Intelact keeps "originals" focused on goals

Russell and Gale Foote 

Strathmerton dairy farmers Russell and Gale Foote reckon they were one of Intelact's first clients..

Eleven years ago the New Zealand couple bought a small farm near Auckland while sharemilking on a nearby property and took on Intelact to help manage the combined operation..

"We went to all the field days the company ran and picked up on their services. We found that all their clients were really keen farmers and we got a lot out of using their consultants. When we sold up in 1996 and came to Victoria we stayed with them and were probably one of their first clients here.

"They keep us focused on achieving our targets and goals in terms of both profitability and productivity while keeping us up to date on new farming practices.

Bringing someone in from outside keeps you objective and when decisions needed to be made last year in the drought it was invaluable to have Intelact come in and see the situation from a different angle," Russell said.

"In the drought we had to make some difficult decisions such as reducing cows numbers in November and purchasing water, so having Intelact on side giving us advice helped a lot."

The couple have been using the Red Sky farm financial analysis package since it was released last year. "It benchmarks our business against others in the region because it's got real figures in it and it'll get even more precise as more information is included."

Russell says Red Sky helps ensure harvest figures are correct, that he isn't wasting grass or buying too much supplement instead of growing it, while the reports put a cost on grass growth.

At present 70% of this feed is pasture (9-10 tDM/ha average over both perennial and annual pasture) and 30% supplements (silage/hay and concentrate/grain).

Russell and Gale, along with their four children, moved to Victoria because land prices were a third that of New Zealand and the opportunities of a larger operation appealed.. They bought 380 acres (300 acres irrigated) at Stathmerton. He says he didn't fully realise the implications of flood irrigation where labour input is high but it works and ensures reliable feed through the year

Since buying the farm they have increased cow numbers from 180 to a maximum of 286 in 2001/02 but last year's drought saw numbers cut back to 255. This year numbers are up to 265 but they eventually hope to reach 300 plus.

Water is still an issue this year even though costs are only a fifth of 2003 and grain prices have halved. Coming out of the drought they hope to achieve 280kg of fat and slowly win back the $100,000 loss they suffered.

The Footes keep costs down by not employing full time staff, instead using part time and relief workers. And they say the deregulation payout three years ago helped them build a new 32 swing-over herringbone.

"We won't make much profit this year because of the extra debt to buy grain and water and cow numbers are still down."

Intelact 'just fitted in' say Warrnambool farmers

Graeme and Sally Croft

Graeme and Sally Croft were sceptical when a dairy company representative suggested an Intelact consultant have a wander round their Warrnambool farm and look at their figures.

Like many farmers, they'd been a member of a discussion group and didn't think one-on-one consultancy was necessary. But when she told them a grant was available Graeme ran with the proposal. That was in 1998 and Intelact has been their consultants ever since.
"I got a real lot out of that first meeting," Graeme said. "David Beca's our consultant and he doesn't just tell us what to do. Everything put forward is scientifically proven, it's not just opinion. He's not like the other consultants who seem to always want you to spend. His recommendation is quite often spend less and make more."

Beca took the Crofts through cow diet and feeding first then brought out a computer model for their farm so they could "see where they were going". More recently he analysed the potential benefits from moving to a split calving pattern from seasonal with little off-season milk, and then helped them successfully manage this process. Graeme and Sally Croft own a farm that's been in the family for 100 years, milking over 700 Jerseys through a 50-bale rotary off 212ha about 15km out of Warrnambool.

When the couple bought it off Graeme's parents in 1984 they sold the sheep and built a dairy saying it provided a greater challenge than sheep farming.

Graeme says he enjoys pasture management and growing grass, only milking when required. Sally milks every morning and some weekends and there are three staff and Graeme's father Bill to help work the property.

Originally calving in April/May, with Intelact's advice they have switched to February and August.
"We were still developing the farm in 1998 when Intelact approached us and they just fitted in," Graeme said. "Their real strength is on the financial side with the Red Sky farm financial package and we've used it ever since it was launched last year."

While the programme also looks at pasture, that is Graeme's speciality so he prefers to concentrate on getting financial advice.
"Intelact has helped us grow our business much quicker than before and made everything easier. We can see where we're going. We now have a clear vision thanks to David who is a sounding board - a second pair of eyes." He gives an instance of the advice provided by Intelact. The Crofts wanted to install irrigation (at that time only 24ha was watered) but it would have cost $200,000 for two centre pivots and David Beca asked them why they wanted to do it.

"I said we needed the extra feed but he sat down and worked out how many extra tonnes we would grow with the new irrigation and suggested we wait another 12 months. Over those 12 months we lifted our production with some additional feed which put us in a better position to handle the extra debt."

Intelact has also provided advice on employment and Sally says they are much more professional in their attitudes now. Staff complete 13 milkings a fortnight and have four days off (including three days straight). They also have an annual appraisal and there are fortnightly staff meetings.

"David has helped bring a new professionalism into what we do. It's more of a business now. We were getting there but now we're getting there quicker," Graeme said. What feed can't be grown on the property is bought in. This includes 1.0-1.2 tonne/cow of grain and 100-150 tonne hay. There is 15-16 tonne dry matter harvested off the irrigated land and 8-9 tonne harvested off the dry land, with 300-400 tonne dry matter of silage produced. They also apply 30 units of nitrogen every three weeks which is needed to grow the extra feed Intelact recommends for increasing milk production and profit.

Stu and Kirsti Keightley

'In 1996 we purchased our 283 hectare property at Condah, which had been producing around 60,000 kilograms of milksolids. It needed a lot of development work if it was to fulfill our goals of increasing per hectare production and lifting profitability. In the 96/97 season we produced 124,000 kilograms milksolids from 330 cows, and then the following season 158,000 milksolids from 405 cows.

In 1998 we started working with Intelact. We had first heard of Intelact at a conference in New Zealand and were impressed with their system of consulting. The question on our minds was how many cows could the property milk and how quickly could we up the stocking rate.

Intelact worked out our pasture growth rates per hectare and feeding levels over the previous season on the Udder program. This information helped us to determine the optimum stocking rate for the following season and the budgeted production. In the 98/99 season we produced 191,000 kilograms milksolids from 430 cows and this season we are milking 540 cows through our new 50-bail rotary and are on target to produce 255,000 milksolids off our 347 hectares. Our profitability has been improving in line with these lifts in milk production and the lifts in the amount of pasture we're harvesting.

We have found the Intelact system to be really helpful with the monitoring of production on a ten-day basis as well as predicting potential shortfalls or surpluses and enabling us to manage for them accordingly. This has ensured we've made the most of our pasture based system and we believe this is helping us maximize our profits.'

Red Sky showed us where we went wrong

Darryl Hammond

Darryl Hammond believes you can never have enough information. 'That's what I like about Intelact. We did some detailed models initially using the UDDER model before heading down the track that we did and these have proven to be remarkably accurate. Now coupled with a full Red Sky farm business analysis we believe we have a grip on both the physical and financial aspects of our farming business'.

Darryl admits he went too fast in a good year. "I took my eye off the ball and we got caught short", the Gippsland dairy farmer says. 'It's a bit scary how a number of extra costs snuck into our business, but now with the right tools we are able to see what should stay in the budget and what should go'.

That's why he was glad to have Intelact on his side and use the Red Sky farm financial analysis package.

"Red Sky showed us where we went wrong in 2000/01. It was a bit of inexperience because I'd only taken over the farm two years before and I was a bit like a fox in a hen house. I already knew we'd done some of the wrong things but it confirmed that we had to concentrate on expenses that could be controlled. "It made us refocus on the smaller points and analysed our performance in comparison with other farms in the region.

"I've learned a lot from Intelact and Red Sky but the most important thing is to get feedback and act on it. I've tried a few of these dairy programmes and know what I'm looking at. This is a good programme."

After two good years Darryl said the farm he manages for his father-in-law just outside Warragul was hit hard by the drought with grain prices going through the roof and no rain for months. Milk production went from 8200 litres/cow in 2001/02 to only 6600 litres the following year amounting to an income drop of about $180,000.

He had also spent a lot of money on a new milking system and tractor and got hit by the low milk and high grain prices. '2002-2003 was a real wake up call for us. Factors outside our control slashed profitability, fortunately we made the changes we did. It was important to keep production at a reasonable level but the conditions meant that previous levels of production under more favourable conditions were not the right option ' it has to be about profit, not just production' says Darryl

Darryl milks 420 Holstein Friesians off 112ha and averages 7500 litres/cow (over 300kg of fat).

"We held our herd numbers in the drought but are now looking to go to 450-470 and maybe as high as 500. Leased land provides maize for silage and we contract rear all cattle on another property, selling heifers to China.

"We'll be profitable again this year and I'm proud of how we went through the worst drought in 100 years and came out the other side.

"Red Sky helps us focus on costs and analyse how much we're spending and is it on the right things," he said. Using a computerised DeLaval in-shed feeding system he is able to feed each cow individually and focus on potential production. Milk meters provide instant information on each cow's output and he can react to change immediately. "I run the farm like a business and it's got to make a profit. We put in the new dairy so we could easily milk more cows and farm more profitably. You've got to invest to produce and production is double the state average while selling heifers for export provides another income flow."

Stocking rate is a high 3.9 cows/ha but consultant Neil Lane has encouraged greater grass growth (10-12 tonnesDM/ha/year). 'It's quite interesting' says Darryl 'when we used to consider ourselves all grass farmers our pasture consumption was 7-8 tDM/ha/year. But now through the use of up to 300 kgs/ha of nitrogen a year, increased stocking rate, a lot more attention to correct rotational management we have set 10 tonneDM/ha as our minimum target even in the tough years with 13+ tDM/ha achievable in the good seasons. On top of this pasture base we feed a concentrate mix at the rate of 2.0-2.5 tonnes/cow as well as cheap quality forages such as maize silage and pasture silage'.

Intelact gets farming brothers out of a rut

Eric and Kevin Dowling

After years of being in a rut, Gippsland brothers Eric and Kevin Dowling decided it was time to see what the three generation family farm could produce.

That's when they were introduced to Intelact consultant Neil Lane.

One year later they had increased per cow production from 220kg of fat to 274kg - and that was in the middle of the drought! Importantly however this was not just achieved through higher supplementary feeding. 'While we fed concentrates at higher amounts strategically, the majority of the extra production has come from more quality pasture down the cow's throat on more days of the year'

This year, 12 months further on, production is on track for 280kg and they can see the potential to increase that to 320kg in the future. 'There are so many areas we have identified where we can improve. Cow condition score at calving, the size of our heifers, the quality of silage we're conserving ' it all adds up to more milk'

"We were in a rut and Neil taught us to grow grass and utilise it. By getting our cows in good nick, into the proper condition, we have been able to move them on."

The Dowling's have farmed 13km out of Leongatha for three generations, increasing the milking platform to 120ha then adding another 100ha over the road eight years ago. It has a new 50-bail rotary. The farm is flood prone, with 10 episodes in 1996 but since then climate change has meant only three more have been recorded.

Kevin says he and Eric always knew the 220ha farm wasn't running at its true potential and they called the farmer next door "super farmer" because his production was so far ahead of theirs - now they benchmark against him. Last year Neil advised the brothers to cut as much silage and hay as they could and warned they wouldn't be able to afford to buy any feed during the drought. 'While we only conserved genuine surpluses ' we went out of our way not only to maximize these surpluses, but conserve them at the right time. The quality of silage we are making now is way better than what we used to make'.

Their harvest got them through the tough times and they were even able to increase herd numbers by raising replacements.

"Neil has been really good at improving our grazing management. We're growing double the amount of grass we were two years ago and are getting more silage and hay. We've also increased herd numbers from 350 to 400 cows" he says.

Before they started working with Intelact, the Dowling's never used nitrogen. Now they spread 150-200kg/ha and use Neil's advice on when to get the best returns.

"Neil comes out every six weeks, goes all over the farm and looks at grass growth, rotations and how much we've been feeding the cows. He gets right down to it in the paddocks and studies things properly. It's not just about what we do, but when we do it ' timing is everything"

Emphasis on pasture for Gippsland farmer

Jareth Hume

Because Gippsland dairy farmer Jareth Hume runs a pasturebased operation he chose Intelact to advise him on better feeding and increased production for his herd of 310 Holstein Friesians.

And the resulting 6700 litres/cow (looking for 7500 litres in future) from the steep Leongatha farm show the benefits he's gained since signing up two years ago.

From a local school teaching family which turned to part time dairying in the early 1990s, Jareth always knew he'd become a farmer. After working on a couple of local farms he took over as share farmer on the family property in 1994, then as owner with wife Melissa a year later.

'We were in an expansion phase and had purchased the farm next door. What we soon realized after starting with Neil was that by intensifying our operation we didn't need as much land as we thought to milk the number of cows we wanted to. By managing our pastures better and sourcing cheaper quality feeds we have been able to increase both our stocking rate and production per cow'

While the original farm was 72ha he added the neighbouring property two and a half years ago, selling it recently as land prices rose and ploughing the profit into extending the dairy from a 14 swingover herringbone to a 24 swingover which will cut milking from four hours to two.

"We decided to sell the other place because of the increased land price and concentrate on setting up and running the original farm better" he said.

The farm is steep but Jareth says that with rainfall of between 45 and 48 inches and good summer rains, it produces grass most of the year - hence his pasture-based philosophy. However it is no good having good rainfall if the pastures aren't managed properly. Quality pasture and as much of it as possible, for as much of the year as possible ' that's our aim.

Production is 270kg fat/cow but with an increased stocking rate and by feeding more grain, Jareth believes 320kg is possible.

Originally a winter calving farm, they changed to split calving to be more acceptable to smaller dairy companies which have been paying more for off season milk.

Intelact consultant Neil Lane started working with the couple two years ago after he was introduced by one of the dairy companies.

"We were looking at feeding more grain," says Jareth, "so used Neil initially to concentrate on that side and work out a mix that would suit us. However we soon realized that grain feeding should be considered alongside pasture management. On top of that we have a fairly complex milk payment system that influences our feeding decisions throughout the year. Complex questions that require serious answers ' that's what we use Neil for.'

"Because we're pasture-based, Intelact helps us emphasise this then helps us top up with supplements such as maize, silage and northern hay.

"For each cow we feed 6 tonne a year, that's 3 tonne of grass, 500kg of pasture silage or northern hay, 500kg of maize and 2 tonne of grain (mixed with palm kernel extract) which equates to 7000 litres of milk. We spread 300kg of nitrogen/ha and produced 11 tonne of DM/ha and I want to push this to 14 tonne," he said.

" We realise that increased milk revenue is important but to ensure the business remains profitable, we are going to use Red Sky with Neil as well to monitor the farm financial performance on a regular basis. By doing this we expect to keep a focus on improving profit whilst lifting the revenue for the business."

Intelact helped us with what's right for this farm

Bryce and Diana Nagel

Although they've only been farming in Victoria for a couple of seasons ex-New Zealanders Bryce and Diana Nagel found out very early that you need to feed cows properly to make them milk properly.

The Strathmerton equity partnership managers had "dabbled" with Intelact in New Zealand while another partner was a client, so to learn how to farm in a new country they got consultant Andrew Wright to lend a hand.

"In Victoria I knew that giving cows more feed would produce more milk so I wanted a consultant who could tell me what was in the feed and what was right for this farm." Bryce said.

"Andrew helped us learn Australian ways and provide contacts for buying the best feed. He pinpoints the most efficient crops and at the best price."

Bryce and Diana also get benefit from Intelact's ability to confirm management decisions and says they are reassured they're doing the right things like topping, growing crops and doing everything at the right time.

The couple came to Australia in 2002 after 10 years sharemilking in the lower North Island of New Zealand. They were looking to move to a larger unit in the area when the opportunity arose to take on the Victorian venture.

With their two partners they bought 440ha near Strathmerton. However, much of the land is dry and largely unproductive so they milk off 100ha and irragate another 80ha in March and graze it until spring if it rains.

They can graze the rest if it's a wet winter and get up to 130 rolls of hay but don't rely on it as part of their day to day management.

When they arrived on the property two years ago they started milking 500 Holstein Friesians but had to unload 100 during the drought and are only now making up the numbers again. "I think that 500 is all the place will take," Bryce says.

"It was hard for us, being New Zealanders, to come over here and milk cows. Most of the land is marginal and you learn not to look at the land, you look at the water right to see if you can make a go of it."

While spring rains were helpful, there had been nothing from December 22 until the end of February and Bryce and Diana are looking at installing centre pivot irrigation on the open land to get the most out of their water.

In spite of the difficulties of changing countries and farming methods, the couple are happy in Victoria and want to buy another property in the same area.

"Going back to New Zealand isn't an option. There are far more opportunities in Australia and we've got the chance to own our own place rather than flogging ourselves sharemilking back home."

Through the year, the Nagels and their two staff feed 3kg of barley/day in the dairy and made 380 rolls of hay and 360 tonne DM of silage. The cows peaked at 33 litres/day but a dry February reduced this to 18 litres and they were drinking 170 litres of water a day to keep them going. Bryce hopes to increase production by changing from split to autumn calving so he can dry off in the heat of summer when heat stress reduces output.

"But no matter what we do here, the business of farming is the same. It's the little things that are different and that's not difficult to get used to," he said.

Switching countries made easier thanks to Intelact

George and Gerda Hobi

Ten years ago George and Gerda Hobi faced the twin challenges of learning a new language and working in a new industry in a new country.

A honeymoon in New Zealand and a week on a North Island farm helping a friend has led to a career in dairying, taking the Swiss couple from New Zealand's wet West Coast to a somewhat drier South West Victoria.

When they first arrived in Victoria, they decided there was no real hurry to buy and took time to look around and gather information. They settled in Port Fairy and George worked at nearby Tyrendarra. Being close to the action meant that when the right farm came on the market they were ready to act, buying their current place near Heywood in October 2002.

The dry-land dairy farm is 923acres and they milk 580 Friesian and Friesian cross producing between 277000 kg milk solids. They also have 125 rising two-year-olds and 165 rising one- year-olds on the property. George says the farm still needs a fair bit of work done on pasture development and fertility because it is only in its sixth season as a dairy farm, having been converted by the previous owner from sheep and beef.

"The way the farm is turned out I think 580-600 is the right number at the moment. We feed 1-1.3 T of grain, make our own silage (about 700 tonne DM) and buy in a bit of hay."

After coming from a very wet climate to a very dry one George says "it's much easier to deal with the summer in Victoria because if it gets dry we just feed the cows".

He has high praise for the help given by Intelact's Alison Dewes while the couple were looking for farms in the area.

"We first met her when she was with Nestle and just before she joined Intelact. We'd been told about her by a financial consultant who suggested we could use her advice.

"At the start we used her for general information on the region - the best dairying areas, farm costs, economics and returns on equity. Now she advises us on animal health, feeding, minerals, and helps monitor productivity and margins in the business on a more regular basis"

George & Gerda have just run the first season through the Red Sky Analysis programme and is nearly due to update it for the most recent year to check how the business is tracking in terms of productivity and profitability targets.

"Red Sky has helped to give us a benchmark to compare with other farms in the region and how to make and save money. We also want to know if it's worth putting in irrigation. The programme should give us information as to whether the returns are there and what efficiencies we need to achieve, it also helps understand what might be a sound level of risk to run the business at for the longer term."

More recently with the help of the Intelact team, a local group of enthusiastic local farmers have formed a local financial discussion group that involves evening meetings and a far more in depth level of detail with regard to how they improve the key things that will drive profit in the business.