Focus Day. Information Hand-out

Transcription

1 Focus Day 27 th February 2014 Information Hand-out Lunch Sponsored by: [No RSVPs required] Enquiries: Visit our website to receive the weekly Update Newsletter Farm Walk Notes and Details Look for the Sthld Demo Farm tab at Page 1 of 27

2 Partnering with: For further detail visit the SIDDC website Sthld Demo Farm The information includes; Farm Walk Notes, Weekly Data, Production graphs, comparisons, SDDT. On Farm Team Barry Bethune, Farm Manager Dexter Mag-Abo, 2 IC Tony Stewart, Farm Assistant James Low, Farm Assistant HAZARDS NOTIFICATION 1. Children are the responsibility of their parent or guardian 2. Normal hazards associated with a dairy farm 3. Other vehicle traffic on farm roads and races 4. Crossing public roads, including busy State Highway 5. Underpasses may be slippery Please follow instructions given by event organisers or farm staff Page 2 of 27

3 VISION STATEMENT Providing economic, social and environmentally sustainable solutions for the Southern South Island dairy farming community. INTRODUCTION The 295 hectare property was leased by Southland Demonstration Farm Limited (SDF), controlled by the Southland Demonstration Dairy Farm Trust, on 1 st June 2007, to operate as a commercial demonstration farm which provides a focal point for the dissemination of information to Southern South Island dairy farmers. The milking platform is approximately 260 ha, with a further 35 ha (approximately) per year of brassicas and fodder beet for winter feed. The farm winters cows and supplies Fonterra s Edendale Factory targeting annual production of 340,000 kg/ms [1150 kgms per total ha / 1300kgMS/ha of the milking platform]. KEY OBJECTIVES 1. Economic sustainability [profit] of Southern South Island dairying. 2. Environmental sustainability [land, water, animals] of Southern South Island dairying. 3. Social sustainability [labour] of Southern South Island Dairying. 4. To provide a central focal point for the dissemination of information to assist farmers to meet the challenges going into the future. CLIMATE Spring Summer Autumn Winter Annual Mean Annual Maximum Temperature (ºC) Mean Annual Minimum Temperature (ºC) Mean daily temperature (ºC) SOILS Soil Types % Farm Makarewa - Heavy poorly drained gley soil 42% Makarewa moderately deep 8% Mataura - Recent flood plain soil, Silty - Well drained 19% Tomoporakau - Poorly drained silt loam prone to water logging 16.5% Northope - Imperfectly drained silt loam, variations in topsoil 13% Edendale - Deep well drained Soil, Silt Loam 1% Gore well drained alluvium base, Silt Loam topsoil 0.5% Page 3 of 27

4 SOIL TEST AVERAGE RESULTS Date ph OlsenP K Sulphate Sulphur Mg Ca Na Organic S TBK 2007/08 Average /09 Effluent 2008/09 Non Effluent 2009/10 Effluent 2009/10 Non Effluent 2010/11 Effluent 2010/11 Non Effluent 2011/12 Effluent 2011/12 Non Effluent /13 Average Page 4 of 27

5 RECENT FERTILISER APPLICATIONS 2008/09 N P K S Lime Non Effluent kg/ha Effluent kg/ha 2009/10 N P K S Lime Non Effluent kg/ha Effluent kg/ha 2010/11 N P K S Lime Non Effluent kg/ha Effluent kg/ha New Grass Paddocks kg/ha 2011/12 N P K S Lime Capital P Areas Average kg/ha kgsn/ha No P Areas across whole kg/ha Rest of Non Effluent farm area kg/ha including winter crops. Effluent kg/ha 2012/13 N P K S Lime Whole farm average 213kgN/ha kg/ha PASTURES / PASTURE RENEWAL Pastures are progressively being renewed each year through a renewal programme that incorporates both winter crops such as swedes, kale and fodder beet and short term ryegrasses prior to new permanent pasture being sown. Typically half of the winter-crop area is returned to new pasture each year and the other half cropped for a second season. The farm has re-grassed approximately 1/3 of the property in the past 4 seasons. Each new pasture is a perennial ryegrass/white clover combination, with strategic placement of particular cultivars across the farm differing in ploidy (diploid/tetraploid), flowering date and more recently different novel endophytes. A small area of the farm was sown directly in short term ryegrass without clover to increase the amount of re-grassing on the farm and address some of the weed issues on farm. The ryegrass acts as a forage crop in its own right, this will be wintered cropped and returned to permanent ryegrass / white clover. Permanent pastures are sown at 20kg/ha diploid ryegrass and 25kg/ha tetraploid ryegrass with 6kg/ha white clover. Page 5 of 27

6 STAFFING & MANAGEMENT SDF has a Business Manager (30 hours/week), full time farm manager, 2IC and two farm assistants. Additional relief staff employed as required to assist with calf rearing and relief milking. The normal roster is 8 on / 2 off till Christmas, 9 on / 3 off after Christmas Milking Times Morning: cups on 5.00 am Afternoon: cups on 2.30 pm HERD DETAILS AND MATING PROGRAMME Cows AI for 6-8 weeks followed by bulls. Heifers - AI to Friesian or Cross-Bred for 2 weeks then run with Jersey bulls. Breeding Worth: 119 / 45 Production Worth: 141 / 64 Ancestry: 92% Calving start date: Heifers - 1 August, Cows 10 August 2012 Calving date Mid point: 22 August 2012 Mean Calving date: 25 August 2012 Mating start date: 21 October Heifers, 28 October Main herd. 2 November 2012 Bulls run with Heifers. 19 December main herd finished AI, bulls in till 29 th January (herd and heifers). Why-Wait programme administered for cows cycling between 16 th and 28 th October and modified Why-Wait for heifers not mated in first 8 days of mating. PRODUCTION DETAILS / FINANCIAL RESULTS Farm Details 2007/ / / / / / /14 Target Milking Platform area (ha) crop area (ha)* Total kg/ms supplied 290, , , , , , ,000 Average kg/ms/cow Average kg/ms/ha (Total Farm) Average kg/ms/ha (Milking Platform) Purch. Suppl - fed [kgdm/ peak cow] Made on dairy-platform [kgdm/cow] Applied N / 295 eff. Ha July cow numbers Max. cows milked Stocking rate Cows / Milking platform ha Stocking rate Kg liveweight / ha Cows wintered on farm No. Yearlings grazed On / Off No. Calves grazed On / Off Farm Working Expenses /kgms $3.31 $4.83 $3.85 $4.12 $4.09 $4.03 $3.90 Dairy Operating Profit / $4,264 $392 $2,488 $2970 $2463 n/a Total farm area Dairy Operating Profit/ $4,607 $438 $2,833 $3344 $2806 n/a Milking Platform Payout [excl. levy] $/kg $7.62 $5.2 $6.37 $7.90 $6.30 $6.16 $8.30 Page 6 of 27

7 CONTENTS Pages Southland Demonstration Farm [SDF] Information 2-6 Contents 7 Seasonal Update Financials YTD 8-9 Seasonal Update On farm update Reproduction and BCS Steve Lee, Consultant and Sally Parle, Key vet, Vet South HR Timesheets and what they mean to SDF Southern Dairy Hub Concept Proposal Page 7 of 27

8 SDF SEASONAL UPDATE FINANCIAL UPDATE Stacy McNaught Business Manager YTD COMPARISON January /14 Budget - Key Financial Parameters 800 cows wintered on farm 340,000kgsMS total up 20,000kgs from 12/13 budget Budget FWE $1,326,535 ($3.90/kgMS) Page 8 of 27

9 SDF SEASONAL UPDATE FINANCIAL UPDATE (continued) FINANCIAL NOTES INCOME Higher than budgeted bobby calf prices, the winter sale of some surplus cows, some slipped heifers and budget cows sales mean Dairy sales income remain above budget. The strong production has continued (8%) and the higher pay-out has dramatically increased the variance with Milk Production income. EXPENSES Animal Health Teat Spray had trended above budget effectively buying a drum per month rather that every second as expected has accounted for this. Veterinary advice and a favourable bulk SCC make this a little more palatable, however we continue to look for improvements in this area. Electricity A $14,000 bill from Contact for supply from Feed Early season PKE use to push up the BCS early. Fertilizer The whole farm soil testing done in the winter time identified some blocks that needed extra fertilizer. We chose to do a whole farm application of Super and Selenium earlier than originally budgeted to boost pasture growth earlier rather than later. Given pasture growth is well above average for the farm, we think that this has been worth it. Also getting the Selenium onto the pasture prior to mating rather than in late Autumn as has happened in other years has worked well by aiding our improve levels in the bloods taken. Grazing Some invoices haven t been received but due to changing graziers and applying more performance targets to it, we expect to be over budget by year end. Repairs and Maintenance The outside of budget lane work to assist with the lameness issue was done, 18k. Refrigeration unit on the silo died so a new one was required, 6k Repairs to the staff houses were not budgeted but were required and was 7k The water treatment plant including the salt accounts for another 4k over budget, this is a new code this season. Shed Expenses Some major platform repairs have been done season to date. A platform rebuild is being discussed currently to try to put an end to the ongoing disruptions. Vehicle Expenses Some of the early season repairs to the tractor including hire for a temporary replacement tractor remain the main cause of the variance, along with an unbudgeted expense. Replacing two older bikes with new units has reduced some motorbike expenses as well as having a positive effect on fuel consumption. Wages An error in the original budget has this code progressively going over budget as the season goes on. Some staffing changes also impacted this code, getting Wintering A few purchases ahead of time is the reason for the variance. Administration Higher than expected administration costs are being looked at and also include a number of costs that will be re-allocated out of the FWE of the Demo Farm such as external auditing of financials. These are demonstration activities (things we have to do that typical farmers don t) so this will be corrected in time. Page 9 of 27

10 SDF SEASONAL UPDATE ON FARM UPDATE Barry Bethune Farm Manager Stacy McNaught Business Manager Initial plan and YTD results - SUPPLEMENTS o o o o Crushed Barley will be fed from August-January. Up to 108,000kgsDM (135kgsDM/cow/ 416kgsDM/Ha) YTD UPDATE 140TDM has been fed. Molasses will be used primarily for a more efficient transfer of minerals to the cows through the August to January period. Up to 44200kgsDM (55kgsDM/cow / 170kgsDM/Ha) YTD UPDATE 30TDM has been fed 100TDM silage will be available to be fed in the spring period. Up to 100,000kgsDM (125kgsDM/cow / 386kgsDM/Ha) YTD UPDATE 72TDM of silage was been fed. 220T has been purchased 121,500kgsDM PKE (135T PKE) will be fed from February/March through till dry off. Primarily to assist with achieving a whole herd average of 4.5 BCS. Up to 121,500KgsDM (151kgsDM/cow / 469kgsDM/Ha) YTD UPDATE 55TDM PKE was fed in the spring to assist BCS gain. Summary Budget 498kgDM/peak cow total YTD UPDATE 302TDM Purchased and fed to date 403KgDM/peak cow 108TDM made on farm (for winter baleage) 143kgDM/peak cow MILK PRODUCTION ACTUAL vs TARGET Target milk production for the season is 340,000kgsMS (450kgMS/cow 1300kgMS/Ha). Currently SDF is 8% up on this target and tracking 3-5% ahead on a monthly basis. Rough modelling shows us finishing the season in the range of 350,000kgMS (466kgMS/cow 1351kgMS/Ha) to 365,000kgMS (486kgMS/cow 1409kgMS/ha) which is an excellent result. Crushed Barley has remained in the diet later into the season than first budgeted to assist production. The original budget had 120TDM allocated for Barley. Our policy of being focused on BCS daily and using the OAD and preferential feeding policy all season we have very few animals requiring special feeding this autumn to reach our dry off BCS target of 4.5. Some of the autumn PKE budget will be used for Crushed Barley Target vs Actual Milk Production Target (13/14) Actuals (13/14) Page 10 of 27

11 Soil Temp (Degrees) 04-Jun 18-Jun 02-Jul 16-Jul 30-Jul 13-Aug 27-Aug 10-Sep 24-Sep 08-Oct 22-Oct 05-Nov 19-Nov 03-Dec 17-Dec 31-Dec 14-Jan 28-Jan 11-Feb 25-Feb 11-Mar 25-Mar 08-Apr 22-Apr 06-May 20-May SDF SEASONAL UPDATE ON FARM UPDATE (continued) SDF Rainfall Rainfall 13/14 Rainfall 12/13 13/14 Annual Total 12/13 Annual Total Rainfall is up 24% season to date and apart from a couple of big falls it has been reasonably consistent. Good soil moisture levels relative to last season are assisting the pasture growth rates we are seeing currently. SDF Soil Temperature Comparison Jun 04-Jul 04-Aug 04-Sep 04-Oct 04-Nov 04-Dec 04-Jan 04-Feb 04-Mar 04-Apr 04-May Soil Temp 13/14 Soil Temp 12/13 11/12 Season Poly. (Ave) Soil temperature has only returned above average recently, this with the good soil moisture levels also helps to explain the pasture growth currently. Page 11 of 27

12 04-Jun 18-Jun 02-Jul 16-Jul 30-Jul 13-Aug 27-Aug 10-Sep 24-Sep 08-Oct 22-Oct 05-Nov 19-Nov 03-Dec 17-Dec 31-Dec 14-Jan 28-Jan 11-Feb 25-Feb 11-Mar 25-Mar 08-Apr 22-Apr 06-May 20-May Growth Rate (kgdm/ha/day) SDF SEASONAL UPDATE ON FARM UPDATE (continued) SDF Growth Rate Comparison Growth Rate 13/14 Growth Rate 12/13 GR 11/12 Poly. (Ave) The graph above shows the growth rates for SDF, we have been experiencing above average growth rates since the end of December. This has resulted in an extra 1.4TDM/Ha of pasture grown for SDF this season. Below is the Woodlands pasture growth graph, it shows a similar pattern to SDF. Page 12 of 27

13 04-Jun 18-Jun 02-Jul 16-Jul 30-Jul 13-Aug 27-Aug 10-Sep 24-Sep 08-Oct 22-Oct 05-Nov 19-Nov 03-Dec 17-Dec 31-Dec 14-Jan 28-Jan 11-Feb 25-Feb 11-Mar 25-Mar 08-Apr 22-Apr 06-May 20-May KgDM/ha SDF SEASONAL UPDATE ON FARM UPDATE (continued) The following graph shows the trend of our average pasture cover for the season to date. As explained in our weekly notes, SDF does allow around 200kgDM variance to the pasture assessments. Also, when we end up in a genuine surplus and baleage for winter feed is made, the higher paddocks remain in the wedge, inflating the APC Pasture Cover Comparison APC 13/14 APC 12/13 APC 11/12 Ave Poly. (Ave) Below is an example of the wedges at different times of the year. The first wedge is the 23 rd December when the APC was at 2220kgDM/Ha (for SDF this was a deficit situation). This second wedge is the most current wedge (24 th February) and shows us in a genuine surplus with baleage identified for harvesting yet still remaining in the wedge. Page 13 of 27

14 SDF SEASONAL UPDATE ON FARM UPDATE (continued) YOUNG STOCK UPDATE This year s calves have been send to a new grazier as the previous one could not take the larger numbers of stock we now rear. The agreement with this grazier is that weights are to be provided monthly and must be achieving the targets set out in Minda Weights. Some teething problems with the weigh data have been sorted, but unfortunately not for this Focus Day. The data that is available shows that over the 2 weighs that were completed and extracted from the weigh equipment show the following. Weigh Date Weight (kgs) 9/12/ /2/ Growth Rate/day 0.9 Last Autumn SDF identified the incoming R2 s live weights as an area for improvement, historically there has been a large range in this group and we believe this has been impacting our mating performance and early season production from the younger cows entering the herd. We are aiming for less than 5% below the Minda Weights target. As these animals were grazed off, we needed to discuss these new targets with the grazier and work with them to ensure they were met. We have been in regular contact throughout this period and feeding back with not only the weights but with ideas to ensure these animals targets will be met. As shown, that communication has been very effective, as has been the clear targets set by Minda Weights. There has been steady improvement in live weights since last Autumn with the most recent weigh averaging 400kgs with only 15% below target. Over half of the animals that are not at target are actually on target with their live weight gains so we expect these to catch up over the coming months. We are optimistic that we will reach out target of less than 5% below by May. Page 14 of 27

15 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 AN EARLY LOOK AND REPRODUCTION AND BODY CONDITION SCORE THIS SEASON. Steve Lee Consultant SDF has done several seasons of really looking to achieve whole farm profit from productivity. One of the core means has been managing all cows body condition according to the DairyNZ/industry target of halving all cows at BCS 5.0 for calving and young cows at BCS 5.5 What we are seeing now looks like a year on year improvement in the herd productivity both in terms of reproduction and MS production. It is a bit early to see final reproduction stats for this year. But looking at the data represented in the charts below, it is safe to draw the conclusion that decisions to dry cows off with enough time, based on their expected calving date and current body condition score will result in extra profit and a more resilient, easier to manage herd the following season Percentage of the herd less than BCS Herd Average BCS Page 15 of 27

16 AN EARLY LOOK AND REPRODUCTION AND BODY CONDITION SCORE THIS SEASON. (Continued) Steve Lee Consultant Data from Date Average BCS %herd less than BCS 4.0 % herd less than BBCS 5.0 % herd more than BCS 5.5 May SDF Reproduction summary points Cows 6 wk in-calf rate % Empty rate % * ** *Pregnancy confirmation report from Minda figure not fertility focus 6 week in-calf number **not yet available Given that we do not yet have a final outcome for in-calf rates for this season at SDF, what does the data tell us? What can we expect? Better herd management, using 3 herds to manage cows according to their BCS and needs has helped achieve targets. This has allowed the farm to direct supplements both in terms of quantity and type at the cows which need it the most. Impprovements in herd management have occurred this season with tighter BSC ranges around targets, eg. July 2012 the percentage of high BCS cows was 16% this season that number was pulled back to around 1-2% because of careful redrafting of cows through a winter in which crop availability was quite low. What other things might have impacted on the likely outcome? Lameness has been high this season but mitigated by the use of a small recovery herd. We have to accept that it will have some impact on Reproduction, but it has been managed. Key learnings. 1 A better 6 week in-calf rate in is anticipated and is a product of several years consistency in approach and attention to detail in daily farm operation. 2 In the case of the data, low average dry off BCS, gives means lots of cows [34%] below target. This requires most intervention [Cost, expensive winter feed, vet bills] to attain a sustainable, profitable calving pattern and lower final empty rate. Page 16 of 27

17 PREGNANCY RATE BY BCS Sally Parle Key Vet, Vet South From score done at PSM 1 st november 2013 This graph opens up a whole lot of discussion a couple of points to consider: I looked back through the calving date records and found that: One third of the fat cows (line with rectangles as markers) were late calvers (after 1 st October) much higher proportion than the herd (about 6% herd is late calvers (47 cows)) this probably explains why they have the lowest 6wk ICR Three quarters of the skinny cows (line with circles as markers) were early calvers (calved in August). Their 6 week ICR should have been much better as they were the earliest calvers, proportionally. Imagine how much better they could have done if in better condition. (Two thirds of herd calved in august). 33% of the skinny cows (line with circles as markers) had a CueMate put in them (compared with 18% of herd) higher proportion of skinny cows had intervention. Page 17 of 27

18 ANALYSIS OF REPRODUCTIVE INTERVENTIONS 2013 Sally Parle Key Vet, VetSouth SDF utilises the WHY WAIT program to assist with the long term improvement of mating performance. The program consists of the following; The cow s ovary is responsive to prostaglandin (PG) between days 7-14 of her cycle (day 0 = day of heat). If PG is given then, it will cause the cycle to be shortened and next heat to be brought forward. PG only works in cycling cows. (Don t try to use it in your non cyclers). PG will have no effect on cows that have cycled within the previous 7 days. The programme relies heavily on accurate heat detection for 2 weeks prior to the planned start of mating. You don t need to identify which cows cycle on which day, you just need to know which week they cycled in. Cows cycling in week 2 before PSM are jabbed at PSM, cows cycling in week 1 before PSM are jabbed 7 days into mating. The programme requires careful planning and the tail painting regimes can get quite complicated. Page 18 of 27

19 ANALYSIS OF REPRODUCTIVE INTERVENTIONS 2013 (Continued) 2013 WHY WAIT ANALYSIS For the SDF, this is how the why wait groups performed. The line with the triangle is cows who came up for mating in the first week without any intervention. To use as a comparison group. The line with the circle is the cows who cycled in week -2 before mating and were injected with PG on the 31st October (PSM 1st Nov). So how did this group do? 226 cows injected with PG, 159 cows (71%) responded (cows mated 1-7 th November). 80 cows got in calf. This graph compares the conception rate in the cows that actually responded to PG, you can see the conception rate is similar to the cows that were mated in the first week without intervention. In making this graph I wanted to see whether the PG would reduce the conception rate compared to the normal cows, it seems that it does not really. Page 19 of 27

20 ANALYSIS OF REPRODUCTIVE INTERVENTIONS 2013 (Continued) 2013 WHY WAIT ANALYSIS The second group had a better result. These were cows that cycled in the week before the start of mating and they were injected 7 days into mating. The pregnancy rate for the entire group was the same as those normal cows we used as a comparison in week one. So how did this group do? 141 cows injected with PG with 105 responding (74%) and mated between 8 th and 14 th November. 68 got in calf Cost to inject = 366 x $6.38(excl.) + mileage and visit fees x 2 = $ cows in calf on average 7days earlier = 148 x 7d x 1.7kgMS x $8.30kgMS = $14,618 Total profit = $12,157 Doesn t include the economic benefit of being an earlier calver for next mating. Page 20 of 27

21 ANALYSIS OF REPRODUCTIVE INTERVENTIONS 2013 (Continued) 2013 ANALYSIS Page 21 of 27

22 STAFF /HR General OVERVIEW (from the October 2013 Focus Day) One of the 4 key objectives at SDF (People, Planet, Profit, and Platform) is people. That objective is; Creating a work environment of trust and encouragement where people are motivated and set targets are met. A few key points on how the team is managed on farm, SDF involves staff at all levels throughout the operation in a vast majority of the decisions in order to foster a clearer understanding of the direction we are heading. Targets and expectations are communicated to staff regularly with feedback shared on the success or otherwise of the outcome. This also ensures the understanding is shared in both directions so that everyone throughout the organisation is on the same page. Monthly, weekly and daily task planning is critical in ensuring that those tasks are conducted on the most efficient manner possible. o o o Monthly so that staff understands the general direction for the time of year we are in. Weekly so that the direction can be refined and tasks can be allocated. And daily, so that the right tasks are assigned to the right staff member with the right skill set to achieve an efficient result. All of that contributes to a stable environment, which itself contributes to the success of this system, as staff are with SDF for longer this system becomes second nature. Staff that have been in the organisation for a few years are actually quite able to manage their own time once the general outline is discussed. Regular on farm and off farm training is provided to all staff. Part of the performance reviews is to ensure that the training is effective and of benefit to both the employee and SDF. Page 22 of 27

23 STAFF /HR (Continued) TIMESHEETS WHY? The timesheets that we use at SDF aren t just for compliance, the main use is for ensuring that we are able to measure the work that is done on farm. This isn t to be a clock watcher or to ensure that we extract every last minute of work out of the team, but to ensure that what work is done, is done productively and with relevance to their position and the effect that has on the overall farm business. This graph shows the total hours spent by all staff at SDF. (The year only goes so far as the 10 th November). Total Annual Hours at SDF So knowing the total hours worked gives us a general overview of what happens at SDF, this data is mainly used for planning the staffing levels required and to a point some of the roster is planned around this. From a budgeting perspective, this helps plan the amount of casual labour that may be required to ensure that the full time staff remain in their targets. The target hours that the full time staff are expected to achieve is 2320 hours per year (45hours/week). ROSTER The current roster system at SDF is 8 days on 2 days off from June to December 31 st. It then changes to 9 on 3 off for the remainder of the season. This gives all full time staff around 84 days off in a season, plus their 4 weeks of annual leave entitlement plus any statutory holiday entitlement that occurs. Generally this equates to 110 days off per season SDF Hours worked by month 0 June July August September October November December January February March April May Total Total Total Total Average Page 23 of 27

24 TIMESHEETS WHY? (Continued) So apart from telling us how many total hours are done on SDF, the timesheets have evolved into a very useful tool to be able to tell us where the time is being spent % % % Nov 13 % 1. Milking 31.30% 34.75% 34.59% 27.81% 2. Effluent 0.27% 0.08% 0.36% 1.30% 3. Pasture/Feed Management. 6.45% 8.02% 10.57% 16.17% 4. Calf Rearing 4.17% 7.62% 9.03% 8.60% 5. Stock Work 0.45% 0.65% 1.76% 4.66% 6. Animal Health 0.90% 1.04% 1.32% 5.17% 7. Tractor Work 0.95% 1.81% 1.41% 2.08% 8. Repairs & Maintenance % 15.44% 12.16% 7.61% 9. Suppliers 10. Weed Control 0.28% 0.75% 0.15% 0.04% 11. Training 0.75% 0.84% 0.62% 1.11% 12. Administration 0.38% 0.73% 0.51% 0.18% 13. Undefined 32.04% 28.28% 27.52% 25.75% The undefined section is simply incorrectly completed timesheets, incomplete timesheets or uncertainty around where coding lies. It was also used as a code to reconcile the differences in categories over the years as this system was developed. Over time this has shown has shown improvement and we expect it to disappear. Below is the current season to date data Total % of Time on Categories Jun-Nov Undefined 12. Administration 11. Training 10. Weed Control 9. Suppliers 8. Repairs & Maint. 7. Tractor Work 6. Animal Health 5. Stock Work 4. Calf Rearing 3. Pasture/Feed Mngmnt. 2. Effluent 1. Milking 0.18% 1.11% 0.04% 2.08% 1.30% 5.17% 4.66% 7.61% 8.60% 16.17% 25.75% 27.81% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% Page 24 of 27

25 TIMESHEETS WHY? (Continued) Page 25 of 27

26 SOUTHERN DAIRY HUB (SDH) WHY this SDH Proposal? The lease on the current farm (SDF) expires in The dairy industry in the past has always solved issues by addressing them head on. To maintain the opportunity for growth in the southern region. WHAT is the proposal? SDH will provide; A permanent commercial demonstration farm able to demonstrate best practice. High quality education and extension facilities Research facilities to complete comparative and applied research both on this farm and within the region. Provide extension by demonstrating research findings at a scale that creates relevance to the industry. An industry focused hub for associated stakeholders to work together. Southern Dairy Hub (SDH) Aims Southern Dairy Hub will provide a central hub of resources, technology and advice with the ability to provide accurate farm, environmental and financial information that is available to all. The fundamental aims of SDH are: To improve the performance and protect the viability of existing dairy farms in southern South Island To help develop and test new options for dairying in the southern South Island To support the responsible and sustainable growth of dairying in the southern South Island Promote the Dairy Industry Strategy Environmental challenges ISSUES to address Potential nutrient limits on catchments, could seriously reduce the rate of growth within the industry and erode the profitability of dairy farmers, their suppliers and communities if appropriate answers to reducing the environmental footprint are not found Maximising Profits While Minimising IMPACT Wintering Systems Page 26 of 27

27 SDH provides an integrated approach that will ensure future changes made on farm are sustainable and profitable and growth can continue. SDH Details: Farm Operational model and rationale The new SDH needs to be self-contained. Other attributes should include: Facility must be of scale; between 300 and 380 ha and over 850 cows. A good shape (prefer square) to minimize the costs of supporting and operating a number of farmlets and split herds. Be able to do commercial comparisons which address whole farm systems. Be able to research and apply solutions to environmental issues. Southern South Island farmers are the primary beneficiaries to grow and prosper from SDH. The unique strengths of southern South Island soils and climate are captured for profit without exceeding realistic environmental footprint targets. New whole farm systems tested and developed through robust science and extension activities in collaboration with leading farmers. Community acceptance and understanding of dairy enhanced. Reduction in the negative impact of dairy and enhanced positive impacts. A profitable dairy production system that solves issues unique to the region is developed. Improved access to science, innovation and education. Different ways to attract engage and grow staff created. Profits generated reinvested in the region. Far businesses in the region have information to become more profitable and robust. This will produce commercial outcomes for your farms. Contact: info@demofarm.co.nz Page 27 of 27