More is not always better yStocking Rate for your L d F S t dLandscape, Farm System and LocationLocation Chris Glassey11th July 2014

Stocking rates should be gconstantly reviewed

Changing economics: Maximum milk production and pasture utilisation per hectare does not equal maximum profit

Greater feed allowance/cow to realise genetic improvementimprovement

Likely requirements to farm within N discharge limits Likely requirements to farm within N discharge limits reduce farm N surplus

Pastoral 21-Waikato after 3 years

Future Farm Current farm Future -Current

Cows/ha 2.6 3.2CSR kg Lwt/T DM 74 80MS/cow 442 367 +75MS/ha 1158 1186 -28$OP/ha* $3903 $4093 -190 (5%)N leached/ kg 25 58 33 (55%)N leached/ kg ha*

25 58 -33 (55%)

* 2 years data only

DefinitionsDefinitionsSt ki t /h Stocking rate = cows/ha e.g. Otorohanga average stocking rate

2007-08 2012-13 This group

Cows/ha 2.93 2.88 2.86

Less cows = more feed/cow ? improved pastures more N/ha PKEimproved pastures, more N/ha, PKE Versus bigger cows, more appetite

Cows/ha doesnt fully inform us about the balance between feed demand and feed supply

Comparative Stocking Rate (CSR)

Cow Lwt Home grown f d

Kg Lwt / t DM ha offeredSt ki t

Cow Lwt feed

ImportedStocking rate Imported feed

Useful to determine the effects of a change inUseful to determine the effects of a change in feed demand and supply on farm performance

Comparative Stocking Rate, p g ,CSR, Otorohanga District

2012-13 This groupCows/ha 2 88 2 86Cows/ha 2.88 2.86Lwt/ha 1328 1327Tonnes offered DM/ha 16.6 15.9*

DM/cow 5.8 5.6CSR 80 83.5

This groups cows average 464 kg liveweight Feed offered estimated from group data supplied

First messageFirst message

Assess the balance between feed supply and feed demand for your farm.feed demand for your farm.

Use comparative stocking rate (CSR) in Use comparative stocking rate (CSR), in addition to cows/ha. Also use t DM/cow/year

Attempt to Link with profit

No one perfectly accurate formulaNo one perfectly accurate formula

Any Questions ?y

Finding the Optimum for Profit

7000

8000

6000More cows increases revenue

More cows increases

4000

5000

$

/

h

a

Revenue/ha

faster than costs

costs faster than revenue

3000

Revenue/ha

Costs/ha

1000

2000

0 29 44 59 74 88 103 118 132 147Cows/ha 1 1.5 2 2.5 3 3.5 4 4.5 5Revenue/ha 3600 4950 6000 6750 7200 7350 7200 6750 6000

CSR

SCRIT SMAXSOPT

Costs/ha 1411 2116.5 2822 3527.5 4233 4938.5 5644 6349.5 7055Stocking rate

DairyNZ Stocking Rate Trial (18-20 t )

12004700

DM/ha, pasture only) Max. Profit

Max. milk

1100

11504200

4700

$

/

h

a

)

1000

10503200

3700

k

g

/

h

a

)

p

r

o

f

i

t

(

$ OP $/ha

900

950

2200

2700

s

o

l

i

d

s

(

k

p

e

r

a

t

i

n

g

800

850

1200

1700

M

i

l

k

s

O

p

MS/ha

8001200

CSR (Lwt/t DM)

9160 70 76 89

CSR (Lwt/t DM)

Research; impact of CSRResearch; impact of CSR on production, feed use & profit p , p

12 multi year farmlet trials 1990 to 2010 12 multi-year farmlet trials,1990 to 2010

98 individual farmlet years 98 individual farmlet years

Consistent management & measurementg

Statistical analysisy

Farmlet profilesFarmlet profilesN f % fFarm

System

No. of farmletyears

% of imported

feedMS/ha

years feed1 50 0 1172

2 24 6 1205

3 12 15 1510

4 5 22 1870

5 7 29 17105 7 29 1710

Research ResultsResearch ResultsRelationshipbetweenCSRandMS/cowandpastureutilisation

90%

95%

460

500

85%

90%

420

460

80%380

Pastureutilisation%KgMS/cow

1 unit decrease in CSR 0.5%

75%340decrease in pasture utilisation (P

Reduce CSR by 10Reduce CSR by 10

Decrease pasture utilisation by 5%

Increase MS/cow by 45 kg MS/cow

>80% pasture utilisation still achievable with>80% pasture utilisation still achievable with high MS/cow (>90% of liveweight)

CS f fCSR is not a strong predictor of profit3500

3300

3500

3100

(

$

)

0

0

8

2700

2900

O

p

/

h

a

(

c

d

o

n

a

l

d

2

0

7

0

9

0

2500

2700

M

a

c

N

Z

7

N

Z

9

23000 1 2 3 4 5 6Ultimately profit is determined by:

100CSR

Implementing good management practices

Key messagesKey messages

Profit/ha is optimised at a CSR lower than maximum MS production/ha

Profit reduction is small if CSR not optimised Profit reduction is small if CSR not optimised

O i CSR f fi h i Optimum CSR for profit changes over time

Questions?

CSR v ROC: 23 farms Waipa districty = -0.0011x + 0.1218

R = 0.16128 0%

9.0%

CSR v ROC: 23 farms Waipa district

6.0%

7.0%

8.0%

4.0%

5.0%Return on Capital

1.0%

2.0%

3.0%

0.0%

0%

60 65 70 75 80 85 90 95 100CSR kg Lwt/tDM

RETURN ON CAPITAL (ROC) at 4-Yr Av ValuesLinear (RETURN ON CAPITAL (ROC) at 4-Yr Av Values)

MessagesMessages Trend for ROC to improve as CSR is reducedTrend for ROC to improve as CSR is reduced

N t t l ti hi Not a strong relationship

-10 CSR = +1.1%

Good grazing management practices requiredrequired

Example farmExample farm Reduce CSR from 90 to 80Reduce CSR from 90 to 80

Reduce cow numbers Increase feed supply for same cow numbersIncrease feed supply for same cow numbers

Base farm assumptionsBase farm assumptions 13.2 t Pasture DM offered/ha 2.8 t DM/ha imported feedp 3.1 cows/ha; 90 CSR Crossbred cows; Lwt of 464kg Current pasture utilisation 90% 325 kg MS/cow or 70% of Lwt; 1006 kg MS/ha

Change CSR from 90 to 80Change CSR from 90 to 80Base farm 80 CSR 80 CSRBase farm

90 CSR3.1 cows/ha

80 CSR adjust cow numbers

80 CSR import feed(+2.0 t DM/ha)

(-0.34 cows/ha)

Kg MS/cow 325 370 370Kg MS/cow 325 370 370Kg MS/ha 1006 1018 1147t DM/ha 13 8 13 6 15 2t DM/ha eaten (cow)

13.8(4.5)

13.6(4.9)

15.2(4.9)

N l hiN leaching

Your challengeg Estimate your annual pasture growth, feed offered

and feed eaten Estimate your CSR annuallyEstimate your CSR annually

Low: 85 Adjust CSR for herd improvement ( 3 k L t/ t DM/ ) Adjust CSR for herd improvement- (-3 kg Lwt/ t DM/year) Know your feed demand (t DM/cow) Know your current N input and N surplus/ha How will feed supply change on your farm if lowerHow will feed supply change on your farm if lower

N input is required?

CSRComparative Stress Rate !!!

HIGH CSR LOW CSRDESIRED CSR

EfficiencyS i biliSustainabilityProfitability

100%

CSR v MS as % of Cow Liveweight

y = -0.0166x + 2.0957R = 0.7917

80%

90%

100%

60%

70%

80%

40%

50%

60%

MS as % of Cow liveweight

20%

30%

40%

0%

10%

20%

0%60 65 70 75 80 85 90 95 100

CSR kg Lwt/t DM

Milksolids as Percent of Cow Liveweight Linear (Milksolids as Percent of Cow Liveweight)