New entrant to dairying after quota goes

darragh_haven

I'm looking into what the storey will be in 2015 if I want to go into milking. I know my farm situation is suitable for it as we were milking up to 2004. Would I be able to just start producing milk, and as much I can........ and would I get the flat rate the same as others with the same solids.
If I do intend to go milking, i want to have a decent plan in place and be geared up properly

kevthegaff

if i were u darragh id start buying rep heifers and reared calves and gear up for it that way, theyre pretty cheap fro what i hear, id apply as a new entrant- possible upto 44k gallons u can get as soon as possible. if u can get this then why not milk 30-40 cows nxt year and be ready for the following year. U may have to buy shares also for post 2015. Im slow about putting too much money into high cost facilities unless you have the money.

Timmaay

Your local processer will probably have some terms and conditions, glanbia will want 2cent/l for all new mk supplied, as a loan over 5yrs to cover the costs, dairygold appear to have some sort of supply contracts, others need you to have a minimum amount of shares, all of the above will tie up cashflow, right when you'll need the cash the most, so make sure ya factor that into any cashflow plans.

mahoney_j

darragh_haven wrote: »

I'm looking into what the storey will be in 2015 if I want to go into milking. I know my farm situation is suitable for it as we were milking up to 2004. Would I be able to just start producing milk, and as much I can........ and would I get the flat rate the same as others with the same solids.
If I do intend to go milking, i want to have a decent plan in place and be geared up properly

My advice get the nuts and bolts of your farm in order first namely your grassland (get it all soil tested and start reseeding and fertlise and apply
line as per results).secondly roadways,thirdly water (cows have a big thirst,old 3/4 or half inch pipe is no good)fourth stock (its a great time to purchase good quality high Ebi stock for average money)fifth go and milk in as many parlours as possible to see what u like and don't like.
On supplying milk to a coop just check with ur local coop you won't be able to just phone up and ask for a tanker to come and take ur milk

yellow50HX

mahoney_j wrote: »

My advice get the nuts and bolts of your farm in order first namely your grassland (get it all soil tested and start reseeding and fertlise and apply
line as per results).secondly roadways,thirdly water (cows have a big thirst,old 3/4 or half inch pipe is no good)fourth stock (its a great time to purchase good quality high Ebi stock for average money)fifth go and milk in as many parlours as possible to see what u like and don't like.
On supplying milk to a coop just check with ur local coop you won't be able to just phone up and ask for a tanker to come and take ur milk

spot on advice.

Fr calves are relativly cheap at the mo, my neighbour bought a few cows and is using them to raise calves, he'll buy calves and put 2 or 3 under the cows at a time. He was suprised that more dairy lads were not buyign them up.

I'd say 1st thing ti check would be the terms and conditions from the local co-op's. if they are agreeable then you can then get aroudn to starting you rset-up. No point speding time and money on fixing up the farm, parlour and getting stock and not being able to ship your milk. You said you were milkign up to 04, you should be able to reactivate your old contract (depending how it was ceased).

Farmer Pudsey

You shouould be buying heifer calves they have never being cheaper than present. Like another poster said you should try to get quota for next year and buy cows and replacment heifers. The reality that now is a good time to get it at a reasonable cost compared to the last 2-3 years.
http://www.donedeal.ie/beefcattle-for-sale/beef-and-dairy-cows-for-sale/5305112

Saw this add on DD last night they sound reasonable maybe when someone goes to look at them they he might be only trying to sell sh#tty culls but at the end of this year there will be goodish cows/replacment heifers for sale at the right money.

Also as another poster said get your grassland tested and start getting a plan in place to reseed a bit every year.

Alot of the above is predicated on the assumption that you have adequate silage for the winter. Another advantage that some dry stock farmers have at present is that if they are finishing cattle the good factory price means that changeover is cheaper than it ever was.

darragh_haven

mahoney_j wrote: »

My advice get the nuts and bolts of your farm in order first namely your grassland (get it all soil tested and start reseeding and fertlise and apply
line as per results).secondly roadways,thirdly water (cows have a big thirst,old 3/4 or half inch pipe is no good)fourth stock (its a great time to purchase good quality high Ebi stock for average money)fifth go and milk in as many parlours as possible to see what u like and don't like.
On supplying milk to a coop just check with ur local coop you won't be able to just phone up and ask for a tanker to come and take ur milk

The farm was set up for milking around the 110 cow mark up to 2004 (i, in my youthful wisdom, decided to feck off around the world for a while). Roadways, water, housing, cubicles, scrapers, slurry storage, silage pits, paddocks in good layout, active grassland resseding constantly being done in conjunction with soil sampling..... all this is down to my dad who is still working away (new knee and hip included) but beef stores is what we are at.
I have a good full time job but I'm away 2 nights a week, sometimes 3. If I'm going to go farming full time, I'm going at it full tilt in dairy. My main expenses to start would be the cows, second hand parlour and bulk tank, and calves house.

darragh_haven

Farmer Pudsey wrote: »

Alot of the above is predicated on the assumption that you have adequate silage for the winter. Another advantage that some dry stock farmers have at present is that if they are finishing cattle the good factory price means that changeover is cheaper than it ever was.

We were selling silage this winter/spring so we have no problem there. Sold about 200 bakes and 110 ton of pit, and still have stuff left over.
My main problem is herdsmanship skills.... I have no confidence in them. Grassland management, financial planning, mechanical, and construction skills are my best attributes. But herdsmanship skills could be the difference between a 2% mortality rate and a 15% mortality rate..... altho one neighbour I was talking to told me he had the same problem starting out but he learned quick when it hit him in the pocket

Tipp Man

Go for it

Personally i would probably wait until 2017 for things to settle down a little. There could be a large drop in milk price in 2015

Remember things like roadway, fencing and maintainance are 100% tax deductible immediatly - if your current job is in the high tax bracket get all of these things into A1 condition and use your tax to pay for it. Do not underestimate the value of an A1 roadway.

Farmer Pudsey

Tipp Man wrote: »

Go for it

Personally i would probably wait until 2017 for things to settle down a little. There could be a large drop in milk price in 2015

Remember things like roadway, fencing and maintainance are 100% tax deductible immediatly - if your current job is in the high tax bracket get all of these things into A1 condition and use your tax to pay for it. Do not underestimate the value of an A1 roadway.

In one way I agree with you Tippman however at present there is agood opportunity compared to the last few years. Yes 2015 look dodgy but on the other hand if 2015/16 are reasonable years it will be hard to get in. The present start up costs if you have adquate forage/silage are an oportunity to get in at a relative low cost. Also a strong beef price helps change over.

3 years ago 360kg ''R'' bullock was worth 1200 euro a good dairy cow was the same price at least, today the same bullock is worth 1700+ or- while a good dairy cow is less than 1K( I think am not completly aware of dairy cow prices)

So if you have stock to sell you could have money left over after the cows are bought to put towards parlour or land upgrade. I would consider present startup costs attractive.

Even buying heifer calves and getting them ready for the bull next year with a view to calf down in 2015 is an attractive option. Personelly I think it could be one of the best entry time for a while.

Even buying quota may well be priced right next year.

yellow50HX

darragh_haven wrote: »

We were selling silage this winter/spring so we have no problem there. Sold about 200 bakes and 110 ton of pit, and still have stuff left over.
My main problem is herdsmanship skills.... I have no confidence in them. Grassland management, financial planning, mechanical, and construction skills are my best attributes. But herdsmanship skills could be the difference between a 2% mortality rate and a 15% mortality rate..... altho one neighbour I was talking to told me he had the same problem starting out but he learned quick when it hit him in the pocket

well if the ol lad is still knocking around he'll still have his eye in with the cows. IF your worried about not knowing the skills i'm sure there are plenty of local lads around that would be delighted to have an extra hand around over a weekend or evening to pass on what to check for. liek a few other lads said a few evenings milking the neighbours cows after work would have you back up to speed again.

kevthegaff

horse in the milk, and get lambasted on the superlevy thread nxt year! only messing:). I was the same, it took me the first couple of years to get going with calving, diseases, breeding. It will take time and a few mistakes but youl be flying it after the first year. Im definitely on for concentrationg on stock, as u have all infrastructures in place. Calves and breeding heifers are cheaper than they will be for a longtime!

keep going

carbery are looking for 25 shares per 1000l of supply so if you plan to supply 500000l you will 12500 shares which are around 2 euro now and rising fast. one of the best times to get into milk has prob already past as fr heifer calves were selling for 200 to 250 and they would already have cost 100 euro in ai.i have an idea of your set up so i think you would be up and running at relatively low cost.your biggest problem is all you ambitous neighbours-there is some competion south there.

Mulumpy

Would you have anyway of starting out small and holding onto your job for a while. I milk 60 cows and work four cycle shift. Have a good lad helping with the milking and ties in fine. I wouldn't give job up for anything.