Dairy farms in 2022 have skilled record-high enter costs, nonetheless margins have seemed to be fairly good this yr too.

Based mostly on the Agriland and Irish Creamery Milk Suppliers Affiliation’s (ICMSA’s) Milk Worth Tracker, all co-ops have constantly elevated their base costs for 10 months this yr.

Base worth in almost each co-op was over 50c/L for June’s provide, which many by no means thought they might see.

With dairy farmers sustaining their margins for 2022, and a few presumably enhancing them, the query now begs: What ought to they put money into?

Some will right away have a look at equipment, however that is possible not going to offer a return on funding.

Farmers ought to make investments that can give them a return or enhance their work-life steadiness. Just a few examples are beneath.

Lime

Lime is an apparent funding selection, with each €1 funding in lime returning €eight in pasture manufacturing.

Based mostly on a soil pattern, farmers ought to unfold lime on paddocks that require it and thus cut back their want for chemical fertiliser.

One other soil-smart funding is clover, which has actually come into focus of late.

One of the best time to determine clover is spring and soil pH must be at optimum ranges.

Grazing infrastructure

Though supplies are costly at current, you will need to proceed to make investments in grazing infrastructure.

Some investments in grazing infrastructure may embrace:

• Making extra entrances and exits to paddocks;
• Updating water methods;
• Changing broken or outdated publish and wire;
• Including new roadways.

Funding in grazing infrastructure will even provide a return on funding.

Higher grazing infrastructure makes it simpler to handle cows and grass, thus leading to higher manufacturing and higher milk solids output/cow.

Farmyard

Massive investments within the farmyard are unlikely this yr because of the excessive value of supplies.

Nevertheless, investments in expertise, akin to small enhancements to the milking parlour like putting in computerized cluster removers, may show worthwhile.

Another choice might be investing in a drafting gate that may be managed from the pit of the parlour, or warmth detection and health-monitoring collars on your cows that might be linked to your drafting gate.

Key message

The take-home message needs to be to speculate correctly; make investments in areaa that can give you the most effective return. This can be when it comes to direct financing, or it might be a return on high quality of life i.e. providing you with a greater work-life steadiness or saving on labour.

Talking on the latest Ballyhaise open day, Dr. Joe Patton, head of Data Switch with Teagasc stated: “Once we discuss labour saving, we imply real labour saving – not devices and gimmicks.

“I see lots of people put money into labour-saving units simply to make themselves busy.”