Covered Feeding Trial at Teys Charlton Set to Answer Some Big Questions
October 25, 2023
When cattle arrive at the Teys Australia Victorian feedlot, they are now divided for scientific purposes.
Dairy Barns are a Strategic Investment
In dairy farming, productivity is closely tied to the well-being of your herd. Dairy barns can be a strategic investment. These structures enable better feed management, reduce wastage, and provide a controlled environment for high-production cows, especially those calving year-round. The right infrastructure, like the innovative Ridgeback®, can play a pivotal role in enhancing milk production and herd health.
Air Flow
Dairy barn operations, managing the microclimate is crucial. Ridgeback® barns are engineered to increase air exchange by changing the air flow pattern, creating a comfortable environment for your cows. This ventilation is vital for mitigating heat stress and maintaining high levels of milk production. The structure, tested and validated for its efficiency, ensures that even in extreme weather conditions, your cows remain more comfortable and productive.
Animal Welfare
Prioritising animal welfare is essential in dairy farming. The Ridgeback® barns offer shelter and shade, protecting your herd from harsh weather, reducing stress, and this improves their health and productivity. Scientific research, along with insights from experts confirm the positive impact of structures on dairy cows’ well-being leading to better milk production and overall farm efficiency.
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Airflow
The Ridgeback® design increases air exchange by at least 20 per cent more per hour than traditional barns. Traditional barns are susceptible to a vortex of air circulating under the structure, whereas with a Ridgeback® design the air is drawn out through the ridge because the vortex forms above the shade.
Working with Industry Goals
In 2019, Dairy Australia developed a three-year program called Adapting Dairy Farm Systems. This program was designed to support the growing Australian dairy barn and housed-cow evolution. Previously, most farmers turned to the US for guidance – especially when it came to building a barn. Dairy Australia’s Technical Lead – Feeding and Farm Systems, Karen Romano said the Adapting Dairy Farm Systems program aimed to provide dairy farmers with information and resources to support them to make informed decisions when considering new feeding and housing systems. The Adapting Dairy Farm Systems program will deliver new economic and risk analysis of both partial and Total Mixed Ration (TMR) feeding systems using on-farm data, and an in-depth risk assessment using a case study farm.
Adapting Dairy Farm Systems has several co-funders. The Victorian component of the project was co-funded by Dairy Australia and Agriculture Victoria. The New South Wales component part of ‘Dairy Unlocking Potential (‘UP’)’ – a large collaborative New South Wales-based dairy research, development and extension program led by Sydney University’s Dairy Research Foundation. The economic and risk analysis project findings are expected to be released later this year. What’s the current barn situation in Australia? This isn’t clear-cut. Industry statistics don’t necessarily sperate TMR operations from housed-cow farms and it’s an area of the industry constantly evolving.
Dairy Unlocking Potential
Adapting Dairy Farm Systems is funded by several organisations. The Victorian component of the project was co-funded by Dairy Australia and Agriculture Victoria. In New South Wales, ‘Dairy Unlocking Potential (‘UP’)’ – a large collaborative New South Wales-based dairy research, development and extension program led by Sydney University’s Dairy Research Foundation – funds the program.
Australian Barn Designs
Entegra Signature Structures is at the forefront of the nation’s growing interest in dairy barns. Based at Swan Hill in Victoria, Entegra has designed and constructed dairy barns throughout the country. Entegra design consultant Charles McCalman said dairy barn interest spiked after the first Ridgeback® was opened in south west Victoria in 2019. Since, dairy farmers from Queensland to South Australia have invested in this cutting-edge technology to improve animal welfare and productivity.
“The popularity of the Ridgeback® has stemmed from the increased milk production, improved fertility and streamlined management that early adopters of the dairy barn design have reported,” Charles said. “The more Ridgeback® Entegra builds, the more demand there is for Ridgeback®.” Dairy farms with Ridgebacks have reported milk production increases of up to 40 per cent. Ridgebacks can be built to work with existing feeding systems and infrastructure or designed for greenfield sites. Entegra Project Manager Michael Winn said vital construction elements, such as internal clearance heights and the positioning of central posts, can be built around the feed and flush area of established feedpads. “Entegra designs Ridgebacks to optimise the functionality of the shade and shelter,” Michael said. “For example, the trusses are high enough so it is possible to take tractors down either side for cleaning or spreading out feed.” he said.
Navigating Farm
Developments (NFD)
Agriculture Victoria operates an interactive digital planning platform called Navigating Farm Developments (NFD). This platform helps farmers to better understand their property from a planning perspective, by identifying the relevant property overlays which may trigger permits.
Key Considerations
In 2020, Agriculture Victoria said there were at least 120 housed-cow facilities in Australia. Agriculture Victoria …Scott McDonald, said at the time, most of these were in northern Victoria and the NSW southern Riverina. He said farmers chose different barn configurations depending on what system they wanted to operate.
In 2020, Mr McDonald said 60 per cent of dairy farmers chose to build barns – where cows can loaf – while 27 per cent opted for a freestall configuration and 13 per cent chose dairy dry lots with cattle shelters. “It is very much an individual business decision choosing the infrastructure best suited to their situation,” he said. According to Agriculture Victoria statistics in 2020, of those who invested in a freestall system, most milked 1000-1999 cows. The second largest group of farmers who invested in a freestall system milked 2000-4000 cows. While those choosing a barn where cows can loaf, typically house between 250 to 800 cows.
Research
US dairy barn expert Jake Martin pushed the importance of research when he spoke to farmers, industry representatives and consultants at a 2020 dairy barn webinar. “Visit as many successful dairy farms as you can,” he said. “Gathering information and understanding the system, process and management changes required to convert to a housed-cow dairy operation is the best way for farmers to decide if a barn is the correct infrastructure choice for their business.”
Shelter Orientation
Orientation is one of the most important considerations when building a dairy barn. US dairy barn expert Jake Martin said feedpads and dairy barns must run east to west for ventilation and natural light.”If you want to put a freestall barn on top of a feed pad, build the feedpad with the shed in mind,” Mr Martin said.
The reason? For a dairy barn to be successful, a lot of it comes down to its orientation. They must be east to west for ventilation and natural light, just to name a few drivers. If you want to put a freestall barn on top of a feed pad, build the feedpad with the shed in mind, Mr Martin said. Like all farming though, each business is different. The key to deciding if permanent dairy housing is the ideal investment for a business, comes back to understanding the current farming system, its limitations, opportunities, and the farm’s financial position. “Everyone has their own numbers,” Mr Martin said. “Work with your bankers and be comfortable with what barns can do for you.”
Making Financial Cents
of Dairy Barn
Zero-grazing dairy farms can be profitable in northern Victoria, according to dairy industry economic modelling. And since the rise of housed-cow dairy farming in Australia, there’s now industry information and guides developed by researchers into managing the risk of transitioning to a Total Mixed Ration (TMR) farming system from a grazing operation. Agriculture Victoria farm business economist Claire Waterman told the inaugural 2022 “Raising the Roof” intensive dairy feeding and housing conference at Echuca that TMR farms had a higher profit than the average northern Victorian dairy farm in the farm business benchmarking Dairy Farm Monitor Project (DFMP).
Her work, supported by Dairy Australia, analysed seven TMR farm businesses for five years, including two freestalls, four barns and one dairy dry lot. The average return on total assets (ROTA) for these TMR farms ranged from 2 per cent in 2016-17 to 8.9 per cent in 2020-21. In comparison, the range of average ROTA for the northern Victorian farm businesses in the DFMP was -1.9 per cent to 5.8 per cent for the same period, with the lowest recorded in 2018-19. However, the top 25 per cent of DFMP businesses in northern Victoria exceeded the profit of the TMR farms, recording a ROTA of 3.9 per cent in 2018-19 to 10.3 per cent in 2020-21. Ms Waterman said the average profit for the TMR farms generally increased across the five years. For example, the lowest performing TMR farm in 2016-17 “became average” by 2021.
Increase in Profitability
Less wasted feed, more milk production per cow and a decrease in lameness – thanks to placing a shed across farm loafing areas and feedpads – contributed to the increase in profitability of the Total Mixed Ration (TMR) farms in the Dairy Farm Monitor Project (DFMP) results showcased at Echuca in 2022. The 2022 DFMP TMR farm business analysis also found the TMR farms received a higher and more stable farmgate milk price in the latter years of this research. The milk price received by these TMR farms also didn’t vary much between the participants.
The research found this higher and more stable farmgate milk price compensated for higher feed costs in the TMR system compared to the average northern Victorian DFMP farms. In two of the five years analysed, the TMR farms reported higher milk income and gross farm income than the top 25 per cent northern Victorian DFMP farms. In 2020-21 the TMR farms had an average gross farm income of $0.19/kg of milk solids, more than the average northern Victorian DFMP farms.
Cost Count
The Dairy Farm Monitor Project economic analysis, presented in 2022, demonstrated that in most years, the TMR farms had higher feed cash costs – including both homegrown and purchased feed – compared to the average northern Victorian farms. But some of these higher feed costs were offset by increasing water and feed inventories. Feed costs varied across the TMR farms, with the greatest difference in the dry season of 2018-19 when there was high purchased feed and irrigation water prices. In 2018-19, the average total feed cost for the TMR farms was $4.51/kg MS – the highest across the five years.
The lowest average total TMR feed cost was $2.89/kg MS in 2016-17. In 2020-21 it was $3.45/kg MS. Improved water availability and lower irrigation water prices in 2020-21 meant farmers spent more on growing homegrown feed that year than they did the previous season. On average, the analysis showed feed reserves increased throughout each year on the TMR farms. This meant there was more feed at the end of the year than the start, lowering total annual feed costs and acting as a “buffer” against rising water and feed prices.
Balancing Overhead Costs
Overhead costs accounted for an average of about $2/kg of milk solids on the Total Mixed Ration (TMR) farms exclaimed as part of the Dairy Farm Monitor Project, presented in 2022. These costs, including employed and imputed labour, repairs and maintenance and depreciation, were cheaper per kilogram of milk solids on the TMR farms compared to the average northern Victorian DFMP farms. Part of this was due to the “dilution” of overhead costs, a direct result of the TMR farms producing more milk solids than the average northern Victorian DFMP farm.
Average Overhead Costs for Victorian TMR Farms
| 2016/17 $/kg MS |
2017/18 $/kg MS |
2018/19 $/kg MS |
2019/20 $/kg MS |
2020/21 /kg MS |
|
|---|---|---|---|---|---|
| EMPLOYED LABOUR | 0.99 (0.61 to 1.38) |
0.87 (0.43 to 1.20) |
0.89 (0.59 to 1.20) |
0.89 (0.41 to 1.27) |
0.96 (0.66 to 1.66) |
| REPAIRS AND MAINTENANCE | 0.41 (0.17 to 0.33) |
0.37 (0.29 to 0.44) |
0.42 (0.31 to 0.55) |
0.38 (0.25 to 0.50) |
0.37 (0.28 to 0.51) |
| ALL OTHER OVERHEADS | 0.22 (0.16 to 0.72) |
0.20 (0.12 to 0.27) |
0.24 (0.19 to 0.28) |
0.20 (0.14 to 0.26) |
0.20 (0.12 to 0.28) |
| IMPUTED LABOUR | 0.45 (0.16 to 0.72) |
0.39 (0.14 to 0.65) |
0.35 (0.10 to 0.61) |
0.30 (0.09 to 0.54) |
0.29 (0.09 to 0.53) |
| DEPRECIATION | 0.25 (0.12 to 0.41) |
0.26 (0.16 to 0.37) |
0.25 (0.13 to 0.35) |
0.24 (0.11 to 0.38) |
0.23 (0.12 to 0.34) |
| TOTAL OVERHEAD COSTS | 2.32 (1.70 to 3.06) |
2.10 (1.53 to 2.80) |
2.14 (1.74 to 2.62) |
2.02 (1.70 to 2.51) |
2.06 (1.70 to 2.47) |
| *Between 2016/17 and 2020/21, corrected for infation. The tenth and ninetieth percentiles are shown in brackets. Source: Agriculture Victoria and Dairy Australia |
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Average Overhead Costs of Northern Victorian DFMP Farms
| 2016/17 $/kg MS |
2017/18 $/kg MS |
2018/19 $/kg MS |
2019/20 $/kg MS |
2020/21 /kg MS |
|
|---|---|---|---|---|---|
| EMPLOYED LABOUR | 0.54 (0.15 to 1.01) |
0.53 (0.12 to 0.94) |
0.59 (0.26 to 0.86) |
0.56 (0.18 to 0.99) |
0.59 (0.17 to 0.93) |
| REPAIRS AND MAINTENANCE | 0.37 (0.24 to 0.51) |
0.35 (0.18 to 0.49) |
0.35 (0.17 to 0.54) |
0.31 (0.19 to 0.46) |
0.38 (0.26 to 0.53) |
| ALL OTHER OVERHEADS | 0.27 (0.17 to 0.44) |
0.28 (0.16 to 0.45) |
0.30 (0.17 to 0.52) |
0.30 (0.17 to 0.46) |
0.29 (0.19 to 0.42) |
| IMPUTED LABOUR | 0.86 (0.44 to 1.54) |
0.86 (0.43 to 1.56) |
0.93 (0.42 to 1.77) |
0.83 (0.39 to 1.54) |
0.79 (0.35 to 1.58) |
| DEPRECIATION | 0.24 (0.11 to 0.48) |
0.22 (0.12 to 0.38) |
0.22 (0.11 to 0.38) |
0.21 (0.12 to 0.30) |
0.24 (0.14 to 0.36) |
| TOTAL OVERHEAD COSTS | 2.29 (1.65 to 2.90) |
2.24 (1.68 to 2.89) |
2.39 (1.72 to 3.25) |
2.21 (1.59 to 3.13) |
2.30 (1.73 to 3.07) |
| *Between 2016/17 and 2020/21, corrected for infation. The tenth and ninetieth percentiles are shown in brackets. Source: Agriculture Victoria and Dairy Australia |
|||||
Risk Mitigation
Securing a strong and stable milk price, focusing on the quality and quantity of homegrown feed, and starting with a strong equity position are just some of ways a dairy business can manage the risk of transitioning to a zero-grazing system. That’s just some of the findings from an Agriculture Victoria and Dairy Australia project examining dairy systems. This risk analysis research, part of the Adapting Dairy Farm Systems program, concluded that a dairy business could avoid the pitfalls of unpredictable profit during the conversion to Total Mixed Ration (TMR) if a farm business could achieve several management targets. These Included:
- Securing a strong and stable farmgate milk price
- Lower than average grain price
- High feed conversion efficiency
- Secure a high volume of good quality homegrown feed
- Initial high equity position
Economic Insights
Dairy Farm Monitor Project results presented at the 2022 ‘Raise the Roof’ conference at Echuca, Victoria.
Total Mixed Ration (TMR) farms had an average gross farm income of $0.19/kg of milk solids more than the average Dairy Farm Monitor Project northern Victorian farms in 2020-21.
The TMR farms recorded higher gross incomes for three of the five years of the economic analysis.
Some of the higher TMR feed costs were offset by increasing water and feed inventories.
Improving Heifer Growth
A Ridgeback® has improved heifer productivity for Swan Hill dairy farmer Matt Glowrey, with the shelter assisting early and sustained animal growth. And industry research backs-up this dairy farmer experience. In 2013, Dairy Australia estimated it cost $1300 to $1500 to rear a dairy heifer to the point of calving at two-years-old. It also found the average cost of rearing a heifer is reduced if the average age of first calving is reduced. Dairy Australia reported that a heifer should be 85 per cent of her mature weight when she calves for the first time for optimum health – including fertility – and increased production. If a heifer doesn’t reach this weight by two-years-old, and instead calves six-months later at 30-months-old, her rearing costs increase $266 to a total between $1566 and $1766.
Dairy Australia said this means the average cost of rearing a heifer is reduced if the average age of first calving is reduced. For Matt, at his Swan Hill farm, heifer productivity comes down to early and sustained growth. He wants all his young stock to perform, and to achieve this, it’s meant improving the tail-end calves. “We did a hell of a lot of drafting during the drought, offering the bottom-end of the calf mob to China for export,” Matt said, “We would have drafted thousands of animals and you’d go through a mob and get to the bottom and think ‘why are you here? I’ve just spent a year-and-a-half to two years getting you to this point and you are not what I want.” “Obviously the genetics are already there, and the story isn’t over when they leave the shed, we have tomaintain their growth until they calve, but it’s about getting everything right at the start too, when they come in.”
Calf Management
Made Easier
Feeding quality colostrum, identifying health issues and even maintaining the comfort of calves is easier in a Ridgeback®. Swan Hill dairy farmer Matt Glowrey, who rears calves in a Ridgeback®, has improved the “tail-end” of his calves thanks to the innovative shade and shelter, with the calves even protected from extreme weather events such as 70mm downpours. “Normally if the calves were outdoors, we’d have to deal with bedding and wet feed and all that sort of thing,” he said. “The shed just maintains the health of the calves and we are rearing better calves that are putting more weight on earlier. It’s also easier to manage because it is all under one roof. You can easily justify it (the shed) by seeing how well the calves are growing.”
“Normally if the calves were outdoors, we’d have to deal with bedding and wet feed and all that sort of thing,” Matt said. The shed just maintains that health of the calves and we are rearing better calves, that are putting more weight on earlier. It’s also easier to manage because it is all under one roof. You can easily justify it (the shed) by seeing how well the calves are growing.”
Growing Family Business
A Ridgeback® helped the Glowrey family double the size of their dairy farming business and boost self-sufficiency. Matt Glowrey with son Dallas and daughter Josie milk 1600 cows, year-round on nearly 2023 hectares. They grow corn, pasture, vetch and cereals for hay and silage to take the “bumps” out of their budget by reducing the cost of fodder.
Capitalising on Beef Demand
Swan Hill dairy farmer Matt Glowrey also started rearing all of his Holstein bull calves to supply the beef restocker market, thanks to the addition of a Ridgeback®. In 2022, he was retaining most bull calves until they were three-to-five months of age, while some where held longer and grown out. The Holstein bulls were reared in the Ridgeback® and the ease of calf management meant it was easier for the Glowrey family to capitalise on strong beef demand and diversify business income.
This strong demand for dairy-beef in recent years is a stark contrast to the historical market for dairy bull calves. “We used to get $50 at five days old or sell them at three months for a bit over the cost of production,” Matt said. “There was no value in doing that, so then you’d have to hold onto them for 12 months and that’s a long time to have an extra animal on the property, especially in a year when there’s high feed costs. “Now we are getting a reasonable margin over feed costs, and we are using any excess milk – waste milk from the dairy that’s not suitable for sale – for the calves and supplementing them with milk powder if we need. We are converting milk that would have been thrown-out into something that’s increasing our revenue and improving our bottom-line.” The Entegra Ridgeback® has also made it easier to rear these bull calves as they are treated ”no differently” to the heifers.
Calf Shelter Pays Dividends
Glowrey case study, 2022.
Entegra Ridgeback® houses 1200 calves
Calf growth has improved with the shade and shelter
Glowrey family rear all their bull calves for the dairy-beef market
The farm has grown and is now focusing on self-sufficiency
Set-up for Success
In 2022, Matt wasn’t sure what the future would hold for his family business but he was confident that if it expanded again, his family would have the right calf rearing facilities to handle growth – regardless of what Mother Nature throws at them. He said the Ridgeback® is “luxurious”and nothing compares to a “purpose built” structure designed specifically for livestock. “If we can grow a stronger, healthier calf fast – at the start of her life – and maintain that growth throughout its life, it will be a bigger, healthier cow when she has her first calf,” he said.
Helping Cow Health
Queensland dairy farmer Grant Ledger gained more milk, improved production consistency and reduced mastitis when he installed a Ridgeback®. Before the Ridgeback® the dairy herd would get at least one case of mastitis a week – mostly environmental mastitis. This mastitis was the result of cows grouping beneath trees and near water sources in the paddock – because of the heat – the mud they’d cause from trampling the area and their closeness would spread disease. Now, they Ledgers barely get one mastitis case a month, increasing the amount of milk in their vat and saving money with reduced penicillin usage.
Grant believes the compost bedding beneath the Ridgeback® and the “sterile environment” they’ve created has reduced mastitis cases. The compost base is wood chips, with cow manure on top and it is aerated each day to keep it in top condition.“We keep stirring it up, aerating it, exactly the same as you would do any sort of compost pit,” Grant said. “What that’s doing is it gets very hot under the surface and what we are doing by turning it over we are bringing up what was hot underneath, and all the bugs in it are being sterilised, so basically the cows are sitting in a sterile environment.”
Feedpad Canopy
Dairy farmers can customise Ridgeback® designs. Grant Ledger, a farmer from Queensland, added a canopy to the side of the Ridgeback®, across the top of a feedpad, to provide shelter for the cows as they eat. It also keeps feed away from the sterile composted area. Effluent from the feedpad area is captured and used to fertilise cropping paddocks, reducing input costs.
Processor Support
Grant Ledger’s Ridgeback® got the tick of approval from his milk processor. “They like the way the cows are comfortable,” the Queensland dairy farmer said. “It’s because their customers are more aware about animal health and animal comfort these days. The manufacturers like to know that we are looking after the cows properly.”
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What Our Clients Say
FAQs
Improving milk production, cow fertility and comfort are the main drivers for farmers
looking to invest in a Ridgeback®. Often, these farmers also want to maximise water
usage by growing fodder crops and their paddocks and feeding them back to their herd
in a Total Mixed Ration (TMR) system. Weather is also a deciding factor in building a
Ridgeback®. Dairy farmers want to protect their herds’ from wet, hot or cold conditions
to maximise their farm productivity.
There are several factors that contribute to the return on investment for a Ridgeback®. These include, increases of up to 40 per cent in milk production, improved fertility, better animal health – less mastitis cases – less feed wastage and improved working conditions for farm owners and staff. A Ridgeback® can also enable a dairy farm to milk cows year-round, with consistent daily production, which can be attract premium farmgate milk prices.
There’s no “right” system for a Ridgeback®, farmers with a range of different feeding systems and farm sizes have success with a Ridgeback®. For example, many farms operating a Total Mixed Ration (TMR) build a Ridgeback® to further control their cows’ diet and comfort, while also using pastures to produce feed. Partial Mixed Ration (PMR) farms have also used a Ridgeback® to maximise cow comfort and milk production potential, while grazing dairy farms use the shelter of a Ridgeback® to provide protection during the hottest or coldest parts of the day when it’s wet.
Yes, the Ridgeback® ventilation system is engineered to significantly enhance air exchange. Aerospace engineers have rigorously tested the design to ensure its effectiveness in providing excellent ventilation within the shelter. This innovative ventilation system is a key feature that contributes to the overall quality and performance of the Ridgeback®.
To understand the Ridgeback® and its suitability for your dairy farm, the best step is to schedule a call with an experienced Entegra team member. They can provide you with valuable insights and information about the Ridgeback®. Additionally, if needed, they can arrange a site visit to assess how the Ridgeback® can best meet the specific requirements of your dairy farm, ensuring a tailored and effective solution for your needs.
The Ridgeback® offers a unique advantage over alternative options like shade sails. While shade sails can provide relief from direct sunlight, they have limitations when it comes to enhancing airflow. A Ridgeback®, on the other hand, has undergone extensive testing and design by aerospace engineers, which has demonstrated a significant improvement in air exchange within the sheltered area. This enhanced ventilation is essential for ensuring the comfort and productivity of cattle, particularly during hot weather conditions.
Bedding varies depending on material availability but most choose to compost floors.
Yes, a Ridgeback® can be tailored to meet individual needs. The experienced Entegra team will work closely with you to understand your unique requirements and design a Ridgeback® that aligns with your goals. Whether you need a shelter for shade, protection from the elements, or other specific purposes, customisation options are available to ensure that a Ridgeback® is the perfect fit for your operation. Contact us to discuss your requirements and explore the possibilities of customisation.
