Agricultural and Horticultural Science 3.2

Milking AotearoaAchievement Standard 90650

Investigate production and marketing of a nationally significant primary product

Credits: 4Level : 3

Contents

Section

1. The NZ Dairy Industry2. How is Dairy Production Measured3. Making Milk using food. 4. Management Techniques to improve

production.

Te NZ Dairy Industry

NZ’s biggest export earner

$NZ 10 billion export earnings (2008-9)

11,735 dairy herds and 4.5 million dairy cows

Holstein-Friesian is the prevalent dairy cow breed in New Zealand making up 43% of total dairy cows

2% of total world production at around 17.3 billion litres1.5 billon kgs of milksolids.

Te NZ Dairy Industry

New Zealand is the world’s largest butter exporter and accounts for about 44% of all traded butter.

NZ exports skim and whole milk powder. 27% and 38%, respectively, of world trade.

The number of cows in milk has increased by about 10% over the last 5 years.

Measuring Dairy Production

(The first big question)…

• To answer this think about what a dairy farm produces. Answer = ___________

• Then, what is this ‘raw’ product is made into to… Answer = ___________

Measuring Dairy Production

Next think about what it is in the raw product that is of value to the marketer (person selling the final product)

Answer = ___________

To help with the above it would be wise to consider what the raw product contains ie what makes up a litre of raw milk:

Answer = ___________ Link to raw milk composition

Raw Milk

• Fat 3.9%• Protein 3.4%• Water 87%• Other 5.7 %

• Link to what is in raw milk

Raw milk's composition varies slightly among cow species, type of food and other conditions, so the figures are only approximations.

What’s in it?

Compare the components of raw milk to:

Raw mik contains…

WaterFatProteinOther

Milk powder contains…

WaterFatProteinOther

Butter contains…

WaterFatProteinOther

Cheese contains…

WaterFatProteinOther

The value in the raw milk is in the amount or protein and fat.

The value in the raw milk is in the amount or protein and fat.

The key idea!

A dairy farmer is not interested in how many litres of milk they produce, but rather the amount of milk solids (MS).

Payment is based on A+B-CWhere: A = Milk Fat

B = Milk ProteinC = Litres

What would happen to a dairy farmer who decided to add water to their milk?

Why do milk companies penalise producers who have a low milk solid / litre ratio?

If a cow produces 40kg of milk fat and 60 kg of milk protein per year. How many kgs of MS does it produce?

Measuring Milk Production

A major market force of the NZ dairy system is QUALITY of the raw milk (measured in amount of milk solids)

Other market forces play a roleQuantity the amount of milk solids a farm can produce

Consumer preference for example organic milk

Reliability of supply can the farm put out a regular amount of milk?

Seasonality What happens if there is a drought?

Timing is the producer able to supply all year round

Now we know…

… that a producer gets paid on the amount (kg) of milk solids (MS). Production is measured in MS.

The KPIs that he uses to see how will he is producing compared to other farms:• kgMS/ cow• KgMS/ haAnd sometimes

• kgMS/ kgDM

A hectare (ha) is 100m x 100m or 10,000 m2. Most dairy farms are 200 – 500 ha.

A kg of dry matter(DM) is one kg of dry grass/ hay/ silage/ etc.

In summary

• There are two aspect of marketing we need to further investigate:

1. How important is it that NZ dairy farmers produce MS at low cost to compete in the world trade of dairy products?

2. How important is it that farms produce consistent volumes throughout the year?

Section two

Making Milk Using FoodWe will now explore the process of growing food

and making milk

How to make milk

Cow Food

• Grass• Hay• Grass Silage• Maize Silage• Bi Products such as PKE or Brewers Grain• Crops (such as Kale)• Concentrates (such as Barley)

Dairy NZ – Feed Values

Feed Values - Exercise

Grass is cheap

• The NZ Dairy Industry has a major competitive advantage in our ability to produce food for cows cheaply. We call this food – pasture.

Pasture is grass, clover and other paddock species.

Grass is cheap.

Nelson 42 51 39 28 17 11 8 25 49 73 50 46

Grass Supply

The previous slide shows the feed supply curve for a dairy farm in Victoria Australia.• Exercise – Produce a graph showing

the feed supply of a NZ based dairy farm.

Use the data on the Dairy NZ website : http://www.dairynz.co.nz/page/pageid/2145861167/Pasture_Growth_Data

Graph template:

Click on map to show NZs

Major dairying areas

In summary

• Pasture supply curves and pasture demand curves show the area feed deficit and feed surplus.

• Supplements are used to reduce feed deficit.• Supplements allow a farmer to take excess food

during a surplus and store until required into a deficit

• Different foods have different amounts of energy/kgDM. We can compare them using the MJME/KgDM