9-building and labour cost in dairy production · building and labour cost in dairy production...

Colloque européen - Bâtiment d'élevage du futur

22 et 23 octobre 2009 - Lille 1

Building and labour cost in dairy Building and labour cost in dairy production depending herd size, level of production depending herd size, level of mechanization and building constructionmechanization and building construction

Krister Sällvik*, Catja Bennerstål, Jeanette Belin, Sofia Hedlund, Johan Johansson

*Swedish University of Agricultural Sciences

Livestock housing for the future – 22-23 October 20092

Contents

1. Background - the budget for milk production

2. Building and equipment investment costs

3. Time studies

4. Model farms

5. Economic consequences




Basic philosophy

• When investing in a building it is for the FUTURE

• Don´t build cheap!

• Build smart for the future - which means

• Compare investment costs with future running costs for labour, feed, maintenance etc


The budgeted costs for production of milk

• + Revenues

• - Costs* Feed* Replacement* AI, vet costs

Allowance to cover fixed costs

First. Labour and tractor

Second. Buildings - capital costs and depreciation




Cost distribution in milk production

excl replacement

Type of cost % of total costs

Remark

Feed 44

Miscellaneous 11 Electricity + AI

Interest 4 Animals + company

Labour 24 39.5 hrs/cow unit

Tractor 2 Explicit dairy prod

Maintenance equipment 6

Depreciation+interest 9 Building+equipment

Total 100


To build cheap

– what does it mean?

• Cheap building cost?• Minimize cash investment cost in the building?• Short depreciation time?• Long depreciation time and low maintenance costs• ????• Optimise production profit?




Don´t build cheap!

Build economical!

• Turn the milk budgeted costs upside down!!

• Why shall the building costs be the last part in the

budgeted costs?

• Building design influences the costs for:

• LABOUR

• FEED

• MECHANISATION

• MAINTENANCE

• REPLACEMENT


The aim for an investment

• It is the DIFFERENCE betweenCOSTS and REVENUES

• that is the most IMPORTANT




Building costs per cow 1998 - 2008

Byggkostnad/Koplats

y = 408,05x - 751573

R2 = 0,0092

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Byggår

kr

Byggkostnad

Linjär (Byggkostnad)

Byggkostnad per koplats

y = 0,2767x2 - 111,48x + 74097

R2 = 0,0124

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

0 50 100 150 200 250 300 350

antal koplatser

kr

Byggkostnad

Poly. (Byggkostnad)


10

Building costs per cow place

Number of cows

0 50 100 150 200 250 300 350

?

?

?

10000

5000

0




Building costs – size and system

Size /type of

milking

Building

typeCost

€/ m2

Building

area

m2 /cow

Annual

cost

€/ cow

Cost

€/kg ECM

120 / AMS insul 650 8.6 m2 640 0.067

120 / AMS uninsul 580 8.6 m2 605 0.064

250 / AMS insul 550 9.0 m2 520 0.055

250 / AMS, uninsul 485 9.0 m2 502 0.053

250/ parallel insul 420 7.0 m2 375 0.039

250 / parallel uninsul 395 7.0 m2 360 0.038

400 / rotary insul 410 6.8 m2 355 0.037

400 / rotary uninsul 380 6.8 m2 340 0.036


Building costs per kg milk

Cen

t/kg

milk

8

6

4

2

0

notnot

not

not

120 120 250 250 250 250 400 400AMS AMS AMS AMS Par Par Rot Rot




Type of house and feeding table

costs per cow place

Drive

through Mechanised Difference Insulated 6530 6863 -333 Not insulated 5607 5952 -345 Difference Insulated – not insulated 923 910


Area and costs/m2 – milking systems

m2 per

cow place Building cost /m2 Herring bone 12.6 491 Carousel 9.8 643 Parallel 14.1 440 Robot/AMS 13.1 637




Building contribution to production

costs depending on milking system

Cent/kg milk JB Herring bone 5.6 ?? Rotary 5.3 3,7 Parallel 5.6 3,9 Robot/AMS 120 cows 7.5 6,7 Robot/AMS 250 cows ?? 5,5


Building costs per kg milk

– size and system

Size /type of

milking

Buildin

g typeCost

€/ m2

Building

area

m2 /cow

Annual

cost

€/ cow

Cost

€/kg ECM

120 / AMS insul 650 8.6 m2 640 0.067

120 / AMS uninsul 580 8.6 m2 605 0.064

250 / AMS insul 550 9.0 m2 520 0.055

250 / AMS, uninsul 485 9.0 m2 502 0.053

250/ parallel insul 420 7.0 m2 375 0.039

250 / parallel uninsul 395 7.0 m2 360 0.038

400 / rotary insul 410 6.8 m2 355 0.037

400 / rotary uninsul 380 6.8 m2 340 0.036




Working time and investment costs

Tidsförbrukning

y = -0,0003x + 47,58

R2 = 0,2341

0,00

5,00

10,00

15,00

20,00

25,00

30,00

35,00

40,00

0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000

Byggkostnad/koplats

h/ko

plat

s/år

Tidsförbrukning

Linjär (Tidsförbrukning)

Building costs per cow place

Labo

ur, h

r/co

w*yr


Working time on Model farms

Farm A1 A2 B C D E

Number of cows 120 120 240 250 250 400

Milking system 2xAMS 2xAMS 4xAMS H 2x9 Par 2x10 Rotary 40

Milking 0,5a 0,7 0,5 4,0b, c, d 2,3 b,c,d 2,2 b,c,d

Pasture 0,1 0,4 0,2 0,6 0,2 0,3

Feeding 0,3 0,7 0,4 0,5 0,1 0,4

Littering/Cleaning 0,2 0,8 0,5 0,5 0,2 0,2

Other 1 1 1 1 1 1

Total min/cow*day

(JTI)

2,1

(3,8)

3,6

(3,8)

2,6

(2,8)

6,6

(4,8)

3,7

(4,3)

4,1

(3,75)

Hr/cow *yr

12,8

22

16

40

23

25




Comments to working time

on model farms

• a Difference A1 and A2: A1 has better cow traffic and less time to fetch cows.

• b no collecting pen + 0,5 min/cow*day

• c Milking 3 times/day + 0,5 min/ cow*day

• d No rational cleaning of collecting pen+ 0,15 min/ cow*day


Hours per cow and year

J Johansson C Bennerstål

Total

hr/cow*yr Milking

hr/cow*yr Total

hr/cow*yr Milking

hr/cow*yr Herring bone 30,0 15,5 40 25

Rotary 24,8 12,0 25 11

Parallel 28,2 12,0 23 14

Robot/AMS 17,3 6,4 14 4.5




Economic aspects on investment

asumptions

Salary including social fees 18 €/h Life time 20 years Interest rate 5%

• Investment factor for break even =12.5


Invest in a collecting pen

• In a herd of 240 cows you will save 2 hr/dAnnual savings 2 * 18 * 365 = 13000 €/yr

• A collecting pen for 80 cows (1.5 m2/cow) Costs 4800 €.




Parallel or AMS?

• In a 240 cow herd it costs 2000 € more per cow with AMS compared to parallel.

• You have to save at least 5 hours per cow and year for break even

• Parallel 23 hr/cow * yearAMS 14 hr/cow * year


The SIX COMMANDMENTS when

building new dairy barns

• BIG

• Simple

• Planned

• Functional

• Controlled

• Nice




Build attractive!


Questions?

9-building and labour cost in dairy production · building and labour cost in dairy production...

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