Introduction for Future Herd Strategy articles

Considering the subject of the ‘future herd’ got me thinking about what that really means, writes Ruth Vernon, large animal vet adviser at Intervet.  Listen to some commentators and you could come away thinking there isn’t much of a future, but delve a little deeper, and there are many successful dairy operations (of all shapes and sizes) working efficiently and making a profit – these will be the herds that survive and prosper in the future.   With Farm Business, Intervet will be examining many of the factors that affect dairy herd profitability, and therefore viability, over the coming months. 

Around 1,000 dairy farms ceased trading last year, and predictions are that a similar number may do so this year.  Certainly milk prices continue to remain low, but the effects of gradual rises in a number of variable costs, plus last year’s dry summer and resultant shortage of feed stocks are now adding to business expenditure.  Nearly all variable costs have risen, according to the RABDF/NFI report ‘British Milk – What Price 2006?’.  The largest rises were seen in AI and bull hire and contract labour costs (33% and 38% respectively).  Other areas that rose significantly were herd replacement costs and consumables/dairy sundries.

Interestingly, one of the areas of lowest increase was vet and med spend, which rose from 0.57ppl in 2002/3 to 0.60ppl in 2005/6.  Given that we know an increasing number of farmers are now adopting preventative approaches to herd health management – investing in vaccines for diseases such as IBR, BVD or pneumonia – this is encouraging.  Most vaccination programmes show a clear return on investment, as does pro-active herd health planning.  Minimising disease problems as a positive effect on herd output and, much of the time, also allows the labour force to work more efficiently. 

In the forthcoming series of future herd articles, we will examine subjects ranging from new approaches to dry cow management to the effect of subsidised herd health planning initiatives in Scotland.  We hope they prove of interest and are thought-provoking.