Friday, March 29, 2024

Finding the sweet spot

Avatar photo
A three-farm Wairarapa bull beef and sheep operation seeks to optimise its varied components through teasing out the detail. Russell Priest explains. Photos: Graeme Brown
Reading Time: 2 minutes

There’s more than one way to make a profit in farming. 

Northern Wairarapa’s Derek and Elsje Neal may be similar to other sheep and beef farming enterprises in the area, but they make subtle differences that have a significant impact on their business.

Derek says it’s all about finding your own “sweet spot” where you are most comfortable operating.

He says net profit equals stocking rate, times per head production, minus costs.

“You can put different emphasis on each of these three profit drivers and come up with the same result.

“In a nutshell, in our system we try to grow more feed and run enough stock to utilise what we grow, without killing per head production, while keeping a close eye on costs.”

Derek thrives on challenges and it seems the bigger the challenge the better.

The business is run at a level that seeks to optimise all its components while focusing on detail.

“Dad works at the coal-face all the time and has an intimate knowledge of what’s going on, so if something goes wrong he’s able to act quickly and decisively,” daughter Bronwyn says.

Derek is an avid analyst, always striving to tease out and refine the most detailed and meaningful physical and financial key performance indicators.

Simplicity without compromising productivity is one of the hallmarks of the business. This enables easier attainment of goals and monitoring of progress towards them.

Dams on Taki Taki are well-maintained to provide quality stock water – guess where the boundary is?

“Optimum levels of soil nutrients are essential to achieve high pasture production levels that drive our business,” he says.

Generous inputs of lime ensure pastures remain highly palatable which helps maintain pasture quality and utilisation rate even on the most shady slopes.

The absence of roughage on the steep hill country is testament to Derek’s skilled grazing management.

Average fertility levels on the finishing areas are: phosphate 30, potash 8, sulphur 15, pH 5.8. On the hills: phosphate 25, potash 11, sulphur 12 and pH 5.4.

To lift the pH level on the hills, Taki Taki and Clyro have received 1.25 tonnes lime/ha during the past four years.

Maintenance phosphate requirements on the flats are 30kg/ha and on the hills 20kg/ha.

FARM FACTS

  • Derek and Elsje Neal and family
  • Sheep breeding-finishing and finishing Friesian bulls

Three farms

  • Home farm – Taki Taki (668ha effective) 27km northeast of Masterton
  • Tirohanga (123ha effective) 7km northeast of Masterton
  • Clyro (312ha effective) 1km south of Eketahuna
  • Total area – 1103ha (effective)
  • Contour – 24% flat, balance medium-steep hill
  • Rainfall – 400-1500mm
  • Altitude – 120-500m

Stock at January 15, 2016

  • Ewes – 7210
  • Lambs – 8850
  • Rams – 60
  • Weaner Friesian bulls – 606
  • Friesian bulls (15-month) – 600
  • Angus bulls (15-month) – 80
  • Steers (15-month) – 15
  • Total stock units – 20,900
  • Stocking rate – 18.6su/ha (20.7su/ha at 1.25su/ewe)

Stock at June 20, 2016

  • Ewes – 6462
  • Lambs-hoggets – 3259
  • Rams – 60
  • R1 Friesian bulls – 617
  • R2 Friesian bulls – 147
  • R2 Angus bulls – 77
  • Total stock units – 13,136
  • Stocking rate – 11.9su/ha (13.4su/ha at 1.25su/ewe)

Production

  • Carcaseweight (sheep) – 197,690kg
  • Carcaseweight (cattle) – 148,680kg
  • Total carcaseweight – 346,370kg
  • Carcaseweight production/ha – 314kg/ha

Economic performance

  • Sheep net income/kg product = $1.74
  • Cattle net income/kg product = $2.86
  • EFS – $669/ha
Total
0
Shares
People are also reading