Maximise Revenue by Keeping up Production, Says Pioneer

26 September 2016

News release

MAXIMISE REVENUE BY KEEPING UP PRODUCTION, SAYS PIONEER

Fonterra’s payout lift to $5.25/kgMS is great news for local farmers but management over the next few months will be critical to ensure business profitability is maximised, says Ian Williams, Forage & Farm Systems Specialist for Pioneer® brand products.

“The higher payout gives most farmers the opportunity to run a profitable business,” says Williams. “But keeping up production while controlling costs is vital for maximising revenue.”

While there has been an industry push to increase the pasture harvested, the reality is most farms will run short of feed sometime between now and drying off.

“Many farms throughout the country have low levels of stored feed and, in the North Island, a wet winter has meant pastures have taken a hammering,” says Williams. “It is always more cost-effective to secure additional feed ahead of a major shortage.”

Maize silage is the best farm system feed and has been proven to generate excellent returns in New Zealand dairy systems.

Cropping on farm is the most economic option where paddocks can benefit from regrassing. Select a crop where the net yield gain (crop yield less pasture foregone) is high.

“Planting a paddock of maize on farm reduces the size of the spring surplus and transfers feed into the early autumn when it can be used to lengthen lactation, put condition on cows and extend the grazing round,” says Williams. “Maize offers flexibility because the crop is harvested early enough to allow timely regrassing and you don’t need to feed maize silage until you really need it."

Where you have a high stocking rate and pastures which are in good condition, buying in feeds can be the best alternative.

“Look for feeds which can be forward contracted at reasonable rates and stored until you need them,” says Williams. “A big benefit of maize silage is its high starch content which drives the production of milk protein lifting milk value.”

Williams urges farmers to do the numbers before they buy in feed or commit to growing a crop.

“While it is important to maximise lactation length, it is also necessary to keep a lid on feed costs,” he says. “Don’t bring out the cheque book until you have done your homework.”

ENDS

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