What future, large-scale dairy systems might look like
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1 What future, large-scale dairy systems might look like Lior Yaron DeLaval Int. Sweden 1
2 Agenda Introduction Global Trends SDF Sustainable Dairy Farming Large Dairy Farms advantages/disadvantages Conclusion Source: Vertical Farm Project 2
3 What is large-scale dairy systems? In India 30 cows farm? In the UK? USA? EU... One size doesn't fit all DeLaval s Mega-Farm Definition A Mega Farm is defined as any single site dairy operation which is comprised of a minimum two thousand (2000) lactating cows. This total lactating, or wet, herd size may be derived from one or many herds on an individual site, with one or many ownership entities. The Mega Farm may include or exclude the integration of all young stock, replacements, dry cows and those with special needs on the same site 3
4 Introduction The profitability of dairy farms is under increasing pressure The main global trend in our industry indicates that each farm will be bigger and we will see fewer farmers Good farm management is crucial Sustainable Dairy Farming should be on top of the agenda Labour efficiency / availability Large regional differences Towards kg milk/man Focus food safety and animal welfare EU: end of quota system in
5 IMF World Economic Outlook January 2013 GDP growth Percentage change 5
6 The emergence of 3 billion middle-class consumers Global middle class* - billions of people 4,9 Rest of World 1,8 3, billion North America & Europe *Based on daily consumption per capita ranging from $10 to $100 (in purchasing power parity terms) Source: OECD / McKinsey datapoint based on UN statistics.
7 Milk production (dairy cows) Europe & NA share: %; % 7
8 What is the future? Too complicated! Very useful! Too expensieve!
9 What is the future? 9
10 Danish dairy industry consolidation 2005 to billion kg milk quota will be transferred between farms The average farm will increase its milk quota by 1 million kg In 2015 the average farm will have 160 cows and kg milk per cow In 2015 less than 2500 farmers Number / / / /94 Number of farms 1996/ / / / /09 Av. Milk quota 2011/ / Tonnes
11 Farm consolidation continues in USA 2015 % of Cows by Farm Size 28% 2% 33% 14% 11% 13% ,
12 Sustainable Dairy Farming Food safety Quality / Waste Productivity Measurements 12
13 Productivity Improve productivity on farm by focusing on key mitigation areas 13
14 PRODUCTIVE EFFICIENCY AND THE DILUTION OF MAINTENANCE EFFECT Source: J. L. Capper 1, R. A. Cady 2 and D. E. Bauman 1 14
15 SDF the American way Source: J. L. Capper 1, R. A. Cady 2 and D. E. Bauman 1
16 What is Dairy herd Sustainability? - Starts with good farm business plan, planning and design - Understanding KPI s (key performance indicator) and addressing problem KPI s Nutrition and feeding management - TMR & PMR system, Forage Quality, etc Milking Management Milking routines, Milk Quality, Record keeping and herd improvement Calve and heifer management - Raising The Next Generation Health & Fertility Maximizing potential based on genetic profile of cows
17 Large Farms can increase productivity and profitability.
18 Dairy Farmers are different
19 But cows are the same
20 Animals Cows Milk quality & quantity Consistency & Routine Cow Performance Technology, People & Job Performance Feedstuffs & Quality Cow Comfort
21 Cow comfort/cow routines Cows are content, lying down, resting, ruminating. Daily time budget for cows - Eating hours 3 to 5** - Lying/resting 12 to 14 - Social interaction 2 to 3 - Ruminating 7 to 10 -Drinking 0.5 **(9 to 14 meals per day) Rick Grant; W.H. Miner Agricultural Research Institute
22 Farm planning and design
23 Main areas in big project set up Milk Center (including Utility building, office etc) 2. Animal housing 3. Maternity 4. Treatment 5. Manure storage 6. Feed & bedding storage Main logistic considerations - transport of - milk - feed - bedding - manure
24 Main logistic considerations - cows - milk - feed - bedding - manure Safe and efficient cow movement with optimum cow comfort Clean access, minimum interaction w farm people, cows, manure, feed (biosecurity) Minimum interaction w cows, manure efficient logistic setup (both for making and distribution) Minimum interaction w cows efficient logistic setup Efficient manure handling, environmental friendly, minimum risk for animals and human
25 Large dairy farms is it good or bad? Good reasons behind it: Economies of Scale Labour efficiency - # cows per labor hr Better feeding efficiency Can use TMR/by products rumen ph under better control Manure treatment become economically Professionalism under SOPs and KPIs Potential risk factors: Planning Design and management no room for mistakes Bio security Social impact in countries with high level of un employment Keeping animal welfare on top of the agenda Management level must be upgraded people management 25
26 Sierra Dairy, TX - 60 stalls PR3100
27 Al Safi unit 110, 3600 cows, Saudi Arabia
28 Al Safi Dairy Farm, Saudi Arabia, 30,000 cows 14 parlours. Biggest is 2x60 Parallel
29 NADEC Cows 400MP Customised Drawings
30 Projects from around the world China India Turkey 30
31 Helicopter overview to get the right picture Social Emission potential (N&P) Plant protection Working conditions Social security Purchaser and supplier Financial Economic stability Economic efficiency Local economy Biodiversity Emission potential (N&P) Plant protection Waste Planning, Design & Management Efficient use of farm produced fertilizer / purchased fertilizer Animal Welfare Cow comfort Animal health Nutrition Water Reduction in GHG (CH4) Environment Energy Water Soil
32 Conclusions 32
33 Dairy farm future Farming as a way of life is bad business Farming as a business is a good way of life Thanks for your attention
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