Pasture based dairying Tom Malleson & Nat Page

Tom Malleson, Dorset Dairy Farmer Worked with pasture-based farming in New Zealand UK 2007 – 170 Holstein cows, high input, high cost, low profit, hard work all year round UK 2012 – 400 Jersey/Friesian crossbred cows, low cost, high profit, kinder on cows and people Compare these two systems.

Tom milks 400 cows which spend 10 months/year grazing grass outside 5,500 litres/year/cow (compared with 8,000 l/year in intensive systems) Can this lower productivity be more profitable?

Production and profit 2 million litres of milk as an example Pasture-based 400 cows (5000l./year/cow) 200 tonnes of purchased cake per year Profit after rent 8 pence/litre = 160,000 Conventional/intensive 230 cows (8500l./year/cow) 700 tonnes of purchased cake/year Profit after rent 1 pence/litre = 20,000 (this is best scenario – often profit = zero)

How? The farmer

Pasture management Rotational grazing – Working with the natural cycle of ryegrass – 10-year leys – Grazing and resting pasture in day cycle – Surplus spring grass made into sileage (1/5 of conventional quantity required) – Calvers in for 2 months, dry stock out in winter months on neighbour’s fodder crop Grass measurement and budgeting – Managing surplus and deficit through the season Access to pasture – Tracks and water – Extending the season

How? the cow Small – able to live off grass High milk value – butterfat and protein Fertile Healthy Long lived Various breed options – British Friesian, Swedish Red, Montbelliard.

Grazing cow – 450kg bodyweight – Typically produce 400kg milk solids per year – For 6 lactations or more – Half a tonne purchased feed per year – One acre of land – Harvests most of her own feed – Spreads most of her own manure – Virtually no diesel required!!!

Holstein cow – 650 kg bodyweight – Typically produce 8,000 litres / year – Average 3.5 lactations – 2.5 tonnes or more purchased feed per year – 1.5 acres of land – Feed brought to cow – Manure spread by machine

Analysing costs per litre Costs as percentage of income (milk + livestock sales at 29+4 = 33 p.p.l) Feed 18% (5 p.p.l.) ………… (18 p.p.l. in conventional) Vet/health 9% (2.5 p.p.l.) Fertiliser/seed 9% (2.5 p.p.l) Machinery and fuel 15% (4.5 p.p.l.) Labour 18% (5.5 p.p.l.) Overheads (admin, farm repairs) 8% (2 p.p.l.) Total 66%, 23 p.p.l. ……………..(33 p.p.l. conventional) Leaving 34% as profit 10% rent 24% net profit

Example: requirements to make£40,000 profit (Before rent and finance) Pasture system: – 160 cows – 800,000 litres – Total costs £180,000 High input system – 450 cows – 4 million litres – Total costs £1 million Level of capital employed much reduced

Sustainable business model Low cost per litre – sustainable through milk price fluctuations Minimal exposure to input price fluctuations Surplus stock – replacements plentiful (TB) Much less capital employed for the same profit Viable entry route to dairy industry

Where it works “My farm is too wet” “ My farm is too dry” “It won’t work” 500 farmers in UK – all soil types – South west – North west – South east – Wales – South west Scotland – Ireland Match system & calving pattern to farm

Low environmental impact Reduced imported feedstuffs Reduced fossil fuel use: Sainsbury’s environmental audit – did not believe pasture-based dairy farmer’s low diesel use Rotationally grazed pastures very good at sequestering carbon. Tests show increase in organic matter in soil on the farm of 1%/year after re-seeding from arable. Reduced fertiliser use. Virtually no pesticides used. Farm is in ELS ari-environment scheme, including small areas of wild bird feed crops and buffer strips. Tom has seen 53 bird species on his farm.

Social benefits Profitability allows the farm to employ 4 people full-time and 2 part-time over calving period Farming enjoyable because cows suffer few health problems and management is simple System helps young people real opportunities – in 5 years Tom has progressed from farm employee to owning 50% of the dairy herd Consumer health benefits of pasture-fed milk increasingly well documented

CAP Payments Tom receives no Direct payments or ELS (agri- environment base level scheme) payments: these are collected by the land owner under a farm partnership scheme The profits Tom makes do not take account of CAP payments, but the rent he pays is reduced by the land owner in light of Direct Payments

The future CAP CAP has little direct effect on Tom at present However, may be about to change: proposals for protection of permanent pastures will – Cause a rush to plough up pastures before rules are introduced – Make farmers reluctant to lay down long term leys as it will restrict future cropping options – The new rules may have opposite effect than intended – i.e decrease the area of permanent pasture.

The future: INNOVATION Where is the research? Funding needed Resource efficiency & productivity – Soil and animal health – Making farming attractive to the next generation Pasture species and animal health – Herbs in pasture – Once-a-day milking Marketing Quality and environmental branding Health benefits of free range milk