Farmers who apply grazing do not cash in on the cost price advantage
The average grazer incurs more costs than his non-grazing colleague. A business-economic comparison shows that grazing farms desperately need the milk premium. However, the leading group of grazing companies shows that there is a technical advantage to be gained. They do better than the leading group with non-grazing farms.
A comparison in the trade journal Melkvee, as well as a report about a meadow farmer who radically changed course.
Life is made up of choices
This week's Melkvee features an article about the limited return achieved by the average grazer. Not really, because he/she incurs more costs than the non-grazing colleague.
Farming is not an easy profession. You depend on the weather, politics and the market, things you can't change. That is why it is so important to focus on things that you can influence and that are within your sphere of influence. That gives energy, while those other things consume energy!
The dairy farm in NW Europe is based on the high input – high output SYSTEM. A lot is put in, 6 kJ and 1 kJ comes out. (Meino Smit 2018 https://edepot.wur.nl/449448)
In recent years, this balance has become increasingly unfavorable for the dairy farmers, in other words, the costs keep rising. Especially because the majority of the supply from the periphery is based on adding more and more costs.
A large study from Great Britain in 2012 came to a similar conclusion; the specialized meadow farmer achieves the best results. Because when you make a decision, it's important to implement it in its entirety!
In other words, is the businessmodel designed for keeping cattle inside, so the high input – high output SYSTEM, then implement it completely and stick to it, to achieve the highest financial return.
Are you using a low input SYSTEM, such as "PG NxT-STEP©” then do that all the way through and stick with it to get the highest return.
Good returns can be achieved with both systems. Just be careful with mixing systems!
Few people realize that they are working within a SYSTEM. It is written in capital letters because this is so important to realize properly!
If both systems are mixed, then as a dairy farmer, depending on how far you are in the high input – high output SYSTEM, you will have less and less life and more and more work!
Because there are 2 systems that need to be maintained. With an emphasis on must.
That is why a company that fully implements "PG NxT-STEP©" no longer needs a feed mixer. The cows graze until, say, Christmas and then go dry. The entrepreneurs who go the furthest in this regard do not harvest grass from their own land.
They prefer to buy roughage.
That means less work and it gives them options to choose from, what quality they purchase, how packed, how much. They take what suits them from the market.
But another important thing is that they can fully concentrate on converting green fodder into milk as quickly and well as possible and thus make the RATE of money much shorter; grazing today, milking tonight, collecting milk tonight, and the money in the bank account at the end of the month!
A further specialization!
Which also has a low footprint with the BEST return, as shown by both studies mentioned above.
Pure Graze offers you, as a specialist in the low input system, a tried and tested businessmodel; "PG NxT-STEP®". It is offered to you online and can be followed at your own pace. In addition, there are various contact moments with fellow students and webinars to answer questions.