agCap Achievements – 2020

agCap has worked with several clients in 2019 and 2020.
In the following instances, agCap was heavily involved in the day to day running of the businesses and supplied 24/7 support to managers and their farm teams.

1. South Western Victoria dairy farmer:


          • Milking 600 cows
          • Pasture based annual calving farming system

Issues? Over the past four or so years, various events had resulted in a shift to the start of calving one month later than desired and the calving period had spread out to five months.

Solution – agCap focused on shifting the calving pattern to better align with the pasture growth curve for the farm.

SW VIC Graph_SoC

This graph shows the effect of tightening the calving period and aligning it with potential pasture growth for the farm’s environment. We have used monthly rainfall as a proxy for pasture growth.

In low stocked, pasture-based farms we must ensure that cows are consuming as much pasture as possible throughout the growing season.

Consuming more pasture and producing more milk solids from direct grazed pasture lowered the cost of production.

Total farm income increased and total costs including the investment in agCap services were reduced resulting in a substantial profit increase from FY2019 to FY2020.

The challenge for this business is to bring the start of calving forward by a further two weeks and maintain a calving period of less than ten weeks.

Achieving results in one year is one thing, replicating and maintaining these results will require constant attention to detail and hard work.

2. South West Western Australia dairy business:


          • 5 dairy farms
          • Milking a total of 3,100 cows
          • Pasture based farming system

agCap focused on:

  • Stabilising the farming system
  • Recruiting farm managers who were willing to be accountable and accept responsibility for their on-farm teams
  • Identifying opportunities to create a sustainable profit margin
  • Negotiating contracts & costs with suppliers

Particularly in a large-scale dairy business, the on-farm managers need to have a clear focus; they should be aligned with business owner and be committed to achieve results.

The new managers recruited by agCap assisted this business to improve milk quality which resulted in a higher milk price. The following graphic shows the year on year milk quality improvement.

SW WA Milk Quality

Sustainable profit was driven by both sides of the equation: income AND costs.

In FY2020, agCap was able to assist this business to:

    • Increase milk production
    • Decrease feed costs
    • Maintain employment costs
    • Decrease total costs (including agCap fees), and therefore
    • Increase profit substantially from FY2019

2020 Profit Graphic

The challenge for this business is to build from this platform.
The goals for FY2021 should be to increase milk production/quality whilst further decreasing feed costs by increasing home grown pasture consumption and improving supplementary feeding efficiencies/buying costs.

Contact us today to discuss our Dairy Business Assessments!