Organic premium covers production drop

Mike Moss.

01-07-2004 | Natalie Campbell

Organic farmer Mike Moss has reduced stocking rates and his milk production has fallen by 10% but that that doesn’t bother him.

He says those slides are offset by a 10% premium paid for organic milk and the fact he is farming in harmony.

Moss organically farms dairy in conjunction with conventional sheep and beef at Waitetuna near Raglan in Waikato. The dairy platform is 65 effective hectares (with 30ha support) and 100ha for the non-organic drystock property, 20ha native bush and 25ha plantation forestry and there is 9ha of wetlands and 14km of waterways that are protected.

The “vision” Moss had of switching to organics was for a low stress, sustainable farming system that also offered a pleasant working environment. The key characteristics being a good standard of living and generous time off.

When Moss refers to sustainable, he not only means in an environmental sense, but the farm needs to be financially and socially sustainable.

He says the move to organics was a big decision but conventional farming created imbalances.

Moss now says he focuses on a healthy soil. He was also initially worried about animal health, decreasing stocking numbers, production levels, profitability and developing the knowledge base.

He began by fencing off the waterways and swamps for stock control and by using one and two wire electric fences he found it cheaper to erect. Moss says it has already paid for itself by reducing stock losses. He believes he can erect about 4km of fence for the price of a cow. The riparian work also helps reduce nutrient run-off into waterways because wetlands act as nutrient filters.

Moss says it was difficult farming during the conversion, but says it is not a move you make “cold turkey”.

But as the biological system kicks in there are fewer metabolic issues, less bloat and worm challenges. He doesn’t use CIDRS or inductions, although he says there is a larger calving window.

He is often asked about weed control, but says many such as yarrow, and chickweed have been reclassified as herbs and can be beneficial to the herd. Thistles and ragwort are manually controlled. However gorse and blackberry provide a challenge.

Moss says during wet periods, cows go on to a stand off pad to avoid pugging. He believes that good environmental management not only results in improved profitability inside the farm gate but will stand them in good stead in the markets.

“We may not like it but the reality is that the public and our consumers are becoming increasingly aware of environmental and animal welfare issues,” says Moss.

“Best possible practice in these areas will help to future proof us against increasing levels of regulatory and market expectation. There are strong indications that failure to meet these standards will soon become yet another non-tariff barrier.”

He has 150 organic cows producing 49,000kg MS – about 10% less than the conventional herd because of fewer numbers. A vet is employed only for leptospirosis and pregnancy testing and his gross farm profit is more than it was when being conventionally farmed.

The economic farm surplus while farming conventionally was $1800. This year Moss says he recorded an EFS of $2088 and next year with an increase in premium (from 10% to 16%) he’s budgeting on $2279.

Moss admits in a good season they come out financially better off than when they were farming conventionally, however in a tough year he says if they fall behind it can take longer to recover.

There are also other efficiencies to be gained. The animal health bill has dropped from about $60/cow to less than $10/cow. Spending on fertiliser has fallen about 40% and he has plans to half that again. The extra cost of manual weed control is offset by the need for less labour due to the lower stocking rate and less work in areas such as drenching and pasture dusting.

He says many modern treatments used in conventional farming treat the symptom, not the problem. Any foot issues are acted on quickly while mastitis is tackled with homeopathy and by stripping the udder several times a day – which he says can be hard work and is not everyone’s cup of tea. However he also aims to improve cows’ immune systems.

“Diseases are there to take out the weak. If they keep reoffending we get rid of them.”

He says biological farming is as sustainable as you are going to get, with low stocking rates and minimal nutrient loss through runoff and leaching.

“There are obviously less chemicals going into the environment and food chain, which has environmental and social benefits.”

“It is a method of farming that lends itself to smaller herds and could help to underpin the viability of the family farm.”

“As more farmers find that chemicals, drugs and antibiotics are not fulfilling their expectations, or simply costing too much, I think it is likely the industry will increasingly be looking to the organic sector for alternatives,” says Moss.

To conclude his address Moss told the workshop, organic farming is viable and profitable, even though he still had some way to fine-tune his business.

“It sits comfortably with industry direction and will mean organic farmers will be well positioned to meet the highest level of market and public expectations.”

“It is fulfilling the vision I set for myself. I am farming in harmony,” says Moss.

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