Right now it’s May 2016 and all around New Zealand many sheep and beef farmers are setting themselves up to fail, again.
The autumn has been kind for pasture growth in some regions and there is a little more grass on-farm than normal. As often happens in these situations when pasture covers are higher than normal, some farmers are carrying more livestock than they usually would because they “can feed them” and more animals apparently means more sales and therefore more money. But why with winter just ahead of us would they do this? Talk about giving away the advantage that they were just handed!
You see, if there are usually low pasture covers on farm now, higher covers mean more opportunity through having the chance to set up well for the spring profit period. This is when there are many opportunities to capture profit and animals need full feeding in the spring to achieve this. In winter the pasture growth rates are relatively low so with more than usual animal demand it is logical that they will end up at lambing, calving and trading opportunity time with low pasture covers, again! Therefore, they can’t fully feed in the spring profit period! This means another year of poor profitability next year, which may be just like this year for many.
The advantage that was given by nature is more pasture on hand than normal right now. The opportunity is carrying that cover and have better fed animals in the spring, when they are profitable. Too many animals now (therefore a higher feed demand) will mean the opportunity is lost and spring will be slow again! Feeding of breeding females will be poorer, weaning will be behind and it will be another season of average results, at best. That’s like being given the rugby ball 5m out from the try line, with a head of steam up and no defending players in front of you, then throwing the ball forward over the dead ball line – no try!
GrowFARM clients understand how profit works and set up to put their energy, time, money and other resources into profit periods i.e. when animals are creating profit, not loss. They define their profit periods well ahead and prepare to capture them. The great thing is this works for operations that are breeding, trading, finishing or grazing, and a mix of these.
If you really want to know how to create profit EVERY year, get along to the 1-day GrowFARM training next week in Dannevirke, Tararua on Wednesday 25 May 2016. Click here for find out more and purchase tickets!
If you are curious about how the GrowFARM® System can help sheep and beef farmers generate the profits they really want, contact me here.
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