Loading...
The Rural Voice, 2000-04, Page 284 TOWARDS THE 100 -COW HERD (AND LARGER) By 2015, it's predicted the average Ontario dairy herd will have 100 cows. That means if you're planning ahead you need to consider many changes By Keith Roulston As herds get larger;the1 economies of scale favour, freestall versus tie -stall operations. More work is done \s‘`., ,,.tram the tractor seat (beloW) frir '' :. , • instead of by wa in • ' At the current rate of growth, the average dairy herd in Ontario will be 100 cows by 2015 and that has ramifications for many aspects of the business. Jack Rodenburg, OMAFRA's dairy production systems lead, was one of a number of speakers at the recent "Planning your future in dairying" seminars held throughout the province. He noted that dairy industry leaders belonging to the Council of Dairy Farm Organizations predicted, back in 1993, that in 10 years the number of herds in Ontario would drop from 9560 to 4500 and average held size would increase from 43 to 67 cows. With three years left, those numbers seem on target with 6,788 producers left as of last September and an average herd size of 57 cows. Historically, Rodenburg said, the average herd size in Ontario doubles about every 17 or 18 years, bringing his prediction of a 100 -cow herd average in 15 years. Larger herds, he predicts, mean a move from the tie -stall operations that predominate in Ontario to freestall operations that offer labour savings. That in turn means the small one -step -at -a -time expansion of older bank barns will be replaced by more entirely new barns. This evolution, Rodenburg says, is independent of growing trade pressures. While the long term goal of the World Trade Organization is still tariff reductions, the focus seems to have shifted to "sorting out the rules" and ensuring fair trading practices, he says. "We can probably expect to have control of our own destiny for a lot longer than expected," he says of the 1995 GATT tariffication of import quotas. That stability has had a lot to do with the increase of quota value, as did the WTO ruling against the exporting of over -quota milk. That ruling "means over quota milk is now dog food milk," he said, meaning quota is more valuable. 24 THE RURAL VOICE Also pushing up quota has been the number of new entrants to the dairy industry. "It's been many, many years since we've seen as much immigration from Holland, Germany and Switzerland," Rodenburg said. These immigrants have a whole different viewpoint than traditional Ontario dairy farms. New, robotic milking systems are being introduced, along with the larger herds they require to be efficient. While milk per cow is increasing on Ontario dairy farms through a combination of excellent management, genetics, nutrition and health management services that allow our dairy farmers to compete internationally, our production per man is' not keeping up with New York State dairy farms. While average Ontario dairy farms produce 187,588 kg per man and our top third of producers get 213,861 kg per man, New York freestall farms with less than 150 cows get 277,164 kg per man and herds with more than 300 cows get 465,740 kg per man. That's because Ontario farms have, on average, 26 cows per worker compared to 33 for a NewYork freestall operation of up to 150 cows and 47 for 300 -cow freestall operations and larger. Astudy of figures from the Ontario Dairy Farm Accounting Project shows that using a per -cow accounting, freestall herds tend to produce as much or more milk per cow as tie -stall herds but the income per hour of labour for larger free stall herds can be double that of smaller tie stall herds and 21 per cent higher than large tie stall herds. Because of Ontario's pricing structure, dairy farmers can choose to stay the same size and still make money but "if you stay the same the cost of production will drive your price down. Your economies of scale don't work. Your income will decline," Rodenburg says. Even efficiencies characterized as "neutral" like