Driscoll Dairies Ltd, Central Southland
12 min read
This farm of 211 ha, with 675 cows is near Winton and has been in the family for 4 generations. A high input production system is key to minimising the impact of environmental extremes. Good pasture utilisation, and efficient use of in shed feeding are a priority.
Driscoll Dairies Ltd in Central Southland comprises two dairy farms, with some nearby support land. A recently purchased dry stock block, one hour away, run as separate enterprise, will support both dairy farms plus beef and surplus dairy stock trading.

This farm, which is 211 ha, with 675 cows, is near Winton and has been in the family for 4 generations. Originally a sheep farm, 170 ha were converted to dairy in 2012. This season, (2026/27), the milking area is supported by 57 ha of support land, (37 ha owned and 20 ha leased).
A production system 4-5 ensures impacts from environmental extremes are minimised and is key to operating a simple, repeatable farm system.
Business type:
Owner-operator
Location:
Central Southland near Winton
Farm size:
211 ha eff milking platform, 57 ha eff support land
Soil type:
66% Pukemutu clay loam, 37% Edendale silt loam
Peak cows:
670 Freisian/Freisian Jersey Cross
PSC:
10/08/2025 MA cows
Stocking rate:
3.18 cows/ha
Farm system:
4-5 Imported feed used all year round (>25%)
Wintering system:
100% of the herd wintered off farm for 8-10 weeks
Production 2026/27
345,500kg MS/year budgeted
Production (last 3 years):
339,700 kgMS/year, 1,600 kgMS/ha, 507 kgMS/cow
| Financial KPI 2026-27 budget updated April 2026 | |||
| Net dairy cash income ($/kgMS) | Total farm working expenses ($/kgMS) | Total operating expenses ($/kgMS) | Dairy operating profit ($/ha) |
| $9.70 | $5.86 | $6.33 | $6,011 |
| Physical KPI 2024-25 | |||
| Pasture and crop harvested (t DM/ha) | Purchased N surplus (kg N/ha/yr) | GHG (t CO2 equiv/ha/yr) | Six week in-calf rate (%) |
| 12.5 | 130 | NA | 71 Actual |
Find out more about these KPI's and how to calculate them for your own farm here.
Strategy and financial
Strategy
Financial
Farm policy and infrastructure
Farm System
The farming system described is undergoing a period of structured development. Key focus areas include:
Infrastructure
Farm system
Environment
Feed
Supplements
Pasture renovation
Cropping & Wintering System
Herd
Animal health
Breeding and replacements
People, health and safety
Budget updated April 2026
| INCOME | $TOTAL | $/KgMS | $/COW | $/HA |
| Net Milk Sales
Milk Income is based on a milk price for advanced and deferred milk of $9.40 for 345,000 kgMS. It is net of the DairyNZ levy of $.036/kgMS. **This milk income is the farmers best estimate of their likely net milk sales. It may or may not be out of date based on new information from dairy companies. It does not necessarily reflect DairyNZs milk price forecast.
|
3,235,300 | 9.36 | 4,829 | 15,333 |
| Net Dairy Livestock Sales
Stock income is budgeted conservatively for number of MA cows sold and for price - this provides a bit of a buffer for the budget. Based on 100 MA culls @ $850 and 20 surplus R2 heifers @$1100 plus 320 bobbies @ $25.
|
115,000 | 0.33 | 172 | 545 |
| NET DAIRY CASH INCOME | 3,350,300 | 9.70 | 5,000 | 15,878 |
| EXPENSES | $TOTAL | $/KgMS | $/COW | $/HA |
| Wages(incl. ACC)
This covers 3 FTE, (Farm manager, one 2IC and 1 farm assistant). A relief milking service is used to cover all staff time off.
|
244,600 | 0.71 | 365 | 1,159 |
| Animal health
Metabolic issues are not a problem. MgCl and basic minerals through dosatron all year with Selenium in spring through to Christmas. Farm specific anionic salts are supplied to springers with Mag sulphate and gypsum. Milkers and colostrums get MgO and limeflour through dispenser via in shed feeding and PKE trailer. The whole herd is treated with dry cow therapy.
|
65,000 | 0.19 | 97 | 308 |
| Breeding and herd improvement
9-10 weeks mating for the herd - all AB, no synchrony used. Have cow manager which helps with heat detection and identifying cows to scan, (those identified or suspected to be empty). Usually end up scanning abut 10% of the herd. Do not mate any definite culls. Empty rate for 2025-26, (based only on cows mated), is 8.7%. Includes $4,500 lease for 14 Jersey bulls for the heifers. Semen used is Friesian or Jersey depending on the size of the cow. Larger cows are bred back to Jersey to make sure cow size does not get too big. All semen used for replacements is polled.
|
65,500 | 0.19 | 98 | 310 |
| Farm dairy
Chemicals, rubberware - normal running costs.
|
22,800 | 0.07 | 34 | 108 |
| Electricity(farm dairy, water supply)
Cowshed is a 15 year old, 50 bale rotary. Milking twice a day all season and using hot washes once a day.
|
39,700 | 0.11 | 59 | 188 |
| Supplements made(incl. Contractors)
Budgeting for 500 bales @ $50/bale, made predominantly on the support block. Try to manage pasture cover on the milking area so that there is minimal or no surplus to harvest.
|
25,000 | 0.07 | 37 | 118 |
| Supplements purchased
650 t total made up of about 200t PKE and 450 t blends (34:33:33 or 40:50:10 Crushed grain:PKE:DDG) at $670 per ton weighted average delivered across all feed. Plus about 700 bales of baleage (270 kg DM per bale) of grass purchased for $65 per bale plus $50 per bale harvesting/baling and wrapping).
|
516,000 | 1.49 | 770 | 2,445 |
| Calf rearing
Plan to rear about 200 heifer replacement and 100 dairy beef bull calves. Calves are reared on auto feeders, (using 15-17 t of milk powder and fresh colostrum), plus meal. Weaned quite early as they grow quickly on the auto feeding system. After weaning they go to the 37 ha owned/leased support blocks. Costs cover milk powder and meal.
|
113,000 | 0.33 | 169 | 536 |
| Young and drystock grazing
174 yearlings grazed off, (externally or at newly purchased dry stock block 1 hour away, treated as external). Cost is $16/head for 11 months June 1 to May 1. Weaners may go to new support block at some stage so have factored in 300 head @ $11.50/hd for 4 weeks.
|
144,600 | 0.42 | 216 | 685 |
| Winter grazing
External wintering is at the new dry stock block, (treated as external). It is hour away, and grazing is valued at external rates. 130 R2 for 8 weeks @$44.50/week pus 290 MA cows for 10 weeks @ $44.50 winter 2026, plus 135 in calf heifers for 4 weeks @44.50 for May 2027.
|
206,900 | 0.60 | 309 | 981 |
| Run-off lease
20 ha is leased nearby. It is rolling hill country so tend not to make supplement there. Used for young stock grazing from weaning.
|
15,100 | 0.04 | 23 | 72 |
| Fertiliser(incl. N)
Fertiliser is applied as per soil test recommendations and is largely maintenance only. The farm has 43% of the milking area under effluent irrigation. Costs include support block fertiliser maintenance and after harvest applications. Nitrogen applied is Ammo 31 in the early spring and N-Protect for the rest of the season. Total N applied is budgeted for about 130 kg N/ha.
|
133,500 | 0.39 | 199 | 633 |
| Regrassing & cropping
For 2026-27 in the spring, there will be 12.5 ha of winter crop area to be regrassed on the 37 ha support block and 3-4 ha of swedes to be planted on the milking platform for winter 2027. In addition there will be 10% of the milking platform, (20 ha) to be regrassed to give approximately 15% of the farm regrassed. Costs cover cultivation, planting and seed costs.
|
96,300 | 0.28 | 144 | 456 |
| Weed and pest
Costs for pasture and crop are included under regrassing and cropping. Very little other weeds and pests.
|
800 | 0.00 | 1 | 4 |
| Vehicles & fuel
Includes fuel/oil of $32,000. Attitude to vehicles is to keep bikes modern and trade in regularly. Have 2 tractors to cover home farm and the 57 ha of support land.
|
62,200 | 0.18 | 93 | 295 |
| R&M(land, buildings, plant, machinery)
Includes about $30,000 for drains and races, $45,000 for dwelling improvements and $19,000 for fences and hedges. Plant and machinery costs are about $11,000.
|
113,400 | 0.33 | 169 | 537 |
| Freight and general farm expenses
Includes protective clothing and dog costs.
|
4,800 | 0.01 | 7 | 23 |
| Administration
Covers accountancy, computer, phone, consents and general office costs. Farmer does own GST, PAYE, budgeting. Also included here is cow manager costs of about $24,000.
|
56,300 | 0.16 | 84 | 267 |
| Insurance
Review regularly to ensure it is still relevant.
|
40,000 | 0.12 | 60 | 190 |
| ACC
Owner and employee ACC costs.
|
7,100 | 0.02 | 11 | 34 |
| Rates
Rates for 211 ha dairy farm and 57 ha of support land, (37 owned and 20 leased).
|
50,000 | 0.15 | 75 | 239 |
| TOTAL FARM WORKING EXPENSES | 2,023,100 | 5.86 | 3,020 | 9,588 |
| CASH OPERATING SURPLUS | 1,327,200 | 3.84 | 1,981 | 6,290 |
Non-cash adjustments have been included below the cash analysis to enable fairer comparisons to be made between farms. These adjustments are not part of a cash budget but are important to fully understand the efficiency of the farm business.
| $TOTAL | $/KgMS | $/COW | $/HA | |
| Value of change in Dairy livestock
Plan to have an extra 86 R 1 steers and bulls and 26 R 1 dairy heifers for sale as surplus in calf heifers in 2028. Values are based on 2025 IRD NAMV.
|
104,100 | 0.30 | 155 | 493 |
| Labour adjustment
Equates to 0.4 FTE, (based on a management salary of $140,000).
|
56,000 | 0.16 | 84 | 265 |
| Feed inventory adjustment
Plan is to have no significant chage in feed on hand for the year.
|
0 | 0 | 0 | 0 |
| Owned support block adjustment
37 ha valued at $1,000/ha. Provides 500-600 bales of baleage plus winter grazing for 280 MA cows plus weaner grazing.
|
37,000 | 0.11 | 55 | 175 |
| Depreciation
Based on previous years financial statements plus allowance for additional years depreciation and asset sales and purchases.
|
70,000 | 0.20 | 104 | 332 |
| DAIRY GROSS FARM REVENUE | 3,454,400 | 10.00 | 5,156 | 16,372 |
| DAIRY OPERATING EXPENSES | 2,186,100 | 6.33 | 3,263 | 10,361 |
| DAIRY OPERATING PROFIT | 1,268,300 | 3.67 | 1,893 | 6,011 |
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