Shinagh Farm profitable at 2016 milk prices

Shinagh Farm profits will dramatically fall in 2016, but the demonstration dairy farm at Bandon, Co Cork, will still make a profit, despite a substantial fall in milk price.

The key strategies to achieve a profit this year were revealed to farmers at the recent open day at the farm developed at Shinagh Estate in Bandon by the Bandon, Barryroe, Lisavaird, and Drinagh Co-Ops, Carbery Milk Products Ltd, and Teagasc.

The strategies were:

Growing and utilising more grass (this will deliver more profit on your farm, whatever your system). The farm is soil tested every year and lime, phosphorus and potassium applied as required. As grass growth has increased, stocking rate has increased, and calving date ws adjusted, to maximise grass utilisation. The farm target is to have morer than 70% of the cows’ diet from grazed grass.

Maintaining a high EBI herd: Herd physical and financial performance has been strong. The herd has also lasted well, with 31% of the original heifers of 2011 still milking.

Having a labour efficient system: With a compact calving system (96% of the herd calved in six weeks), there is a disproportionate need for labour during the springtime (nearly 50% of the hours worked on the farm occur during February to April). Therefore, ensuring student/relief worker availability during this time is critical. In addition, use of contractors for nearly all machinery work frees up time for labour to focus on farm profit drivers such as cows and grass.

Fixing a portion of milk price, fixing interest rates, having a cash reserve, gaining access to capital, and striving to minimise input costs, have also helped to achieve a farm profit this year.

Meanwhile, the 33ha Gurteen farm (also owned by the four West Cork co-ops, through Shinagh Estates), located 2km from Shinagh, has been set up to demonstrate a variation of the share farming model, an option that may suit certain parties better than leasing or partnerships.

Benefits to the farm owner are having a dairy farm business, without investment in livestock or labour to run the farm; remaining an active farmer for the basic payment scheme; and access to and retention of a motivated and skilled farm manager.

Benefits to the share farmer are access to a developed farm; investment only needed in cows; the opportunity to run the business, in conjunction with the farm owner.