Top traits of top performing dairy farms

We examined outstanding dairy farming businesses and what sets them apart from the rest. While ranking common themes is difficult as their impacts vary from farm to farm, for a general perspective of importance overall, the following order is identified with some related real-life examples of actions farmers are taking. 

• Keep a ruthless focus on costs
• Stocking rate
• Concentrate on what you are good at
• Know what the market requires
• Know what you want to achieve
• Detail is critical

This is the strongest message of this study, and it comes out clearly in several areas, both in aspects of the research as well as the case studies. We continually must remind ourselves that milk is a commodity, meaning the price is set by the internationally traded market, and margins are therefore usually tight. Remaining profitable in this situation means removing costs when possible and retaining output at high levels. Ideas on how to cut costs are almost endless, make your own list. 

“This year a relief milker left the business. He used to work through the breeding period to allow Jane and Emily to draft cows out for serving. When this happened, instead of simply replacing the workforce like for like, the partners invested in heat detection collars, budgeting that the saving in labour would allow for the expenditure. As their submission rates were already >90% in the first three weeks of breeding it wasn’t felt that technology would improve fertility.”

Top of the hill Farm, Top Performer

More farming allows greater output. Getting the optimum stocking rate to maximise the milk from forage forces better use of land, a key resource on any dairy farm. It also diverts from simply pumping more expensive concentrate feed into cows which is an expensive way to raise output and not always successful, especially at the marginal level. The statistical research is clear here, concentrate on improving the productivity of land and the quality of the grass and forage produced. This is the cheapest way to produce milk.

“Peter is very interested in grassland management and takes responsibility for selecting seed varieties, making decisions on re-seeding, and measuring and allocating grass through the summer.”

 “The cows produce 500kg of milk solids each from just over a tonne of cake, and the focus is on milk from grass. Depending on weather conditions, the cows graze for up to ten months a year, making use of good grazing infrastructure to access pasture in the shoulder months.”

Top of the hill Farm, Top Performer

This is dairy farming. Both the case studies and the statistical research tells clear stories of how taking on a secondary enterprise such as beef rearing can distract the management, steal resources from the dairy and furthermore, be fundamentally less profitable than the dairy unit. There are few farming systems as profitable as a well-run dairy unit.

“All beef calves are retained and finished on farm as Steve didn’t like that they were worth less when sold as calves compared to those from a TB free herd. He doesn’t have enough shed space so rears them in calf hutches. These are on muddy ground and visible from the road, stoking comments from ‘nosey’ onlookers and villagers. Calves of both sexes receive insufficient colostrum, and scouring calves are starved. Those with respiratory problems are always given antibiotics and beef calves are fed waste milk (of which there seems to be quite a bit). Calf mortality is inevitably high.”

Bleak Farm, Bottom Performer

Keeping milk clean is an obvious thing to ensure is maintained at all times. Working towards producing a milk with the constituents and seasonality that your processor is wanting to pay for, takes a little longer but is worth working towards. The statistical analysis claimed top performers are achieving 1.7p/l more than the lower producers. For the top performer’s case study, that would be equivalent to approaching £40,000 per year alone.

“Milk is sold on a solids contract and the business has focused on breeding cows that maximise the milk price available. There are strict protocols in place around hygiene and udder management to ensure that SCC and bactoscan bonuses are achieved. Peter and Jane attend supplier meetings and make sure that they are meeting the buyer’s requirements.”

Top of the hill Farm, Top Performer

Speak with business partners and family members. Discuss what each wants to achieve (financial and non-financial). Make sure your aspirations are aligned. If you don’t have this discussion, you will not know for sure. Write them down, pin them up, discuss them regularly. Share them with your business advisor. Turn your aspirations into budgets and business plans. Without a goal or ambition, you will not know if you have achieved what you are working towards. Work out a plan how to achieve your mutual goals. Compile annual budgets to show where the year is planned to go. You can identify what is going well and what not so well helping you to adjust things if necessary. Ideas can be tested using this tool.

“Peter and Jane do their own monthly financial monitoring and dairy costings. They meet with their consultant twice a year to sense check their budget, check progress mid-year and review the previous year. Beyond this, they feel confident to manage the business themselves. As part of their discussion group they meet monthly and carry out annual financial benchmarking”

Top of the hill Farm, Top Performer

There are so many decisions to make daily, seasonally and over the years with dairy farming. Each might make a substantial difference to the success or not of the business. You cannot know every corner of your business in detail, but if you have the figures available, you will soon spot which areas are performing well or less so and be able to put measures in place to protect or change them. Know what the key performance indicators (KPIs) are for your farm, and monitor them regularly.

“In recent years their use of sexed semen has increased and they now keep individual cowrecords to target its use to good cows. As a result they have fewer bull calves born on farm.” Top of the hill Farm, Top Performer