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Climate messaging and a close eye on margins (Jan 25)

TotalDairy Conference 2024 set the scene for the dairy industry as we turn the corner into 2025. Keynote speakers addressed a wide variety of topics linked to the event’s theme: ‘Building resilience: for cows, for profit and for the future’.


TEXT RACHAEL PORTER




Agriculture – including dairying – has a key role to play in mitigating climate change and saving the planet. That was the message at the start of this year’s TotalDairy Conference, held in November in Stratford-upon-Avon, that left delegates buoyed for two days of presentations and workshops on how to make that happen.


University of Nottingham’s Jack Bobo, director of the Food System Institute, said it was important to think – and speak – differently about the future of food. “The problems we face are big, complex and global. Many producers feel that agriculture is under attack and feel depressed about what they’re facing now and in the future. But there’s plenty to be positive about,” he said, adding that it was time to ‘reframe’ some of the messaging about food production and climatechange targets.


Global emissions


Currently, 40% of land across the globe that can be used for growing food is being used for agriculture. “So there’s more that can be put into use without cutting down trees or clearing forests,” he said, adding that 25% of global greenhouse gas (GHG) emissions come from agriculture.


Food production is essential and, according to the FAO, the world will need to produce 25% more food by 2050 to feed more people. “The global population is currently eight billion and by 2050 it will have reached 9.5 billion. But the good news is that at this time predictions are that it will have reached its peak. Beyond this point, global population will begin to decline. And by 2100, China’s population will have halved.”


How food production systems, particularly in relation to climate targets, are talked about matters and it’s important to add context. “Stories and narratives often focus on agriculture as a ‘problem’ and so this needs to change. Science and tech has all the answers that will ensure that producers can feed the world’s population without further impacting the environment.”


The UK’s CO2 production per capita is 5.5 tonnes. The global average is 4.9 tonnes. “That figure can make people ‘despair’. But it’s important to give it context – it’s a 150-year low. And the rate of decline is exciting and not something to be depressed about. Emissions are currently 40% below where they were in 1990, so that’s a positive and one of many that the public should be made more aware of.” He points out that the UK is, therefore, in a much better position than it was four decades ago. “So we need to focus on accelerating the improvements and getting people excited about it,” he adds.


The challenge is getting to 2050 without cutting down any more forests or draining any more rivers. “The next 25 years will be the most important in agriculture’s 10,000-year history. It’s an interesting time to be farming. We have all the tools to produce more than enough food to feed the population up to its 2050 peak. But the industry must be allowed to use them. So how we communicate about these tools and the possibilities, particularly with consumers, matters.”



Engaged audience: delegates were kept busy with a two-day programme of presentations and workshops
Engaged audience: delegates were kept busy with a two-day programme of presentations and workshops

Break-even price


In order to deliver these 2050 targets – both in terms of food production and reducing emissions – dairy businesses have to be efficient and profitable. And US-based producer and dairy consultant Greg Bethard underlined that every producer should be striving to lower their break-even milk price.


“In a commodity world, it is how we compete,” he said. “In my experience, there’s a 2ppl margin in dairying, on average, in the longer term. There are always herds that lose money and there’s the top 25% that make money most years. And there are many different dairy business models that are profitable.”


His take-home message for delegates was that most UK dairy business’ profit-and-loss (P&L) accounts require closer attention. “There’s a lot of room for improvement – the majority are ‘pretty funky’,” he said, adding that the P&L is the most important operational document that a dairy business possesses.


“It should be completed monthly and be accrual, and figures should be expressed per litre or per 100 litres.”


His biggest concern was his observation that too many UK producers look at their P&L account just once a year. “This means it’s impossible to really know how the business is doing or to take steps to lower its break-even point. It should be generated and checked at least once a month.”


He also stressed that heifer costs, including feed and labour, had no place in the P&L account.


Denmark-based specialist in change management and LEAN, Vibeke Fladkjaer Nielsen, shared some pointers on keeping staff motivated and promoting permanent behavioural change.


Unsurprisingly, she said that anecdotal evidence and research underlines that happy staff will perform to their best potential. “But there are also barriers to success, such as poor communication, particularly when change is needed,” she said.


“We believe that telling people to do something a certain way just once means that they will remember, but that’s wrong. It can take several attempts and that’s more likely to be the case the older people are.” She explained that after the age of 35, our ability to learn new things rapidly declines.


“Not only are we ‘too busy’ to make changes or improvements, but our frontal lobes are already fully developed. It’s actually more difficult to learn a new skill or a different way to do something. It’s not impossible, obviously, but it presents more of a challenge.”


Get creative


She says the key is not to ‘tell’ but to allow people to ‘learn’. “Present information in a way that’s interesting and get creative. I often use pictures when explaining why, for example, it’s important to prep teats correctly in the parlour, and images showing progressively dirtier wipes to underline why good hygiene is vital.”


That said, standard operating procedures showing the best method, order and process, are best drawn up by the person closest to the job. “So get them involved, see what works well for them and why. The trick is to minimise variation in working methods to achieve consistency. And, if something new is introduced or a change is made, this should also be easy to adopt or adapt to.


“Ultimately, explain the benefits of any changes, and the possible costs and consequence of not making them, and why something has to be done in a certain way. Make it interesting and relevant and ‘fire some passion’,” said Ms Nielsen.


“Remember, behaviour lives in the environment, so if there’s a requirement, for example, for boots to be cleaned before entering a building, make sure cleaning facilities are provided at strategic points. “Staff will easily be able to follow protocols, and herd health, welfare and productivity will benefit as a result.”

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