First Milk director Robert Craig on finding his dairy destiny

In the mid-1990s, Cairnhead, at Armathwaite, ran a herd of 80 dairy cows and 300 ewes on 150 grassland acres running up to 800ft above sea level on the fellside to the east of the River Eden, not far from Carlisle.

Balancing the economics of the herd, which was producing 500,000 litres of milk, was made more difficult with the need to buy in milk quota to grow from the original allocation of just 200,000 litres.

Inspired in the mid-1990s by an Irish dairy farmer who was running twice the number of cows on the same area of land by running a New Zealand-style system, Robert said: “I was blown away by how much money he was making from a similar area of land to us.”

In 2001, he set his business strategies for growth after a management course and a visit to New Zealand two years later that further convinced him that his decision to operate a grass-based system was most suitable for the land and facilities available. From a position with no employed labour, Robert wanted to be free from milking cows by the time he was 40 – and actually achieved that at 41.

Pictured this week – tghe cows are out and all three farms runs by the Craigs operate a similar system of herds based on New Zealand genetics, with the emphasis on the production of milk solids from a grass-based diet Ref:RH300321203

Through a real concentration on attention to detail, combined with financial discipline, business growth allowed him and his wife, Jackie, to stand back from the business and pursue other interests, yet still secure the future for their four children. For instance, Robert has been able to devote time to other industry-led organisations and business, having been a director of First Milk for the last four years and is currently vice-chairman.

Now, 650 acres are farmed from Cairnhead, half of which are owned and the remainder split between grazing licences and tenancies which carries just short of 500 New Zealand type Holstein-Friesian dairy cows and 280 youngstock. The farm has three full-time members of staff and two part time milkers with Robert involved in the management living on the farm.

In 2011, with good friend, Stephen Brandon – who runs a successful New Zealand-type system in Staffordshire – Robert and Jackie partnered the Brandons on the tenanted Dolphenby Farm, on the banks of the River Eden, east of Penrith. Its 670 acres were fully stocked by 2014 and now carries 550 cows and 280 youngstock.

In 2018, Robert and Jackie developed their dairying venture further when they took on the tenancy of the famous 630-acre Peepy Farm, Stocksfield, on the Allendale Estate, near Hexham, where 480 cows are milked and there are 240 head of youngstock. It was once home to the world-renowned Hunday herd owned by the Moffitt family.

All three farms now operate a similar system, running herds based on New Zealand genetics with the emphasis on the production of milk solids from a grass-based diet. The tenanted farms each have a manager – Johnny Slack, at Dolphenby, and Mark Housby, who moved from Dolphenby to manage Peepy – plus three other full time and three part time staff each.

Grass growth on all farms is measured weekly, with all the data being logged with Irish grassland management software firm, Agrinet’s cloud-based system Ref:RH300321214

The farms are all down to grass and have a similar acreage and number of cows, although rainfall is different, with Cairnhead averaging 50 inches a year and the other two farms getting half that amount.

“Among our key performance indicators is the amount of milk solids produced per cow. We aim to produce 1kg of milk solids for 1kg of bodyweight from our cows which typically weigh 500-550kg. The key driver is efficiency,” said Robert.

The Cumbrian herds at Cairnhead and Dolphenby are spring block calving, while at Peepy calving is split between spring and autumn which allows any cows that slip from the spring calving block on the other two farms to be moved to join the autumn calvers at Peepy. At Cairnhead the cows start calving in the last week of February, all calving in a nine week block. They are grazed from the beginning of March through to mid to late November.

The spring calving starts at Dolphenby and Peepy three weeks earlier and grazing is from mid February through to late November.

Production figures for the herd at Cairnhead are running at just below 6000 litres a cow at 4.88% BF and 3.63% P. Feed inputs are grass and grass silage plus 1.1 tonne of concentrate per cow per lactation. At Dolphenby, yields are at 6000 litres at 4.8% BF and 3.8% P from 100kg less concentrate fed.

Because of its autumn calving block, production is running at 6500 litres at Peepy Farm with it on target to reach 7000 litres from 1.5 tonnes of concentrates. There, the herd is evenly divided between spring and autumn calving block with the autumn block starting in early September. The autumn block is all put to the beef bull, mainly a British Blue, with the calves being marketed at around eight weeks old through Borderway Mart, Carlisle, providing a cash crop.

“All three farms are similar in acreage and herd size and the model on all three farms is proving to be quite efficient,” said Robert. “It has developed into a blueprint which works well giving the efficiencies of scale producing around three million litres per herd.

“The split calving at Peepy works well there as we are drying off half the herd when the weather is at its hottest and most dry and we can reduce feed intake. We also calve the autumn block outside,” he added.

Big investment has been made in the cow track infrastructure to make it easier for the cows to get back and forth to the paddocks Ref:RH300321213

“The herd at Peepy, because it is 50% autumn calving, picks up benefits in terms of milk price from First Milk because of a relatively flat production curve so it might be something we consider for the future on the other two farms,” he added. An added benefit of calving in two blocks is in reducing the pressure on staff when compared to a 100% spring block.

Following several years of confidence building with its partial use, from 2021 all the heifer calves born and reared are from the use of sexed semen. All replacement heifers are born in the first three weeks of the spring block, with the remainder of the calves being British Blue, Hereford, Angus or Wagyu cross.

“Although our conception rate with sexed semen is less successful at around 55% (75% conventional) we feel it’s a cost we have to bear to protect the industry reputation surrounding dairy bull calves, the higher value beef cross calves go some way to help offset the lost fertility,” said Robert.

“We are very fortunate to be farming Dolphenby, on the Edenhall Estate, which is one of the best farms in the Eden Valley and also securing Peepy from Allendale Estate, which is also regarded as one of the best farms in the Tyne Valley. Peepy Farm is still well-known because of its association with renowned Hunday herd. Both have very easy land to farm.

Both tenanted farms had excellent farm buildings on entry, however huge investments have been made in both the stocking the farms and in the farm’s infrastructure to support the grass-based system. At Dolphenby, subject to a 15-year tenancy, more than £1m was invested in cattle as well as five km of cow tracks, 20km of electric fencing and 13 km of water pipes, pumps and troughs.

At Peepy, also on a 15-year tenancy, a similar investment was made in order to stock, install the infrastructure and re-seeding to permanent grass-land most of the ground which had latterly been cropped for cereals.

“We’re using long term leys which we easily expect to be down 15 to 20 years and we’re increasing our focus on better understanding how we im-prove the nutrient cycling of our soils and biological activity,” said Robert.

On the tenanted farms, the paddock layout is governed to a large degree by the natural permanent boundaries and this is more difficult depending on the various tenures on which the land is held. Grass growth on all farms is measured weekly with all the data being logged with Irish grassland Management software firm, Agrinet’s cloud-based system which makes it available to all involved with the farming operations as well as producing a benchmarking system with other users.

Investement in infrastructure means that all paddocks have concrete troughs to keep the cows well hydrated Ref:RH300321200

The aim is to convert grass dry matter into milk solids as efficiently as possible, maximising our milk contract while recognising that we only receive payment on what leaves the farm in the tanker.

Using genetics that will ensure cows get back in calf and produce milk with high solids largely from grass and forage inputs is key, over 60% of the milk produced is from grazed grass. “We farm well and we are in the top quartile of systems operated like ours. We’re not the best – but you have to sacrifice a bit if you want to step back from businesses of this scale.

“We have very little control of our purchased feed and fertiliser costs, but we have control of our grass. Costs are always rising and our margins are becoming tighter than they were 10 years ago because the milk price has not followed the trend of rising costs,” added Robert.

All heifer calves born and reared are from the use of sexed semen Ref:RH300321209

The grass-based New Zealand system, which operates using reasonably few KPIs to drive profit, has allowed the Craigs to step back from the day-to-day management. However, finding suitable employees is increasingly difficult, made worse by the UK leaving the EU, but also because the agriculture industry is poor at promoting its image and that farming is not seen as a fulfilling career choice even though salaries can be up to £40,000 along with benefits such as free housing.

Over the years, Robert has used incentives to encourage new entrants, including structured training and mentoring along the lines of the New Zealand system of farming.

He began farming at 16 after leaving school. With little opportunity to take on further full-time education, he attended Newton Rigg College part time for five years but it was his Nuffield Scholarship in 2012 that broadened all his horizons.

“I was lucky. When I left school my dad, James, was pretty laid back and I was allowed to get on with it. I made loads of mistakes but if I hadn’t had the opportunity and he had been looking over my shoulder, I wouldn’t have learned and maybe I would be doing something else now! It’s important to give people opportunities.

“It’s a case of looking after succession in the industry and trying to attract the right people who will benefit from the wonderful experience of travel and knowledge which shows them the opportunities there are,” he added.

“In our early days at Cairnhead from the mid-1990s, whenever we expanded the herd we had to buy milk quota. It was only after quotas ended that we were able to make reasonable progress.

“We lambed our last sheep in 2000 and I was still hands on at Cairnhead probably until 2010. My experience of growing up while working ridiculously long hours made me very determined that I wasn’t going to do it forever being tied to the farm 24/7,” added Robert.

Now that the business at Peepy is settled in and fully stocked, focus is now back on the home farm at Cairnhead. A new Waikato 30/60 milking parlour is being constructed which it’s hoped will be milking by late April. Further investment in an umbilical slurry system has been made enabling the farms nutrients to be utilised more efficiently.

Having more time away from the business has allowed Robert to become a director and now vice-chairman of dairy co-operative First Milk which pre-Covid, could involve meetings at the Glasgow headquarters up to three times a month.

First Milk’s growing membership of currently between 700 and 800, announced in early March a £12.5m investment in its cheese and whey-making facilities, which includes £9m being invested at its Lake District Creamery, in Aspatria, Cumbria, with a further £3.5m being invested at its Haverfordwest Creamery.

Robert also represents First Milk at Dairy UK, the trade association for the UK dairy supply chain and is chair of the association’s producer forum and is a board member. He also holds the RABDF in high esteem and as one of two vice-chairmen, is in line to take over as chair in the next few years.

All sexed semen replacement heifers are born in the first three weeks of the spring block calving period, with the remainder of the calves being British Blue, Hereford, Angus or Wagyu crosses Ref:RH300321210

As a Nuffield Scholar in 2012, he became involved with the Sustainable Food Trust, an organisation he sees as important in shaping the policy direction for the future of agriculture worldwide.

Inspired by its CEO, the West Wales organic dairy farmer and cheese producer, Patrick Holden, Robert has been closely involved for the past four years in the development of the SFT’s Harmonised Sustainability Framework now being tested globally. "Both consumer awareness and proposed environ-mental legislation are moving at pace as producers we are obliged to adhere to new environmental requirements at significant cost to business, yet there appears to be little appetite for retailers to pay significantly more for our milk,” he said.

Now Robert and Jackie are formulating their next 20-year plan. With two of their four children nearing the end of their formal education, thoughts are turning towards business succession and the future.

“It’s really important they all get the opportunity to explore the world and see what interests them individually,” pointed out Robert. “If one or more of our children wish to join the business that would be great, as would be the further involvement of some of our key managers.

“Good people are an essential part of the future of any business and farming’s no different, but no one should ever feel they are obliged to succeed their parents in business – what’s more important is we attract the people with a passion for the industry.”