LABOURCUTSAFALSEECONOMY

5 October 2001




LABOURCUTSAFALSEECONOMY

DAIRY businesses which cut back on their labour force could find the move a false economy if production, fertility or animal health decline.

When labour is cut, the first areas to suffer will be those such as heat detection, foot trimming, udder hygiene and mastitis control, Michael Day, managing director of recruitment company Dairyforce, warned Dairy Event visitors.

Using Kingshay Farming Trust figures, based on data for a 160-cow herd averaging 7000 litres, he estimated that potential losses in productivity could be worth as much as £42,000/year. "This is far greater than savings made by cutting someone from the wages bill. Simply moving from the bonus category for Bactoscans and cell counts could cost a typical producer about £12,000/year," said Mr Day.

"Profits are under pressure and when looking for savings, labour is an obvious candidate. But research shows many producers work in excess of 70 hours a week and it is unlikely that most could work any additional hours without something suffering."

There could also be hidden losses when units are short of labour, he added. "These include reduced machinery and property maintenance, leading to increased repair bills. There may also be less time to ensure good heifer performance and to plan the business."

He suggested that it may be more prudent to try to maximise returns from current labour. "The question should be how can I make better use of the labour I have? This could include staff carrying out more routine maintenance, contracting out fewer tasks or simply spending more time with stock to ensure the herd receives all the attention it deserves.

He also believes good herdspeople should be treasured, not cast aside to save on the wages bill. "If you have a good herdsperson, hang on to them as they may prove difficult to replace in future. As recruitment levels into the industry decline, good stockpeople will be worth their weight in gold."

DAIRYLABOUR

&#8226 Cutting back false economy.

&#8226 Question working more hours.

&#8226 Hang on to good staff.

Heat detection can easily suffer when labour is cut back on dairy units, when often the producer cannot work longer hours to compensate.


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