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Farm facts Numbers at a glance Management decisions 2025-26 forecast budget Additional resources

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. 

Driscoll Dairies Case Study Listing Image

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.
 

Farm Facts

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

Numbers at a glance

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.

Management decisions

Strategy and financial

Strategy

  • Operate a farm business that has security, resilience and delivers a work life balance.
  • Have a system that emphasises practicality, performance, and long-term sustainability, with clear evidence based reasoning behind each strategic decision.
  • Have a good management team outside of the farm such as bankers/accountants and consultants and utilise their expertise.

Financial

  • Prepare own budgets, review, update regularly so always aware of financial position and can take advantage of opportunities as they arise.
  • Budgets are prepared on a realistic basis, in particular they are very conservative on cull cow sales which provides a buffer in the budget.
  • Some short-term financial distortion is expected while systems transition.

Farm policy and infrastructure

Farm System

The farming system described is undergoing a period of structured development. Key focus areas include:

  • Integration of the new 40 ha dry stock block with appropriate financial enterprise coding to keep it separate from the two dairy units.
  • Disciplined pasture renewal programme
  • Adoption of bale grazing to enhance stock health and environmental outcomes
  • Strong replacement stock numbers supporting herd performance

Infrastructure

  • 50 bale rotary (14 years old)
  • Longest walk from the dairy shed to the most distant paddock is 1.5 km. 
  • Well tiled flat farm.
  • Good races, water supply infrastructure and supporting farm buildings.
  • Milking platform is supported by an adjacent 37 ha support block that is owned, plus a 20 ha rolling hill lease a short distance away.   

 Farm system

  • The farm operates a high feed input system with concentrates fed all year, with a stocking rate of 3.1-3.2 cows/ha.
  • Some baleage from the support block is brought on to the milking area.
  • Pasture utilisation is the priority, so the amount of in shed feeding varies depending on pasture availability. 
  • Pasture harvested is about 13-13.5 t DM/ha. 2024-25 season with a very wet spring was only 12.5 tDM/ha.
  • All cows are wintered off for up to 10 weeks.
  • All young stock are grazed off from weaning, on support blocks or externally (dry stock block)
  • Planned start of calving for MA cows is August 10th.
  • Use a spring rotation planner to manage pasture and supplement allocation for the first grazing round, (about 20th September).
  • Rotation length of 23-24 days is planned through until February then it is extended out through the autumn.
  • Aim for a high daily per cow peak and plan to maintain that higher level for the majority of the season. 
  • Daily per cow at the peak (late October 2025) was 2.4 kgMS/cow/day. Late December per cow was 1.96 kgMS/ha.
  • Drying off is in late May, early June depending of weather, feed supply and cow condition.

Environment

  • Farm pH ranges from 5.7 to 6.1, Olsen P ranges from 21 to 44.
  • Fertiliser is applied as per soil test recommendations and is largely maintenance only. 
  • The farm has 43% of the milking area under effluent irrigation. 
  • Total N applied is budgeted for about 130 kg N/ha.
  • Nitrogen applied is Ammo 31 in the early spring and N-Protect for the rest of the season. 

Feed

Supplements

  • Milking cows are fed a very simple in-shed blend of crushed grain, PKE and DDG with minerals added. About 850-900 kgDM/cow per year is budgeted for.
  • About 1200 bales of baleage (270 kgDM bales), are made, (mainly on the support block), or purchased and are used predominantly for wintering and for the colostrum cows.  About 120 kgDM/cow are retained for the milkers later in the season and at drying off.
  • There is a no silage system on farm as baleage is easier to manage, store and feed out as there is no off paddock feeding infrastructure in place for silage.

Pasture renovation

  • Adopt a 10–15% annual regrassing programme, following farm consultant advice, with 10% regrassed annually, plus an additional 5%, aiming for 30% renewal over two years.
  • Regrassing includes a mix of permanent pastures, grass to grass renewal for non-permanent areas using some “diploid” pasture mixes depending on paddock history
  • The strategy is aimed at improving long term consistency and performance.

Cropping & Wintering System

  • On the 37 ha adjacent support block there is 12.5 ha of winter crop area with baleage for 280 MA cows for up to 10 weeks.
  • The balance of the MA cows, (290), plus 130 in calf heifers will be wintered at the new dry stock block for up to 10 weeks.
  • Cows will return to the milking platform in batches as the near calving and will be grazed on the 3-4 ha of fodder beet (with baleage). 
  • In the spring, the winter crop area on the milking platform will be regrassed with permanent pasture plus an additional 20 ha will be regrassed, (grass to grass).
  • Crop for the next seasons wintering will also be planted, 12-13 ha on the support block and 3-4 ha of fodder beet on the milking area.
  • The cropping and regrassing programme means that in the last spring there is potentially 26-28 ha or 12-13% of the milking area out of the grazing rotation.  This helps to control the spring surpluses.

Herd

Animal health

  • Proactive approach, so 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.
  • Average SCC is usually below 120,000. 2024-25 season with the wet spring, it was 161,000.

Breeding and replacements

  • 675 Friesian cows, aim for 20-22% replacement rate into the herd each year.
  • Manage variability in heifer calf numbers born by rearing all replacement calves and selling the surplus as in calf heifers. The business has the flexibility to be able to do this with the support land and dry stock block.
  • All calves, (about 200 replacements and 100 bull calves), are reared on auto feeders using milk powder and fresh colostrum, plus meal.  Calf rearing costs are over $0.30/kgMS but the system is easy to operate and has a lower labour requirement, and calves achieve weaning weights earlier than traditional methods.
  • Calves leave the farm at weaning.
  • The mating period for the herd is 9-10 week - all AB, no synchrony used. 
  • 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.
  • Have cow manager which helps with heat detection and identifying which cows to scan, (those identified or suspected to be empty).
  • Usually end up scanning about 10% of the herd. Do not mate any definite culls. 
  • Empty rate for 2025-26, (based only on cows mated), is 8.7%. 
  • Lease 14 Jersey bulls for the heifers. 
  • Herd is herd tested four times per year.

People, health and safety

  • Home Farm has 3 FTE: Farm manager, one 2IC and 1 farm assistant.  A relief milking service is used to cover all staff time off.
  • Big emphasis on recruitment and finding the right people.
  • Have good day to day communications systems with the farm team via a WhatsApp group.
  • Take time to mentor, challenge and support staff in terms of key farm system decisions to provide an environment that encourages growth in farming skills.
  • Have a work culture that delivers very low staff turnover.

2026-27 Forecast Budget

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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Additional resources

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Last updated: Aug 2023
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