La Tablera

Farm Plan Summary: La Tablera

Introduction

The Project will run for 3 years with a Year 3 goal of achieving 800 litres/day with a Cost of Production less than 20 cents/litre. A CoP of 15 cents/litre is the long term target.

This summary outlines the processes we will use to change the farm to profitability using a pasture based system for the first year. The goal is to improve Cash Flow & reduce Cost of Production to 25 cents/litre in the first year. The budget average for the first year is 28 cents/litre due to some high costs at the start. From January 2019 the CoP is 25 cents or less.

It will drop much further by the time the project is completed in Year 3 as better pasture species are planted & the systems are refined. The goal for Year 3 is 15 cents/litre. The improvements are limited to the milking area of the farm as this generates the income. The grazing area for dry cows & young stock will be addressed in the future.

The reasons for each step are explained. The plan is based on the previous Financial performance of the farm & the physical factors that inhibit the farms performance. The first priorities are to address the current feed shortage & to plan for the next dry period.

It is important to note that the plan may change in the future depending on the responses to the changes that have been implemented. This is planned system of changes not an instant result based on magic or plant & hope that is common here in Ecuador. Profitability based on Science & experience is the driver for this plan. You can check the results when the Financial information is published monthly.

Current Situation

The farm is recovering from an extended dry period compounded by frosts which have slowed the Kikuyu growth dramatically. This is typical for Lloa. Pastures are not in optimal condition to provide quality Kikuyu pasture. Soils are lacking S & are compacted.

Cows & young stock are in excellent condition. Tests for animal health status have been taken & a program to address any issues will be put in place. Cows need better feeding. Farm infrastructure is not a serious impediment to improving production. Improvements will be made in the future.

Supplementary feeding is high. It will drop as pasture improves & be targeted to improve feeding efficiency & profitability.

Calf rearing & young stock management will be improved over time.

The dry cows are young stock are grazed on a separate area of the farm which provides adequate feed to ensure they are well fed.

First Year Goals

The goal for the first year is to achieve the budgeted profit. All budgets are a prediction but the improvement from last year is substantial. This is a realistic goal.

Farm Plan

Pasture Renovation

Budgeted Amount: $550.00

Minimal pasture renovation is planned for this year. There are 2 reasons. Firstly, managing existing pastures better is the most cost effective way to improve production. Improving pasture management costs virtually nothing compared to the return. Secondly, changing to rye & trebol pastures from Kikuyu takes time to break the Kikuyu cycle. The Kikuyu needs to be eliminated before planting permanent pasture or it will be an expensive failure.

Once it rains the paddocks will be progressively sub soiled & 6 hectares will have 10kgs/ha Annual rye grass planted. The sub soiling allows more oxygen into the soil which improves the mineralization processes. It slows the growth of the Kikuyu for a period of time as the sub soiler cuts the stolons.

Over time the Kikuyu forms a mat even if it grazed well that covers the entire paddock. This reduces trebol growth to virtually nothing. Sub soiling encourages the trebol to grow in the channels that the sub soiler leaves as it gets sunlight.

The reason for planting the Annual is that it is very cost effective method of improving grass quality in the short term. Rye grass is not affected by frost so it will continue to grow when the Kikuyu is affected.

In April 1 hectare of Forage Rape will be planted. This will be ready to graze at the beginning of the dry period in July & will provide reliable feed for the dry period. This is the first step to transition to permanent pasture from Kikuyu. When the crop is finished a decision will be made whether to plant permanent pasture or Annual rye grass. This will depend on the amount of Kikuyu left in the paddock.

Fertilizer

Budgeted Amount: $1180.00

A soil test has been taken. The farm will receive the correct fertilizer to correct the nutrient deficiencies. This may change depending on the response. Fertilizer applications will be higher in the first year to raise the nutrient levels that are lacking. In the second & subsequent years only maintenance levels need to be applied. These will be lower.

Supplementary Feeding

Budgeted Amount: $4100.00

This will be approximately a third of what was spent last year on supplements. They will be targeted to achieve the best results. The cows will eat higher quality pasture in greater quantities. Production will improve & be achieved at a lower cost.

Pasture Management

Budgeted Amount: $0.00

The cost is not really zero but it is very close. There will be time involved to teach correct pasture management so this is included in my Consultancy fees. This includes pasture measurement & the correct allocation to the cows to ensure optimal feeding. As the Project progresses you will understand the importance of pasture measurement & what a powerful management tool it is.

Animal Health/Reproduction

Budgeted Amount: $3000.00

A program will be developed by Dr Francisco Gallegos. A planned system for Animal Health & reproduction is more cost effective in the long run.

Calves will be fed Polvo de Leche in the future. It makes economic sense when 1 litre costs 33 cents compared to milk.

Consultancy

Budgeted Amount: $3840.00

It will cost 2 cents/litre for my time for the first year. This will reduce as production improves. The cost covers preparing the plan & budgets but mostly it is for time to train the staff in correct management practices & Best Practices.

Once these are understood they are easy to implement & generally the working day becomes much easier. Most staff are reluctant to change at the beginning but they embrace the change once they discover how much easier life is.

Conclusion

The changes for the first year are not enormous or expensive. It is simply a matter of changing management to Best Practices & reaping the rewards. The results will be published monthly.

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Click the Budget Button tgo see the expected results.

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