Dairy: ‘Own labour’ in 2016 worth 12c per litre

The new assessment allows own labour to be expressed on a per litre of milk equivalent basis.

And the results for 2016, from 303 farms, show a wide variation around the 12c per litre average, described as a “rough estimate”, based on an assessment of own labour input self-reported by the farmer, and an assumed wage of €15 per hour.

A considerable amount of painstaking research is required to improve the accuracy of this estimate, according to Teagasc.

It is also pointed out that, on a per litre basis, the own labour input required for smaller herds, with low-yielding cows, a less desirable farm layout, and inferior yard and parlour facilities, is typically several cents higher than the own labour cost per litre on the average farm.

By contrast, the more labour-efficient farms have an own labour input requirement which can be several cent lower than the average.

The own labour input requirement can also be affected by decisions taken by the operator about the amount of hired labour to be used, given that hired labour can be substituted for own labour to some degree.

If accurate, the own labour figure newly calculated by Teagasc makes up more than half of the average milk producer’s total milk production costs of about 22c per litre in 2016.

However, less efficient producers have milk production costs which are well above this 22c average, while the most efficient producers have production costs that are below 20c per litre.

Up to now, in the Teagasc National Farm Survey, in order to keep it in line with EU requirements for international comparisons, it has been standard for labour supplied by the farm operator and family members to be excluded from production costs in the standard analysis.

Instead, the income of the farm is considered to provide a return to own labour, as well as to the land and capital tied up in the farm.

If only hired labour is included in milk production costs, the average gross profit margin from the 2016 National Farm Survey results is calculated at 16.02c per litre, and the average net margin at 6.72c per litre.

The new own labour results relate to 303 dairy farms, which are representative of 15,735 farms nationally, and which exclude farms supplying mostly liquid milk and herds of 10 cows or less.

P or K deficiency can reduce grass yield or affect cows

WHEN the major elements of phosphorus (P) and potassium (K) are compromised, less grass will be grown, especially at times when growth is really needed.

The vast majority of soils are Index 1 or 2 for K, in other words, deficient.

It has been estimated that such soils will grow as much as 1.5t less of grass dry matter per hectare, reducing your profit by more than €200 per hectare.

One bag of muriate of potash (0-0-50) would do a lot to fix a soil K deficiency, and would cost less than €20 per 50kg bag.

Many fertiliser products now available contain a low amount of K.

These fertiliser products are suitable where maintenance of soil fertility is required, but are not suitable where a build-up of soil K is required.

Now is a good time to start correcting K deficiencies.

Phosphorus (P)

Lactating dairy cows have a requirement for P of between 3.2 and 4g per kg of dry matter eaten.

On average, grass P levels on dairy farms are 3.6g/kg of DM.

However, during the summer, when growth rates are high, these levels drop slightly. This is because the rate of mineral uptake by the plant is slower than the rate of herbage production.

As a result, cows may exhibit symptoms of depraved appetite (also called pica), due to inadequate P levels in the diet.

Other factors which may cause depraved appetite include inadequate fibre and/or deficiencies in other minerals (sodium, cobalt, copper).

To correctly diagnose the problem, a blood or feed test should be taken.

Extra roughage (hay/straw) can be offered if there is a shortage of fibre.

If a P deficiency is diagnosed, a source of P can be provided in a carrier ration.

To supply 5-20g of P/day to cows in a 1kg carrier, the carrier would need a 0.5 to 2% P concentration.

Check mineral supplementation levels to ensure cows are receiving adequate amounts.

Exhibitors vie for €2,500 top Baileys Cow competition prize

Friday, August 11 is the closing date for entries in the €10,000 Diageo Baileys Champion Dairy Cow competition, writes Stephen Cadogan.

The competition at the Virginia Show in Co Cavan on August 23 is open for entries from eligible breeders across the island of Ireland.

Exhibitors will vie for prizes of €2,500 for the overall champion, €1,000 for reserve champion, and €500 each for the honourable mention and best-heifer-in-milk animals.

Cash prizes will also be awarded for highest protein content, best EBI and best exhibitor-bred cow and best junior cow (a new category for second calvers).

To be eligible for entry, cows must first have produced 500kg of butterfat and protein in a 305-day lactation.

The organisers have announced this year’s championship judge is Paul Miller from Evesham in Worcestershire.

Last year’s winning exhibitor was Philip Jones from Co Wexford.

Entry forms are available by calling Brendan Smyth at 353 (0)87 2560952, or by visiting the virginiashow.com/championcow website.