Waipa Group Field Day Year 2 Waipa Group Field Day Year 2

Business Performance and Trends

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Introduction
Return on Capital (ROC)
Cost of Production per KgMS (COP) Cost of Production per KgMS (COP)
Is there a correlation between N Leaching and ROC
What makes the good guys good
C St d F Case Study Farm
Resilience / The Sweet Zone
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Return on Capital vs. Operating Profit/ha
Return on capital is the operating profit (EFS) over the
entire asset (land, cows, plant, shares - including leased assets). ( , , p , g )
ROC allows comparison between farms with different p
productive capabilities, places and systems.
Operating profit per hectare varies with land quality.
E.g. a flat Waikato farm vs Otorohanga hill farm
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Cost of Production /KgMS
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Will Reducing N Leaching Affect Profit?
No correlation found between ROC and N Loss
Some farms can be profitable with a lowN Loss Some farms can be profitable with a low N Loss
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What makes these good guys good
Low cost of production
Good pasture utilisation
Pasture Harvest Pasture Harvest
tDM Consumed per cow
Milk production per cow
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Case Study
Sheehy and Scott Farm Sheehy and Scott Farm
LUC 1-3 (flat): 0%
ll LUC 4 (rolling): 57%
LUC 6+ (steep): 43% 7 LUC 6+ (steep): 43%
Sheehy and Scott Farm Key Points
E ll f d i ffi i Excellent feed conversion efficiency
High pasture consumed per cow High pasture consumed per cow
High per cow production
12ha Chicory (9% of farm)
Average 5% Empty Rate over 5yrs (12 week mating)
Once a day milking 4-6weeks end of lactation Once a day milking 4 6weeks end of lactation
Low Environmental Impact
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Sheehy and Scott Farm - KPIs
KPI 2011/12 2012/13
Hectares 134 134
Cows 350 340
ROC 4.8% 3.8%
K MS/ 437 416 KgMS/cow 437 416
Pasture % Diet 80% 76%
Past. Consumed/cow 4.02T 3.72T Past. Consumed/cow 4.02T 3.72T
N Leached 30 29
P Loss 2.4 1.9
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Sheehy and Scott Farm
Overall a steep farm producing well Overall a steep farm producing well
with a low environmental impact
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What is Resilience
Minimising fluctuations in ROC between
years years
+- 30% Milk Price
+- 30% Feed Price
+ 30%Seasonal Effects +- 30% Seasonal Effects
+- 30% Pasture Harvest
The ability to endure volatility
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Th S Z The Sweet Zone
Finding the Optimum Zone for Finding the Optimum Zone for
farm management.
Chasing profit rather than
production.
Maintaining environmental quality
Minimise risk
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www.headlandsenviro.co.nz
Tha k Yo Thank You
A Q ti ? Any Questions?
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