WEBVTT 00:00:11.720 --> 00:00:15.060 Breaking free from the chains of the past Where 00:00:15.060 --> 00:00:18.820 truth moves faster than a Holstein calf No law 00:00:18.820 --> 00:00:21.660 waiting on some printed page We're charting new 00:00:21.660 --> 00:00:25.300 ground in the digital age From genomic codes 00:00:25.300 --> 00:00:29.120 to robot facts We cut through the noise, no hold 00:00:29.280 --> 00:00:32.460 them back not your daddy's dairy news tonight 00:00:32.460 --> 00:01:01.490 we're sparking Welcome to the Bullvine Podcast, 00:01:01.890 --> 00:01:04.950 your go -to source for bold insights and honest 00:01:04.950 --> 00:01:08.170 conversations about the dairy industry. I'm your 00:01:08.170 --> 00:01:11.250 host, and today we're diving into how dairy farmers 00:01:11.250 --> 00:01:15.609 are breaking free from the 365 -day grind, reclaiming 00:01:15.609 --> 00:01:18.329 time, and boosting profits through cutting -edge 00:01:18.329 --> 00:01:21.510 automation and smarter labor strategies. Whether 00:01:21.510 --> 00:01:23.849 you're running a family farm or managing a large 00:01:23.849 --> 00:01:26.730 operation, This episode is packed with actionable 00:01:26.730 --> 00:01:29.870 advice and real -world stories to help you thrive 00:01:29.870 --> 00:01:32.829 in today's challenging market. Stay with us. 00:01:33.030 --> 00:01:35.090 Yep, you're definitely in the right place today. 00:01:35.129 --> 00:01:37.250 We're diving into a really interesting feature 00:01:37.250 --> 00:01:40.150 article from The Bullvine. Lots of buzz around 00:01:40.150 --> 00:01:42.209 this one. We're going to break it all down. Absolutely. 00:01:42.310 --> 00:01:46.349 You know, for, gosh, forever it feels like, dairy 00:01:46.349 --> 00:01:50.549 farming has meant that relentless 365 -day grind. 00:01:50.829 --> 00:01:53.599 Uh, yeah. The classic image. We've all heard 00:01:53.599 --> 00:01:55.480 the stories. Maybe you've lived at those early 00:01:55.480 --> 00:01:58.680 mornings, late nights, just feeling like the 00:01:58.680 --> 00:02:02.840 farm completely owns you. That farm owns me feeling. 00:02:03.099 --> 00:02:05.859 But what if? What if there was another way, a 00:02:05.859 --> 00:02:08.080 way to maybe get some time back? Well, and that's 00:02:08.080 --> 00:02:09.900 the fascinating thing now, isn't it? The conversation 00:02:09.900 --> 00:02:13.360 isn't really if it's possible anymore. It's how. 00:02:13.819 --> 00:02:17.599 Exactly. How? How are folks using smart tech? 00:02:18.329 --> 00:02:20.810 different management strategies to turn those 00:02:20.810 --> 00:02:23.729 crazy schedules into profitable farms, farms 00:02:23.729 --> 00:02:26.669 that actually, you know, let you have a life. 00:02:26.750 --> 00:02:29.090 A life outside the barn. Yeah. It's not just 00:02:29.090 --> 00:02:31.349 a pipe dream. No, it's becoming a tangible reality 00:02:31.349 --> 00:02:33.650 for a lot of producers. So if you're sitting 00:02:33.650 --> 00:02:36.520 there thinking, how do I boost my profits? How 00:02:36.520 --> 00:02:39.240 do I secure the farm for the kids? And honestly, 00:02:39.460 --> 00:02:41.580 how do I just get an evening off sometimes? Ah, 00:02:41.819 --> 00:02:45.419 yeah, the basics. Then stick with us. We're going 00:02:45.419 --> 00:02:48.580 to unpack the facts, the research, the real stories, 00:02:48.719 --> 00:02:51.699 all tailored for you. Okay, so let's dig into 00:02:51.699 --> 00:02:55.360 this. The article kicks off painting a, well, 00:02:55.479 --> 00:02:57.960 a pretty stark picture of traditional dairy farming. 00:02:58.719 --> 00:03:01.099 It's not just a feeling people have. The numbers 00:03:01.099 --> 00:03:03.740 actually confirm it. Dairy operators clocking 00:03:03.740 --> 00:03:06.300 some of the longest hours in ag. Yeah, it's quite 00:03:06.300 --> 00:03:08.719 sobering when you look at the data. USDA surveys, 00:03:08.919 --> 00:03:11.180 they show principal dairy operators averaging 00:03:11.180 --> 00:03:14.800 64 hours a week. 64. And that's the highest, 00:03:14.960 --> 00:03:17.560 you know, of any ag commodity group. And it often 00:03:17.560 --> 00:03:21.419 jumps to 75 hours during calving season. 75 hours. 00:03:21.620 --> 00:03:23.599 Think about that. It leaves maybe six hours a 00:03:23.599 --> 00:03:26.539 week for literally anything else. Anything not 00:03:26.539 --> 00:03:28.969 farm related. Wow. And that intense schedule, 00:03:29.050 --> 00:03:31.689 it takes a huge human toll. And the article really 00:03:31.689 --> 00:03:33.270 hammers that home, right? It's not just being 00:03:33.270 --> 00:03:36.090 tired. It goes deeper. It really does. The research 00:03:36.090 --> 00:03:38.770 is pretty clear. There was a Journal of Dairy 00:03:38.770 --> 00:03:41.969 Science study. It found dairy workers average 00:03:41.969 --> 00:03:44.870 only about 6 hours and 15 minutes of sleep during 00:03:44.870 --> 00:03:48.330 calving. Oof. Way below what you need. Way below. 00:03:48.349 --> 00:03:51.909 So you've got heightened stress, a much higher 00:03:51.909 --> 00:03:54.110 risk of accidents, you know, working with... 00:03:54.300 --> 00:03:56.639 big machinery large animals when you're exhausted 00:03:56.639 --> 00:04:00.159 not ideal definitely not and beyond the physical 00:04:00.159 --> 00:04:02.800 there's the mental health side those long hours 00:04:02.800 --> 00:04:05.979 the lack of sleep the isolation sometimes it 00:04:05.979 --> 00:04:09.139 contributes to anxiety depression burnout it's 00:04:09.139 --> 00:04:12.050 a real issue you hear those stories you do Farmers 00:04:12.050 --> 00:04:14.810 feeling trapped, missing family stuff. The article 00:04:14.810 --> 00:04:16.910 mentions a Vermont producer, actually, who said 00:04:16.910 --> 00:04:19.269 automation saved my marriage. Wow. That says 00:04:19.269 --> 00:04:21.449 a lot. It really does. It speaks volumes about 00:04:21.449 --> 00:04:23.569 the pressure that lifestyle puts on people. And 00:04:23.569 --> 00:04:26.250 that personal struggle, it kind of ripples out, 00:04:26.310 --> 00:04:28.629 doesn't it? Right. It fuels this bigger labor 00:04:28.629 --> 00:04:30.870 crisis we keep hearing about. You absolutely 00:04:30.870 --> 00:04:32.970 hit it there. This isn't just individual farms 00:04:32.970 --> 00:04:35.709 struggling. It's an industry -wide problem. The 00:04:35.709 --> 00:04:38.600 Bureau of Labor Statistics. They're projecting 00:04:38.600 --> 00:04:41.480 a 3 % decline in the overall ag workforce in 00:04:41.480 --> 00:04:44.420 the next decade. A decline. Yeah. And dairy is 00:04:44.420 --> 00:04:46.560 feeling that pinch the most. And when labor is 00:04:46.560 --> 00:04:49.939 scarce, what happens? Costs go up. Average hourly 00:04:49.939 --> 00:04:53.819 wage is over $17 now. But the real killer, the 00:04:53.819 --> 00:04:57.319 hidden cost, is turnover. Recruiting, training 00:04:57.319 --> 00:05:00.540 someone new, that can cost upwards of $4 ,400 00:05:00.540 --> 00:05:04.540 per employee. per employee. Yeah. So think about 00:05:04.540 --> 00:05:08.079 a medium -sized farm, say 200 cows. If they have 00:05:08.079 --> 00:05:10.519 50 % turnover a year on just five employees, 00:05:10.759 --> 00:05:13.839 that's over $11 ,000 down the drain, just in 00:05:13.839 --> 00:05:15.959 hidden costs. Not even counting lost productivity 00:05:15.959 --> 00:05:17.939 or mistakes from new people. Exactly. And those 00:05:17.939 --> 00:05:20.259 high turnover rates, you know, 30 % or more, 00:05:20.399 --> 00:05:22.420 they're directly linked to lower milk production, 00:05:22.560 --> 00:05:24.720 higher calf mortality. It's a nasty cycle. And 00:05:24.720 --> 00:05:26.319 all of this just feeds into those bigger economic 00:05:26.319 --> 00:05:28.439 pressures, right? Consolidation, the succession 00:05:28.439 --> 00:05:31.639 crisis is all connected. It absolutely is. At 00:05:31.639 --> 00:05:34.240 the heart of it, there's this stark efficiency 00:05:34.240 --> 00:05:39.160 gap. Smaller farms, say 50, 90 cows, they're 00:05:39.160 --> 00:05:42.639 spending over 26 hours per cow each year. 26 00:05:42.639 --> 00:05:45.300 hours. Compare that to the big operations, 2 00:05:45.300 --> 00:05:47.740 ,000 plus head. They're down around 13 hours 00:05:47.740 --> 00:05:50.449 per cow. Half the time. Half the time. And it's 00:05:50.449 --> 00:05:52.769 not just about being bigger. It's about the automation, 00:05:52.870 --> 00:05:54.769 the management systems they can use. Which makes 00:05:54.769 --> 00:05:57.069 it really tough for the next generation to see 00:05:57.069 --> 00:05:59.050 a future in traditional dairying. It's a huge 00:05:59.050 --> 00:06:01.230 deterrent. The stats are kind of grim. Almost 00:06:01.230 --> 00:06:03.649 9 out of 10 family dairies don't make it past 00:06:03.649 --> 00:06:06.149 the third generation. 9 out of 10. Yeah. And 00:06:06.149 --> 00:06:08.769 the average age of a U .S. farmer is over 57. 00:06:09.480 --> 00:06:11.480 Almost a third of the workforce is looking at 00:06:11.480 --> 00:06:14.939 retiring by 2025. So who's going to take over 00:06:14.939 --> 00:06:17.100 these farms, especially the smaller ones facing 00:06:17.100 --> 00:06:19.339 those efficiency challenges? It really does paint 00:06:19.339 --> 00:06:22.300 a tough picture, doesn't it? The hours, the cost, 00:06:22.379 --> 00:06:25.720 the legacy risk. It feels unsustainable for many. 00:06:25.860 --> 00:06:29.040 It is becoming unsustainable. So, OK, what's 00:06:29.040 --> 00:06:30.980 the answer? Where's the hope? What can farmers 00:06:30.980 --> 00:06:33.920 actually do? Well, the hope, thankfully, is in 00:06:33.920 --> 00:06:36.040 the solutions that are emerging right now. And 00:06:36.040 --> 00:06:39.060 automation is a huge... piece of that puzzle. 00:06:39.180 --> 00:06:41.360 Right. And it's not just, you know, fancy gadgets. 00:06:41.480 --> 00:06:44.079 It's a fundamental shift in how work gets done. 00:06:44.139 --> 00:06:46.959 It's transforming operations. Yeah. The article 00:06:46.959 --> 00:06:49.800 mentions Tom from Wisconsin again. He thought 00:06:49.800 --> 00:06:52.180 robots sounded kind of crazy at first. A little 00:06:52.180 --> 00:06:55.259 too good to be true, maybe. Exactly. Until his 00:06:55.259 --> 00:06:59.720 Delaval robots took over the milking. And suddenly 00:06:59.720 --> 00:07:02.459 he's at his daughter's softball games. That's 00:07:02.459 --> 00:07:04.600 the life part. It's about life, not just milk 00:07:04.600 --> 00:07:07.680 production. What exactly are these technologies? 00:07:07.879 --> 00:07:09.420 What are they really delivering on the ground? 00:07:09.680 --> 00:07:11.680 Well, they're delivering a pretty complete overhaul, 00:07:11.819 --> 00:07:14.920 honestly. Milking, feeding, health monitoring, 00:07:15.199 --> 00:07:18.439 the whole shebang. And you see the scale of this 00:07:18.439 --> 00:07:21.500 shift in the market projections. Global robotic 00:07:21.500 --> 00:07:24.360 milking systems. That market's set to basically 00:07:24.360 --> 00:07:27.079 double in the next 10 years. Double, wow. Yeah, 00:07:27.139 --> 00:07:30.199 from around $3 billion now to almost $5 billion 00:07:30.199 --> 00:07:34.639 by 2035. That's like a 7 % growth rate every 00:07:34.639 --> 00:07:37.810 year. And interestingly, Delaval reported a 15 00:07:37.810 --> 00:07:40.550 % jump in installations driven mainly by the 00:07:40.550 --> 00:07:43.329 labor crisis, not just chasing efficiency. So 00:07:43.329 --> 00:07:45.870 farmers are turning to it out of necessity. Big 00:07:45.870 --> 00:07:48.089 time. And it's way beyond just milking robots. 00:07:48.230 --> 00:07:52.209 We're talking about this whole smart farm. Okay. 00:07:52.389 --> 00:07:55.009 Like what? Like automated feeding systems. They 00:07:55.009 --> 00:07:57.430 mix and deliver the TMR multiple times a day. 00:07:57.509 --> 00:07:59.850 Or even simply stuff like feed pushers, making 00:07:59.850 --> 00:08:02.769 sure cows always have access to fresh feed. Keeps 00:08:02.769 --> 00:08:04.509 them happy. Keeps them happy. Keeps them eating. 00:08:04.670 --> 00:08:07.680 Then you've got advanced sensors. Wearable tech 00:08:07.680 --> 00:08:10.779 for the cows. Like Fitbits for cows? Kinda. They 00:08:10.779 --> 00:08:12.800 track activity for heat detection, rumination 00:08:12.800 --> 00:08:15.100 for digestive health, flag potential illness 00:08:15.100 --> 00:08:17.420 days before you'd see it visually. That's incredible. 00:08:17.620 --> 00:08:20.379 Early detection. Huge. And robotic manure management, 00:08:20.540 --> 00:08:22.879 too. Scrapers keeping things clean, which helps 00:08:22.879 --> 00:08:25.399 with hygiene, comfort, hoof health. So it's not 00:08:25.399 --> 00:08:27.439 just one robot. It's a system. They all work 00:08:27.439 --> 00:08:30.560 together. Exactly. Integrated systems. And they 00:08:30.560 --> 00:08:33.919 deliver really tangible results, both for the 00:08:33.919 --> 00:08:36.399 cows and the bottom line. Let's talk about those 00:08:36.399 --> 00:08:38.480 results. What kind of gains are we seeing? Okay, 00:08:38.539 --> 00:08:41.440 so milk yield. Cows in these systems, they choose 00:08:41.440 --> 00:08:43.980 to milk more often, right? Voluntarily. Usually 00:08:43.980 --> 00:08:46.759 2 .6 to 3 times a day. Instead of the standard 00:08:46.759 --> 00:08:50.059 twice a day. Right. And that alone often leads 00:08:50.059 --> 00:08:52.519 to a 3 -5 % increase in daily milk production. 00:08:52.639 --> 00:08:56.340 Sometimes even 6 -8%. Or up to 12 % if it's a 00:08:56.340 --> 00:08:58.820 new barn designed for robots. That's significant. 00:08:59.179 --> 00:09:02.139 It is. That Wisconsin survey found over half 00:09:02.139 --> 00:09:03.960 the farms with automated systems were getting 00:09:03.960 --> 00:09:07.529 over 76 pounds per cow per day. compared to only 00:09:07.529 --> 00:09:10.029 43 % of conventional farms hitting that mark. 00:09:10.169 --> 00:09:13.350 There is even one farm, JTP Farms, hit a world 00:09:13.350 --> 00:09:17.049 record, over 2 ,900 kilos of milk per robot in 00:09:17.049 --> 00:09:19.529 just seven days with less labor. Incredible. 00:09:19.870 --> 00:09:22.389 And the labor savings must be huge too. Oh, massive. 00:09:22.649 --> 00:09:25.769 Milking labor itself can drop by like 62%. Overall, 00:09:25.970 --> 00:09:27.929 you're realistically looking at maybe a 50 % 00:09:27.929 --> 00:09:29.970 cut in total labor hours. Half the labor. Yeah. 00:09:30.169 --> 00:09:32.610 Daily management time can go from over five hours 00:09:32.610 --> 00:09:34.330 down to just two. Think about what you could 00:09:34.330 --> 00:09:36.289 do with those extra hours. That's life -changing 00:09:36.289 --> 00:09:38.889 right there. But beyond the numbers, you mentioned 00:09:38.889 --> 00:09:41.289 animal welfare. How does automation help there? 00:09:41.549 --> 00:09:43.570 That's a really important benefit and sometimes 00:09:43.570 --> 00:09:47.210 overlooked. Voluntary milking. It just creates 00:09:47.210 --> 00:09:50.789 a calmer, lower stress environment. No more herding 00:09:50.789 --> 00:09:54.250 into holding pens. Exactly. Less stress. Studies 00:09:54.250 --> 00:09:56.909 actually show cows in conventional parlors have 00:09:56.909 --> 00:09:59.590 higher stress levels. And then the health monitoring. 00:10:00.110 --> 00:10:02.450 Those sensors are game changers. Early detection 00:10:02.450 --> 00:10:05.230 stuff. Right. Inline milk sensors can detect 00:10:05.230 --> 00:10:07.950 mastitis early. Activity monitors flag metabolic 00:10:07.950 --> 00:10:10.809 issues. Farms using this tech are seeing huge 00:10:10.809 --> 00:10:13.970 drops in treatment costs like 40 to 70 % reduction. 00:10:14.049 --> 00:10:17.090 Up to 70%. Yeah. And these systems are incredibly 00:10:17.090 --> 00:10:21.370 accurate. Nearly 96 % accuracy spotting at -risk 00:10:21.370 --> 00:10:23.610 cows maybe five days before you'd see clinical 00:10:23.610 --> 00:10:26.379 signs. Five days notice? That's huge for intervention. 00:10:26.720 --> 00:10:29.220 It prevents major losses. You know, a single 00:10:29.220 --> 00:10:32.919 disease case can cost over $2 ,000 per cow. Catching 00:10:32.919 --> 00:10:35.460 it early saves that money. A and D boosts their 00:10:35.460 --> 00:10:37.600 overall lactation yield. So it sounds like the 00:10:37.600 --> 00:10:39.860 farmer's role changes quite a bit too. Less manual 00:10:39.860 --> 00:10:43.019 labor, more data analysis. That's exactly it. 00:10:43.080 --> 00:10:46.399 You shift from physical labor to being a skilled 00:10:46.399 --> 00:10:49.639 data analyst almost. Okay. All these systems, 00:10:49.820 --> 00:10:53.779 milking, feeding, health. They're generating 00:10:53.779 --> 00:10:57.139 tons of data. Your job becomes interpreting that 00:10:57.139 --> 00:10:59.759 data, making decisions based on it. And it even 00:10:59.759 --> 00:11:02.039 changes how you think about productivity. How 00:11:02.039 --> 00:11:04.899 so? Well, in a traditional setup, your best cow 00:11:04.899 --> 00:11:06.980 might just be the one giving the most milk, right? 00:11:07.059 --> 00:11:09.759 Highest volume. Sure. In a robot system, the 00:11:09.759 --> 00:11:12.179 most valuable cow is the one producing the most 00:11:12.179 --> 00:11:15.659 milk per minute of robot time. Ah, because the 00:11:15.659 --> 00:11:18.100 robot time is the limiting factor. Exactly. It's 00:11:18.100 --> 00:11:20.580 the bottleneck. The article gives an Iowa State 00:11:20.580 --> 00:11:24.470 example. One cow gives, say, 49 .5 kilos but 00:11:24.470 --> 00:11:26.789 takes only 17 minutes in the robot. Another gives 00:11:26.789 --> 00:11:30.190 48 kilos, almost the same, but takes 47 minutes. 00:11:30.429 --> 00:11:32.669 Wow. Big difference in time. Huge difference. 00:11:32.830 --> 00:11:35.090 That second cow ties up that expensive robot 00:11:35.090 --> 00:11:37.870 for nearly three times as long. So suddenly your 00:11:37.870 --> 00:11:40.210 culling decisions, your breeding strategy, your 00:11:40.210 --> 00:11:42.990 genetics, it all starts revolving around robot 00:11:42.990 --> 00:11:45.610 efficiency, not just peak volume. That's a fundamental 00:11:45.610 --> 00:11:47.769 shift in thinking. It's not just faster milking. 00:11:47.830 --> 00:11:50.250 It's smarter farming. Completely smarter farming. 00:11:50.649 --> 00:11:54.049 OK, but Jake, let's be real. This sounds amazing, 00:11:54.129 --> 00:11:58.710 but it also sounds expensive, like really expensive. 00:11:59.049 --> 00:12:01.070 What's the actual financial picture look like? 00:12:01.169 --> 00:12:02.710 Yeah, we got to talk dollars and cents, right? 00:12:02.769 --> 00:12:05.610 Definitely. So what does this all mean for the 00:12:05.610 --> 00:12:08.750 bottom line? Automation sounds great, but that 00:12:08.750 --> 00:12:12.299 upfront cost, it can feel pretty daunting. The 00:12:12.299 --> 00:12:15.539 article goes into the financials, the ROI, but 00:12:15.539 --> 00:12:18.139 also some alternatives, right, for folks maybe 00:12:18.139 --> 00:12:20.179 not ready for that huge investment. Exactly. 00:12:20.179 --> 00:12:22.659 And the financial case, it's not just about, 00:12:22.659 --> 00:12:25.059 you know, saving a bit on labor. It's really 00:12:25.059 --> 00:12:27.299 about reshaping the farm's whole economic structure. 00:12:27.759 --> 00:12:30.179 The article digs into the total cost of ownership, 00:12:30.379 --> 00:12:32.559 which is crucial. Okay. So it makes you ask, 00:12:32.679 --> 00:12:34.399 okay, what are we really looking at for investment? 00:12:34.620 --> 00:12:36.139 What are the potential returns? And maybe more 00:12:36.139 --> 00:12:38.440 importantly, what are the risks? Let's break 00:12:38.440 --> 00:12:40.279 down that investment first. What are the big 00:12:40.279 --> 00:12:43.360 ticket items? Well, the robot itself, a single 00:12:43.360 --> 00:12:46.500 robotic milking unit. You're looking at somewhere 00:12:46.500 --> 00:12:50.259 between $150 ,000 and $230 ,000. Per unit? Per 00:12:50.259 --> 00:12:52.879 unit. So for a typical 120 cow dairy, you'd probably 00:12:52.879 --> 00:12:56.700 need two units. That's $300 ,000 to $460 ,000 00:12:56.700 --> 00:12:59.299 right there, just for the hardware. Okay, that's 00:12:59.299 --> 00:13:00.980 a big number. But that's not everything, is it? 00:13:01.019 --> 00:13:03.860 Not even close. You've got what the article calls 00:13:03.860 --> 00:13:06.509 hidden infrastructure costs. You usually need 00:13:06.509 --> 00:13:09.610 facility modifications, concrete work, major 00:13:09.610 --> 00:13:13.509 electrical upgrades. These things run 247 new 00:13:13.509 --> 00:13:17.039 plumbing. That can easily add another $100 ,000 00:13:17.039 --> 00:13:20.799 to $200 ,000 for a 100 -cow setup. Wow. So the 00:13:20.799 --> 00:13:22.960 robot cost is only part of the story. Right. 00:13:23.019 --> 00:13:25.519 And then there are ongoing costs, annual maintenance, 00:13:25.740 --> 00:13:29.419 service contracts. Those can run $6 ,000 to $25 00:13:29.419 --> 00:13:32.039 ,000 per robot per year, and they tend to go 00:13:32.039 --> 00:13:34.440 up as the machines get older. Okay. Plus, your 00:13:34.440 --> 00:13:36.720 electricity bill will likely go up because of 00:13:36.720 --> 00:13:39.299 that 2047 operation, even if the units themselves 00:13:39.299 --> 00:13:41.460 are efficient. So it's a serious commitment. 00:13:42.320 --> 00:13:44.200 But the article's example, that hypothetical 00:13:44.200 --> 00:13:46.919 1 to 20 cow dairy, it showed some pretty impressive 00:13:46.919 --> 00:13:49.399 potential returns, too. It did. That example 00:13:49.399 --> 00:13:51.419 provides a good snapshot. On the revenue side, 00:13:51.620 --> 00:13:54.120 they projected milk sales increasing 7, 10 percent. 00:13:54.200 --> 00:13:57.899 That's maybe $60 ,000 more per year just from 00:13:57.899 --> 00:13:59.840 higher milking frequencies. Plus quality premiums. 00:13:59.860 --> 00:14:01.840 Plus quality premiums, yeah. Better udder health 00:14:01.840 --> 00:14:04.100 often means lower somatic cell counts. So you 00:14:04.100 --> 00:14:05.980 get those bonuses. Maybe another few thousand 00:14:05.980 --> 00:14:08.960 there. And on the expense side. That's where 00:14:08.960 --> 00:14:10.960 the big savings are. That's where the big shifts 00:14:10.960 --> 00:14:13.639 happen. Hired labor for milking potentially cut 00:14:13.639 --> 00:14:17.320 by 75%. Vet and health costs can drop significantly 00:14:17.320 --> 00:14:19.220 because you're catching problems earlier. Right, 00:14:19.299 --> 00:14:22.240 the early detection. Feed costs might tick up 00:14:22.240 --> 00:14:24.059 a little bit to support the higher production, 00:14:24.320 --> 00:14:26.840 but precision feeding helps manage that efficiently. 00:14:27.039 --> 00:14:29.740 You do have new costs like those service contracts. 00:14:30.590 --> 00:14:32.809 But overall, even when you factor in paying back 00:14:32.809 --> 00:14:34.929 the loan for the equipment, the analysis showed 00:14:34.929 --> 00:14:37.629 total expenses dropping enough to boost net farm 00:14:37.629 --> 00:14:41.330 income by over $150 ,000 a year for that 120 00:14:41.330 --> 00:14:45.029 -cow farm. Over a $150 ,000 increase. That's 00:14:45.029 --> 00:14:47.389 substantial. Makes the investment look more manageable. 00:14:47.669 --> 00:14:51.000 It can. And the payback period. Studies mentioned 00:14:51.000 --> 00:14:53.080 in the article put it somewhere between, say, 00:14:53.159 --> 00:14:56.399 3 .8 and 5 .2 years in North America, mostly 00:14:56.399 --> 00:14:58.360 driven by cutting those labor costs by about 00:14:58.360 --> 00:15:00.259 a third. That sounds pretty good. Four to five 00:15:00.259 --> 00:15:03.559 years. It can be, but, and this is a big, but 00:15:03.559 --> 00:15:05.379 the article stresses that the actual payback 00:15:05.379 --> 00:15:08.899 really varies. Five to 10 years is probably a 00:15:08.899 --> 00:15:11.740 more realistic range for many. It really depends 00:15:11.740 --> 00:15:15.200 on your local labor costs, milk prices, and crucially, 00:15:15.200 --> 00:15:17.809 how well you manage the system. Okay, so it's 00:15:17.809 --> 00:15:20.210 not automatic. It's not just buy the robot and 00:15:20.210 --> 00:15:22.970 make more money. What are the risks? You mentioned 00:15:22.970 --> 00:15:24.909 that management gap. Yeah, this is super important. 00:15:24.990 --> 00:15:28.370 The ROI isn't guaranteed. The article even mentions 00:15:28.370 --> 00:15:30.710 class action settlements against some major robot 00:15:30.710 --> 00:15:32.789 companies because the systems didn't deliver 00:15:32.789 --> 00:15:36.389 as promised. That's a real risk. And you're fundamentally 00:15:36.389 --> 00:15:39.889 changing your farm's risk profile. You swap variable 00:15:39.889 --> 00:15:42.090 labor costs, which you can adjust somewhat for 00:15:42.090 --> 00:15:44.370 huge fixed costs, loan payments, maintenance 00:15:44.370 --> 00:15:47.149 contracts. Those bills come due whether milk 00:15:47.149 --> 00:15:49.169 price is high or low. Makes you more vulnerable 00:15:49.169 --> 00:15:51.889 to price swings. Exactly. High prices, you make 00:15:51.889 --> 00:15:55.750 great money. Low prices, it can trigger a serious 00:15:55.750 --> 00:15:58.289 cash flow crisis because those fixed costs don't 00:15:58.289 --> 00:16:00.649 budge. And the management gap, what's that about? 00:16:00.950 --> 00:16:02.509 That's probably the biggest risk. It's like, 00:16:02.529 --> 00:16:04.909 you know, buying a Formula One car but not knowing 00:16:04.909 --> 00:16:08.970 how to drive it properly. Okay, the financial 00:16:08.970 --> 00:16:13.110 projections, the fast paybacks, they usually 00:16:13.110 --> 00:16:17.190 assume top -level performance, like a top 25 00:16:17.190 --> 00:16:20.360 % of automated dairies. But if you don't implement 00:16:20.360 --> 00:16:22.500 it well, if your staff isn't trained, if your 00:16:22.500 --> 00:16:25.340 barn flow isn't right, you could end up in the 00:16:25.340 --> 00:16:27.200 bottom group. And then the numbers don't work 00:16:27.200 --> 00:16:29.740 out. They totally don't. Your payback could stretch 00:16:29.740 --> 00:16:32.419 out to 12, 15 years, or you might even lose money 00:16:32.419 --> 00:16:34.840 on the investment. That gap between potential 00:16:34.840 --> 00:16:38.100 and reality, that's the management gap. That's 00:16:38.100 --> 00:16:41.019 a really powerful caution. So for farms maybe 00:16:41.019 --> 00:16:43.679 not ready or able to take on that level of capital 00:16:43.679 --> 00:16:45.740 risk, the article talked about other ways, right? 00:16:46.029 --> 00:16:48.470 Lower cost paths. Absolutely. And this is where 00:16:48.470 --> 00:16:50.830 some really innovative thinking comes in, often 00:16:50.830 --> 00:16:53.090 from places like New Zealand. Okay. Like what? 00:16:53.149 --> 00:16:54.909 Like flexible milking schedules. The article 00:16:54.909 --> 00:16:57.769 highlights John Toddy in New Zealand. He cut 00:16:57.769 --> 00:16:59.990 his milking from the standard 14 times a week 00:16:59.990 --> 00:17:02.330 down to 10 times over seven days. They call it 00:17:02.330 --> 00:17:04.910 10 and 7. 10 milkings instead of 14. What happened? 00:17:05.109 --> 00:17:07.950 His profit per hectare jumped over 60%. 60%. 00:17:07.950 --> 00:17:10.309 Lower operating costs, less labor, less electricity. 00:17:10.769 --> 00:17:13.849 Plus, he saw a 10 % improvement in his herd's 00:17:13.849 --> 00:17:17.170 six -week in -calf rate. and huge benefits for 00:17:17.170 --> 00:17:19.710 staff. Ah, the quality of life part. Big time. 00:17:19.890 --> 00:17:22.710 He advertised four sleep -ins per week for his 00:17:22.710 --> 00:17:25.089 workers. That helped him attract and keep good 00:17:25.089 --> 00:17:27.369 people. And he did all this while maintaining 00:17:27.369 --> 00:17:30.690 his Milk Solids production. Wow. So better profit, 00:17:30.869 --> 00:17:33.890 better life, same production, just by changing 00:17:33.890 --> 00:17:35.849 the schedule. Essentially, yeah. And it's not 00:17:35.849 --> 00:17:39.430 just him. Over 40 % of farms in some key NZ dairy 00:17:39.430 --> 00:17:42.529 regions use flexible milking now. It shows you 00:17:42.529 --> 00:17:44.750 can get many of the benefits without the massive 00:17:44.750 --> 00:17:47.289 robot investment. That's a really smart alternative. 00:17:47.630 --> 00:17:50.369 Are there other low -capital ideas? Yeah, the 00:17:50.369 --> 00:17:52.450 article mentions collaborative models too. Like 00:17:52.450 --> 00:17:55.190 in Ireland, some producers pool labor. They create 00:17:55.190 --> 00:17:57.509 joint rosters, share technicians for specialized 00:17:57.509 --> 00:18:00.069 tasks. Interesting, sharing resources. Or they 00:18:00.069 --> 00:18:03.130 leverage contractors more strategically for forage 00:18:03.130 --> 00:18:06.539 harvesting, manure hauling. Basically outsourcing 00:18:06.539 --> 00:18:08.819 certain jobs to manage workload without buying 00:18:08.819 --> 00:18:11.140 all the equipment or hiring full time staff for 00:18:11.140 --> 00:18:13.359 everything. It's about decoupling farm work from 00:18:13.359 --> 00:18:16.039 that rigid twice a day grind. Being smarter with 00:18:16.039 --> 00:18:18.740 the resources you have or can access. Exactly. 00:18:18.960 --> 00:18:21.119 And beyond the financials and labor, the article 00:18:21.119 --> 00:18:23.500 touched on environmental and social benefits, 00:18:23.700 --> 00:18:26.200 too. Those seem pretty significant. They really 00:18:26.200 --> 00:18:28.099 are. And sometimes they're the deciding factor. 00:18:28.259 --> 00:18:30.640 On the environmental side, Penn State research 00:18:30.640 --> 00:18:33.779 suggests. Automated systems can cut energy use 00:18:33.779 --> 00:18:37.480 by 15 -20%. How? Things like variable frequency 00:18:37.480 --> 00:18:41.200 drives or VFDs on vacuum pumps can cut their 00:18:41.200 --> 00:18:44.180 energy use by 60%. Plate coolers for milk can 00:18:44.180 --> 00:18:47.279 reduce refrigeration energy by 40 -60%. Little 00:18:47.279 --> 00:18:49.859 things add up. They do. And precision feeding 00:18:49.859 --> 00:18:52.700 doesn't just save feed costs. It reduces feed 00:18:52.700 --> 00:18:55.220 waste, which lowers methane emissions and nutrient 00:18:55.220 --> 00:18:58.660 runoff. There's data showing over 15 years, modern 00:18:58.660 --> 00:19:01.460 practices boosted milk yield 19 % while using 00:19:01.460 --> 00:19:04.259 less feed, less land, less water, and generating 00:19:04.259 --> 00:19:06.740 fewer greenhouse gases. That's a win -win -win. 00:19:06.880 --> 00:19:08.779 Environment, efficiency, production. Totally. 00:19:08.859 --> 00:19:11.019 And then the social side. That succession piece 00:19:11.019 --> 00:19:12.859 we talked about. Yeah, getting the next generation 00:19:12.859 --> 00:19:15.839 interested. Well, farms adopting these tech -savvy, 00:19:15.839 --> 00:19:17.960 more balanced approaches, they're seeing a massive, 00:19:17.980 --> 00:19:21.000 like, 340 % increase in interest from the next 00:19:21.000 --> 00:19:24.259 generation. 340 %? Yeah, because it makes farming 00:19:24.259 --> 00:19:26.440 look like a more attractive, manageable career. 00:19:26.579 --> 00:19:28.920 It improves the quality of life. Remember that 00:19:28.920 --> 00:19:32.299 Vermont farmer. Automation saved my marriage. 00:19:32.920 --> 00:19:35.039 That's a powerful social benefit right there, 00:19:35.160 --> 00:19:37.440 addressing the viability of the family farm itself. 00:19:37.740 --> 00:19:40.339 Absolutely. So, okay, for a farm that is considering 00:19:40.339 --> 00:19:43.700 automation, how do they avoid falling into that 00:19:43.700 --> 00:19:46.740 management gap? What's the roadmap to doing it 00:19:46.740 --> 00:19:49.599 right? Good question. Strategic planning is absolutely 00:19:49.599 --> 00:19:52.720 key. The article points out that failures, which 00:19:52.720 --> 00:19:55.519 can cost tens of thousands per incident, often 00:19:55.519 --> 00:19:58.259 come down to simple things. Like what? Inadequate 00:19:58.259 --> 00:20:00.319 power supply is a big one. Insufficient staff 00:20:00.319 --> 00:20:03.380 training. Poor facility layout that hinders cow 00:20:03.380 --> 00:20:05.700 flow to the robots. Basic infrastructure and 00:20:05.700 --> 00:20:08.079 people stuff. Exactly. So the article lays out 00:20:08.079 --> 00:20:10.519 a kind of 12 -month roadmap. Okay. Months one 00:20:10.519 --> 00:20:13.640 to three, do your homework, detail audits of 00:20:13.640 --> 00:20:16.119 your current labor, your infrastructure, really 00:20:16.119 --> 00:20:19.160 vet potential vendors. Months four to six, start 00:20:19.160 --> 00:20:21.700 implementing supporting tech, health monitoring, 00:20:21.859 --> 00:20:24.700 software upgrades. Crucially, cross -train your 00:20:24.700 --> 00:20:27.059 staff before the robots arrive. Get people ready. 00:20:27.450 --> 00:20:30.329 Months 7 -9. That's typically hardware installation. 00:20:30.690 --> 00:20:33.470 And this requires intensive vendor -led training 00:20:33.470 --> 00:20:35.470 for everyone who'll interact with the system. 00:20:36.049 --> 00:20:39.789 Months 10 -12. Optimization. Fine -tuning the 00:20:39.789 --> 00:20:42.390 system, setting up backup protocols, refining 00:20:42.390 --> 00:20:44.890 daily routines. So it's a year -long process, 00:20:44.950 --> 00:20:48.069 really. At least. The key success factors really 00:20:48.069 --> 00:20:49.970 boil down to ensuring you have enough reliable 00:20:49.970 --> 00:20:53.089 power, really comprehensive staff training, and 00:20:53.089 --> 00:20:55.109 strong dealer support for when things inevitably 00:20:55.109 --> 00:20:57.720 need fixing or adjusting. It's clear that, yeah, 00:20:57.779 --> 00:21:00.500 the investment is huge, but the potential upside, 00:21:00.779 --> 00:21:04.180 long -term profit, better quality of life, it's 00:21:04.180 --> 00:21:06.279 definitely there. But it's not magic. Not at 00:21:06.279 --> 00:21:08.220 all. It demands smart, proactive management. 00:21:08.720 --> 00:21:10.740 You have to manage the technology. It doesn't 00:21:10.740 --> 00:21:13.309 just manage the farm for you. Right. So for someone 00:21:13.309 --> 00:21:15.269 listening right now, maybe feeling overwhelmed 00:21:15.269 --> 00:21:17.890 by all this, what's the single most important 00:21:17.890 --> 00:21:19.549 takeaway? What's one thing they should really 00:21:19.549 --> 00:21:21.789 focus on? That's a great question. I think for 00:21:21.789 --> 00:21:23.769 every producer listening, the critical question 00:21:23.769 --> 00:21:26.490 to ask yourself is, am I currently managing my 00:21:26.490 --> 00:21:30.230 farm by crisis or am I managing it by data? Crisis 00:21:30.230 --> 00:21:32.710 versus data. Okay. The biggest takeaway here 00:21:32.710 --> 00:21:35.630 isn't just robots are cool. It's that this whole 00:21:35.630 --> 00:21:38.589 shift, whether it's full automation or flexible 00:21:38.589 --> 00:21:41.410 milking, it's about moving towards data -driven 00:21:41.410 --> 00:21:44.269 decision -making. So my top actionable insight, 00:21:44.410 --> 00:21:47.890 the first step, start meticulously tracking your 00:21:47.890 --> 00:21:51.569 current numbers. Don't guess. Know exactly what 00:21:51.569 --> 00:21:53.230 you're spending on labor, including the hidden 00:21:53.230 --> 00:21:56.589 costs like turnover and training time. Know your 00:21:56.589 --> 00:21:59.559 vet bills precisely. Track your feed waste. Get 00:21:59.559 --> 00:22:01.900 that baseline data. Get that baseline. Once you 00:22:01.900 --> 00:22:04.740 have those concrete numbers, then you can realistically 00:22:04.740 --> 00:22:07.720 calculate potential savings. What would catching 00:22:07.720 --> 00:22:10.359 diseases five days earlier actually save you 00:22:10.359 --> 00:22:13.319 in treatment and lost milk that $2 ,000 per cow 00:22:13.319 --> 00:22:16.240 figure? What would cutting later hours by 30, 00:22:16.339 --> 00:22:19.539 40, 50 % actually mean to your bottom line? Make 00:22:19.539 --> 00:22:22.259 it specific to your farm. Exactly. This concrete 00:22:22.259 --> 00:22:24.799 data, your data, is the essential first step 00:22:24.799 --> 00:22:26.880 to understanding where automation or maybe just 00:22:26.880 --> 00:22:28.579 changing your milking schedule could have the 00:22:28.579 --> 00:22:30.619 biggest positive impact for you. Don't guess. 00:22:30.960 --> 00:22:33.200 Quantify your pain points first. Excellent point. 00:22:33.339 --> 00:22:36.720 Really practical advice. Thanks. And, you know, 00:22:36.740 --> 00:22:38.539 that's about all the time we have for today's 00:22:38.539 --> 00:22:40.799 deep dive. For more articles like the one we 00:22:40.799 --> 00:22:42.720 discussed and other insights, definitely check 00:22:42.720 --> 00:22:47.019 out www .thebullvine .com. Yeah, great resource. 00:22:47.259 --> 00:22:49.460 And don't forget to subscribe to the show wherever 00:22:49.460 --> 00:22:51.480 you listen to your favorite shows so you don't 00:22:51.480 --> 00:22:53.339 miss our next conversation. Thanks so much for 00:22:53.339 --> 00:22:56.059 tuning in. And maybe just one final thought to 00:22:56.059 --> 00:22:58.420 leave you with as you go about your day. The 00:22:58.420 --> 00:23:00.519 farms that are going to dominate dairy production 00:23:00.519 --> 00:23:03.869 by 2030. They probably won't be the ones who 00:23:03.869 --> 00:23:06.230 just figured out how to find more labor. They'll 00:23:06.230 --> 00:23:08.109 likely be the ones who made the labor shortage 00:23:08.109 --> 00:23:11.349 irrelevant. Powerful thought. So ask yourself, 00:23:11.450 --> 00:23:13.569 what's one thing you can do today to start moving 00:23:13.569 --> 00:23:16.349 your operation from managing by crisis to managing 00:23:16.349 --> 00:23:18.970 by data? Thanks for tuning into the Bullvine 00:23:18.970 --> 00:23:21.930 Podcast. We hope this episode gives you the tools 00:23:21.930 --> 00:23:24.710 and inspiration to rethink your farm's future 00:23:24.710 --> 00:23:28.230 and embrace the smart changes that can save time, 00:23:28.250 --> 00:23:31.559 money, and sanity. Don't forget to subscribe, 00:23:31.859 --> 00:23:34.480 share with fellow producers, and drop your thoughts 00:23:34.480 --> 00:23:37.440 or questions in the comments. Until next time, 00:23:37.440 --> 00:23:39.940 keep pushing forward, and let's keep building 00:23:39.940 --> 00:23:41.839 the future of dairy together.