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AG News- Wednesday, July 29, 2009

Includes: Monitoring Productivity And Profitability Changes; Agfutures Heads To Snowy River Country; Climate Change Forum;

By Department of Primary Industries - 7th August 2009 - Back to News

MONITORING PRODUCTIVITY AND PROFITABILITY CHANGES

The Dairy Industry Farm Monitor Project is designed to provide industry and government with current economic, social and environmental data to help Victoria’s dairy industry monitor changes in productivity and profitability over time.

Over the past two years, the project has analysed and discussed the performance of dairy businesses across Gippsland, North and South West Victorian dairy regions.

In 2007-08 the project surveyed 73 farms and identified trends in productivity and profitability. In 2008-09 the project analysed 75 dairy farm businesses across the state.

In 2007-08 the main findings of the project reflected the then strong world price for milk. The average profitability across the participant farms was $2.39 per kilogram of milk solids sold or $1,460 per hectare. This equated to an average return on assets across the state of 10 per cent.

The more profitable farms did not necessarily have larger farm size or bigger herds, but they:

· produced more milk, both per cow and per hectare;

· consumed more pasture per hectare;

· had a higher percentage of home grown feed, both grazed and conserved, in their diet, and;

· had lower input costs, both variable and overhead.

The whole farm analysis showed that on average, farms in the South West ran the largest herds (387 cows) over the largest area (320 hectares).

Gippsland has much smaller average useable area compared to the other two regions at 181 hectares, but a much higher stocking rate at 1.6 milking cows per hectare. This resulted in Gippsland farms having the highest production in terms of kilograms of milk solids per hectare at 741 kg.

In comparison, 559 kg of milk solids per hectare in the North and 591 kilograms of milk solids per hectare in the South West were achieved.

Cows in the North had the highest production for the year producing 511 kilograms of milk solids.

As well as analysing farm financials, the project also analyses a number of physical measures. One of these is feed consumption, and the report shows that pasture is the main component of the average cow’s diet in all regions.

In the North however, the dependence on conserved feed, be it home grown or purchased, is clear. Thirty per cent of the North’s feed to cows was sourced from conserved feed, compared to 18 per cent in the South West and 12 per cent in Gippsland.

All regions are dependent on concentrates with average proportion of energy sourced from concentrates as 22 per cent (Gippsland), 24 per cent (South West) and 28 per cent (North) respectively.

At the time of writing this article, the 2008-09 Dairy Farm Monitor Project Report was still being completed.

Preliminary analysis of the data collected for 2008-09 shows Gippsland producers’ reliance on high pasture production, sourcing around two-thirds of their herds’ energy requirements from grazing. This is the highest level for the state, with the South West sourcing 55 per cent of their energy from grazed pastures while farms in the North, with ongoing low water allocations, sourced less than 40 per cent of their energy from grazed pastures. This reliance on pastures is further reflected in the amount of money spent on fertilisers. These accounted for approximately 12 per cent of total costs in Gippsland dairy businesses compared to 9 per cent in the South West and 4 per cent in the North.

To view the full report including business and production performance of farms in the project for 2008-09 go to www.dpi.vic.gov.au/dairyfarmmonitor.

The project team is now looking at management practices adopted by farms to cope with the impact of the current milk price drop. In addition to this, methods for intensifying on farm production will also be investigated. The feature article will be available online from September 30, 2009.

The Dairy Industry Farm Monitor Project is an initiative of the Department of Primary Industries (DPI) and Dairy Australia.

For more information contact DPI Farm Business Economist, Daniel Gilmour on (02) 6030 4629 or Dairy Extension Officer, Michele Ryan, on (03) 5561 9914.

FARMING DIARY

AgFutures heads to Snowy River country

Department of Primary Industries’ (DPI) AgFuture program is hosting a free information and discussion evening on the future of agriculture on Tuesday, August 11, 2009 from 6:15 pm at the Caves Hotel, Buchan.

Two hot issues have been raised by Buchan, Gelantipy and Walgulmerang farmers and residents recently. Come and join the discussion over dinner with soil and social science experts.

Presentation topics include:

  • Peak Phosphorous with Dr Ian Sargeant, Soil Scientist and Researcher – Discussion will focus on the role of phosphorous, factors governing its availability and how soil biota can liberate the often large quantities of ‘unavailable’ phosphorus already in the soil.
  • Social Landscape Change in Rural Victoria with Neil Barr, Leader of DPI’s Social Research Team – The presentation will cover how people, land use and populations have changed; and discuss how the drivers of this change and its flow on effects to local farming communities.

Rural health, community planning and financial counselling representatives will be available at the forum for an informal catch up.

The Buchan forum is part of the AgFutures project being delivered in 12 farming areas in 2009 as part of the Victorian Government’s $205 million Future Farming Strategy, of which $3.74 million was allocated to the project.

For catering and registration purposes, please contact the Buchan Neighbourhood House on 5155 9216 or DPI Orbost on 5155 9216 by Monday, August 10, 2009.

Climate Change Forum

The Victorian Government will be holding a public forum to discuss the recently released Victorian Climate Change Green Paper on Friday, August 28, 2009 in Morwell.

The Government is seeking community feedback on the ideas and strategies put forward in the Green paper towards the development of an effective, long-term response to Climate Change for Victoria.

The event will be hosted by Minister for Climate Change, Gavin Jennings, at Kernot Hall, Cnr Princes Drive and Monash Way, Morwell from 10:00 am to 12:00 pm (refreshments included).

To register for this event, or for further information, call 1800 463 684 or visit www.climatechange.vic.gov.au


Source: http://gippsland.com/

Published by: news@gippsland.com



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