) €500 • Soil fertility, Reseeding €310 • Slurry storage €180 • Winter accommodation €250 • Machinery/Other housing €500 • Total €4,140

  18. Conclusion • Borrowing capacity at high efficiency • own land - €4,000/cow • Rented land- €2,000/cow • Capital cost of Greenfield site – • minimum €4,000/cow • Don’t compromise efficiency • To cut costs focus on non productive assets • Machinery, Winter housing, milking automation

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