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DAIRY NEWS AUSTRALIA // july 2011
management Holistic view helps cut production costs Stephen Cooke WHETHER VISITING a dairy farm overseas or on a farm walk closer to home, Rob Frampton is searching for something – anything – that could be used to reduce his cost of production. Rob and his parents, Norm and Lesley, run 440 crossbred cows on a milking platform of 160ha at Gawler, near Ulverstone, Tasmania. They continue to break down the cost of production during their budget process in a bid to improve their efficiency. Any new method that will help achieve this is seized. “We aim for a low cost of production,” he says. The Framptons had a cost of production of $2.76/kg MS in 2009-10, with animal health costs of $15 per cow. To reduce the cost of production, the Framptons don’t simply cut costs, but find ways to improve their efficiency. Labour is included in the budget process so time management is appraised. Any labour efficiency immediately becomes financial savings. “Efficiency is everything and we have improved by making as many jobs as possible one-person jobs,” Frampton says. The three family members are able to calve the 440 cows, run all replacements, mate, spread their own fertiliser – only using outside labour for baling hay and relief milking – while still managing a good lifestyle. This approach has seen them finish in the top three of the Tasmanian Dairy Business of the Year awards twice. They were finalists in the recent awards judged on the 2009-10 financial year, when they achieved a 7% return on assets with an EBIT per milking hectare of $1843. The increase from a ROA of 5% in 2008-09 compared favourably to other participants in the DBOY awards whose ROA fell from 6% in 2008-09 to 3% in 2009-10. The average COP of these participants was $4.26/kg MS. “I enjoy visiting other farms to compare ideas and to see what’s around to help us manage our farm better,” Frampton says. One of the simplest ways the Framptons have
Who:
Rob, Norm and Lesley Frampton Where:
Gawler What:
Cutting cost of production
be outweighed by the cost. “We haven’t pushed productivity gains and that amazes a lot of farmers,” Frampton says. “Aiming to increase production, but not at the expense of profit is our main goal. We could use more nitrogen, but it’s not always as profitable as it’s made out. Nitrogen does have hidden “Efficiency is everything many costs”. and we have improved The Framptons have by making as many tried to avoid jobs as possible producing silage because one-person jobs.” of the cost of production. to cut back from three “It certainly has its place tractors to one. You can do everything without getting but it can be overused. When you work out the out of the tractor – except labour, wastage, plastic opening gates.” disposal – the costs add up. Automatic gate openers on timers, save a lot of time It is often more expensive than grain.” and lameness when walkDepending on the year, ing cows to the dairy. Extra and milk and feed prices, productivity isn’t pursued if there’s a risk the gain will cows are fed 0.3 - 0.8 reduced labour costs is by utilising a simple back hitch on their tractor, enabling the operator to switch wagons or trailers without leaving the cabin. The hitch was first seen by Rob on a dairy farm in England a decade ago. “That’s a huge labour saving. We have been able
Above. Rob Frampton on his family’s dairy farm near the Gawler township. Right. This back hitch enables the operator to switch wagons or trailers without leaving the cab.
tonnes of barley each. With an emphasis on achieving a return on investment, most of their profit is made in the spring, which means the farm focus is capitalising on spring pasture growth. The herd is usually dried off by the end of April, but it may be earlier if the weather is unfavourable. This period enables the family to take annual leave before the calving season, which has been brought forward from August 1 to July 1, over the last five years. Seven spring-fed dams over the property, with a total of 220 megalitres, are used for irrigating and are supplemented by a bore. The liquid effluent is injected into the irrigation over summer. Solids are composted and used as fertiliser. There is currently a maintenance fertiliser of
single super over the whole farm, with extra phosphorus and potassium added to selected paddocks and, more specifically, certain areas of the paddocks. A stocking rate of 2.8 cows/ha is maintained across 40 paddocks. The family has a set rotation plan for each season, which is constantly updated according to conditions. A glance of the whiteboard outside the house reveals all. Holsteins have been replaced with crossbred cows, utilising Jerseys,
Ayrshires and New Zealand Friesians. “Holsteins didn’t suit our system so we began cross breeding in 1985, when we experimented with a few Ayrshires,” Frampton says. “We started getting serious about ten years ago.” Now, small cows are mated to NZ Holsteins while the larger cows are mated to Ayrshires or crossbred bulls. The primary objective is fertility, longevity and good uddered cows, followed by fat and protein percentage.
Currently the herd has an 11-week calving spread, with no inductions or synchronisation. The cows peak at 22 litres/day and are dried off when about 10 litres/day. The herd currently averages 320kg milk solids. Although always looking for improvements the current production target suits the family’s objective of an enjoyable lifestyle and a return on investment. “Farming is simple – the hardest part is keeping it simple,” Frampton says.