Barns in New Zealand Dairying Geoff Taylor Project

Barns in New Zealand Dairying Geoff Taylor Project manager: People & Business Farmer’s Forum April 2015

Why farmers tell us they are building barns! • Greater level of control over system • Manage issues, for example: – wet soils – winter pasture damage • • Achieve genetic potential of cows Address performance issues, e. g. in-calf rates Manage environmental regulation To grow their business without purchasing land

What’s Dairy. NZ doing? Our aim is to help the farmer: • Make an informed decision • Build it right • Manage it well

What’s Dairy. NZ doing? 1. Pastoral 21 Investigating use of barns to help achieve productivity growth without increasing footprint. 2. System Choice Helping farmers to determine if building a barn is right for them. 3. Animal Health & Welfare Generating a set of guidelines and resources to help ensure facilities are built and managed with an animal and human focus 4. Feed Right & System Optimisation Looking at how feeding strategies can be developed and implemented leading to continued profitability and sustainability.

System Choice Take homes:

System Choice Take homes – Be sure a barn is the best way to achieve your goals

Reducing Footprint? Pre-barn N Loss Post-barn N Loss (kg. N/ha) Diff Case Study 1 14 23 -64% Case Study 2 10 11 -10% Case Study 3 43 56 -30% Case Study 4 28 27 4% Case Study 5 8 7 13% Case Study 6 40 31 23%

Reproductive performance

System Choice Take homes – Be sure a barn is the best way to achieve your goals – Total investment = cost of barn + 30 -50%

Costs can be hidden Cost of Barn Total Capital Cost Diff Case Study 1 $2, 102 $3, 160 50% Case Study 2 $2, 573 $4, 181 62% Case Study 3 $2, 994 $3, 733 25% Case Study 4 $3, 302 $4, 731 43% Case Study 5 $4, 000 $6, 744 69% Case Study 6 $1, 440 $2, 161 50%

System Choice Take homes – Be sure it’s the best way to achieve your goals – Total investment = cost of barn + 30 -50% – Operating profit is not sufficient measure

Use the right tools Change in Operating Profit / Ha Change in Operating Return on Assets Net Present Value / Ha Option 1 Option 2 $225 $498 0. 20% $828 -$891

System Choice Take homes – Be sure it’s the best way to achieve your goals – Total investment = cost of barn + 30 -50% – Operating profit not sufficient measure – Skill requirements are different!

How does variability arise? In practice: Making 2 decisions: 0. 95 x 0. 95 = 0. 90 But making 4 decisions: 0. 95 x 0. 95 = 0. 81

Looking at a barn? • Make sure you get what you think you are paying for • Do your figures carefully – Analysis is very farm specific • Building & system design must be animal focussed • Make sure your team has the required skill • Not all about the money • EYES WIDE OPEN