Embracing Efficiency in Dairy Farming
Malcolm Ellis, departing General Manager for NZ Markets at LIC, highlights the dairy industry’s potential to reduce methane emissions by focusing on cow efficiency.
As he transitions to a new role at Fonterra, Ellis reflects on the industry’s shift from a quantity-focused approach to valuing the efficiency of each cow. This change is crucial for the industry’s future, especially in meeting emissions intensity reduction targets.
The Role of Herd Improvement
Herd improvement remains at the core of LIC’s values, with a growing emphasis on cow efficiency. Ellis supports Fonterra’s decision to focus on emissions intensity targets rather than absolute reductions, believing this approach secures the future for the next generation of farmers.
He warns against the risks of absolute reduction targets, which could lead to decreased dairy production and efficiency.
The Efficiency Gap
Ellis points out a significant efficiency gap within New Zealand’s dairy herds. Data from over 500,000 cows shows a 30% difference in milk solids production and liveweight between the highest and lowest performing cows, equating to an 18.5% difference in methane CO2 equivalent.
Closing this gap by replacing low-performing cows with high-performing ones is key to reducing the emissions profile of farms.
Fonterra’s New Focus
In his upcoming role at Fonterra, one of Ellis’s goals is to shift farmers’ perception of emissions targets from a regulatory burden to an opportunity for improvement. He aims to highlight the benefits of focusing on individual cow efficiency and the potential of Scope 3 emissions targets.
Challenges and Opportunities
Ellis acknowledges the challenges faced during his tenure at LIC, including issues with fresh semen and sexed semen non-return rates. However, he also sees these challenges as opportunities for learning and development.
The Evolution of Dairy Farming
Reflecting on his decade-long journey, Ellis notes the cyclical nature of dairy farming, with its inherent challenges and opportunities. He recalls the peak in cow numbers in 2015 and the subsequent shift in focus from increasing cow numbers to improving cow efficiency. This shift has been pivotal for LIC and the wider industry.
Personal Reflections
Ellis expresses pride in the personal development of his colleagues and the learning experiences gained during his time at LIC. He describes his tenure as a privilege and an enriching journey.
As the dairy industry evolves, the focus on cow efficiency and emissions intensity is becoming increasingly important. Malcolm Ellis’s insights and upcoming role at Fonterra highlight the industry’s commitment to sustainable and efficient dairy farming practices.
