Business Health & Performance
Farm performance and business health are critical to LUDF and all New Zealand dairy farmers. Efficient farm management ensures optimal milk production, cost control, and resource management, allowing farmers to remain competitive in a dynamic global market. A strong business foundation also enables farmers to invest in innovation, sustainability, and workforce development.
Healthy financial performance supports not only the individual farm but also contributes to the broader agricultural economy, sustaining rural communities and enabling future growth. Demonstrating strong farm performance, while caring for our people, cows, and environment, contributes to the success of the New Zealand dairy sector. As a demonstration farm, LUDF needs to perform well and stay relevant to the South Island dairy farming community.
Primary Goals
- Farm working expenses (FWE) of $5.60 per kg milk solids (kg MS) produced (or less)
- Operating profit in the top 10% of Canterbury Operator farms in DairyBase
- Return on Assets of 6% every year
- 16.5t DM of pasture and crop harvested per hectare
- 1,650 kg MS per hectare produced each year
Secondary Goals
- Break-even milk price of $6.00/kg MS
- Imported feed of 450 kg dry matter (kg DM)/cow/year
- Run a DairyNZ System 3 farm – 11-20% of total feed in imported to support lactation
- Each cow producing the equivalent of 95% of her liveweight in kg milk solids (MS)
- Milk production of 266,000 kg MS – 475 kg MS/cow/year
- Producing 1 kg MS from every 16 kg DM eaten
- 90% of all milk provided is of the highest quality
- Cows are in the top 2% of Canterbury herds for genetic quality
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