In 2015, for the first time in over 30 years, farmers can now expand milk production without the hassle of milk quotas. The whole abolition of quota presents great opportunities for dairy farmers to expand. There will be undoubtedly success for many, for others, however, expansion may bring heavier workloads and increased stress without any long term benefits.
The main requirement for the whole expansion process is that it is stainable from all aspects for the business perspective. This basically means, that the business should focus on the accurate conversion of home grown feed to saleable products that are recognised as being of high quality and are safe to consume.
In a lot of cases, expansion is not planned effectively. There is no money in expansion the money only starts to come in once you have expanded. From farm to farm, the amount of investment needed varies. Expansion costs are indeed very individual.
Getting ready for expansion or conversion can be a challenging as well as a rewarding experience, here are the main tips and advice to help you along the way in your expansion:
• Plan your farm with labour efficiency in mind, design sheds, roads, yards, milking parlour and handling facilities with cow and operator comfort and safety in mind and also with the objective of getting the job done quickly.
• Plan your time in advance to make the best use of it and your farm worker’s time. Don’t be afraid to delegate and don’t get over worked as it will do you no favours in the long run.
• Use only skilled, trained, insured staff. FRS can provide this as well as giving you one invoice which is tax deductible. Black market labour can be very costly if the work is not carried out correctly, it can also end up costing you more if you compare to the net cost of using FRS (including for tax deductibility).
• Make a plan for your record-keeping, don’t let paperwork get on top of you or keep you from the important business of farming. Check out Herdwatch our new software and app for herd management to make your paperwork and compliance recording more efficient. It saves farmers up to four hours per week on paperwork. http://www.herdwatch.ie for more information.
• Evaluate your own training needs – enrol in the FRS/AHI/Teagasc, Best Practice in Milking Course – it should improve your routine and milk quality. It will also gain you a FETAC Level 6 Certificate. Identify any other training needs you may have and get your-self upskilled eg. financial, time management, chainsaw safety, spraying operations, Quad bike etc. Check out http://www.frstraining.com for specialised agricultural and business courses.
• Protect your livelihood by planning for unforeseen circumstances such as accident or illness. Join the FRS Membership Benefit Scheme which gives you the peace of mind that your farm will be looked after if you are unable to work. Visit http://www.frsfarmrelief.ie/membership for further details.
• Make sure your farm is a safe and comfortable working environment. Are there any areas which could be made safer or more efficient? Complete or update your safety statement and check out farm safety courses available through http://www.frstrainig.com.
• FRS can help you to plan for expansion, call us for confidential, no-obligation free advice. We can tailor packages to suit your farm needs.
Realistically sustainable expansion has three main aims: Firstly, It should be profitable for the farmer. Secondly, it should look after the environment and thirdly it should improve the lifestyle of the farmer over all. It is already evident since the abolition of milk quotas that there is going to be a significant increase in milk production over the coming years.
If you are looking for any expansion tips or advice do not hesitate to contact FRS on (0505) 22100 or visit our website http://www.frsfarmrelief.ie