Four key management tasks for resilient dairy farming
Average herd size has increased from 25 cows per farm in 1990 to 74 in 2015, and is anticipated to increase to 84 by 2020, corresponding to an increase in labour requirement from 25 to 75 hours per week.
The extra expansion workload, and the need for excellent technical performance, adds to the management burden of increasingly busy farmers, also coping with lower marginal profitability and less free cash. That’s why farmers will need to spend more time managing (planning, monitoring, evaluating and adjusting).
Milk producers at the Teagasc Moorepark’15 Open Day were told resilient dairy farms must have a low cost base to insulate them from low milk prices, and to generate sufficient funds at higher prices for family and farm requirements.
Four principal management considerations for resilient farming were noted at the Open Day.
* Each farm family should have a written shared farm plan incorporating business and personal goals, for the next 7-10 years, allowing family members articulate their individual goals.
This plan should be updated annually, highlight what is needed from the farm, in alignment with family goals, thus building commitment and united focus.
* Time is increasingly the most limiting and valuable resource on dairy farms.
Farmers will have to reduce time spent on operational jobs and instead spend more time managing people and physical and financial resources. This will be really challenging for those who enjoy the day-to-day work. However, the financial return from time spent managing greatly exceeds that from operational work.
Hired help will be required to meet the operational workload, and additional contractors and professional business support services will also be needed.
* Many farmers focus on physical resources (cows, grass, money, infrastructure), but few question if the necessary management capability for successful expansion is available.
Additional training and skills development for the farm owner and staff are essential.
Every farm business also periodically needs a sounding board for new ideas — which must be provided by trusted external support networks, such as a discussion group and professionals (adviser, accountant, vet, etc).
* Working with non-family labour is a challenge. The ability to explain your expectations for the work and to provide training and feedback is essential.
As a mentor, the farmer must invest time in patiently building the new person’s skills and experience.
Viable businesses need high calibre young people with positive outlooks, open minds and knowledge.
The continued personal development of farm employees is as important as financial remuneration. There needs to be an annual budget within the business for training and development of everyone working on the farm
