David and Ailsa Miller
David and Ailsa Miller have been dairy farmers for their entire working life, starting out on town supply at Ardmore near Auckland, moving on to Taranaki for nine years, and then shifting to the Waikato in 1995. In the last three years they have become clients of strategic business farming business, eCOGENT. An emphasis on constant analysis of management changes to predict and increase profitability has helped them improve their soils, the priority placed on family and farm income. Despite drought in the critical autumn months this year, their return on investment has tripled.
The Millers dairy farm is 131 hectares of rolling to steeper country, plus a run-off block of 80 hectares where calves, heifers and a few beef calves are run. They recently also acquired a lease over 60 hectares, to reduce reliance on imported supplements.
A herd of 360 crossbred Ayreshires, Jerseys and everything in between is run.
For the last three years, the Millers have followed a management system promoted by farming business coach, eCOGENT.
David says that after a lifetime of being an average farmer who achieved average results by focusing on what was happening above the ground, he now appreciates the foundation of farming; our soils. By looking after soil biology, you are looking after your plants, animals and people too.
Just as in music, when you strike a chord you have harmony, as farmers we can strike a chord and create inner and outer harmony with our farming practices.
By working with rather than against the environment, farmers will be seen as part of the solution rather than creating the problem of environmental degradation, says David. He also feels an ethical responsibility to grow milk and meat that will benefit consumers health.
Its a battle of integrity. Do our consumers trust us as dairy farmers? Do our consumers believe our products are highly nutritious, life giving and in some cases even life saving? eCOGENT is helping us answer these questions with purpose and pride.
eCOGENT is based on founder, Peter Floyds, realisation, when working as a scientist then farm owner, that measuring farm production was out of step with other businesses. Profit per kilogram eaten was a much more meaningful model. The key to increasing this figure was growing pastures with a high Brix (an indicator of carbohydrate, fat and protein) and higher residuals (feed left behind when animals are taken off a paddock).
eCOGENTs Six Laws of Farming Profit are about farmers using daily profit indicators to;
Establish skills and resources to grow and achieve their vision
Identify profit windows for each class of livestock
Strategically analyse and manage cash resource
Provide high quality optimum pasture covers
Fully feed healthy, high growth rate/high condition score animals
Set up marketing strategies and opportunities for profit
Net farming profit on just under 100 eCOGENT sheep, beef, dairy and deer farms from Invercargill to Kaitaia has commonly lifted from around 20%/year for three years, says Peter. In the same period, profit per kilogram of dry matter consumed has increased from 5 to 20 cents.
As I get older, I want to achieve more by doing less, says David. This is becoming possible after three years with eCOGENT, which has increased profitability while providing more spare time to spend with the extended family. A bonus has been a decrease in negative stress, leading to improved health.
In the last financial year, profitability has increased threefold despite autumn drought. No nitrogen was applied and the result was fat, happy cows.
In 2005/06, return on investment was 2%. By 2006/07, that was 3% and in 2007/08, 9%. Return on capital for the same years was 3, 4 and 12%; farming working expenses as a percentage of income 70, 72 and 67%; gross farm income $484,000, $477,000 and $643,000; and net trading income $434,000, $476,000 and $607,000.
How has this been achieved? Of course, in the last year an increased Fonterra payout has helped. But communication, improved understanding and thus control of the business, and reduced pasture input costs (including fertiliser and weed control) have also played a part.
Soil temperature, rainfall, grass growth, pasture cover before and after grazing, and the Brix (sugar) level of grass are all measured regularly with readings sent monthly to eCOGENT for profitability prediction. The Millers say the information is especially useful as its been gathered from their own farm.
Peter Floyd visits the property every couple of months and coaching is available by phone. A couple of times a year, the Millers attend an eCOGENT cluster group meeting with fellow farmers and the annual eCOGENT conference is always a highlight of the year.
This is the first season that the Millers have farmed without nitrogen; something they have been able to achieve by more monitoring to ensure managed grazing of pasture.
Soil is tested for a range of elements through Hill Laboratory.
Dozens of eCOGENT dairy and sheep farmers no longer use urea or nitrogen of any sort, says Peter Floyd. Once farmers start measuring Brix, theyll see that after nitrogens applied levels will fall from 4 or 5 to around 2, indicating feed with extremely low nutritional value. By next year, Peter expects the Millers pasture to reach a Brix of around 10.
High Brix levels in pasture results in high protein levels in milk and meat, meaning are better for consumers, says Peter.
A key indicator of pasture quality is Brix, a measure of sugars more commonly used to determine the ripeness of fruit. As level lifts, palatability and thus cow condition improves, says David. The Brix of pastures on the property has improved from 1.5-2.5 to around 6-9. Top practitioners can get to 12 with the highest hes heard of being 22.
Gorse, thistles, ragwort and blackberry are all a problem on the property. While the worst of these are controlled by targeted spraying with herbicides, an added benefit of high sugar levels in the pasture has proved to be suppression of weeds by making them more palatable to stock. Thistles that used to reach his head are now waist-height, says David. Once Brix levels in the pasture reach 8, most farmers will notice their weeds phasing back and by 12 they can increasingly be controlled by animals.
An experiment with spraying a sugar solution onto immature gorse and ragwort was successful in encouraging stock to eat these weeds.
Pastures have slowly been weaned from urea, with none used this season. Instead, mostly lime-based soil improvers are applied. CalciZest is spread in spring and DoloVest in autumn. RPR has been used for a decade or so, but not this year when price increases were deemed unacceptable. Soils were deemed in good shape with a good bank of nutrients, partly because of the way drought slowed pasture growth.
Plantain and chicory were direct-drilled into the pasture five years ago and theres more seed in the shed waiting for planting in spring.
David and Ailsa say that since going the eCOGENT way, their cows have not had the animal health problems of the past. While theres been no reduction in animal health costs, theyre getting better results for the money spent.
With cows in good condition last spring, only 5% came in empty. Calving difficulties have decreased as well as metabolic problems like milk fever. At times, mastitis has to be dealt with, and some older cows are due to be culled this season.
eCOGENT advises how many cows should be milked at any one time, to match grass growth. As a result, numbers milked have been dropped fro 380 to 360 and David now believes that he should have followed Peter Floyds recommendation to dry off a greater proportion in January/February, which would have meant being able to milk for a bit longer.
Generally the herd is milked from August 1 until the end of May but this season drought, lack of water and Davids hospitalisation forced them to dry off on April 12.
Droughts are good times to look back and learn, laugh at your mistakes, forgive yourself and others and most of all to look forward with faith at your now wised-up plans.
A measure of success for eCOGENT farmers is the depth and condition of pasture roots and also worms populations. Pasture root depth is usually about 150mm, but once a farm follows eCOGENT principles, roots will often grow 200-400mm in 12 months and grow as deep as a metre.
Five years ago, plantain and chicory were planted into the pastures to add diversity. The rate at which cows are rotated is governed by residuals the amount of pasture left behind after grazing with 2500-3000kgDM/ha targeted through much of the milking season, except when extremely dry as in January/February this year.
The Millers avoid pugging, which depletes carbon and devalues the life and quality of soil, impacting on pasture growth and quality.
We are aware that our slopes are prone to erosion so are careful to graze with an appropriate class of stock for the weather conditions. For example, if heavy rain is forecast we take mature cattle off steeper country and replace them with lighter calves.
"The usual pattern in the Waikato is to clean up any grass residue during dry weather and when the rains come you get quality growth and start feeding out, explains David. Our paddocks look a bit more scruffy than others but record a higher Brix reading so thats OK. Plus, we gained an extra round before the drought stopped growth.
This year (2008) has been unusually dry for the region, with little rain not only in January/February but also in autumn. The season was especially tough because David had an ATV accident and found himself in hospital, then over the following two weeks their two wells started to dry up.
The cows went to the wall with no water. It was a real lesson for us of how suddenly you can lose control. Lost health; lost control of the farm.
As a result, cows are now not in as good a condition as the Millers would like.
Theyve had to reluctantly feed out supplements including palm kernel and copra; a decision theyve not been at all happy with due to problems with microtoxins in some palm kernel and the high toxicity of some copra. Sudden changes of feed and disrupted supplies resulted in two cow deaths and many more throughout the country.
To ensure they wont need to rely on imported supplements next season, the Millers have leased extra land where a portion of their herd can be dried off early if necessary and hay and silage can be made. In a normal season, theyve cut 300 bales of silage and 100 bales of hay from their property; usually sufficient to take their cows through winter but inadequate this season.
Adding a third supply, pumping from the river that runs through Catherines farm, has abated reduced water supply worries.
The Millers say that communication, with one another and staff, carried them through the hard times of drought. By being removed from the situation in hospital, David gained an objective appreciation of the huge input of his wife and staff and the importance of local and regional health providers to the farming community.
At 60 and 58-years-old, David and Ailsa actively enjoy farming and their greatest desire is that the next generation of their family will have the same opportunities they have enjoyed if this is the lifestyle theyd like.
Daughter, Catherine, is their neighbour and partner in a 50/50 family company. Working as a policewoman, she also finds time to raise 300 calves in spring and even milk the 54 cows run on her block, with fill-in help from other family members. Two nephews are employed fulltime on the farm, Josh also owning some land locally and Robert helping to build Catherines cowshed, based on an old shipping container.
Musician son Andrew helps out when home and his twin brother Grant, is a journalist in Palmerston North.
What we see happening as a result of eCOGENT inspires us and has given us a second wind, says David. Instead of thinking of retirement, we are now looking at investing in our young people and giving them the opportunities that we have enjoyed.
The first question we ask when interviewing potential employees is, whats your dream and how can we help you achieve it, says David. With that approach, for decades, our staff have treated us extremely well.
One of the most significant things to come out of eCOGENT for David has been improved health and communication with his wife, staff and family.
Long-term, the Millers aim to keep adding momentum and value to their own and others dreams. As life-learners, through eCOGENT they are working towards more spare cash and more spare time, especially for quality thinking.
The Millers dairy farm is 131 hectares of rolling to steeper country, plus a run-off block of 80 hectares where calves, heifers and a few beef calves are run. They recently also acquired a lease over 60 hectares, to reduce reliance on imported supplements.
A herd of 360 crossbred Ayreshires, Jerseys and everything in between is run.
For the last three years, the Millers have followed a management system promoted by farming business coach, eCOGENT.
David says that after a lifetime of being an average farmer who achieved average results by focusing on what was happening above the ground, he now appreciates the foundation of farming; our soils. By looking after soil biology, you are looking after your plants, animals and people too.
Just as in music, when you strike a chord you have harmony, as farmers we can strike a chord and create inner and outer harmony with our farming practices.
By working with rather than against the environment, farmers will be seen as part of the solution rather than creating the problem of environmental degradation, says David. He also feels an ethical responsibility to grow milk and meat that will benefit consumers health.
Its a battle of integrity. Do our consumers trust us as dairy farmers? Do our consumers believe our products are highly nutritious, life giving and in some cases even life saving? eCOGENT is helping us answer these questions with purpose and pride.
eCOGENT is based on founder, Peter Floyds, realisation, when working as a scientist then farm owner, that measuring farm production was out of step with other businesses. Profit per kilogram eaten was a much more meaningful model. The key to increasing this figure was growing pastures with a high Brix (an indicator of carbohydrate, fat and protein) and higher residuals (feed left behind when animals are taken off a paddock).
eCOGENTs Six Laws of Farming Profit are about farmers using daily profit indicators to;
Establish skills and resources to grow and achieve their vision
Identify profit windows for each class of livestock
Strategically analyse and manage cash resource
Provide high quality optimum pasture covers
Fully feed healthy, high growth rate/high condition score animals
Set up marketing strategies and opportunities for profit
Net farming profit on just under 100 eCOGENT sheep, beef, dairy and deer farms from Invercargill to Kaitaia has commonly lifted from around 20%/year for three years, says Peter. In the same period, profit per kilogram of dry matter consumed has increased from 5 to 20 cents.
As I get older, I want to achieve more by doing less, says David. This is becoming possible after three years with eCOGENT, which has increased profitability while providing more spare time to spend with the extended family. A bonus has been a decrease in negative stress, leading to improved health.
In the last financial year, profitability has increased threefold despite autumn drought. No nitrogen was applied and the result was fat, happy cows.
In 2005/06, return on investment was 2%. By 2006/07, that was 3% and in 2007/08, 9%. Return on capital for the same years was 3, 4 and 12%; farming working expenses as a percentage of income 70, 72 and 67%; gross farm income $484,000, $477,000 and $643,000; and net trading income $434,000, $476,000 and $607,000.
How has this been achieved? Of course, in the last year an increased Fonterra payout has helped. But communication, improved understanding and thus control of the business, and reduced pasture input costs (including fertiliser and weed control) have also played a part.
Soil temperature, rainfall, grass growth, pasture cover before and after grazing, and the Brix (sugar) level of grass are all measured regularly with readings sent monthly to eCOGENT for profitability prediction. The Millers say the information is especially useful as its been gathered from their own farm.
Peter Floyd visits the property every couple of months and coaching is available by phone. A couple of times a year, the Millers attend an eCOGENT cluster group meeting with fellow farmers and the annual eCOGENT conference is always a highlight of the year.
This is the first season that the Millers have farmed without nitrogen; something they have been able to achieve by more monitoring to ensure managed grazing of pasture.
Soil is tested for a range of elements through Hill Laboratory.
Dozens of eCOGENT dairy and sheep farmers no longer use urea or nitrogen of any sort, says Peter Floyd. Once farmers start measuring Brix, theyll see that after nitrogens applied levels will fall from 4 or 5 to around 2, indicating feed with extremely low nutritional value. By next year, Peter expects the Millers pasture to reach a Brix of around 10.
High Brix levels in pasture results in high protein levels in milk and meat, meaning are better for consumers, says Peter.
A key indicator of pasture quality is Brix, a measure of sugars more commonly used to determine the ripeness of fruit. As level lifts, palatability and thus cow condition improves, says David. The Brix of pastures on the property has improved from 1.5-2.5 to around 6-9. Top practitioners can get to 12 with the highest hes heard of being 22.
Gorse, thistles, ragwort and blackberry are all a problem on the property. While the worst of these are controlled by targeted spraying with herbicides, an added benefit of high sugar levels in the pasture has proved to be suppression of weeds by making them more palatable to stock. Thistles that used to reach his head are now waist-height, says David. Once Brix levels in the pasture reach 8, most farmers will notice their weeds phasing back and by 12 they can increasingly be controlled by animals.
An experiment with spraying a sugar solution onto immature gorse and ragwort was successful in encouraging stock to eat these weeds.
Pastures have slowly been weaned from urea, with none used this season. Instead, mostly lime-based soil improvers are applied. CalciZest is spread in spring and DoloVest in autumn. RPR has been used for a decade or so, but not this year when price increases were deemed unacceptable. Soils were deemed in good shape with a good bank of nutrients, partly because of the way drought slowed pasture growth.
Plantain and chicory were direct-drilled into the pasture five years ago and theres more seed in the shed waiting for planting in spring.
David and Ailsa say that since going the eCOGENT way, their cows have not had the animal health problems of the past. While theres been no reduction in animal health costs, theyre getting better results for the money spent.
With cows in good condition last spring, only 5% came in empty. Calving difficulties have decreased as well as metabolic problems like milk fever. At times, mastitis has to be dealt with, and some older cows are due to be culled this season.
eCOGENT advises how many cows should be milked at any one time, to match grass growth. As a result, numbers milked have been dropped fro 380 to 360 and David now believes that he should have followed Peter Floyds recommendation to dry off a greater proportion in January/February, which would have meant being able to milk for a bit longer.
Generally the herd is milked from August 1 until the end of May but this season drought, lack of water and Davids hospitalisation forced them to dry off on April 12.
Droughts are good times to look back and learn, laugh at your mistakes, forgive yourself and others and most of all to look forward with faith at your now wised-up plans.
A measure of success for eCOGENT farmers is the depth and condition of pasture roots and also worms populations. Pasture root depth is usually about 150mm, but once a farm follows eCOGENT principles, roots will often grow 200-400mm in 12 months and grow as deep as a metre.
Five years ago, plantain and chicory were planted into the pastures to add diversity. The rate at which cows are rotated is governed by residuals the amount of pasture left behind after grazing with 2500-3000kgDM/ha targeted through much of the milking season, except when extremely dry as in January/February this year.
The Millers avoid pugging, which depletes carbon and devalues the life and quality of soil, impacting on pasture growth and quality.
We are aware that our slopes are prone to erosion so are careful to graze with an appropriate class of stock for the weather conditions. For example, if heavy rain is forecast we take mature cattle off steeper country and replace them with lighter calves.
"The usual pattern in the Waikato is to clean up any grass residue during dry weather and when the rains come you get quality growth and start feeding out, explains David. Our paddocks look a bit more scruffy than others but record a higher Brix reading so thats OK. Plus, we gained an extra round before the drought stopped growth.
This year (2008) has been unusually dry for the region, with little rain not only in January/February but also in autumn. The season was especially tough because David had an ATV accident and found himself in hospital, then over the following two weeks their two wells started to dry up.
The cows went to the wall with no water. It was a real lesson for us of how suddenly you can lose control. Lost health; lost control of the farm.
As a result, cows are now not in as good a condition as the Millers would like.
Theyve had to reluctantly feed out supplements including palm kernel and copra; a decision theyve not been at all happy with due to problems with microtoxins in some palm kernel and the high toxicity of some copra. Sudden changes of feed and disrupted supplies resulted in two cow deaths and many more throughout the country.
To ensure they wont need to rely on imported supplements next season, the Millers have leased extra land where a portion of their herd can be dried off early if necessary and hay and silage can be made. In a normal season, theyve cut 300 bales of silage and 100 bales of hay from their property; usually sufficient to take their cows through winter but inadequate this season.
Adding a third supply, pumping from the river that runs through Catherines farm, has abated reduced water supply worries.
The Millers say that communication, with one another and staff, carried them through the hard times of drought. By being removed from the situation in hospital, David gained an objective appreciation of the huge input of his wife and staff and the importance of local and regional health providers to the farming community.
At 60 and 58-years-old, David and Ailsa actively enjoy farming and their greatest desire is that the next generation of their family will have the same opportunities they have enjoyed if this is the lifestyle theyd like.
Daughter, Catherine, is their neighbour and partner in a 50/50 family company. Working as a policewoman, she also finds time to raise 300 calves in spring and even milk the 54 cows run on her block, with fill-in help from other family members. Two nephews are employed fulltime on the farm, Josh also owning some land locally and Robert helping to build Catherines cowshed, based on an old shipping container.
Musician son Andrew helps out when home and his twin brother Grant, is a journalist in Palmerston North.
What we see happening as a result of eCOGENT inspires us and has given us a second wind, says David. Instead of thinking of retirement, we are now looking at investing in our young people and giving them the opportunities that we have enjoyed.
The first question we ask when interviewing potential employees is, whats your dream and how can we help you achieve it, says David. With that approach, for decades, our staff have treated us extremely well.
One of the most significant things to come out of eCOGENT for David has been improved health and communication with his wife, staff and family.
Long-term, the Millers aim to keep adding momentum and value to their own and others dreams. As life-learners, through eCOGENT they are working towards more spare cash and more spare time, especially for quality thinking.