Focus on milk from forage increases margins at Cheshire dairy

A focus on milk from forage has helped increase gross margins by £31,000 for a Cheshire dairy business.

Like many dairy farmers, Tom and Sarah Mansell, Tilstone Fearnall, had been following a strategy based on driving output and yields, with an increased reliance on purchased feeds.

Yield and the bulk tank were the main key performance indicators (KPIs) and the farming system was increasingly exposed to fluctuations in milk and feed commodity pricing.

Financial performance is monitored using Promar Farm Business Accounts and results were not improving as expected, so Mr Mansell agreed for Promar consultant Emma Thompson to carry out a technical review of the business.

This led to a move to increase milk production from forage, which has improved profitability considerably.

The dairy herd accounts for about 90% of farm gross margin, so its performance is fundamental to the success of the 110ha farm.

The herd of 170 Holsteins were averaging 9,150 litres from more than 3t of concentrates plus other purchased feeds.

“We seemed to be continually chasing our tails for no real benefit,” Mr Mansell explains.

“Yes, we were producing higher yields, but from more purchased feeds and with an ever-more complicated diet. So we decided it was time to consider changing the system and challenge everything we were doing.”

Mrs Thompson quickly identified an opportunity to increase milk from forage. The farm was producing good quantities of high-quality silage.

Grass silage typically averaged 30% dry matter (DM), at 11MJ metabolisable energy (ME) and 16.7% crude protein, while maize silage came in at 32% DM, 11.6 MJ ME and 32% starch.

But this was not being exploited and turned into milk. In an attempt to drive output, forage was being restricted and purchased roughages such as Trafford Gold and brewers’ grains were being fed instead.

“With such good forage available it was vital to utilise it to the full to drive performance,” she explains.

“In addition, the ration contained a number of additional products including buffers to help stabilise the rumen and reduce the risk of acidosis.

“As there is no target feeding in the parlour, it was important to get the TMR balanced and cost-effective.

By going back to basics and encouraging higher forage intakes, we could remove the purchased roughages and the additional supplements, simplify and cheapen the ration, and maintain optimal rumen health naturally.

“Total concentrates in the TMR were reduced and at the same time we reformulated the blends. Forage dry matter intakes have increased by 3kg/day – a 40% increase – and although yields fell, margins have improved,” adds Mrs Thompson.

Milk from grass

Mr Mansell has also been encouraged to focus on milk from grazing from his year-round calving herd.

The farm is on reasonably light land so he can turn out early and investment in tracks has improved access.

This year he turned the cows out three weeks earlier for a few hours a day and was able to keep them out longer, too.

“Getting cows out earlier has helped keep on top of grazing and means the cows have benefitted from better quality grazing all season,” Mrs Thompson continues.

“Grass quality has also been maintained by adopting a more flexible approach to the grazing platform, with fields taken out of the rotation for silage if grass was getting ahead of grazing ability. Turning out sooner and more reliance on grass has further reduced purchased feed requirements,” she explains.

The results have been considerable. Although yields have fallen by 800 litres a cow, concentrates have been reduced by 700kg a cow and purchased roughages – which were costing £80 a head – have been eliminated altogether.

Feed rate/litre has fallen by 20%. Yield from forage has risen from 1,238 to 3,721 litres a cow, and now equates to 45% of production.

In addition milk quality has improved, which is important given the protein requirements of the milk contract, while increased forage intakes have helped improve herd health.

Improvements have also been made to health and fertility. Cell counts and clinical mastitis have been reduced following a review of the parlour routine and a move to foaming wipes for pre-milking disinfection.

The dry cow diet was reviewed to include more forage to encourage a greater rumen fill and older cows are given a slow release bolus at drying off. Cows are transitioning better and the incidence of milk fever and displaced abomasum (DA) have reduced. In fact, they have not had a DA for almost 12 months.

Fertility

Mr Mansell is taking a more aggressive approach to getting cows back in calf and works to a 50-day voluntary waiting period (VWP).

A PD session is carried out every fortnight on cows that have been served 42 days and the vet also sees any cows that exceed the VWP and have not been seen bulling.

Cows found not to be in calf are put on a synchronisation programme unless the vet decides they are cycling normally.

“Using activity monitors and manual heat detection combined with early submission to first service is vital for a tight calving interval,” he explains.

“We don’t want cows with extended calving periods and can’t afford to lose cows just because we can’t get them in calf. Cows have been cycling better since we changed diets, too.”

In the past 12 months the calving percentage has been 105% – 75% of the cows have a calving to a first service interval of under 75 days, and 52% of repeat services are in line with anticipated repeat dates. The calving interval currently sits at 392 days.

Improved fertility and a focus on breeding heifers to calve at two years old has allowed cow numbers to be increased by 18 – an 11% improvement.

“The changes we have made have had a significant impact on the performance of the business. Simplification and a focus on costs have put us in a stronger position,” Mr Mansell comments.

In the past 12 months to April 2014, margin/litre has risen by more than 3p/litre, despite milk price only rising by 2.13p/litre and margin a cow has risen by £310.

Purchased feed use has been reduced by 383kg a cow and total feed costs a cow have fallen by £28, despite prices increasing by £17/t over the year.

Overall variable costs have been reduced by 17%, mainly due to the feed saving.

On top of this, the vet bill has also been reduced by £30 a cow, due to fewer cases of mastitis, better fertility and improved rumen health. Whole herd gross margin increased by over £31,000.

“By simplifying the system and letting cows do what they are designed to do and convert forage into milk, Mr Mansell has been able to increase profits by 4.5% with further efficiencies still working through,” Mrs Thompson says.