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Introduction• Return on Capital (ROC)

• Is there a correlation between N Leaching and ROC

• What makes the good guys good

• ase u y arm

• Resilience / The Sweet Zone

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Return on Capital vs. Operating Profit/ha• Return on capital is the operating profit (EFS) over the

entire asset land cows lant shares includin leased assets .

• ROC allows comparison between farms with different

productive capabilities, places and systems.

• Operating profit per hectare varies with land quality.

E.g. a flat Waikato farm vs Otorohanga hill farm

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Cost of Production /KgMS

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Will Reducing N Leaching Affect Profit?

No correlation found between ROC and N Loss

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What makes these good guys good

•

Low cost of production• Good pasture utilisation

• tDM Consumed per cow

• Milk production per cow

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Case Study

Sheehy and Scott Farmheehy and Scott Farm

LUC 1-3 (flat): 0%

LUC 4 (rolling): 57%7

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Sheehy and Scott Farm – Key Points• xce ent ee convers on e c ency• • High per cow production• 12ha Chicory (9% of farm)• Average 5% Empty Rate over 5yrs (12 week mating)• - • Low Environmental Impact

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Sheehy and Scott Farm KPIs

KPI 2011/12 2012/13

Hectares 134 134Cows 350 340ROC 4.8% 3.8% g cow 7

Pasture % Diet 80% 76%

N Leached 30 29

P Loss 2.4 1.9

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Sheehy and Scott Farm

with a low environmental impact

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What is Resilience• Minimising fluctuations in ROC between

• +- 30% Milk Price• +- 30% Feed Price

-•

+- 30% Pasture Harvest• The ability to endure volatility

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Th S Zhe Sweet Zone

farm management.

Chasing profit rather thanproduction.

Maintaining environmental quality

Minimise risk

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www.headlandsenviro.co.nz

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