Kiwi Grazing Technology:  Profit - The Focus

Profit for the farmer is the main focus of the grazing based systems used in New Zealand. It's a system that can absorb the year-to-year variations in pasture growth, and has allowed New Zealand farmers to maintain profitability in the face of falling pay-out prices and the complete removal of subsidies. This has been achieved by working from a strong scientific base, to develop methods and technologies based on pasture which give the farmer the tools to improve profit.

Northern Hemisphere farming, on the other hand, is dominated by the high input/high output, energy intensive, "cut and carry" model. Production per cow is often impressively high, but it is achieved at very high cost, eroding profit margins and forcing farmers to strive for ever more output, ever bigger size, ever bigger costs, and ever greater pressure on profits. Grass-based systems can't match the high production per cow levels of "cut and carry" farming, but this is more than compensated by what really counts - the higher profit achieved by maintaining respectable revenue, but having lower input costs.

The low-input/high profit approach achieved using the New Zealand system, puts less stress on animals, lowers energy, labour, and capital costs; and leads to fewer effluent disposal problems and other environmental concerns.

But, can farmers using the traditional ration feeding systems, use the grazing technology developed and refined in New Zealand over the past 100 years or more? Increasingly, the answer is yes.

On the face of it, cut and carry is logical because it allows plenty of flexibility in the way land is managed. And besides, the traditional way that Dad and Grandad farmed worked OK, didn't it? The problem is things have changed. The traditional method involves using expensive machinery, high labour costs, and high energy costs - both in getting the feed to the animal and disposing of their waste. Subsidies may have perpetuated a dependence on such capital intensive systems.

Farmers all over the world are looking now more seriously at using elements of New Zealand grazing technology to develop a farming system using more grass to increase profits, even if overall levels of production are reduced.

In practical terms, adapting the New Zealand system means beginning the herd's access to pasture earlier in the spring and extending it further into the autumn. Because grass is cheaper to produce than silage or rations feeds and other supplements, this means lower input costs.

The New Zealand system may be low input, but low-tech it is not. It still costs money to grow grass and, as with any business, the successful farmer is the one that can manage the different combination of inputs to produce the best profit. The New Zealand system comprises a whole raft of management technologies, products, and services, all aimed at improving the ratio of revenue/costs.

The principle of grazing management is to match grass growth with nutritional demand to achieve the maximum output at the least cost. In the case of a dairy farm this requires calving cows in spring so that their nutritional requirements for maintenance and production coincide with the available pasture. It is a delicate balancing act, restricting feed intake during late autumn and winter; and transferring feed from periods of low demand and surplus, to periods of high demand and restricted supply.

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Breeding technology plays a part in this. Use of controlled internal drug release (CIDR) devices to synchronise calving patterns is now widespread. It has given dairy farmers far more control over timing of calving in relation to the spring pasture flush.

Allowing cows onto pasture does come at a cost, of course. If cows are allowed to graze "ad lib", their intake will far exceed what is required for production, so pasture must be meted out accurately. Effective grazing management depends on monitoring a range of herd, pasture and individual cow variables. Feed budgeting involves assessing both the quantity and quality of the pasture on a regular basis. This means measuring pasture dry matter levels to check progress against budget. There are several methods of doing this including assessment by eye, sampling, and the use of calibrated measuring devices such as the "rising plate" and the electronic pasture probe.

Measurement is not confined to grass. Measuring and monitoring the live weights of cows and heifers with electronic scales can assist in improving profits by:

• ensuring heifers reach target mating live weights

• ensuring heifer calving weights are achieved, thus improving first lactation production.

• ensuring the correct dose of drench etc is given.

• using weight loss to identify health problems.

• paying graziers on live weight performance ensures proper feeding.

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The latest electronic scales are very robust and accurate and, best of all, allow the automatic recording of weight data, thus avoiding the tedious and labour intensive chore of manual recording.

Electronics and automatic recording are also being used to record milk production. Electronic milk meters can quickly record and sample milk production for individual cows - an essential component of any breeding/genetic improvement program.

Perhaps the most important aspect of New Zealand's dairy breeding and sire testing program is that it is selecting animals specifically for high production performance under the commercial pasture farming conditions. These genetic improvements mean that cows are adapted to produce well in the outdoor, pasture based system. The genetic improvements are real because cows have been bred to perform in the grazing environment which exists on every farm.

Plenty of good fencing is needed to ensure cows graze the right amounts for their production demands, without damaging the sward. A good system of subdivision using a combination of permanent and temporary fencing makes it easier to control cows' feed intake and to assess the build up of pasture.

Dairy cows in a grazing system are hard on fences, and permanent fences don't give the flexibility required to control feeding sufficiently. It is no coincidence that New Zealand companies lead the way in providing farmers throughout the world with the necessary electric fencing to operate pasture based farming systems. They are world leaders because they have superior products, developed in a demanding and highly competitive market, their products fit into an integrated system, and they provide world-wide servicing and technical back-up.

Both permanent and movable systems are used, and systems are available to protect existing and new non-electric fences. The latest generation electric fence is resistant to the effects of wind and snow, and is not so prone to power "leakage" over longer distances as the earlier types of electric fence. A novel system which allows a complete polywire electric fence to be simply rolled across the field has also been developed, which saves time and energy.

As well as being hard on fences, dairy cows can, of course be hard on the pasture they graze. Trepidation about letting cows loose on damp pasture in spring and autumn is understandable, but problems can be avoided by the following:

• Block graze in square shaped, rather than strip shaped blocks. This minimises the cows' walking up and down.

• Ensure cows are hungry when they are released onto a block, so that it is eaten down quickly and well. This ensures good regrowth and minimises the time needed on a particular block.

• Keep the wettest areas of the farm until later in the spring, when the soil has had a chance to dry out.

• Have several entrances available.

• Don't disturb cattle unnecessarily while they are grazing.

• Use back fencing to keep cows off regrowing areas. 

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Pasture quality is another important fact in dairy productivity using the New Zealand system, where farmers regularly monitor both soils and pasture herbage to ensure their cattle are receiving a balanced supply of nutrients. By taking samples across the whole farm, fertiliser applications can be fine tuned to ensure the right amounts are applied in the right places. Generally, samples taken by farmers are sent to specialist laboratories for analysis. The labs provide a whole battery of regular tests for soils, plants, foodstuffs, growing media, and nutrient solutions. In addition to nutrient levels, farmers also test regularly for trace elements important to animal health.

The basis of the New Zealand system is, of course, the plants themselves. The establishment of a dedicated pasture research and plant breeding station in the 1920s was an important milestone. The development of specialised cultivars of perennial ryegrass, and superior more nutritious strains of white clover, were significant breakthroughs which boosted productivity in New Zealand. So too was the development of a seed certification system, which provides a quality guarantee for seed buyers.

Since then, many specialised cultivars have been developed for specific farming needs. Among these are many pasture species that have been proven to perform well in other locations throughout the world. Pasture cultivars suited to specialised grazing conditions are under constant development. Cultivars of ryegrass, for example, have been developed to cope with drought, hard grazing, and the treading of stock. Clovers and other forage legumes have been specifically bred for low fertility areas, acid soils, and pest and disease resistance.

Specialist New Zealand seed companies supply the traditional ryegrass and clovers, but are increasingly breeding and supplying high producing plants for use in specialised grazing situations. In areas with dry summers, species such as chicory, tall fescue, prairie grass (brome), and phalaris are becoming an important ingredient in maintaining high production.

Pasture improvement includes introducing new improved cultivars and specialised species to existing pastures. To achieve this, without the high costs of full cultivation, a specialised, no cultivation, pasture seed drill, which allows sowing direct into pasture, has been developed. The drill allows damaged pastures to be oversowed with improved cultivars so they are producing in the spring when they are needed. The same drill allows direct drill sowing of "no-till" seed brassica, green feed crops, and supplementary feed to overcome both winter and summer short supply.

Finally, access to water in the field can't be forgotten. Lactating cows need at least 70 litres of water per day, and good access is required to ensure those in the lower pecking order don't miss out. During the driest part of summer, access to water is as important as access to good pasture for maintaining production.

Farming is a business. Profit is only made when revenue from production is less the costs to produce it. The "New Zealand System" based on pasture and grazing becoming increasingly viable as an alternative to the high input cost systems traditionally used in the Northern Hemisphere. The New Zealand system has been adapted and works in many parts of the world, allowing profitable farming in the face of increasing costs, reducing subsidies, and lower pay-outs. Farmers who want to improve profits and get off the high-input/high-output/low margin treadmill will gain a real advantage by using New Zealand technology.

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