1. Setting up a new dairy farm Teagasc, Moorepark

2. Introduction Income Scale Debt Land Rent Labour efficiency Capital costs/cow

3. Income/Scale/level of debt Assumptions 420 kg ms /cow 2.8 cows/ha €2 /kg ms cost €400 /ha land rental

4. Income milk price €/kgms =€4.00 Level of debt/cow60100140180 own land€050,40084,000117,600151,200 own land€2,00038,40064,00089,600115,200 own land€4,00026,40044,00061,60079,200 rented land (€400/ha)€041,82969,71497,600125,486 rented land (€400/ha)€2,00029,82949,71469,60089,486 rented land (€400/ha)€4,00017,82929,71441,60053,486

5. Income milk price €/kgms =€3.20 Level of debt/cow60100140180 own land€030,24050,40070,56090,720 own land€2,00018,24030,40042,56054,720 own land€4,0006,24010,40014,56018,720 rented land (€400/ha)€021,66936,11450,56065,006 rented land (€400/ha)€2,0009,66916,11422,56029,006 rented land (€400/ha)€4,000-2,331-3,886-5,440-6,994

6. Labour efficiency targets Target 20 hr/cow/yr 1 operator + relief : 125 cows Family farm+ relief: 170 cows 2 operators minimum relief : 200+ cows 3 operators minimum relief : 300+cows

7. Features of Labour efficient systems Simple system Calving to grass Compact calving Robust cows suited to system Minimum supplement Single enterprise Contract heifer rearing Contractor for all machinery operation Suitable infrastructure

8. Capital costs of a dairy farm Stock Milking facilities Paddocks, Roadways, Water (tunnel) Soil fertility, Reseeding Slurry storage Winter accommodation Machinery/Other housing

9. Soil fertility/ reseeding 1 cow requires 4.8 t feed/yr Old non-ryegrass pasture (6-10t/ha/yr) New ryegrass, high fertility (12-18 t/ha/yr) Soil Fertility Soil test €25/sample Lime €22/t- (5 t/ha) K 40-120 kg/ha (~€1.00/kg) P 0-70 kg/ha (~€2.50/kg) Reseeding Grass seed €100/ha Tilling €100-300/ha Sprays €50/ha

10. Milking parlours Costs- steel& concrete work - €4,000 - €7,000/unit Plant - €1,200-€8,000 /unit - Milk tank €1.7 - €2.5/l - Feeders €400-€1,500/unit - ACR’s €400-€1000/unit

11. No. of units <100 cows Second hand 10-12 units 100-200 cows – 16-22 units : 1 person milking 200-300 cows – 22-30 units : 1+ ACR’s or 1.5 milkers 300-450 cows – 30-44 units : 2 +/- ACR’s >450 cows – Rotary + €1,500-€2,500/unit

12. Grazing infrastructure Layout Mapping €15-20/ha Paddock size Roadways-cow flow Water Roads Width – 100 cows : 4m, +50 cows: +1 m Length – 25 - 50m/ha (shape & size) Depth 0.3 m (2 t/m 3 ) Surface dust.05 m Cost €12-€16/m 3 material Digging/laying €4/m 3 Tunnel €30-€50K

13. Grazing infrastructure Water Troughs (2 gals/cow) (€1.50-€1.10/gal) Piping (<100 cows:25 mm, 100-200: 38 mm Pumps (€1,500) Storage (>20 gals/cow) Total Cost €350-500/ha Fencing 80-150 m/ha Cost 1 strand - €1-1.50/m

14. Slurry storage Slurry storage: 5.28-6.3 m 3 /cow (legal requirement) EBT €15/m 3 : €100/cow (site specific) Lined lagoon €30/m 3 : €180/cow Steel/concrete tanks €50/m 3 : €300/cow Slatted tank €125/m 3 : €660/cow

15. Winter accommodation Feed passage €250-€400/cow space Cubicles €900-€1300/cow Wintering pad €8-€12/m 2 ( 10-18m 2 /cow) Kale Similar feed cost Eliminate housing cost Very useful as part of reseeding programme

16. Other Capital Investment Machinery € 50-€1000 /cow Other housing €150/cow Silage pit 7 m 3 /cow @ €12/m3

17. Capital costs of a dairy farm/cow Stock€1,400 Milking facilities€1,000 Paddocks, Roadways, Water (tunnel)€500 Soil fertility, Reseeding €310 Slurry storage€180 Winter accommodation€250 Machinery/Other housing€500 Total€4,140

18. Conclusion Borrowing capacity at high efficiency own land - €4,000/cow Rented land- €2,000/cow Capital cost of Greenfield site – minimum €4,000/cow Don’t compromise efficiency To cut costs focus on non productive assets Machinery, Winter housing, milking automation