However, there is still the chance to make a profit from milk production if farmers adopt radical management techniques.

That is the clear view of Hugh Kerr, international nutrition development manager at Keenan, the Irish company that specialises in the manufacture of mixer wagons.

Speaking at Borris in Co Carlow, Kerr said: "The dairy industry is in a serious crisis and far too many good herds are packing up. We need to have a complete rethink on feeding policies, but I accept it is difficult to take a major step into the unknown when producers are not making any money."

When a farmer acquires a Keenan machine he or she has the option of also locking into a management advice package, which will cost just over £2,000 in the first year and thereafter reducing to no more than £500 in year three. The key to success is increasing the food conversion efficiency (FCE) ratio. FCE is defined as the "kg of milk per kg of dry matter intake". On a typical dairy farm the FCE may be only 1.2, but this can be raised to 1.6 or higher by relatively simple changes in management.

Each increment of 0.1 is reckoned to increase the margin per cow by 30p per day, or close to £80 over a 305-day lactation. Keenan claims that over a five-year period, based on an FCE of 1.5, the additional income from each cow will amount to £800. On a herd of 100 cows the farmer should accumulate at least an extra £80,000 of profit over that timescale.

There are two aspects to the Keenan system.

First, feeding a high fibre and low energy ration during the dry period. This stimulates the rumen so that when the cow calves and production starts her digestive tract is well developed to cope with a more concentrated ration based on home-produced fodder and added protein, usually in the form of straights. Kerr and his colleagues are adamant that there is no need for any concentrates to be fed in the milking parlour.

In addition Keenan claims that by changing to a higher fibre regime cows are more content and last longer, thus reducing replacement costs.

Source: Scotsman