Decisions good for business decrease emissions
In Gippsland, Victoria, Steve and Bec Ronalds have built their dairy business around a simple principle: efficiency creates resilience.
By focusing on getting the most out of their pastures and cows, they have shown that good business decisions not only drive profitability they can also lead to lower greenhouse gas emissions intensity.
The Ronalds’ Jindivick farm runs a grain-fed ryegrass system, with approximately 75% of the herd’s diet coming from homegrown feed, supplemented with grain.
The Ronalds’ long history in Jindivick stretches back to 1895 and has shaped their commitment to sustainability. They have undertaken an energy audit, installed solar water pumps and benchmarked soil carbon levels to track changes over time.
Farm management decisions
Between 2014 to 2020, they made a series of strategic decisions that helped even out their milk supply by spreading calving across spring, late summer/early autumn, and winter, they kept production consistent and reduced pressure on feed during peak times.
With a stocking rate of about 2.5 cows per hectare, their herd of Jerseys — smaller cows, averaging 450kg — were producing an impressive 465 kilograms of milk solids per cow.
One of the standout achievements was their lift in pasture utilisation. They increased average consumption from around six to nearly eight tonnes of dry matter per hectare, even while significantly cutting back on nitrogen fertiliser — from 131kg/ha in 2014/15 to just 48kg/ha in 2018/19. That meant better nutrient efficiency, lower input costs, and more homegrown feed.
These management decisions delivered strong financial results with Earnings Before Interest and Tax (EBIT) – essentially the farm’s profit before loans and tax – increasing from $0.88 to $2.42 per kilogram milk solids between 2017/2018 and 2019/20. Return on Total Assets Managed (ROTA), which measures how effectively the farm’s land and capital are generating returns, reached six per cent in the same period.
Lowered emissions
And while the financials were impressive, the environmental results told a similar story. Emissions intensity also dropped from 1.01 to 0.82 kilograms of CO₂ equivalent for every kilogram of milk produced. That means the farm was producing less greenhouse gas for every litre of milk – a clear sign that efficiency gains can deliver both economic and environmental benefits.
“Improving efficiency has been the best way for us to stay profitable, while also reducing our footprint,” Steve explains.
Cow efficiency was central to their success. Smaller Jerseys producing high milk solids meant lower emissions per kilogram of milk, while breeding for longevity helped spread emissions over more productive years.
The family continue to experiment with new practices, including foliar fertiliser application to lift nutrient efficiency further. While greenhouse gas traits are not yet a focus in bull selection, the family sees potential to explore this in the years ahead.
The Ronalds’ experience highlights how incremental changes can build a stronger business. By prioritising efficient use of inputs, maximising pasture growth, and breeding cows that deliver year after year, they’ve reduced emissions intensity while improving profitability.
“Every small gain makes the business stronger in the long run.”
With a track record of adapting and a commitment to continuous improvement, the Ronalds are positioning their farm to thrive – balancing productivity, profitability and sustainability for generations to come.
To find out more about how Dairy Australia supports farmers to better manage climate and environment, visit the Climate & Environment section on the website or contact your local team.