advantages of dairy farming
Answers
Answered by
1
There are so many variables - quite apart from price, which fluctuates wildly (and even that depends on whether you are on ‘whole-milk’ supply or for industrial supply (i.e., milk powder, cheese, butter, caseinates etc).
It has a good return on investment - note, only a good return when compared to other rural businesses.
A good production (in calf heifer), American Holstein - will set you back say $2,000 a head. Most commercial units locally are 800 to 2,000 head. About 400 head is the normal minimum.
A good, modern milking shed will set you back at least a million. Then add in the cost of the housing - most herds in the US are housed for most of the year and fed in the sheds. Say another $2 million. Then add land cost land cost, the effluent disposal system and the wash-down water charge.
If you are in a climate that allows to run the cattle out doors on grass alone, expect something in the order of 1,200kg (~2,700 pounds) of milk solids per beast - at (roughly) 1 lactating cow per acre. Say, 270 day season, so a production of say 10 pounds a day. Indoors production - especially Holsteins would increase that production significantly - but of course at the extra cost of feeding. Grass is free (well, nothing is free, but you don’t have to buy in).
If you are going for the industrial supply, Holsteins are probably your best bet - the price per pound of milk solids is less but they produce say 60 pounds a day (roughly at $1.30 a pound).
At that level (and assuming indoors production), you might nett say $30,000 a beast a season. To get a 7.5% gross return on the $5/$6 million investment therefore, you need a minimum of 200 head. The reality is - you have to pay the bank manager - so you need to double that herd.
Milked twice a day. Slightly less if milked once a day (say 85% of the production), but you get a life, reduce the vet’ bills significantly, use far less antibiotic and so it may actually give a better return.
There is also a very nifty automatic milking shed on the market, I’ve seen one in operation. The cattle milk themselves - often three or four times a day. The machine reads the ear-tag, washes the bag, applies the cups, milks, disengages and re-washes the bag and lets the beast go. It then tests the milk (a bacterial reading = BR), and pumps it to tank. If the BR is high, it keeps it separate and flags that cow for treatment. At the end of the season you know exactly the production of each beast. Probably only one man needed to manage say 400/500 head. Extra cost is about a million - though not quite as expensive for the shed as you don’t need at 20 aside as the cattle come in in dribs and drabs (as suits them), rather than in two great big herds a day. This leaves the farmer time to sow and plant the winter feed.
If you are going to produce milk for sale or for making your own cheese/butter for sale at the farmers’ market - then Jerseys might be a better breed (better cheese etc) but they will produce roughly two thirds the volume per season. And of course a much smaller herd!
It has a good return on investment - note, only a good return when compared to other rural businesses.
A good production (in calf heifer), American Holstein - will set you back say $2,000 a head. Most commercial units locally are 800 to 2,000 head. About 400 head is the normal minimum.
A good, modern milking shed will set you back at least a million. Then add in the cost of the housing - most herds in the US are housed for most of the year and fed in the sheds. Say another $2 million. Then add land cost land cost, the effluent disposal system and the wash-down water charge.
If you are in a climate that allows to run the cattle out doors on grass alone, expect something in the order of 1,200kg (~2,700 pounds) of milk solids per beast - at (roughly) 1 lactating cow per acre. Say, 270 day season, so a production of say 10 pounds a day. Indoors production - especially Holsteins would increase that production significantly - but of course at the extra cost of feeding. Grass is free (well, nothing is free, but you don’t have to buy in).
If you are going for the industrial supply, Holsteins are probably your best bet - the price per pound of milk solids is less but they produce say 60 pounds a day (roughly at $1.30 a pound).
At that level (and assuming indoors production), you might nett say $30,000 a beast a season. To get a 7.5% gross return on the $5/$6 million investment therefore, you need a minimum of 200 head. The reality is - you have to pay the bank manager - so you need to double that herd.
Milked twice a day. Slightly less if milked once a day (say 85% of the production), but you get a life, reduce the vet’ bills significantly, use far less antibiotic and so it may actually give a better return.
There is also a very nifty automatic milking shed on the market, I’ve seen one in operation. The cattle milk themselves - often three or four times a day. The machine reads the ear-tag, washes the bag, applies the cups, milks, disengages and re-washes the bag and lets the beast go. It then tests the milk (a bacterial reading = BR), and pumps it to tank. If the BR is high, it keeps it separate and flags that cow for treatment. At the end of the season you know exactly the production of each beast. Probably only one man needed to manage say 400/500 head. Extra cost is about a million - though not quite as expensive for the shed as you don’t need at 20 aside as the cattle come in in dribs and drabs (as suits them), rather than in two great big herds a day. This leaves the farmer time to sow and plant the winter feed.
If you are going to produce milk for sale or for making your own cheese/butter for sale at the farmers’ market - then Jerseys might be a better breed (better cheese etc) but they will produce roughly two thirds the volume per season. And of course a much smaller herd!
Similar questions