WEBVTT 00:00:10.469 --> 00:00:13.150 Welcome to the Bullvine Podcast, where cutting 00:00:13.150 --> 00:00:16.350 -edge tech meets dairy farm reality. Today, we're 00:00:16.350 --> 00:00:19.370 tackling the $500 -day question, how are innovative 00:00:19.370 --> 00:00:22.329 farmers financing robotic milkers without going 00:00:22.329 --> 00:00:27.390 bankrupt? In episode 220, we'll unpack. The shocking 00:00:27.390 --> 00:00:30.949 $160 ,000 annual profit difference between robot 00:00:30.949 --> 00:00:35.049 rookies and pros. Europe's pay -per -leader financing 00:00:35.049 --> 00:00:38.729 model now hitting North America. Why 85 % of 00:00:38.729 --> 00:00:41.549 Danish dairies automate while 45 % of North American 00:00:41.549 --> 00:00:44.270 farms still use tie stalls. All right, welcome 00:00:44.270 --> 00:00:46.409 back to the Deep Dive. You know, we're always 00:00:46.409 --> 00:00:48.570 talking to folks in the industry, and one thing 00:00:48.570 --> 00:00:51.560 keeps bubbling to the surface. the crunch of 00:00:51.560 --> 00:00:54.219 labor. Finding good help is tougher than a $2 00:00:54.219 --> 00:00:58.380 steak. And the costs just keep climbing. So naturally, 00:00:58.500 --> 00:01:00.479 everyone's eyeing automation, especially those 00:01:00.479 --> 00:01:03.380 shiny robotic milkers. But then the cold shower 00:01:03.380 --> 00:01:07.760 hits. You're looking at $150 ,000 to $230 ,000 00:01:07.760 --> 00:01:10.579 per robot. Well, that's enough to make a grown 00:01:10.579 --> 00:01:13.439 dairy farmer weep into their coffee. It is. It's 00:01:13.439 --> 00:01:14.939 a figure that certainly gets your attention, 00:01:15.000 --> 00:01:17.280 right? And for many, you can feel like a roadblock 00:01:17.280 --> 00:01:19.540 the size of a silage pile. But what's fascinating 00:01:19.540 --> 00:01:22.219 when you dig into the numbers is how the financial 00:01:22.219 --> 00:01:23.900 picture surrounding this technology has been 00:01:23.900 --> 00:01:26.459 shifting. It's not just about needing a mountain 00:01:26.459 --> 00:01:30.159 of cash up front anymore. The landscape... has 00:01:30.159 --> 00:01:33.120 become much more nuanced. Exactly. So for all 00:01:33.120 --> 00:01:34.939 of you tuning in, whether you're seriously kicking 00:01:34.939 --> 00:01:37.219 the tires on robotic milking or just want to 00:01:37.219 --> 00:01:40.180 get a handle on the financial realities, this 00:01:40.180 --> 00:01:43.500 deep dive is tailor -made for you. We've wrestled 00:01:43.500 --> 00:01:45.579 with the data, explored the financing avenues, 00:01:45.840 --> 00:01:48.719 and looked at real -world scenarios to bring 00:01:48.719 --> 00:01:51.280 you a clearer understanding of how this investment 00:01:51.280 --> 00:01:53.519 can actually pencil out. And we've got a packed 00:01:53.519 --> 00:01:55.540 agenda. We're going to get down to brass tacks 00:01:55.540 --> 00:01:59.200 on the real return on investment, clever ways 00:01:59.200 --> 00:02:01.400 farms are funding these systems, everything from 00:02:01.400 --> 00:02:04.640 deals with manufacturers themselves to leasing 00:02:04.640 --> 00:02:07.519 and even government incentives. We'll also shine 00:02:07.519 --> 00:02:09.400 a light on some of the less obvious financial 00:02:09.400 --> 00:02:11.539 wins, like the positive impacts on the environment 00:02:11.539 --> 00:02:14.060 and co -health. Yeah, and performance too, right? 00:02:14.180 --> 00:02:16.300 Oh, absolutely. Plus, we'll dissect what makes 00:02:16.300 --> 00:02:18.479 a robot a top performer versus just another piece 00:02:18.479 --> 00:02:20.900 of equipment, flag some potential headaches to 00:02:20.900 --> 00:02:23.479 avoid, track where robot adoption is heading, 00:02:23.620 --> 00:02:27.590 and map out that crucial transition phase. Grab 00:02:27.590 --> 00:02:29.009 your favorite beverage. We've got a lot to get 00:02:29.009 --> 00:02:31.270 through. Okay, let's dive right into the big 00:02:31.270 --> 00:02:35.169 question. The ROI on these robotic systems. Because 00:02:35.169 --> 00:02:36.969 let's face it, shelling out that kind of money 00:02:36.969 --> 00:02:39.229 needs to deliver a solid return, right? As we 00:02:39.229 --> 00:02:41.689 mentioned, you're looking at $150 ,000 to $230 00:02:41.689 --> 00:02:44.969 ,000 per robot. And typically one robot handles 00:02:44.969 --> 00:02:47.930 around 60 cows. That's a significant chunk of 00:02:47.930 --> 00:02:49.990 change to wrap your head around. No question. 00:02:50.150 --> 00:02:52.969 That initial investment is a major hurdle. But 00:02:52.969 --> 00:02:55.219 here's a key insight. Let's look at how that 00:02:55.219 --> 00:02:57.379 cost has changed over time in relation to other 00:02:57.379 --> 00:02:59.840 expenses, particularly our old friend labor. 00:03:00.439 --> 00:03:02.520 What's really interesting is that back in 2004, 00:03:02.819 --> 00:03:04.639 a robotic milker would have set you back around 00:03:04.639 --> 00:03:07.759 $250 ,000. Yeah, okay. Fast forward to 2010, 00:03:07.960 --> 00:03:10.900 and that price had dropped to roughly $220 ,000. 00:03:11.139 --> 00:03:14.099 It's a 12 % decrease in just six years. Now get 00:03:14.099 --> 00:03:17.080 this. During that exact same period, labor costs 00:03:17.080 --> 00:03:20.300 also rose by 12%. So the core insight here isn't 00:03:20.300 --> 00:03:22.080 just that robots are expensive, but that the 00:03:22.080 --> 00:03:24.360 relative cost is shifting in their favor, making 00:03:24.360 --> 00:03:26.919 them a more economically viable long -term solution 00:03:26.919 --> 00:03:29.560 for labor challenges. Huh. That puts a whole 00:03:29.560 --> 00:03:32.419 different spin on it. So while the sticker price 00:03:32.419 --> 00:03:35.300 is still, yeah, eye -watering, comparatively 00:03:35.300 --> 00:03:38.180 speaking, these robots are becoming less of a 00:03:38.180 --> 00:03:40.280 financial stretch when you factor in the ever 00:03:40.280 --> 00:03:43.120 -increasing cost of good farmhands. That definitely 00:03:43.120 --> 00:03:46.099 recalibrates the long -term math. It does indeed. 00:03:46.300 --> 00:03:48.960 And when we delve into some of the key performance 00:03:48.960 --> 00:03:51.979 indicators, the KPIs, that shift when a farm 00:03:51.979 --> 00:03:54.599 transitions to robotic milking systems or RMS, 00:03:54.800 --> 00:03:56.819 the financial advantage has become even clearer. 00:03:57.060 --> 00:03:59.439 We're seeing an average jump in milk yield of 00:03:59.439 --> 00:04:03.520 around 8 .66%. Almost 9%. Okay. Yeah. Now, naturally, 00:04:03.599 --> 00:04:06.280 the investment cost itself goes up by about 58%, 00:04:06.280 --> 00:04:08.659 which is expected, right? You're acquiring a 00:04:08.659 --> 00:04:11.199 substantial piece of equipment. Energy consumption 00:04:11.199 --> 00:04:14.860 also sees an average rise of roughly 37%, and 00:04:14.860 --> 00:04:17.800 feed costs increase slightly, around 1 .33%. 00:04:17.800 --> 00:04:20.399 But the real story is the labor input. Ah, the 00:04:20.399 --> 00:04:22.660 big one. The big one. It experiences a significant 00:04:22.660 --> 00:04:26.480 drop of about 27 .84%. Hold the phone. Only a 00:04:26.480 --> 00:04:30.040 1 .33 % bump in feed costs for almost a 9 % increase 00:04:30.040 --> 00:04:32.300 in milk production. That's surprisingly efficient. 00:04:32.600 --> 00:04:34.199 You'd figure those cows would be hitting the 00:04:34.199 --> 00:04:36.199 feed bunk nonstop to pump out that extra milk. 00:04:36.360 --> 00:04:39.560 That's precisely what stands out. The key takeaway 00:04:39.560 --> 00:04:42.000 isn't just about higher milk production, but 00:04:42.000 --> 00:04:44.120 that the efficiency of milk production seems 00:04:44.120 --> 00:04:46.879 to improve with robotic systems. The cows are 00:04:46.879 --> 00:04:49.660 being milked more frequently, likely at times 00:04:49.660 --> 00:04:51.959 that better suit their natural rhythms, leading 00:04:51.959 --> 00:04:54.060 to a more effective conversion of feed into milk. 00:04:54.199 --> 00:04:56.399 Makes sense. And then you layer on that nearly 00:04:56.399 --> 00:04:59.829 28 % reduction in labor. In today's environment, 00:05:00.050 --> 00:05:02.170 where finding and keeping reliable help feels 00:05:02.170 --> 00:05:04.790 like chasing your hat in a hurricane, that labor 00:05:04.790 --> 00:05:07.389 saving is a massive, massive draw. You're not 00:05:07.389 --> 00:05:09.470 kidding. Every dairy farmer I've talked to lately 00:05:09.470 --> 00:05:11.310 puts labor right at the top of their list of 00:05:11.310 --> 00:05:14.230 headaches. So a potential 28 % decrease in that 00:05:14.230 --> 00:05:17.189 area. Wow, that's a game changer for many operations. 00:05:17.550 --> 00:05:19.970 Do we have any like real world examples of these 00:05:19.970 --> 00:05:23.040 numbers playing out on a farm? Absolutely. We 00:05:23.040 --> 00:05:24.899 can look at the experience of Dave Camel, a dairy 00:05:24.899 --> 00:05:27.019 producer in Wisconsin. He's been running two 00:05:27.019 --> 00:05:29.800 robots for his herd of around 105 cows for the 00:05:29.800 --> 00:05:33.319 past seven years and he considers it one of the 00:05:33.319 --> 00:05:36.060 smartest investments he's ever made. He estimates 00:05:36.060 --> 00:05:38.300 it frees up about three hours of labor every 00:05:38.300 --> 00:05:40.720 single day compared to his previous parlor system. 00:05:41.019 --> 00:05:43.819 Three hours a day? Just think about what you 00:05:43.819 --> 00:05:45.759 could do with that extra time. More focus on 00:05:45.759 --> 00:05:47.879 herd management, maybe tackling that backlog 00:05:47.879 --> 00:05:50.459 of paperwork. Or maybe even a few guilt -free 00:05:50.459 --> 00:05:52.980 minutes with the family, right? Yeah, imagine 00:05:52.980 --> 00:05:56.100 that. Okay, so the ROI picture is looking brighter 00:05:56.100 --> 00:05:59.459 than just that initial price tag. But how are 00:05:59.459 --> 00:06:01.939 folks actually finding the funds to make this 00:06:01.939 --> 00:06:04.120 happen? Let's dive into these creative money 00:06:04.120 --> 00:06:06.500 moves we've heard about. Right. The manufacturers 00:06:06.500 --> 00:06:09.019 themselves have seen that initial financial hurdle 00:06:09.019 --> 00:06:11.060 and have become quite innovative in offering 00:06:11.060 --> 00:06:13.439 financing solutions. Take Lely, for instance. 00:06:13.699 --> 00:06:15.959 They've teamed up with DLL Finance to create 00:06:15.959 --> 00:06:18.800 specialized financing packages specifically for 00:06:18.800 --> 00:06:21.000 their robotic systems. And here's where it gets 00:06:21.000 --> 00:06:23.980 really interesting. They sometimes roll out promotional 00:06:23.980 --> 00:06:28.000 deals, like 0 % financing for 60 months for a 00:06:28.000 --> 00:06:30.540 new customer. Whoa, 0 % for five years? That 00:06:30.540 --> 00:06:32.360 almost sounds too good to be true. Are other 00:06:32.360 --> 00:06:34.259 manufacturers stepping up with similar deals? 00:06:34.600 --> 00:06:37.639 Yeah, GEA, with their, shall we say, blue -hued 00:06:37.639 --> 00:06:40.519 robots, offers comparable financing options with 00:06:40.519 --> 00:06:43.240 terms that can extend up to 84 months, seven 00:06:43.240 --> 00:06:46.180 years. That longer repayment window can certainly 00:06:46.180 --> 00:06:48.620 make the monthly costs more manageable for some 00:06:48.620 --> 00:06:51.800 operations. Julie Nenikovan from DLL points out 00:06:51.800 --> 00:06:53.860 that they've been specializing in robot financing 00:06:53.860 --> 00:06:56.800 for nearly two decades, which really speaks to 00:06:56.800 --> 00:06:59.980 their experience and deep understanding of the 00:06:59.980 --> 00:07:02.420 dairy sector's unique financial needs. They were 00:07:02.420 --> 00:07:05.040 among the early pioneers in this field. So going 00:07:05.040 --> 00:07:07.079 directly through the manufacturer or their finance 00:07:07.079 --> 00:07:09.980 partners seems like a savvy first step. Explore 00:07:09.980 --> 00:07:12.139 potential deals, see what kind of tailored packages 00:07:12.139 --> 00:07:14.920 they can put together. But what if those options 00:07:14.920 --> 00:07:17.639 don't quite align with a farm's financial situation? 00:07:18.019 --> 00:07:20.300 We've heard that leasing is becoming a key strategy 00:07:20.300 --> 00:07:22.980 for many. Leasing has definitely emerged as a 00:07:22.980 --> 00:07:25.920 powerful strategy, particularly for farms looking 00:07:25.920 --> 00:07:29.000 to preserve their upfront capital. Industry data 00:07:29.000 --> 00:07:31.060 suggests that leasing can potentially reduce 00:07:31.060 --> 00:07:33.579 your initial capital outlay by anywhere from 00:07:33.579 --> 00:07:36.639 15 % to 25%. Wow, that's significant. It is. 00:07:36.779 --> 00:07:39.579 That's a significant chunk of change that stays 00:07:39.579 --> 00:07:42.420 in your pocket. We even have a real -world example 00:07:42.420 --> 00:07:46.180 from Wisconsin. A family farm put down just $30 00:07:46.180 --> 00:07:50.540 ,000 on a $200 ,000 robotic system through an 00:07:50.540 --> 00:07:53.199 operating lease. Their monthly payments work 00:07:53.199 --> 00:07:56.300 out to around $3 ,800 over a seven -year period. 00:07:56.720 --> 00:07:59.439 For many farms, that kind of predictable monthly 00:07:59.439 --> 00:08:02.160 expense, especially when coupled with the anticipated 00:08:02.160 --> 00:08:04.939 increase in milk production, can be much easier 00:08:04.939 --> 00:08:07.360 to budget for than a large initial investment. 00:08:07.790 --> 00:08:09.449 That makes a lot of sense. It's almost like you're 00:08:09.449 --> 00:08:11.750 renting the technology, but you're still reaping 00:08:11.750 --> 00:08:13.709 all the benefits in terms of production and reduced 00:08:13.709 --> 00:08:15.430 labor. And at the end of the lease, you typically 00:08:15.430 --> 00:08:17.949 have options, right? Exactly. You often have 00:08:17.949 --> 00:08:20.250 the flexibility to upgrade to a newer system, 00:08:20.410 --> 00:08:22.449 extend the lease agreement, or sometimes even 00:08:22.449 --> 00:08:24.370 purchase the equipment at a predetermined price. 00:08:24.910 --> 00:08:26.810 And then there's another really intriguing model 00:08:26.810 --> 00:08:28.509 that's starting to gain traction, particularly 00:08:28.509 --> 00:08:31.089 in Europe, and now making its way to North America. 00:08:31.509 --> 00:08:34.789 The paper leader model. Paper leader, huh? That 00:08:34.789 --> 00:08:36.149 sounds like it could be a good way to manage 00:08:36.149 --> 00:08:38.529 cash flow. How does that structure work exactly? 00:08:38.909 --> 00:08:41.409 Well, instead of having fixed monthly payments, 00:08:41.649 --> 00:08:44.450 your payments fluctuate based on the actual volume 00:08:44.450 --> 00:08:47.529 of milk your cows produce. This model originated 00:08:47.529 --> 00:08:50.809 in Europe, which, as our sources indicate, often 00:08:50.809 --> 00:08:53.830 seems to be, you know, ahead of the curve when 00:08:53.830 --> 00:08:55.370 it comes to these kinds of innovative financial 00:08:55.370 --> 00:08:57.889 solutions. They often are. But it is starting 00:08:57.889 --> 00:09:00.610 to gain a foothold in North America. The real 00:09:00.610 --> 00:09:02.570 advantage here is that your payments are directly 00:09:02.570 --> 00:09:05.480 linked to your income. So during that initial 00:09:05.480 --> 00:09:08.179 transition period when your cows might be adjusting 00:09:08.179 --> 00:09:11.120 to the robots and milk production could be a 00:09:11.120 --> 00:09:13.659 bit variable, your payments adjust accordingly, 00:09:13.940 --> 00:09:16.039 offering a built -in safety net for your cash 00:09:16.039 --> 00:09:18.919 flow. That sounds like a fantastic way to ease 00:09:18.919 --> 00:09:20.919 into the technology, especially in those early 00:09:20.919 --> 00:09:22.419 days when you're still getting the hang of things 00:09:22.419 --> 00:09:24.039 and must take some of the pressure off knowing 00:09:24.039 --> 00:09:26.200 your payments are tied to your actual output. 00:09:26.669 --> 00:09:30.289 It does. Matt Line, a DLL customer down in southwest 00:09:30.289 --> 00:09:33.230 Victoria who recently integrated Lely Robots 00:09:33.230 --> 00:09:35.889 into his operation, found that exploring various 00:09:35.889 --> 00:09:39.370 financing avenues, including leasing and the 00:09:39.370 --> 00:09:41.529 potential for a paper leader type arrangement, 00:09:41.769 --> 00:09:45.169 was instrumental in finding a solution that really 00:09:45.169 --> 00:09:47.429 aligned with his specific business objectives 00:09:47.429 --> 00:09:50.850 and financial capacity. Interesting. And interestingly, 00:09:51.129 --> 00:09:53.549 Matt was relatively new to the dairy sector. 00:09:53.960 --> 00:09:57.320 And Lely Finance took a holistic approach, considering 00:09:57.320 --> 00:09:59.820 his existing farm assets, his previous business 00:09:59.820 --> 00:10:02.879 experience, and his projections for growth. This 00:10:02.879 --> 00:10:04.820 really highlights that manufacturers and finance 00:10:04.820 --> 00:10:07.139 companies are often willing to look beyond just 00:10:07.139 --> 00:10:09.419 traditional financial history when it comes to 00:10:09.419 --> 00:10:11.539 these significant investments. Okay, so we've 00:10:11.539 --> 00:10:13.860 covered some really interesting and diverse ways 00:10:13.860 --> 00:10:16.480 to finance these robotic systems. Good stuff. 00:10:16.980 --> 00:10:19.100 But it's not just about the immediate financial 00:10:19.100 --> 00:10:21.659 returns, is it? There are other potential benefits 00:10:21.659 --> 00:10:23.639 that can have a significant financial impact 00:10:23.639 --> 00:10:25.919 down the line. I was particularly interested 00:10:25.919 --> 00:10:28.299 in the environmental edge that our sources mentioned. 00:10:28.519 --> 00:10:30.720 This is a real eye -opener for me as well. It 00:10:30.720 --> 00:10:32.460 turns out that robotic milking can contribute 00:10:32.460 --> 00:10:35.299 significantly to reducing a farm's carbon footprint. 00:10:35.740 --> 00:10:37.779 The example of the Devon dairy farmer in the 00:10:37.779 --> 00:10:40.629 UK is quite compelling. After transitioning to 00:10:40.629 --> 00:10:43.110 robotic milkers, his farm's carbon footprint 00:10:43.110 --> 00:10:47.690 dropped from 1 ,369 grams per liter of milk down 00:10:47.690 --> 00:10:51.129 to 12 ,204 grams per liter in just a single year. 00:10:51.789 --> 00:10:53.970 That's a substantial reduction equivalent to 00:10:53.970 --> 00:10:55.950 taking 13 round -trip flights off the table. 00:10:56.049 --> 00:10:58.549 And it was even lower than his 2011 level of 00:10:58.549 --> 00:11:02.570 1 ,729 grams per liter. So the key takeaway isn't 00:11:02.570 --> 00:11:05.240 just robots are greener, but that... This translates 00:11:05.240 --> 00:11:07.860 to a potential competitive advantage in a market 00:11:07.860 --> 00:11:10.440 increasingly valuing sustainability. Wow, that's 00:11:10.440 --> 00:11:12.620 a pretty dramatic decrease. How does robotic 00:11:12.620 --> 00:11:15.100 milking actually lead to such a significant drop 00:11:15.100 --> 00:11:17.299 in a firm's carbon footprint? Is it just efficiency? 00:11:17.659 --> 00:11:19.720 It's largely a combination of factors, yeah, 00:11:19.740 --> 00:11:22.039 driven by increased efficiency. In the Devon 00:11:22.039 --> 00:11:24.519 example, his milk yield saw a remarkable 30 % 00:11:24.519 --> 00:11:28.779 jump from 5 ,700 to 8 ,198 liters per cow per 00:11:28.779 --> 00:11:31.379 year, while maintaining similar feed rates, around 00:11:31.379 --> 00:11:34.230 0 .34 kilos per liter. Impressive. As one farmer 00:11:34.230 --> 00:11:35.929 succinctly put it to researchers at the University 00:11:35.929 --> 00:11:38.990 of Waterloo, robotic systems empower you to produce 00:11:38.990 --> 00:11:42.110 more milk with fewer cows. This naturally means 00:11:42.110 --> 00:11:44.929 you're milking fewer animals, feeding fewer animals, 00:11:45.190 --> 00:11:47.610 breeding fewer animals, which all adds up to 00:11:47.610 --> 00:11:50.289 less manure and a reduced need for acreage for 00:11:50.289 --> 00:11:52.850 feed production. Fewer inputs leading to the 00:11:52.850 --> 00:11:56.340 same or even greater output. That definitely 00:11:56.340 --> 00:11:58.700 sounds like a recipe for a lower environmental 00:11:58.700 --> 00:12:01.360 impact and potentially significant cost savings 00:12:01.360 --> 00:12:04.100 in the long run, too. Exactly. And some of the 00:12:04.100 --> 00:12:06.340 newer robotic systems even incorporate battery 00:12:06.340 --> 00:12:08.419 -powered components, which can lead to lower 00:12:08.419 --> 00:12:11.159 electricity consumption. Furthermore, the more 00:12:11.159 --> 00:12:13.539 precise nutrient management that often accompanies 00:12:13.539 --> 00:12:15.980 robotic systems can mean farmers find they can 00:12:15.980 --> 00:12:18.220 potentially manage with smaller manure storage 00:12:18.220 --> 00:12:21.279 facilities due to more efficient resource utilization. 00:12:22.029 --> 00:12:24.590 In a world where sustainability is becoming increasingly 00:12:24.590 --> 00:12:27.470 important, not just ethically, but from consumer 00:12:27.470 --> 00:12:30.250 demand and evolving regulations, this environmental 00:12:30.250 --> 00:12:32.450 advantage can translate into a real competitive 00:12:32.450 --> 00:12:35.049 edge and potential cost savings down the road. 00:12:35.289 --> 00:12:37.690 Absolutely. Consumers are increasingly seeking 00:12:37.690 --> 00:12:40.610 out sustainably produced goods and regulations 00:12:40.610 --> 00:12:43.110 surrounding environmental impact are likely to 00:12:43.110 --> 00:12:45.769 become more stringent. Farms that can demonstrate 00:12:45.769 --> 00:12:48.090 a lower carbon footprint might find themselves 00:12:48.090 --> 00:12:50.490 in a much stronger market position in the years 00:12:50.490 --> 00:12:53.620 to come. Okay, so better for the planet, potentially 00:12:53.620 --> 00:12:57.039 better for the bottom line. Now, what about the 00:12:57.039 --> 00:12:58.899 actual performance of the robots themselves? 00:12:59.240 --> 00:13:01.600 Because simply installing one isn't a guarantee 00:13:01.600 --> 00:13:04.259 of massive success, is it? There's got to be 00:13:04.259 --> 00:13:05.960 a difference between a robot that's humming along 00:13:05.960 --> 00:13:08.860 efficiently and one that's just there. That's 00:13:08.860 --> 00:13:11.100 a critical point. Our sources highlight that 00:13:11.100 --> 00:13:13.179 the financial difference between an average and 00:13:13.179 --> 00:13:15.899 an excellent performing robot setup can be in 00:13:15.899 --> 00:13:20.000 the ballpark of $500 per robot per day. Per day. 00:13:20.519 --> 00:13:22.559 Per day. Let that number sink in for a moment. 00:13:22.980 --> 00:13:26.120 $500 every single day. Holy Holstein. That's 00:13:26.120 --> 00:13:28.299 a massive swing. What are the key factors that 00:13:28.299 --> 00:13:30.860 differentiate an average performing robot from 00:13:30.860 --> 00:13:32.559 one that's really knocking it out of the park 00:13:32.559 --> 00:13:35.299 financially? It largely boils down to efficiency 00:13:35.299 --> 00:13:38.500 in the milking process itself. The data shows 00:13:38.500 --> 00:13:41.539 that a farm with lower efficiency might see around 00:13:41.539 --> 00:13:44.639 1 .4 zero kilograms of milk produced per minute 00:13:44.639 --> 00:13:47.480 of milking time. Whereas a higher efficiency 00:13:47.480 --> 00:13:50.779 farm could be achieving 2 .0 kilograms per minute. 00:13:50.860 --> 00:13:53.899 That's a 42 .9 % difference. Okay, so faster 00:13:53.899 --> 00:13:56.539 milking. Yeah. Over a typical 24 -hour period 00:13:56.539 --> 00:14:00.139 with roughly 11 ,180 minutes of potential milking 00:14:00.139 --> 00:14:02.899 time per robot, that difference translates to 00:14:02.899 --> 00:14:06.200 a daily production potential of 1 ,650 kilograms 00:14:06.200 --> 00:14:09.240 for the lower efficiency farm compared to a whopping 00:14:09.240 --> 00:14:12.559 2 ,360 kilograms for the higher efficiency one. 00:14:12.720 --> 00:14:15.480 That's a difference of 710 kilograms of milk. 00:14:15.789 --> 00:14:18.009 Every single day. And that translates to? And 00:14:18.009 --> 00:14:20.429 that's where that estimated $500 daily revenue 00:14:20.429 --> 00:14:22.309 difference comes into play, which could lead 00:14:22.309 --> 00:14:24.789 to an annual profit potential difference of over 00:14:24.789 --> 00:14:28.080 $160 ,000 per robot. So it's not just about buying 00:14:28.080 --> 00:14:30.000 the robot. It's about how well it's managed and 00:14:30.000 --> 00:14:33.700 optimized. $160 ,000 a year just from maximizing 00:14:33.700 --> 00:14:35.860 performance. That's the kind of figure that really 00:14:35.860 --> 00:14:37.639 makes you sit up and take notice. So it's not 00:14:37.639 --> 00:14:39.480 just about the initial investment or the financing. 00:14:39.620 --> 00:14:42.139 It's about squeezing every last drop of potential 00:14:42.139 --> 00:14:45.019 out of that investment. Precisely. And the research 00:14:45.019 --> 00:14:47.899 backs this up. Studies from Minnesota. have shown 00:14:47.899 --> 00:14:51.080 a 9 .3 % increase in milk production compared 00:14:51.080 --> 00:14:53.840 to conventional parlors, Iowa studies reported 00:14:53.840 --> 00:14:58.039 a 12 % increase. And some producers in New Zealand 00:14:58.039 --> 00:15:00.279 have even documented increases in milk solids 00:15:00.279 --> 00:15:04.299 of up to 50%. Now, While those extreme numbers 00:15:04.299 --> 00:15:06.820 might not be typical for every farm, the general 00:15:06.820 --> 00:15:09.620 trend is a significant 5 -10 % increase in milk 00:15:09.620 --> 00:15:12.320 yield after making the switch to robotic milking, 00:15:12.399 --> 00:15:15.720 with some farms seeing jumps from around 7 ,000 00:15:15.720 --> 00:15:19.049 to 9 ,000 liters per cow annually. And often 00:15:19.049 --> 00:15:21.149 that increased production goes hand in hand with 00:15:21.149 --> 00:15:23.509 improved milk quality, which can potentially 00:15:23.509 --> 00:15:26.009 command higher prices from processors. So performance 00:15:26.009 --> 00:15:28.450 truly is paramount. It's not just about having 00:15:28.450 --> 00:15:30.649 the technology. It's about leveraging it effectively. 00:15:30.950 --> 00:15:32.889 Now, another aspect that really grabbed my attention 00:15:32.889 --> 00:15:35.529 was the impact on cow health. We all know that 00:15:35.529 --> 00:15:37.950 healthy cows are happy and productive cows. But 00:15:37.950 --> 00:15:40.450 how do robots specifically contribute to improved 00:15:40.450 --> 00:15:43.210 animal well -being? This is one of the more compelling 00:15:43.210 --> 00:15:45.149 and perhaps often underestimated benefits of 00:15:45.149 --> 00:15:47.090 robotic milking. That Devon Farmer we mentioned 00:15:47.090 --> 00:15:49.269 earlier. He not only saw a drop in his carbon 00:15:49.269 --> 00:15:51.750 footprint, but also experienced some remarkable 00:15:51.750 --> 00:15:54.210 improvements in his herd's health. His use of 00:15:54.210 --> 00:15:56.429 intramammary tubes per cow dropped significantly, 00:15:56.649 --> 00:16:00.710 from 1 .83 down to 1 .02. His conception rate 00:16:00.710 --> 00:16:04.330 saw a healthy jump from 32 % up to 42%. A 10 00:16:04.330 --> 00:16:07.029 % jump. Nice. Yeah. And his calving interval 00:16:07.029 --> 00:16:11.850 was reduced from 427 days down to 401 days. These 00:16:11.850 --> 00:16:13.889 are significant improvements in key reproductive 00:16:13.889 --> 00:16:16.490 and health metrics that directly impact profitability. 00:16:16.529 --> 00:16:18.730 Those are definitely metrics that get any dairy 00:16:18.730 --> 00:16:21.129 farmer's attention. So what's the direct link 00:16:21.129 --> 00:16:23.610 between the robots and these positive changes 00:16:23.610 --> 00:16:26.559 in cow health? Well, a significant factor, according 00:16:26.559 --> 00:16:29.539 to a March 2024 University of Waterloo case study, 00:16:29.700 --> 00:16:32.519 is the reduced stress levels in the cows. With 00:16:32.519 --> 00:16:34.480 voluntary milking, the cows have the freedom 00:16:34.480 --> 00:16:36.340 to choose when they want to be milked rather 00:16:36.340 --> 00:16:38.639 than being herded into a holding pen at a parlor 00:16:38.639 --> 00:16:40.659 at set times throughout the day. Less pressure. 00:16:40.820 --> 00:16:44.100 Exactly. Additionally, the real -time monitoring 00:16:44.100 --> 00:16:46.659 capabilities through computer vision and various 00:16:46.659 --> 00:16:50.240 sensors allow for much earlier detection of potential 00:16:50.240 --> 00:16:53.009 health issues. As one tech company representative 00:16:53.009 --> 00:16:55.750 put it, cows and robotic systems tend to live 00:16:55.750 --> 00:16:58.389 longer and experience less stress compared to 00:16:58.389 --> 00:17:00.590 the traditional parlor environment. They're also 00:17:00.590 --> 00:17:02.610 typically milked more frequently, which can be 00:17:02.610 --> 00:17:05.089 beneficial for overall udder health. That makes 00:17:05.089 --> 00:17:08.329 perfect sense. A less stressed cow is undoubtedly 00:17:08.329 --> 00:17:10.910 going to be a healthier and more productive cow 00:17:10.910 --> 00:17:13.349 in the long run. And I can certainly imagine 00:17:13.349 --> 00:17:15.609 that the constant movement and sometimes crowded 00:17:15.609 --> 00:17:17.990 conditions of a traditional milking parlor can 00:17:17.990 --> 00:17:20.609 be quite stressful for some animals. Absolutely. 00:17:21.049 --> 00:17:23.369 The representative even noted a visible difference 00:17:23.369 --> 00:17:25.910 in the demeanor of the cows in robotic barns. 00:17:25.910 --> 00:17:28.450 They often tend to be quieter and much calmer, 00:17:28.549 --> 00:17:31.809 almost exhibiting pet -like behavior, sometimes 00:17:31.809 --> 00:17:34.269 even approaching people without hesitation. In 00:17:34.269 --> 00:17:37.930 contrast, in a parlor setting, cows might be 00:17:37.930 --> 00:17:40.410 more skittish when people enter the barn because 00:17:40.410 --> 00:17:42.349 they associate it with being moved to the parlor. 00:17:43.109 --> 00:17:45.589 These improved health outcomes translate directly 00:17:45.589 --> 00:17:48.529 into financial benefits for the farm. lower veterinary 00:17:48.529 --> 00:17:51.529 costs, enhanced reproductive efficiency, and 00:17:51.529 --> 00:17:53.829 longer, more productive lifespans for the cows 00:17:53.829 --> 00:17:56.349 in the herd. So healthier cows not only mean 00:17:56.349 --> 00:17:58.569 better animal welfare, which is, you know, a 00:17:58.569 --> 00:18:01.130 priority for all good dairy farmers, but also 00:18:01.130 --> 00:18:03.950 a healthier bottom line through reduced vet bills 00:18:03.950 --> 00:18:06.690 and increased milk production over a longer period. 00:18:07.049 --> 00:18:09.930 That's a pretty powerful combination of benefits. 00:18:10.250 --> 00:18:12.990 But as the old saying goes, if something sounds 00:18:12.990 --> 00:18:16.630 too good to be true, it probably is. Are there 00:18:16.630 --> 00:18:19.490 instances where robotic milking systems don't 00:18:19.490 --> 00:18:22.029 live up to these promises? It's absolutely crucial 00:18:22.029 --> 00:18:24.150 to maintain a realistic perspective, and our 00:18:24.150 --> 00:18:26.269 sources do include a cautionary tale that serves 00:18:26.269 --> 00:18:29.170 as an important reminder. A former robotic dairy 00:18:29.170 --> 00:18:31.569 farmer who invested in the technology way back 00:18:31.569 --> 00:18:34.789 in 2007. Okay, early adopter. Yeah, very early. 00:18:34.910 --> 00:18:37.190 He didn't experience the typical benefits over 00:18:37.190 --> 00:18:40.740 his 12 to 13 years of using the system. In fact, 00:18:40.759 --> 00:18:43.000 he calculated that the robots actually increased 00:18:43.000 --> 00:18:46.319 his costs per liter of milk for both maintenance, 00:18:46.480 --> 00:18:49.900 about 4 .5 cents a liter, and feed, another 2 00:18:49.900 --> 00:18:52.700 .5 cents a liter. And his labor costs remained 00:18:52.700 --> 00:18:56.960 essentially unchanged. Ouch. That's a stark contrast 00:18:56.960 --> 00:18:59.019 to the success stories we've been hearing. What 00:18:59.019 --> 00:19:01.059 do you think went wrong in his particular situation? 00:19:01.849 --> 00:19:03.970 Well, he acknowledged that he was likely working 00:19:03.970 --> 00:19:06.269 with some of the earlier generations of the technology, 00:19:06.430 --> 00:19:08.829 and there were undoubtedly some growing pains 00:19:08.829 --> 00:19:11.289 associated with that. But importantly, he also 00:19:11.289 --> 00:19:13.470 took some responsibility himself, suggesting 00:19:13.470 --> 00:19:15.450 that his management practices might have played 00:19:15.450 --> 00:19:18.109 a role in the lack of success. This really underscores 00:19:18.109 --> 00:19:20.009 the fact that you can't simply install robots 00:19:20.009 --> 00:19:23.309 and expect instant, effortless success. A successful 00:19:23.309 --> 00:19:25.589 implementation demands a well -thought -out strategy, 00:19:26.059 --> 00:19:28.680 meticulous planning, comprehensive training for 00:19:28.680 --> 00:19:31.579 both the cows and the farm staff, and, crucially, 00:19:31.740 --> 00:19:34.720 a willingness to adapt and fine -tune your management 00:19:34.720 --> 00:19:38.660 practices to fully optimize the system. The investment 00:19:38.660 --> 00:19:41.140 extends beyond just the physical hardware. It 00:19:41.140 --> 00:19:42.920 crucially includes investing in the knowledge 00:19:42.920 --> 00:19:45.339 and expertise to utilize the technology effectively. 00:19:45.980 --> 00:19:47.960 That's a really vital point to emphasize. It's 00:19:47.960 --> 00:19:49.640 not just about the machine itself. It's about 00:19:49.640 --> 00:19:52.519 how you integrate it into the entire fabric of 00:19:52.519 --> 00:19:54.720 your farm operation and having the right know 00:19:54.720 --> 00:19:57.859 -how to manage it properly. Okay, so while there 00:19:57.859 --> 00:20:00.240 are potential pitfalls and it's not a guaranteed 00:20:00.240 --> 00:20:02.900 slam dunk, the overall trend seems to be pointing 00:20:02.900 --> 00:20:05.079 towards increased adoption of this technology. 00:20:05.420 --> 00:20:07.240 What does the data tell us about where things 00:20:07.240 --> 00:20:09.619 are heading? The adoption of dairy robotics is 00:20:09.619 --> 00:20:11.440 definitely on an upward trajectory, no doubt 00:20:11.440 --> 00:20:14.119 about it. In Ontario alone, the number of farms 00:20:14.119 --> 00:20:16.299 utilizing them more than doubled between 2016 00:20:16.299 --> 00:20:21.099 and 2021, jumping from 337 to 715 farms. Doubled 00:20:21.099 --> 00:20:24.039 in five years? Yeah. The livestock sector is 00:20:24.039 --> 00:20:26.079 now leading the way in agricultural robotics 00:20:26.079 --> 00:20:28.839 adoption right across Canada. And on a global 00:20:28.839 --> 00:20:30.960 scale, the market is substantial and growing 00:20:30.960 --> 00:20:34.099 at a rapid pace. It reached a value of $2 .98 00:20:34.099 --> 00:20:38.740 billion in 2024 and is projected to hit $3 .39 00:20:38.740 --> 00:20:42.240 billion this year. That's a significant 14 % 00:20:42.240 --> 00:20:45.630 increase in just one year. 14 %? Yeah. And by 00:20:45.630 --> 00:20:48.269 2029, market forecasts estimate a value of around 00:20:48.269 --> 00:20:51.670 $6 .03 billion. Those are some serious growth 00:20:51.670 --> 00:20:54.069 numbers, indicating a strong and increasing interest 00:20:54.069 --> 00:20:56.329 in this technology worldwide. Those are some 00:20:56.329 --> 00:20:58.430 impressive growth figures. So while it might 00:20:58.430 --> 00:21:00.750 still feel like a relatively new or niche technology 00:21:00.750 --> 00:21:03.269 to some folks here in North America, the global 00:21:03.269 --> 00:21:05.630 trend is clearly moving towards greater automation 00:21:05.630 --> 00:21:08.450 in the dairy sector. Absolutely. And what's particularly 00:21:08.450 --> 00:21:10.490 striking is the comparison with adoption rates 00:21:10.490 --> 00:21:12.400 in other parts of the world. In Denmark, for 00:21:12.400 --> 00:21:15.099 example, over 85 % of all new dairy facility 00:21:15.099 --> 00:21:17.900 constructions are now incorporating robotic milking 00:21:17.900 --> 00:21:21.700 systems. 85 % of new builds, wow. Yeah, that's 00:21:21.700 --> 00:21:23.779 a massive difference compared to North America, 00:21:23.920 --> 00:21:26.319 where a recent National Dairy Farm Program survey 00:21:26.319 --> 00:21:29.220 indicated an adoption rate of only around 3%, 00:21:29.220 --> 00:21:33.119 with a significant percentage of farms, 45 .4%, 00:21:33.119 --> 00:21:35.480 still operating with traditional tie stall systems. 00:21:36.029 --> 00:21:38.609 This gap really highlights a substantial opportunity 00:21:38.609 --> 00:21:41.269 for early adopters here to gain a significant 00:21:41.269 --> 00:21:43.869 competitive advantage in the years to come. Huge 00:21:43.869 --> 00:21:46.549 opportunity. Huge. We're already seeing numerous 00:21:46.549 --> 00:21:48.250 success stories on this side of the Atlantic, 00:21:48.369 --> 00:21:51.109 like Hinchley Dairy Farm in the U .S., and the 00:21:51.109 --> 00:21:53.690 Elliott Family Farm, which operates with an impressive 00:21:53.690 --> 00:21:56.529 20 Delaval robots, both reporting significant 00:21:56.529 --> 00:21:58.930 increases in production and substantial reductions 00:21:58.930 --> 00:22:01.549 in labor costs. So while North America might 00:22:01.549 --> 00:22:03.589 be somewhat behind the curve compared to places 00:22:03.589 --> 00:22:06.940 like Denmark, growth and the tangible benefits 00:22:06.940 --> 00:22:09.140 being realized by those who have already embraced 00:22:09.140 --> 00:22:11.960 the technology are undeniable. Now, for those 00:22:11.960 --> 00:22:14.099 dairy farmers who are seriously contemplating 00:22:14.099 --> 00:22:16.680 making this leap, what does the transition period 00:22:16.680 --> 00:22:19.240 typically look like? Because I can't imagine 00:22:19.240 --> 00:22:21.500 it's as simple as just uncreating a robot and 00:22:21.500 --> 00:22:23.720 having everything run smoothly from day one. 00:22:23.980 --> 00:22:26.279 No, definitely not. The research from the University 00:22:26.279 --> 00:22:29.000 of Waterloo suggests that achieving full profitability 00:22:29.000 --> 00:22:31.759 with dairy robotics can take up to four years. 00:22:32.319 --> 00:22:34.779 That's a crucial piece of information to factor 00:22:34.779 --> 00:22:37.119 into your long -term financial planning. The 00:22:37.119 --> 00:22:40.400 initial upfront costs can be considerable. especially 00:22:40.400 --> 00:22:43.220 if you need to undertake significant barn retrofits 00:22:43.220 --> 00:22:46.160 or infrastructure upgrades to properly accommodate 00:22:46.160 --> 00:22:48.880 the robotic system. Right, the barn itself. Exactly. 00:22:49.099 --> 00:22:51.380 As one tech company representative pointed out, 00:22:51.420 --> 00:22:54.119 in regions like Ontario and Quebec, a large number 00:22:54.119 --> 00:22:56.539 of dairy farms still have existing tie -stall 00:22:56.539 --> 00:22:59.519 barns, which often necessitate major renovations 00:22:59.519 --> 00:23:02.400 or even entirely new building construction to 00:23:02.400 --> 00:23:04.640 integrate robotic milking effectively. That's 00:23:04.640 --> 00:23:06.869 a big additional cost. Four years to reach full 00:23:06.869 --> 00:23:09.789 profitability is a significant time frame. So 00:23:09.789 --> 00:23:11.930 it's absolutely vital for farmers to develop 00:23:11.930 --> 00:23:14.789 a realistic and robust financial plan that can 00:23:14.789 --> 00:23:17.049 withstand that initial investment period and 00:23:17.049 --> 00:23:19.410 any potential unforeseen challenges along the 00:23:19.410 --> 00:23:21.690 way. Exactly. And it's also important to recognize 00:23:21.690 --> 00:23:24.130 that these necessary upgrades and new construction 00:23:24.130 --> 00:23:26.529 projects do generate positive economic activity 00:23:26.529 --> 00:23:29.150 in other sectors. Barn builders, agricultural 00:23:29.150 --> 00:23:31.609 engineers, farm design consultants, you name 00:23:31.609 --> 00:23:35.539 it. Julie Nenikovan from DLL offers a valuable 00:23:35.539 --> 00:23:38.119 piece of advice. She recommends starting the 00:23:38.119 --> 00:23:40.160 financing conversation early in the process, 00:23:40.380 --> 00:23:43.319 potentially even two years before you anticipate 00:23:43.319 --> 00:23:45.900 beginning construction. Two years before? Wow. 00:23:46.140 --> 00:23:48.319 Yeah. This allows ample time to thoroughly explore 00:23:48.319 --> 00:23:50.920 all available financing options and develop a 00:23:50.920 --> 00:23:53.220 comprehensive and well -structured financial 00:23:53.220 --> 00:23:56.039 strategy for the transition. Less stress later 00:23:56.039 --> 00:23:58.220 on. That early planning definitely sounds like 00:23:58.220 --> 00:24:01.019 a key ingredient for a successful and less stressful 00:24:01.019 --> 00:24:03.420 transition. So to bring everything together, 00:24:03.579 --> 00:24:05.579 what's the core message you'd want to leave with 00:24:05.579 --> 00:24:07.359 anyone listening who's currently on the fence 00:24:07.359 --> 00:24:09.539 about exploring dairy robotics for their farm? 00:24:09.700 --> 00:24:12.839 The central message, I think, is this. Delaying 00:24:12.839 --> 00:24:15.559 the exploration of robotic milking might actually 00:24:15.559 --> 00:24:17.980 mean leaving money on the table in the long run. 00:24:18.480 --> 00:24:21.220 The costs of the technology itself are showing 00:24:21.220 --> 00:24:24.430 a downward trend. generally speaking, while the 00:24:24.430 --> 00:24:26.769 expenses associated with labor continue their 00:24:26.769 --> 00:24:29.789 upward climb, making the overall financial equation 00:24:29.789 --> 00:24:32.569 increasingly favorable for automation. The math 00:24:32.569 --> 00:24:35.490 is changing. The math is changing. We heard about 00:24:35.490 --> 00:24:38.049 the Ontario farmer who wisely started with just 00:24:38.049 --> 00:24:41.329 two robots for his herd of 110 cows as a way 00:24:41.329 --> 00:24:43.210 to gradually get comfortable with the technology 00:24:43.210 --> 00:24:46.069 and refine his management practices before considering 00:24:46.069 --> 00:24:49.180 further expansion. Adopting this kind of phased 00:24:49.180 --> 00:24:51.160 approach can be a smart way to mitigate initial 00:24:51.160 --> 00:24:54.220 risks and learn as you go. Alex Hucker -Stewart 00:24:54.220 --> 00:24:57.400 from DLL emphasizes that understanding and strategically 00:24:57.400 --> 00:24:59.779 addressing that initial investment hurdle is 00:24:59.779 --> 00:25:02.420 paramount, and there is a growing range of accessible 00:25:02.420 --> 00:25:05.220 financing options available, often with tailored 00:25:05.220 --> 00:25:07.660 repayment structures designed to meet the specific 00:25:07.660 --> 00:25:10.700 needs of dairy farms. So it's no longer just 00:25:10.700 --> 00:25:13.759 a futuristic concept. Robotic milking is rapidly 00:25:13.759 --> 00:25:15.839 evolving into a strategic investment for the 00:25:15.839 --> 00:25:18.339 long -term sustainability and viability of daily 00:25:18.339 --> 00:25:21.420 farming operations. Yeah. So the fundamental 00:25:21.420 --> 00:25:23.759 question for each listener really boils down 00:25:23.759 --> 00:25:27.279 to this. Is now the right time for you to seriously 00:25:27.279 --> 00:25:30.980 explore your robot financing options? Have you 00:25:30.980 --> 00:25:33.059 already begun considering making the leap, or 00:25:33.059 --> 00:25:35.619 have you perhaps already taken that plunge into 00:25:35.619 --> 00:25:38.480 the world of robotic milking? Precisely. It's 00:25:38.480 --> 00:25:41.079 about looking ahead, anticipating the future 00:25:41.079 --> 00:25:43.279 challenges and opportunities in the dairy industry, 00:25:43.380 --> 00:25:46.220 and strategically positioning your farm for long 00:25:46.220 --> 00:25:49.380 -term success. Absolutely. So to recap our deep 00:25:49.380 --> 00:25:52.079 dive into dairy robot financing today, we've 00:25:52.079 --> 00:25:53.839 uncovered that while the initial investment is 00:25:53.839 --> 00:25:56.539 significant, the potential for substantial gains 00:25:56.539 --> 00:25:58.460 in milk production and significant savings in 00:25:58.460 --> 00:26:01.119 labor costs are very real and increasingly compelling. 00:26:01.680 --> 00:26:04.079 The emergence of creative and flexible financing 00:26:04.079 --> 00:26:06.740 options, ranging from manufacturer -backed deals 00:26:06.740 --> 00:26:09.059 to innovative leasing programs and even paper 00:26:09.059 --> 00:26:11.519 leader models, is making this technology more 00:26:11.519 --> 00:26:13.779 accessible to a wider range of farms than ever 00:26:13.779 --> 00:26:16.759 before. And beyond the direct financial returns, 00:26:16.960 --> 00:26:19.019 we've also explored the noteworthy environmental 00:26:19.019 --> 00:26:21.460 and cow health benefits that can contribute to 00:26:21.460 --> 00:26:23.240 long -term sustainability and profitability. 00:26:23.720 --> 00:26:27.069 Healthier cows, smaller footprint. Right. However, 00:26:27.369 --> 00:26:29.490 as we've learned, optimizing the performance 00:26:29.490 --> 00:26:31.609 of robotic systems through diligent management 00:26:31.609 --> 00:26:34.809 and operator expertise is crucial for achieving 00:26:34.809 --> 00:26:37.769 the best possible financial outcomes. It's not 00:26:37.769 --> 00:26:39.990 automatic. And a well -thought -out transition 00:26:39.990 --> 00:26:42.170 plan that realistically accounts for initial 00:26:42.170 --> 00:26:45.450 costs and that a multi -year path to profitability 00:26:45.450 --> 00:26:48.950 is absolutely essential. Crucial. And the global 00:26:48.950 --> 00:26:51.289 trend towards robotic adoption is accelerating 00:26:51.289 --> 00:26:54.029 rapidly, presenting a considerable opportunity 00:26:54.029 --> 00:26:57.190 for North American dairy farmers to gain a valuable 00:26:57.190 --> 00:26:59.390 competitive edge in the evolving landscape of 00:26:59.390 --> 00:27:01.069 the dairy industry. Definitely an opportunity 00:27:01.069 --> 00:27:03.609 there. And we strongly encourage you, our listeners, 00:27:03.710 --> 00:27:05.410 to carefully consider everything we've discussed 00:27:05.410 --> 00:27:07.789 today in the context of your own farm's unique 00:27:07.789 --> 00:27:10.589 circumstances and long -term goals. Think about 00:27:10.589 --> 00:27:12.849 whether proactively exploring these financing 00:27:12.849 --> 00:27:15.349 options and the potential benefits of robotic 00:27:15.349 --> 00:27:17.769 milking aligns with your vision for the future 00:27:17.769 --> 00:27:20.289 of your dairy operation. We'd genuinely love 00:27:20.289 --> 00:27:22.410 to hear your thoughts and experiences regarding 00:27:22.410 --> 00:27:24.750 dairy robots and the various financing strategies 00:27:24.750 --> 00:27:27.410 you've encountered or utilized. Please feel free 00:27:27.410 --> 00:27:29.829 to reach out and share your insights. Let's keep 00:27:29.829 --> 00:27:31.890 this important conversation going within the 00:27:31.890 --> 00:27:34.670 dairy community. We've also compiled some Learn 00:27:34.670 --> 00:27:36.849 More resources that delve deeper into specific 00:27:36.849 --> 00:27:39.109 aspects we've touched on today. Yeah, good stuff 00:27:39.109 --> 00:27:41.950 in there. Covering everything from crucial financial 00:27:41.950 --> 00:27:44.630 considerations and strategies for maximizing 00:27:44.630 --> 00:27:47.529 dairy farm efficiency to a closer look at the 00:27:47.529 --> 00:27:50.309 robotic milking revolution, the often hidden 00:27:50.309 --> 00:27:53.710 aspects of ROI, benefits beyond just milking, 00:27:53.730 --> 00:27:56.069 and the critical importance of ongoing maintenance. 00:27:56.490 --> 00:27:58.990 These resources are there for you to explore 00:27:58.990 --> 00:28:01.269 the topics that are most relevant to your operation 00:28:01.269 --> 00:28:03.809 in greater detail. And finally, as you reflect 00:28:03.809 --> 00:28:06.329 on all of this information, consider the broader 00:28:06.329 --> 00:28:09.539 future of dairy farming. Automation is clearly 00:28:09.539 --> 00:28:11.740 poised to play an increasingly pivotal role. 00:28:12.299 --> 00:28:14.920 What will your farm's place be in this dynamic 00:28:14.920 --> 00:28:17.720 and evolving landscape? What is your long -term 00:28:17.720 --> 00:28:20.279 strategy for embracing technological advancements 00:28:20.279 --> 00:28:22.539 and ensuring the continued sustainability and 00:28:22.539 --> 00:28:24.660 success of your dairy operation in the years 00:28:24.660 --> 00:28:27.319 to come? Some truly important questions for all 00:28:27.319 --> 00:28:29.500 of us in the dairy industry to be pondering. 00:28:29.880 --> 00:28:31.779 Thanks for tuning into this deep dive. We'll 00:28:31.779 --> 00:28:33.579 catch you next time. That's our deep dive into 00:28:33.579 --> 00:28:36.650 dairy robot financing. From 0 % manufacturer 00:28:36.650 --> 00:28:39.250 deals to the four -year profitability timeline 00:28:39.250 --> 00:28:42.049 every farmer needs to know. Got a robot success 00:28:42.049 --> 00:28:44.950 story? Tag us at The Bullvine. We'll feature 00:28:44.950 --> 00:28:47.670 the best insights in our May roundup. For show 00:28:47.670 --> 00:28:51.490 notes and full financial tables, visit www .thebullvine 00:28:51.490 --> 00:28:52.029 .com.