Profit Tips

The Genetic Pivot: How 2026 Wellness Traits are Redefining Dairy Profitability

Fri, 10 Apr 2026 17:16:14 GMT

For decades, the perfect cow was defined by a single metric: the bulk tank. If she produced a mountain of milk, she stayed in the herd. But as the dairy industry enters 2026, the definition of success has undergone a radical transformation. Today’s producers are operating in a world where feed costs, heat stress, carbon footprints and supply chain demands are just as critical to the balance sheet as total pounds of milk.

To meet this complexity, genetic selection has evolved from a simple production index into a high-precision roadmap for survival. The recent 2026 updates to Zoetis’ Clarifide Plus and the Dairy Wellness Profit Index (DWP$) represent more than just incremental data points; they represent a strategic shift toward bulletproofing the dairy cow for a more volatile future.

The New Math of the $100 Gain

The core of the 2026 update is an economically weighted index designed to balance income drivers against expense drivers. In the current market, a genetic index must do more than predict output; it must predict the cost of that output.

According to Zoetis data, achieving a $100 increase in the DWP$ 2026 index translates into measurable lifetime profit across five critical pillars:

$61 in quality production — Modernizing the focus on components and volume.
$19 in antibiotic stewardship — Selecting for cows that naturally resist disease, reducing the need for intervention.
$8 in animal welfare — Prioritizing longevity and physical soundness.
$6 in fertility — Ensuring the cow stays on cycle and in the herd.
$6 in precision nutrition — Maximizing the conversion of feed to milk.

“The 2026 updates provide dairy producers with additional precision in breeding for cows that are profitable, efficient and sustainable,” says Nick Randle, senior marketing manager for U.S. dairy productivity and milk quality at Zoetis. The goal is to move away from blanket management and toward more precise animal care informed by predictive insights.

Breeding for a Warming World: Heat Resilience

One of the most significant additions to the 2026 toolkit is the introduction of DWP$ Heat. For decades, producers in the South and West have relied on mechanical cooling — fans, misters and cross-vent barns — to mitigate the devastating effects of the Temperature Humidity Index (THI). However, management alone has its limits.

Zoetis has introduced two new traits to tackle this biologically:

Fertility Heat Resilience (Z_FR) — This trait predicts the change in the probability of a first-service conception rate as THI increases.
Milk Heat Resilience (Z_MR) — This predicts the stability of daily milk production as the heat rises.

By incorporating these traits, producers can breed a herd that maintains its “cool” during the 20% of the year when heat stress typically ravages the bottom line. It’s a recognition that resilience and profitability are now inextricably linked.

The Feed Efficiency Frontier: Z_RFI and RUMiN

Feed remains the single largest expense on any dairy, often accounting for 65% of the total budget. Historically, selecting for feed efficiency was difficult because it was hard to measure on individual cows in a commercial setting.

The inclusion of Zoetis Residual Feed Intake (Z_RFI) changes that. This trait measures the dry matter intake that cannot be accounted for by milk production or body weight. In simpler terms: It identifies the cows that eat less than expected without sacrificing a single pound of milk. In validation analyses, the top 25% of animals ranked by Z_RFI consumed 2.2 lb. less dry matter per day than their peers. Across a 20,000-cow herd, that 2.2-lb. difference represents a staggering shift in the feed bill.

Simultaneously, the RUMiN trait predicts the genetic potential for enteric methane production. While methane was once seen only as an environmental metric, it is increasingly becoming a market-access requirement.

The Supply Chain Connection: The Danone Factor

The revolution in genetics is not just happening on the farm; it’s being driven by the processor. In 2024, Zoetis and Danone formed a strategic partnership to advance sustainable production. For a global giant like Danone, which has committed to cutting methane emissions by 30% by 2030, the genetic makeup of their suppliers’ herds is a critical lever.

“Genomic testing of our farmers’ herds plays an important role in our global methane reduction strategy,” says Anco van Schaik, global director of procurement at Danone. By selecting for the Milk Methane Intensity (Z_MI) trait, producers can demonstrate to their buyers that they are producing lower-carbon milk at scale. This isn’t just about being green; it’s about ensuring that a farm remains a preferred supplier in a carbon-conscious marketplace.

The graph shows a projection of the improvement in methane intensity in one of Danone’s dairy herds year over year based on its DWP$ genetic progress.

(Zoetis)

Proof of Concept: McCarty Family Farms

The theoretical value of these genetic updates is best illustrated by real-world results. At McCarty Family Farms in Rexford, Kan., the 2025 Milk Business Leader in Technology award winner the pursuit of genetic optimization has fueled a massive operational expansion.

In 2011, the McCartys milked 7,000 cows with an average daily production of 70 lb. per cow. Today, they milk nearly 20,000 cows, and their productivity has soared to over 100 lb. per cow daily.

“You can’t manage what you can’t measure,” Ken McCarty says. “We’ve increased productivity by almost 50%.”

But the growth wasn’t just in volume. By leveraging genomic insights like DWP$, the McCartys have driven their somatic cell count down to a range of 120,000 to 180,000 — a hallmark of superior animal welfare and milk quality.

For the McCartys, the focus on specific indexes like TPI and DWP$ with Clarifide Plus is the engine behind their mating and breeding strategies. It allows them to select for a cow that isn’t just a milk machine but rather a sustainable asset that fits their specific environmental and economic goals.

The End of the Average Cow

The 2026 update to Clarifide Plus and DWP$ marks the end of the era of the average cow. In a world of tight margins and high scrutiny, there is no longer room for animals that don’t pull their weight in efficiency, health and resilience.

By combining wellness, performance and sustainability into a single, profit-driven index, the industry is moving toward a more individualized form of animal care. As Brett Bristol, head of precision animal health at Zoetis, notes, the goal is to empower producers to “advance both environmental stewardship and overall herd profitability within a single, comprehensive index.”

For the modern dairy producer, the message is clear: The most valuable tool in the barn isn’t just the parlor or the feed wagon; it’s the DNA of the heifer standing in the hutch.

Idaho’s $4 Billion Dairy Boom: Why the Gem State is Defying West Coast Trends

Tue, 03 Feb 2026 14:38:52 GMT

While milk production across the West Coast faces a period of contraction, Idaho is carving out a different narrative. With USDA reporting the state’s production value near $4 billion in 2024, Idaho has transitioned from a regional player into a global dairy powerhouse. According to Rick Naerebout, chief executive officer of the Idaho Dairymen’s Association, this surge isn’t accidental. It is the result of a unique confluence of business-friendly policy, aggressive vertical integration and a fundamental shift in how dairy cattle are valued.

A Surge on a Massive Base

The sheer scale of Idaho’s recent growth is impressive. Naerebout reports the state has seen consistent growth rates of 5% to 8% per month year-over-year for the last 15 months. For 2025, Idaho is projected to be up 7.5% in total milk production.

“That 7.5% is on a very big base,” Naerebout explains. “It equates to roughly 3.5 million pounds of milk a day more this year than we had last year. We’ve definitely turned on the milk production.”

This growth has been facilitated by two primary catalysts. First, Idaho’s dairy producers are entering the current economic downturn with exceptionally healthy balance sheets following strong financial performances in 2024 and early 2025. Second, and perhaps most importantly, regional processors have finally lifted base restrictions that limited producers to fractional growth for years. With those caps removed, the Idaho dairy industry has surged to meet the available capacity.

The Magic Valley: The Heart of the Industry

The epicenter of this expansion remains the Magic Valley. While growth is visible across the state, approximately 75% of Idaho’s dairy industry is concentrated in this region. The concentration allows for an infrastructure of scale that is difficult to replicate elsewhere.

Idaho’s operations are notably larger than the national average, boasting nearly 2,500 cows per dairy. This scale, combined with a business-friendly climate — including the absence of agricultural overtime pay — allows Idaho producers to maintain lower costs than their neighbors in California or Washington.

Components and the “Black Calf” Phenomenon

Interestingly, the growth isn’t just coming from more cows; it’s coming from “better” milk. According to Naerebout, while volume is up 7.5%, the increase in milk components means the actual yield for processors is closer to 9%. This allows plants to produce more cheese, butter and powder for every pound of milk delivered.

Producers in Idaho, like other states, are also shifting culling practices.

“We’re hanging onto cows because they’ve got a black calf in them, and that calf is worth roughly $1,500,” Naerebout says.

The beef-on-dairy trend has become ubiquitous in Idaho, with adoption rates significantly higher than the national average of 70%. For many Idaho producers, the day-old calf has become a high-value commodity that provides immediate cash flow with minimal risk, as many are partnered with large feedlot operators, like Simplot, or feedlots to take the animals immediately.

Resilience Through Risk Management

The dairy industry is notoriously volatile, yet Idaho has shown remarkable resilience. Over the last 30 years, the state has only seen negative growth twice: in 2009 and 2013. Naerebout attributes this to a sophisticated approach to business that sets Idaho producers apart.

“Our dairymen are very savvy businessmen,” he notes. “We have a higher-than-average use of hedging tools. They insulate themselves from market downturns by making sure they are hedged.”

This financial discipline, coupled with being well-capitalized, allows these large-scale operations to weather economic storms that might shutter smaller farms in other regions.

The Shift to Vertical Integration

Perhaps the most significant structural change in Idaho’s dairy landscape is the move toward vertical integration. Unlike the traditional cooperative structure involving hundreds of members, Idaho has seen the rise of “processor-producers.”

Facilities like Idaho Milk Products and High Desert Milk were founded by small groups of dairy families — sometimes fewer than six — who pooled their capital to build their own processing plants. While Naerebout describes the startup phase of these ventures as “absolute hell” where families nearly lost everything, those who survived are now capturing the margins that previously went to third-party processors.

“They are capturing more margin for their business and using it as a form of risk mitigation,” Naerebout says.

This evolution from simple milk producers to sophisticated industrial processors represents the future of the Idaho dairy model.

Looking Ahead

As the industry faces a tightening economic window, Idaho’s producers remain focused on the long term. The goal for many is not just survival, but the creation of viable, multi-generational businesses. By combining aggressive adoption of technology, sophisticated risk management, and a willingness to invest in the processing side of the value chain, Idaho is proving that even in a mature industry, there is still significant room for a “growth state” to thrive.

“Idaho has been, and will likely remain, a growth area for plants and processors alike,” says Phil Plourd, president of Ever.Ag Insights. “It’s a hospital environment where all the stakeholders seem aligned around growing the industry.”

With strong components, high-value beef-on-dairy calves and a business environment that rewards scale, Idaho is well-positioned to remain the cornerstone of Western dairy production for the foreseeable future.

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The 2026 Dairy Outlook: Navigating Volatility, Genetics and the Beef-on-Dairy Revolution

The Legacy and Innovation of Lumar Dairy: Blending Tradition with Future Growth

Mon, 14 Jul 2025 14:15:25 GMT

In the heart of central California lies Lumar Dairy, a testament to the extraordinary journey of a family that turned sheer determination into a thriving agricultural enterprise. Founded in the late 1960s by a group of dedicated brothers from the Borba family, Lumar Dairy has grown from its humble beginnings. Louie Borba, an essential part of this legacy, recounts the story of hard work, innovation and generational shifts that have shaped their success.

A Family’s Dairy Dream
Borba’s father and two uncles began their American story like many immigrants, working tirelessly on farms despite language barriers and financial constraints. Emigrating from the Azores in pursuit of the American dream, the Borbas dreams materialized with the purchase of their first 35 cows and the rental of a small facility. By the late 70s, they had expanded to a larger farm, eventually building a new dairy facility in the mid-80’s.

As the family expanded, so did their business acumen. In the 90s, recognizing the need for individual growth and more specialized operations, the Borba family amicably split their venture into separate dairies, leading to the creation of Lumar Dairy in 1994, which Borba’s father managed and owned, until he eventually took over.

The Next Generation
Borba’s journey within this family business was almost predestined. Growing up as the only son among three sisters on the family dairy, his path was clear.

“It was always in my DNA,” he proudly says. His upbringing and the values imparted by his father and uncles — an unwavering commitment to family, faith and cows — provided a solid foundation for the dairy’s continued success.

“Hard work pays off,” he says, noting that was the key factor in the previous generation’s success.

Much like his parents’ generation, Borba and his wife find joy in raising their children on a family dairy. Their children participate in 4-H and sports but also head to the dairy to spend time learning from their father.

Borba and all of his cousins are continuing their father’s legacies.

“We still all get along,” he says. “I don’t have any brothers, so they’re like my older brothers, and we talk all the time and have a tight relationship.”

Borba is proud to say he is a cow guy, noting that he is still heavily involved in the day-to-day work on the farm, overseeing herdsman responsibilities, such as herd health vet checks.

Lumar uses a 70-30 ratio of beef to sexed semen usage on the milking herd, as Borba shares they are in growth mode.

“We are trying to recover from bad calf feeders,” he says. “I know how many heifers I need a month, and we’re exceeding that, and they’re staying alive.”

With incorporating SenseHub Dairy Youngstock [monitoring system] with the calves and increasing sexed semen usage, Borba plans to grow 300 cows this year and another 300 the following year, on their way to 2,400 head milking.

When it comes to technology, Borba’s were one of the first in their area to build a carousel parlor.

“Dad was all about technology and genetic gains,” he says. “We always used good bulls. We’ve bred AI forever, so he was always open to using new technology.”

(Merck Animal Health)

Embracing Change and Technology
Lumar Dairy is anything but stuck in the past. From adopting genetic advancements such as RFID tags, using sexed semen, to implementing SenseHub Dairy collars for herd monitoring, Lumar Dairy consistently embraces innovation. Although, Borba notes that balancing risk and innovation require courage and a willingness to adapt.

When the decision to adopt new technology in calf care arose, Borba was uncertain. The potential was clear, yet choosing the right technology was pivotal. The idea was simple: get involved in a trial program, and if the technology worked, fantastic; if not, there were no significant losses.

“I didn’t know which calf monitoring system I wanted to go with because it all was new technology,” he says. “I didn’t want to invest in the wrong one, but I knew SenseHub was good.”

Borba’s journey with SenseHub Youngstock began in October 2022, but it wasn’t until a year and a half later that the system was truly optimized. The initial phase underscored a critical insight: Even the best technology fails without proper operation, evidenced by challenges with inadequate calf feeders.

“Good technology cannot be managed by a poor calf manager,” Borba says, noting that he took over managing the calves until he could find the right person. That occurred nearly a year later when he hired Maria. According to Borba, Maria was not just an employee; she brought a unique combination of dedication and passion to her role, traits indispensable for the transition to modernized calf care.

“Maria lives and breathes our calves,” he says. “She saw what I was doing, trusted me, believed in our protocols, and the transformation was like day and night.”

(Merck Animal Health)

Borba said without using SenseHub, Maria is a good employee. But add the calf technology into the equation, and she is an excellent employee.

“She doesn’t have an ego and trusted the data coming off the reports,” he shares.

Since incorporating the technology and Maria, their calf death loss has dropped dramatically.

“The return on this investment is excellent. I was at 85 female dairy replacements when I started and now, I’m at 113,” Borba shares.

Borba incorporated SenseHub Dairy collars in October last year.

He says he likes both the reproduction and health benefits that the collars provide.

“Overall, our second service conception has increased, our breeding got better,” he says, noting his herd is still not immune to health issues, like pneumonia or scours. “But, we are able to address everything sooner.”

Borba says their death loss improved because calves were being treated on day one.

Going forward, Borba looks to progress and to constantly improve.

“You cannot start nitpicking, or you’ll go backwards,” he says, noting that he feels like the herd is in a good spot. “It’s just continuing to being consistent.”

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Maximizing ROI in Dairy Farming with Technology Investments

An Incredible Bird's-Eye Look at the State of the Dairy Industry

Tue, 20 May 2025 15:13:13 GMT

Editor’s Note: This is one article in a series that is included in the 2025 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.
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The dairy industry is undergoing rapid transformation and innovation at an unprecedented pace. As part of its ongoing efforts to understand these shifts, Farm Journal recently conducted a comprehensive survey involving 400 dairy producers across the U.S.

These producers, representing herds ranging from 100 to 20,000 cows, provided valuable insights into their current operations and future outlooks.

Technology Integration

In an era where technology permeates nearly every aspect of life, the dairy industry stands at the forefront of this transformative wave. The integration of technology is no longer just an option; it has become a crucial step toward creating a more efficient and sustainable dairy industry. From feeding systems to health monitoring devices, technology helps dairy farmers optimize operations and ensure animal welfare.

A recent survey highlights a significant shift in the adoption of technology within the dairy sector. Remarkably, two-thirds of dairies now use at least one form of feeding technology. These innovations are designed to streamline the feeding process, providing precise nutrient delivery to livestock and reducing waste. The result is a noticeable improvement in both efficiency and sustainability.

Diversifying Revenue Streams

In today’s changing economic landscape, many dairy producers are finding innovative ways to sustain and grow their businesses. The key to survival during these turbulent times seems to be diversification.

Farm Journal’s recent survey reveals approximately one-quarter of dairy producers have embraced alternative land or dairy add-on revenue streams. This shift underscores the industry’s agility and adaptability as producers look for various avenues to boost profitability.

One strategy gaining traction is the beef-on-dairy operation. An impressive three-quarters of operators are now involved in at least one beef-on-dairy practice, with breeding and raising being the most common methods. Though there has been a decline in the number of producers raising animals under their beef-on-dairy operations over the past year, there is a notable increase in the sale of branded beef products. This shift highlights the evolving dynamics within the industry as producers adapt to market demands.

Next-Gen Transfers

A significant concern facing the industry today is the impending wave of retirements among dairy operators, many of whom have not established formal succession plans. This situation is becoming increasingly urgent, with surveys indicating that a quarter of these operators intend to retire within the next five years.

Contrary to the retirement trend, there is also a strong movement toward growth and expansion within the industry. Almost half of the operators express a desire to expand their operations in the near future. Such ambition suggests confidence in the industry’s potential and reflects a proactive approach to ensuring a sustainable future. At the same time, an equivalent number of operators are planning to maintain their current herd sizes, indicating a focus on maximizing efficiency and resource management.

Sustainability Program Awareness

Farm Journal’s recent survey reveals an array of insights regarding current sustainability practices and the prevailing awareness surrounding them. While the inclination toward adopting sustainable practices is reassuring, a deficiency in program awareness raises concerns that need to be addressed.

Encouragingly, over half of survey respondents (63%) reported participating in at least one sustainable practice. This trend is indicative of a growing societal shift toward environmental responsibility. Interestingly, larger operations, particularly those with substantial herd sizes and extensive acreage, tend to embrace sustainability more comprehensively. This trend is most pronounced in the Western region.

Reality of Workforce Shortages

A recent survey highlights the growing dependency of the dairy industry on non-family labor. For many respondents, non-family members consist of at least 50% of their workforce. This shift is indicative of broader changes within the industry as traditional family-run farms adapt to meet growing demands. However, hiring and retaining workers continues to be significant challenges. With evolving labor-related aspects indicating enduring challenges, the industry must explore viable solutions to continue thriving.

Despite the adoption of new technologies, the challenges of hiring and retaining a reliable workforce remain. Farmers must continue to balance the integration of technology with human labor, ensuring that both aspects work in harmony to drive growth and productivity. These changes suggest a long-term shift in how labor is approached, maintaining traditional farming values while embracing modern advancements.

Optimistic Horizon

The dairy sector is witnessing renewed confidence, energized by innovative strategies and fueled by a younger generation of forward-thinking dairy operators ready to embrace change. Their willingness to adopt advanced technologies and improved herd management techniques is reshaping the landscape of dairy farming. By integrating strategic solutions, these operators are setting a new standard that promises to uplift the entire industry.

According to surveys, 44% of producers plan to expand their operations in the next five years. This drive to scale indicates a strong belief in the trajectory of the dairy industry and its ability to thrive amid changing global dynamics.

The 2025 Farm Journal State of the Dairy Industry Report is available for download here .

Boost Your Income By $250,000 with Smart Calf Management Tactics

Mon, 14 Apr 2025 13:55:36 GMT

With dairy replacements in tight supply and beef-on-dairy calves worth a small fortune, monitoring the health and management of livestock is just as crucial as keeping a close eye on financials. One of the often overlooked yet significant aspects of this is evaluating cattle death loss. According to Pauly Paul from Complete Management Consulting LLC, understanding metrics such as cull rate and death loss, and translating these into financial figures, can provide profound insights into a dairy farm’s financial health.

Farm Audits
Paul frequently conducts farm audits, collaborating with farmers to boost income and enhance financial control. At the Dairy Calf & Heifer Association (DCHA) Annual Conference in Denver, Colo., Paul shares insights from one of his audits, highlighting labor costs as a significant area of concern. The initial perception was that the farm was overburdened with labor costs, but a deeper dive revealed substantial loss in calf numbers.

“When we do audits, we typically go through the financials. We go through the day-to-day operations. We look at what’s going on everywhere on the dairy. We spend time with the managers,” he says.

The audit uncovered that many heifers never reached the milking herd, with losses reaching as many as 300 calves annually. By recommending a shift to beef-on-dairy calves, Paul demonstrates how the farm could potentially add approximately $270,000 in revenue.

Exploring Other Profitability Scenarios

In a different scenario, a farm experiencing a 15% death loss in calves was financially stable due to diversified income streams, boasting a profit of $2.5 million last year. However, Paul poses an interesting question: “What would happen if they bred for 10% more black calves?” By increasing the production of these calves, the farm could potentially generate over $200,000 annually and ultimately decrease their death loss.

Such examples shed light on common pitfalls affecting dairy farm profitability.

5 Pitfalls Hindering Profitability
1. High Death Loss: A high death loss in calves can significantly impact financial performance.

2. Uncertain Costs: Not knowing the true cost of raising calves and heifers can lead to mismanagement.

3. Over-Investing in Infrastructure: Investing too heavily in equipment and labor for an excessive number of heifers can drain resources.

4. Inadequate Financial Planning: Buying replacements without setting aside the necessary funds can be financially detrimental.

5. Not Maximizing Income: Raising too many replacements and failing to capitalize on the income from black calves can hinder profitability.

Key Questions for Dairy Producers
To address these challenges, Paul advises producers ask themselves the following:

• Calf Management: How effectively do you raise your calves? What is the actual death loss rate?

• Cost Analysis: What are the exact costs of raising replacements, including feed costs both purchased and grown?

• Daily Cost Calculation: What is the daily expense of raising replacements, including feed, labor, vet/medicine and breeding?

• Breeding Strategy: How many cows should be bred to beef to optimize profitability?

Making Strategic Decisions
Producers need to assess whether they excel at raising calves or if outsourcing might be more cost-effective. They should consider:

• Raising Calves: Are you the best at raising calves, or is it more feasible to let others handle it?

• Cost Efficiency: Can others raise replacements more economically than you can?

• Purchasing Replacements: Is it better to buy superior replacements at a lower cost than raising them yourself?

By regularly evaluating these factors and adopting a strategic approach, dairy farmers can better navigate the complexities of farm management and improve profitability. Keeping these considerations at the forefront of operations ensures a robust, financially sustainable future for dairy farms.

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Replacement Heifer Prices Hang in Record Territory

Dairy’s Gold Rush: Replacements Heifers and Beef-on-Dairy Calves

Thu, 13 Feb 2025 15:47:08 GMT

The dairy cattle market is currently experiencing an unprecedented surge in demand, creating a bustling atmosphere in the industry. As the competition heats up, market players are closely observing what is currently trending – is it beef-on-dairy calves or the traditional dairy replacements and fresh cows?

The answer is both, as beef-on-dairy calves are going for astronomical prices. But, according to recent insights from TLAY Dairy Video Sales, dairy replacement heifers and fresh cows have become an exceptionally hot commodity.

By hosting an online video auction on the first Friday of every month, TLAY Dairy Video Sales have established a platform where semi-loads of dairy cattle from across the U.S. find their rightful owners. Jake Bettencourt, the manager of TLAY Dairy Video Sales, stressed the intensified demand for cattle.

“In 2025, we see a completely different landscape compared to previous years,” Bettencourt explains.

Prices that seemed stable in 2022 and 2023 have now skyrocketed. Illustrating this point, Jersey springers, previously ranging between $1,400 and $1,500, have leaped significantly, affecting the cost-effectiveness of replacements.

Unpacking Current Price Trends
This evolution in market prices is evident in the recent results from TLAY Dairy Video Sales:

• Jersey fresh heifers command prices from $2,900 to $3,100.

• Jersey cross fresh heifers average between $3,100 to $3,200.

• Holstein springers average between $3,350 to $3,700 (many carrying beef-on-dairy cross calves)

• Jersey springers $2,850 – $3,000

• Holstein fresh cows range from $3,600 to $3,775.

• Mid-lactation, confirmed pregnant Holstein cows fetch around $3,500.

Bettencourt points out a growing trend: cows carrying beef-on-dairy calves are realizing more value than those carrying sexed calves.

The Nationwide Dairy Heifer Inventory Crunch
In addition to the heated demand, the nationwide dairy heifer inventory is under significant strain. The recent USDA annual Cattle report underscores this scenario, revealing a critical shortage in the available dairy heifers as of January 1. Despite a slight upward adjustment in 2024 estimates, the inventory remains the lowest since 1978 with only 3.914 million head available – a 0.9% decrease from the prior year.

This scarcity is further exemplified by the high prices fetched by two loads of Holstein open heifers at 475 lbs., that were sold off by TLAY, each bringing between $1,800 and $1,850. And a load of Jersey open heifers from Oregon at 410 lbs. sold for $1,625 each and one load of Jersey open heifers from Idaho sold at 600 lbs. at $1,825.

Market Predictions and Insights
Phil Plourd, president of Ever.Ag Insights, says that the USDA’s Cattle Report published last month underscored what we all knew—and that is we don’t have a lot of heifers on hand. The ratio of replacements to milking cows is at 41.9%, the lowest level since 1991.

However, Plourd points out that financial incentives to the producer haven’t changed.

“It’s a classic ‘bird in hand versus two in the bush’ situation. In this case, the bird in hand is something like $900 for a day-old beef calf. That still strikes producers as a better deal than the risks and uncertainties of raising a dairy heifer. The beef situation isn’t any different, either, with the Cattle Report showing the smallest beef inventories since 1961 and all-cattle and calf inventories since 1951. The whole situation is one of the more intriguing mysteries I’ve seen in the 25-plus years I’ve been hanging around the dairy industry,” he says.

The dairy industry’s landscape is an intriguing blend of challenges and opportunities. As Plourd anticipates, changes might arise as beef and dairy producers opt to retain 5% to 10% more heifers, providing a buffer even if incentives do not align. Navigating this intricate scenario requires a keen understanding of evolving market conditions and strategic foresight. As the industry moves forward, these shifts promise to dictate the path ahead for dairy cattle stakeholders.

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The Beefy Secrets of Cull Cow Profitability

When it’s time for dairy cows to make a career change and leave the herd, strategically planning their exit could enhance their final contribution in terms of meat quality, carcass yield, and overall profitability. At the same time, their departure could be improved in terms of their own welfare and the safety of their end products.

Market cow prices are currently robust, and removals from U.S. dairy herds have recently slowed for a variety of reasons. So, when the strategic decision is made to remove a cow, a little more strategy could maximize that decision. Among the factors:

1. Seasonality – Many producers choose to thin their herds in the fall to save on bedding and barn space through the winter. But Ohio State University Extension Educator Dustin Sonnenberg shared that a 10-year survey of USDA data showed market dairy cow prices are typically lowest in November and December. He said that is likely due to the concurrent sale of culled beef cows after weaning in the fall. The USDA history showed the months that historically have posted the highest prices for market dairy cows are March, April, and May.

2. Carcass yield – It is a common misconception that all retiring dairy cows are destined to become ground beef. But given that at least 10% of the U.S. beef supply is fulfilled by dairy cows, it’s important to recognize their role in other cuts. Sonnenberg said market dairy cows with moderate body condition yield higher-quality carcasses that can be processed into boneless primal cuts that find their way to family steakhouses, airline meals, and fast-food roast beef sandwiches.

A study led by Nicole Berdusco at the University of Guelph divided 37 dairy cows removed from a commercial herd into a group that was marketed immediately and one that was fed for an additional 60 days. The fed cows gained an average of 188 pounds and showed a body condition score (BCS) improvement of 1.2 points (5-point scale).

A second study led by Berdusco, published in the Journal of Dairy Science , followed a similar structure with 43 cows, half of which were fed for an additional 60 days. Those fed cows averaged a hot carcass weight that was 179 pounds heavier, with a 6.5% greater dressing percentage, compared to cows that were shipped immediately.

3. Carcass quality – The cows in Berdusco’s second study also had significantly higher intramuscular fat, or marbling, than their non-fed counterparts. When steaks were evaluated using a Warner-Bratzler shear force protocol, they also were significantly more tender. A decades-old study at Colorado State University also showed that feeding dairy cows for at least 28 days produced a measurable improvement in fat whitening, which consumers prefer.

4. Animal welfare – Dairy cows shipped directly out of the milking string often experience udder engorgement that makes the last few days of their lives painful. Plus, some of them may be lame. Berdusco’s 37-cow study evaluated udder involution, showing that nearly half of the fed group experienced udder involution, while none of the direct-shipped cows did. No significant difference in locomotion or hock lesions was detected between the two groups, but in other settings, retaining cows on feed may also allow them time to heal hoof, hock, or leg injuries.

5. Food safety – Sonnenberg noted that retaining market cows on feed for several weeks also will ensure that drug withdrawal times have expired, promoting safety for both consumers and the dairies selling the animals.

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Is Beef Breeding Derailing the U.S. Dairy Industry?

Tue, 17 Sep 2024 20:27:30 GMT

Beef-on-dairy breeding has revolutionized the U.S. cattle industry, shored up dwindling fed-beef cattle supplies, and added considerable black ink to the bottom lines of dairies in recent years.

But is it a phenomenon gone too far? Regardless of industry, mega-trends can carry with them unintended consequences. Veteran dairy data expert and thought leader Steve Eicker, DVM, fears the lure of lucrative near-term cash-outs on beef-cross calves may be altering the course of the U.S. dairy business to damaging degrees.

Eicker, co-founder of Valley Agricultural Software and its popular Dairy Comp 305 herd management software, acknowledged that beef-cross calves have plugged many holes in the nation’s beef animal supply. At just over 28 million head, the U.S. beef cow herd size is at a 70-plus-year low.

Feedlots have welcomed beef-cross calves to keep their pens full, and at premium prices to boot. This past summer, newborn beef cross calves sold for as high as $1,000/head or more, with $600-800/head the norm.

But at what true cost to the dairy industry? Eicker believes the chinks in the armor are beginning to show and will become more apparent in the months and years ahead. The factors that are being affected include:

Heifers are in short supply – Creating more beef-cross calves has resulted in less opportunity to produce dairy heifer calves. In just two years, from the start of 2022 to 2024, the total number of replacement dairy heifers in the U.S. has dropped more than 10%, part of a 7-consecutive-year decline in the nation’s heifer inventory. At slightly over 4 million dairy heifers, the national supply is at a 20-year low. What’s more, just 2.59 million heifers are projected to calve and enter the nation’s lactating herd this year -- by far the lowest inventory in 22 years of USDA projections. Commensurately, heifer prices have climbed precipitously through 2024 as dairies scramble to secure them.
Removals have slowed – Marketing dairy cows for beef has also hit record-low territory. Because dairies are having a hard time finding enough heifers to keep their stalls filled, they are hanging onto cows longer. In the week ending July 6, 2024, just 40,189 dairy cows were slaughtered nationwide, the lowest total in any week since Christmas 2009, and more than 20% lower than the same week in 2023. By August 17, only 1.74 million head of dairy cows were sold for beef this year, compared to 2.04 million head in the same time period last year. Eicker said the detrimental effects of this data are three-fold. First, dairies give up the potential of introducing the most current genetics into the herd that heifers deliver. Second, “those cows that are removed are in far worse condition, and thus bring less income at salvage,” noted Eicker. Consequently, the beef supply is also shorted by those lighter cows that are in worse condition. Third, he is concerned that delaying the removal of market cows will negatively impact their condition and welfare.
Milk production is down – “U.S. milk production is dropping because we have far too many low- producing cows that we cannot replace,” declared Eicker. Again, the numbers tell the story. Total milk production has flatlined at just over 225 billion pounds annually since 2021, after growing incrementally each year since 2014. In the most recent USDA Milk Production Report , average milk production per cow dropped 13 pounds/head for April-June 2024 compared to the same window in 2023, and total milk production for the quarter was down 624 million pounds year-over-year.

Eicker said the beef-on-dairy movement may prove to support the old adage of, “if it seems too good to be true, it probably is.” And he is fearful that the current inventory situation will prevent dairies from maximizing their ability to capitalize on currently rising milk prices, because they simply will not have the animals to do it.

“That short-term increase in calf revenue is dwarfed by the fact that they will be forced to keep their market cows many months longer,” he noted. Plus, with rising heifer values, there is real money to be made again raising and selling heifers. “What dairy would want $600 now instead of $1,600 in two years?”

Your Next Read: Beef-on-Dairy: How to Make Successful Semen Selection Strategies

8 Reasons Why Beef-on-Dairy Makes the Perfect Cross

Mon, 08 Jan 2024 19:44:38 GMT

The beef-on-dairy revolution is booming. What started as a trend more than a decade ago has quickly grown into a reliable profit stream for dairy farmers across the country. As milk prices continue to sink lower, more and more dairy producers are turning their attention to creating a healthy beef cross calf to generate additional income for their farms.

“Even though we’ve gotten to a position to where beef-on-dairy is becoming more well-known, the reality is dairymen have been beef producers all along – whether that’s been through cull cows are bull calves,” says Dale Woerner, Professor and Cargill Endowed Professor at Texas Tech University. “However, as beef prices have crept up, the beef-on-dairy segment has seen an explosion.”

Just five years ago there were approximately 25.4 million cattle fed through feedlots that were harvested year-over-year, according to Woerner. Traditionally, about 5.1 million of those animals had been purebred dairy heifers or steers. However, this number has seen a drastic change.

“Since 2018, we’ve seen a major shift with beef-on-dairy crossbreds. We don’t know exactly how many of these animals are coming through as crossbreds, but we’re confident that it’s over 3.25 to 3.5 million head of beef-on-dairy cross animals that used to be strictly purebred dairy,” Woerner says.

This proportion has grown tremendously within the last few years, and it is estimated that almost 23% of the total number of fed steers and heifers within the U.S. are actually coming from dairies.

So, what’s the reason for this recent spike? As a result of widespread drought across the mid- and southwest, the beef cow herd has shrunk significantly. However, with more and more dairies relying on beef-on-dairy calves to help turn a profit, these operations have helped fill the meat cases.

“The dairy segment of the beef industry has grown in significance the last few years even more so than it had traditionally,” Woerner adds. “It’s created the perfect storm and that’s why you’re seeing the exceptionally high values.”

As more dairy crossbreds make their way into the marketing chain, Woerner and his research team have closely examined the characteristics of these animals and the products they yield, compared to their full-blood dairy and beef cousins. Their findings regarding major performance and carcass data – via retrospective data evaluation, and their own research -- include:

Feedlot growth – Close-out data evaluations show that the average daily gain and feed-to-gain ratio of crossbreds is significantly better than Holsteins and similar to conventional beef cattle. Woerner said crossbred finishing times that are about 20% faster than Holsteins promote a positive message about sustainability because they produce the same amount of beef in a shorter timeframe and on less total feed.

Quality grade – The Texas Tech researchers found the percentage of crossbreds that grade Choice or higher is roughly equal to, if not better than, conventional beef animals. They appear to inherit the superior marbling capability of their Holstein ancestors but at a faster finishing pace.

Carcass yield -- Crossbreds have a lower dressing percentage than full-blood beef animals, at least partly because they are leaner and thus have lighter carcasses relative to their live weight. They have, on average, an intermediate fat thickness at the 12th rib between that of full-blood beef and dairy animals. Overall, they have higher red meat yield than dairy carcasses, and the best crossbreds are comparable to, or even better than, conventional beef cattle.

Eating quality – A recent study by Woerner’s group showed full-blood Holsteins still take first place in terms of tenderness, followed by crossbreds and then conventional beef. Crossbreds led among the three in terms of superior flavor, with the most “fat-like” and “buttery” flavor ratings. Overall, they were scored the second-most desirable in terms of eating quality behind Holsteins.

Meat color – A major downfall of traditional dairy beef is that it has a darker color and lacks the “cherry-red” appearance of conventional beef, which consumers prefer. The difference is so distinct that most retailers will not market dairy beef and conventional beef in the same meat case. The Texas Tech researchers found that crossbreeding removes the coloring problem, and also results in an additional 12-24 hours of color stability. “This is a huge change in our industry,” Woerner says. “Rather than segregating Holsteins, we can now sell crossbreds together with conventional cattle.”

Muscle shape – The smaller, narrower, and more angular shape of finished Holstein loins has long been a drawback for dairy beef. The Texas Tech researchers found that crossbred longissimus (loin) muscles are larger and rounder than Holsteins, and that consumers could not distinguish their shape compared to those from conventional beef cattle.

Consistency – Dairy animals produce a consistent supply of offspring year-round, which helps improve market stability. Today’s dairy cattle also are highly consistent genetically, creating potential for excellent offspring consistency with correct sire matings.

Traceability – “Record-keeping on U.S. dairies is superior to most conventional beef operations,” Woerner says. “That information on birthdate, performance data, and sire identification is highly valuable for branded beef programs and international markets.”

For more on beef-on-dairy, read:

High Plains Dairy Conference Set March 5-6 in Amarillo

Mon, 08 Jan 2024 15:41:43 GMT

The High Plains Dairy Conference will be March 5-6 in Amarillo. Conference chairs expect about 300 dairy industry representatives from across the U.S. to attend.

Robert Hagevoort, Ph.D., co-coordinator and Extension dairy specialist at New Mexico State University Ag Science Center in Clovis shared that the conference will kick off with a dynamic panel examining the global dairy industry and future market outlook.

Hagevoort also shared that given the current economic challenges of the conventional dairy model, the conference will explore alternative revenue streams, the future of exports and much more.

Agenda

Will exports continue to lead the way, Krista Harden, president and chief executive officer, U.S. Dairy Export Council.

Can dairy become more than a low-cost leader, Paul Ziemensky, Group EVP, Wellness, Insights and Innovation, Dairy Management Inc.
Beef on Dairy is what’s for dinner: a focus on the end product, Dale Woerner, Texas Tech University.

A total of four panels and 15 talks at the High Plains Dairy Conference will provide industry insight and producer perspectives. New this year is a student poster presentation, that will highlight ongoing research at regional universities.

Middle Managers Workshop

On Thursday, March 7, the High Plains Dairy Conference brings yet another new event hosted in both Spanish and English. A 5-hour middle managers workshop focuses specifically on front-line supervisors and the challenges they face advancing from managing cows to managing people and deals with topics such as effective communication, effective training and education, team building synergies, conflict resolution, scheduling, and other topics. As you return home on Wednesday, send your middle managers on Thursday for a continued educational event.

The full agenda and registration are available at High Plains Dairy Conference

Dairy and Beef: A Merger of Many Merits

Fri, 15 Dec 2023 00:57:29 GMT

Beef-on-dairy breeding is a phenomenon that has boomed at a breathtaking pace in the United States, according to Dr. Zeb Gray, Technical Feedlot Specialist for Diamond V.

Gray, who has deep roots in beef production, from the cow-calf phase through post-harvest meat science, said the practice is changing the landscape of the U.S. beef industry – probably permanently.

Data from the National Association of Animal Breeders indicates beef genetics are being swapped for dairy semen at an impressive clip. From 2018-2022, beef semen sales in the United States rose by about 5 million doses, while sales of dairy semen dropped by nearly an identical number.

All the while, the size of the U.S. dairy cow herd remained steady at about 9 million head – an indication that the shift is due largely to the growing adoption of beef-on-dairy breeding.

Gray said that although there have been growing pains, the beef cross calves have been well received by both feedlots and packers. “Feedlots are like hotels,” he explained. “The only way they work financially is if their pens are full. The same is true for packers, whose profitability depends on their maximization of throughput every day.”

He noted the steady, year-round availability of beef cross calves is a game-changer in terms of animal procurement. “It’s always been a challenge for feedyards to keep full pens of consistent cattle year-around, and particularly now with our shrinking native beef herd,” stated Gray. “Calves born on dairies not only offer that consistency, but they are simply age- and source-verified and can provide a complete history of every animal, for which consumers are increasingly clamoring.”

Feedlots, packers, and branded beef programs see working with large dairies as an opportunity to build a reliable source of calves that check all the boxes. It proves to be much easier to work with a handful of large dairies to secure these calves in just a few transactions, versus dealing with a couple hundred ranches and having to buy in much smaller lots.

But for all of its merits, this rapidly evolving production path is not without some speed bumps. The new demand to procure beef cross calves has led to a common occurrence where freshly weaned, very young cattle weighing as little as 250 pounds enter commercial feedyards.

“When it comes to rumen development, there’s no replacement for time,” Gray stated. “Those calves are at a considerable disadvantage compared to their full-blood beef counterparts who are on a partial milk diet for up to 6 months and learn to eat forage gradually alongside their mothers.” He added feedstuff availability in cattle-feeding country and feedyard logistics are often not conducive to including optimal levels of roughage in young calves’ diets.

So, what can dairies and calf ranches do to boost the health and performance of beef cross calves before they graduate to the feedlot? Gray offered 3 suggestions:

Prioritize critical colostrum – Even if beef cross calves spend less than a day at their dairy of origin, nothing can replace the myriad benefits of colostrum that will carry through their entire productive lives. Setting every calf up for success with colostrum delivery within the first 4 hours of birth is the single most important measure in ensuring calf welfare and preventing morbidity and mortality.
Focus on nutrition -- There is a growing body of research-based evidence that feeding feedlot-bound calves higher volumes (example: 6 quarts per day) of higher-protein milk replacer (example: 25-27%) results in better-gaining, more robust calves at weaning and beyond. Work with a nutritionist who can help develop both liquid and solid ration formulations, as well as advise inclusion of proven feed additives to support calf health.
Consider retained ownership – Owning beef cross calves longer – possibly all the way to market – may help dairies expand profit centers beyond milk production, and reap the benefits of investments like feeding calves more nutrient-dense – but also more costly – preweaning rations. It also could allow for a potential backgrounding phase that might help calves transition more smoothly into the feedyard at higher ages and weights.

Gray said the meteoric growth of beef-on-dairy breeding has led to a lag in research that could eventually drive best practices for raising these unique animals. Namely, he said more work needs to be done to discover solutions to the critical issue of liver abscesses in beef cross cattle, along with better-defined nutritional and management approaches to optimize their health and performance.

“The dairy industry has driven this fundamental change thanks to precise reproductive strategies based on genomics, breeding efficiency, and sexed semen. Without them, we wouldn’t have these new opportunities on the beef side,” Gray declared. “I think there is a lot we can continue to learn from each other.”

Dairy Heifer Supply Tightens

Tue, 12 Dec 2023 22:58:07 GMT

The prevalent question being asked is just how it will be before milk prices increase significantly and move back up to 2022 levels. We did see record milk prices in 2022 and maybe matching those highs might not be feasible, but it would certainly be nice to see price quite a bit higher than they currently are. There are varying ideas as to what it will take to see significantly higher milk prices with most of them feasible to some degree.

Now if we think back to later 2021, culling increased substantially for a few months as low milk prices moved farmers into selling animals aggressively to boost income and reduce the expense of feeding cattle that were not top producers. The milk supply did not tighten to the extent that there was a shortage, but the perception of a shortage is what drove milk prices higher. Buyers of dairy products were concerned about the potential for a tighter supply and wanted to make sure they would have product to fill orders. Thus, a buying frensy took place for a few months which drove milk prices to record highs. The culling slowed down and eventually the concern subsided with cow number remaining below a year ago, but numbers increased from month to month. This took away the concern and milk prices have been lower ever since.

The level of culling has not increased as had been anticipated this time as farmers have been holding onto cows even though cull cow prices have been high. One reason may be due to most of the low producing cows having been culled and what is in the stalls are cows that are too good to cull. Another aspect could be that replacement numbers have tightened and are not as abundant as they had been and what is available is commanding high prices. This brings the industry into a very interesting position. As you can remember what happened after a period when sexed semen became available, it was embraced quickly as farmers always wanted more heifers for replacements. Over time, there was an abundance of heifers resulting in increased cow numbers and higher milk output.

Recently, there has been much interest in beef on dairy. Beef prices were escalating due to heavy culling of the beef head due to drought coupled with strong demand for beef. Dairy farmers found that breeding lower end cows to beef bulls netted huge price benefits for the calves. So, the popularity of beef on dairy grew and remains popular. However, the result is being felt due to tight heifer replacements which may be limiting the amount of culling activity and limiting the ability of some farms to expand. We are now seeing the substantial decline of beef cattle prices and a substantial increase of heifer replacement and cow prices. This will reduce the value of beef on dairy calves over time.

(Farm Journal)

However, it most likely will have an impact on milk prices as replacements will not be as available to take the place of culled cow and milk production will decline. The July Cattle Inventory report already showed the percentage of heifer to milk cows at 38.8% and the lowest ratio since July 1997. The January report may show an even tighter number in comparison to the previous years. This may eventually tighten milk supply resulting in higher milk prices. If, at the same time, demand improves, we could see record prices again as we experienced in 2022. The result of this would again be to breed for heifer calves as they could be worth more than beef calves as farmers want to build heifer inventory. The issue with all of this is that these cycles do not change overnight and will take a few years to turn. Over time, there could be some good milk prices as the market adjusts.

Robin Schmahl is a commodity broker with AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Robin’s office is located in Elkhart Lake, Wisconsin. Robin may be reached at 877-256-3253 or through the website www.agdairy.com .

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Look for Subclinical Stages of Hypocalcemia When Metabolic Alkalosis is Present

Tue, 24 Oct 2023 16:41:55 GMT

Subclinical hypocalcemia (SCH) occurs in nearly half of all cows during the first 24 hours after calving, according to Jesse Goff, DVM and Iowa State University professor emeritus.

“It results when calcium levels go below 8 mg/dl,” Goff says.

He attributes hypocalcemia, including the subclinical stage, to metabolic alkalosis. “The cows are alkalotic as a result of the potassium in the forages they are fed,” he says.

“Alkalosis blocks the action of a calcium regulating hormone, called parathyroid hormone, on the bone and kidney of the cow. This impairs the cow’s ability to adapt to blood calcium lost to colostrum and milk at the onset of lactation,” he adds.

SCH cows don’t display traditional signs of hypocalcemia, such as lethargy, cold ears or being unable to stand. Instead, they are likely to consume less feed and produce less milk, both of which impact productivity and profitability.

“Depending on how quickly cows recover, subclinical hypocalcemic cows may produce less milk in the first week of lactation relative to what they would have given otherwise,” reports Donna Amaral-Phillips, retired University of Kentucky Extension dairy specialist.

Amaral-Phillips says financial losses to subclinical hypocalcemia average approximately $125 per affected cow (in 2021 dollars).

Citing research conducted by Jessica McArt, DVM, Cornell University, Goff says it is persistent hypocalcemia into day two of lactation that most often results in cows that end up being culled.

“If you can only take one blood sample from cows to assess your transition program success, I would choose to take a blood sample as close to 36 hours after calving as possible,” he recommends. The reason is cows that are still below 8.0 mg/dl may be more likely to develop problems such as metritis and a displaced abomasum.

“If I could take two blood samples, I would take one at 12 hours after calving and again at 36 hours after calving,” he adds. “If your transition program is working, most of the cows will have a higher blood calcium concentration at 36 hours than they did at calving.”

Goff’s perspective is because every dairy is different, addressing hypocalcemia through prevention is not a one-size-fits-all venture. He offers four recommendations for dairy producers’ consideration:

1. Reduce close-up (prefresh) diet potassium.
“Focus on procuring or growing low-potassium grasses for dry cow diets by avoiding manure application to fields used to grow dry cow forage,” he recommends. Also, harvest grasses when more mature than perhaps you have in the past, as mature forages contain less potassium. “Use warm season grasses when possible for a portion of the dry cow diet; corn silage is a warm season grass,” he adds.

2. Consider adding anions to the diet to acidify the cow to restore tissue sensitivity to the calcium-regulating parathyroid hormone.
Goff says many nutritionists utilize ration balancing programs that will calculate the diet cation-anion difference (DCAD). “The diet should be formulated to be between -75 and -125 mEq/kg diet, depending on the anion source used,” he says. Urine pH can be tested to ensure the proper anion content. Goff says when urine pH of the herd averages between 6.0 and 6.6 the week before calving, the diet is correct. Below 5.5 pH you have excessive acidification. “The cows will reduce their dry matter intake to avoid over-acidification,” he adds. “Above a 7.25 pH there will be little improvement in blood calcium.”

3. Another strategy Goff recommends is to bind the diet calcium for at least 10 days before calving.
“When successful, the cow’s body is tricked into thinking it is calcium deficient and it begins to produce hormones to increase diet calcium absorption and bone calcium resorption mechanisms prior to calving,” he explains. “The result is when these systems are up-regulated the cow can readily adapt to the onset of lactation.”

With both diet strategies, it is important to provide a readily available source of magnesium to the cow. The reason is cows that are hypomagnesemic will struggle with calcium homeostasis as well, Goff explains. He says diet magnesium should be about 0.4%. “We also think diet phosphorus should be kept below 0.3% for optimum calcium homeostasis at calving,” he adds.

4. Another option is to provide a readily available (soluble) calcium source to the cow immediately after calving.
Oral calcium boluses on the market generally contain calcium chloride or propionate which is rapidly soluble. Drenches or gels containing calcium can be very effective but require more skilled labor to administer to the cow. Goff says administering calcium can be repeated 12 to 24 hours after calving. Providing intravenous calcium for high-risk cows at calving is no longer warranted, he says.

“It seems to impair the calcium homeostasis adaptation mechanisms, so the cow is actually more hypocalcemic on day two of lactation,” he explains “Subcutaneous calcium may be helpful, but it generally requires injection into five or more sites to avoid sterile – and maybe not so sterile – abscess formation.”

Who Should Be Raising Replacement Heifers?

Wed, 13 Sep 2023 21:31:48 GMT

A massive question dairy producers often ask themselves is who should be raising replacement heifers. Should they be raised by the producer, contracted out and customed raised, or should they be purchased?

Dr. Joe Armstrong with the University of Minnesota Dairy Extension says this is a big question, as it dives into what the future of your dairy operation is going to look like.

“This all is very dependent on how calves are taken care of at a young age all the way through until they’re milking in your herd,” he shared on a recent episode of The Moos Room podcast.

Armstrong says that many producers raise their own heifers because of control—from genetics to calf care to feeding programs. Another reason for raising your own replacements is that you can give extra hours to on-the-farm employees and save on the cost of custom raising. He says the big question is to determine what it costs to raise your own heifers versus the cost of custom raising or even purchasing springers ready to calve.

“Is there a way to offset the difference if you’re not willing or you’re not able to raise your own heifers,” he asks. “The quality of the product is one reason you would raise your heifers at home and that is part of the control piece.”

Biosecurity is another factor to take into consideration. Armstrong says you must keep this in mind if you custom raise your heifers out, as the heifers would likely be mixed with animals from other herds.

“There is risk associated with that,” Armstrong points out. “Biosecurity is a great reason to raise your own heifers.”

Custom Raising

Lack of room is another reason producers send their heifers off the farm to be custom-raised out.

“A lot of times the answer is no, they don’t have enough room,” Armstrong shares. “Or at least not yet. Or not right now. And that comes back to all the other things that go with raising heifers, whether it’s labor or time.”

He shares that if producers struggle with raising their own heifers—for whatever reasons—they should consider looking into custom raising.

“If you’re not doing a good job of it, maybe it is time to consider having someone else do it so you can get a better product in the end,” he suggests, underscoring the fact that labor and time come into consideration and that time and labor resource can be utilized in other ways.

“You cannot afford to spend the time raising your own heifers if you’re not going to have the true amount of time you need and the true amount of help you need to dedicate yourself to doing a really good job,” he says.

Another question to contemplate is if you have enough land to raise feed for your onsite replacement heifers.

Do Your Homework

Armstrong says it is vital that producers know their numbers and have a benchmark for what they are striving for, regardless if they raise their own heifers or not. He suggests growers provide data, along with health records.

“I think it’s a great idea for growers to provide that as a service. And if you are a dairy, I think it’s great to ask for those things,” he says.

If you are considering sending your heifers off to a grower, dive into their biosecurity measures. Armstrong says to ask what steps they are taking to avoid some things, whether that is BVD or Johne’s.

Purchasing Debate

When it comes to purchasing cows, the question is to ask if you are going to buy springers or a milking cow. He shares that from a biosecurity standpoint, there are a couple of advantages of purchasing a pregnant animal.

“If you’re buying a pregnant animal, you can test the animal itself that is pregnant for BVD,” he says, although you won’t know if the calf has BVD until it hits the ground.

He says cows that are 60 days fresh are currently going for $2,500.

“That might seem like a lot, but remember you’re paying for a low-risk animal that’s been through the hardest part of that first 60 days,” he says. “Yes, there is some stress from the change in environment and being in a new place and all of those things, but they are a lower-risk animal, and you didn’t have to pay for the cost of raising that animal through that first two years of her life.”

Armstrong says it costs on average $2,000 to raise a heifer calf before she hits the milking string. He says some farms can do that cheaper and some more expensive, but producers must be honest about what the total picture looks like.

“For a lot of dairies, it’s very reasonable to consider should I be raising my own or should I take that time and that labor that I’m using on calves and put it towards something else,” he shares.

To listen to The Moos News podcast in its entirety, go to The Moos Room | All Episodes (transistor.fm)

What Beef on Dairy Cross Has the Best Value?

Fri, 25 Aug 2023 21:45:18 GMT

The beef market is sizzling hot and dairy producers have not only noticed but have taken action to capitalize on securing an alternative profit source to their bottom line. The burning question is, how long will the beef market be strong and what is the ideal beef on dairy cross?

Jeremy Howard, senior sales and marketing manager with Simplot, says he believes that full beef embryos are the best option for packers and dairy producers.

“Because of various market opportunities, along with specific, individual goals, there is no optimum breed or bull,” he says. “The best choice for a dairy is to choose the option that’s tailored to their herd and produce a calf with the greatest value in their market.”

Beef Embryos

Like many producers, sexed semen proved successful, creating a plethora of replacement heifers for Ryan Junio of Four J Jerseys in Pixley, Calif. Nearly a decade ago, he introduced beef into his breeding program to essentially maintain the size of his Jersey herd.

Initially, Junio notes his beef program was swayed by the market; he used Wagyu, Charolais and Angus breeds. A few years ago, though, he saw the writing on the wall from his local buyer.

“If we wanted to stick around the beef game, we needed to start making a purebred beef calf,” Junio explains.

Currently, 250 Angus calves hit the ground monthly at Four J Jerseys. They use 90% of their 4,000-head milking herd as recipients for purebred Angus embryos that Junio then sells as day-old calves. Making the switch from AI to beef embryos has allowed Four J to maintain herd size while using sexed semen on youngstock and reserving the top 10% of the milking herd based on elite genetics for AI or Jersey embryo transfers (ET).

Jersey/Charolais Cross

One World Beef is the largest-scale slaughter processing facility in southern California, who prominently handles dairy or dairy-influenced cattle and specialize in grain-fed Holsteins, Wagyu and beef/dairy cross cattle. They are the second-largest exporter to Japan, Chile and China. Kim Herinckx, vice president of food safety and quality for One World Beef shares her favorite crop is the Jersey/Charolais cross.

“This cross upgrades the Jersey exponentially,” she explains. “Muscle marbling to durability to performance in the Southwest heat is impressive.”

Genetics can improve a lot with crossbreeding, but Herinckx underscores the importance of feeding an animal correctly.

“The problem we’re running into is that some traditional feedlots get black cross animals in, and they are feeding them like a traditional black animal, and it simply doesn’t work,” she says.

Beef will continue to be a hot choice by consumers as demand continues to be high and supplies are at the lowest level in decades. This all means that U.S. dairy producers will continue to lean forward at the opportunity to add dollars to their bottom line. Dan Basse with AgResource Company encourages dairy producers to breed more beef to their bottom-end cows.

“We all need to be doing our share in bringing food to the table because America is going to be needing this long term,” he said at the 2023 Professional Dairy Producers of Wisconsin (PDPW) Annual Meeting earlier this year. “63% of net farm revenue is money that you keep which is determined by the decisions you make in the markets.”

For more Beef on Dairy stories:

Cows Like Candy, Too

Wed, 24 May 2023 17:34:24 GMT

Who doesn’t love candy? Head to Lancaster County Pennsylvania and the sweet aroma of candy can be smelled on a family dairy farm. If you look closely enough, yellow and orange freckles of Reese’s Pieces can be seen in the cow’s TMR feed, too. Andy Young, General Manager of Red Knob Dairy in Peach Bottom, Pa., says they have been feeding upcycled Hershey candy waste to their cows for more than a decade.

This is the same time that Cargill and The Hershey Company teamed up to share a sustainable mindset. Nearly 35,000 tons of what Cargill refers to as ‘candy meal’ is produced by Cargill and used on approximately 500 farms throughout the Northeast. The two companies have perfected a way to upcycle Hershey’s waste stream, which contains edible bits of chocolate, nuts and licorice, and convert it into a reliable, value-added feed ingredient.

Red Knob’s herd of cows are in fact eating everything from Milk Duds to Payday bars, all of it coming from Hershey plants and broken down into a powder and mixed into Cargill’s feed that is delivered to their farm.

Zero Waste

Founded in 1974 and built on the hard work of prior generations, daily operations at Red Knob Farm are now led by the third generation including Andy and David Young as well as Jared Galbreath. The family milks 900 head and raises around 650 head of youngstock.

According to Young, feeding candy meal is a cost-effective and sustainable way to add protein, sugars, and fat to the cow’s diet, replacing molasses or other sources of sugars in feed. The idea that his cows help prevent this byproduct from ending up in the landfill is comforting to the Youngs.

“We aim to reuse everything we can,” Young says. “Whether it’s food or water or manure.”

A representative from Cargill says that by upcycling the candy byproduct, the program has contributed to Hershey’s zero-waste-to-landfill goal while supporting local dairy farmers in Pennsylvania and the Mid-Atlantic region. Today, Cargill has an entire plant dedicated to the intake and processing of candy meal.

One might wonder if candy is actually good for cows. The fact is sweets, like Hershey chocolate, are a good source of sugar.

According to Dr. Mac Campbell, dairy technical specialist at Cargill, “Candy Meal is an excellent source of energy to support milk production and milk fat synthesis. Also, Candy Meal reduces risk of rumen digestive upset compared to some other carbohydrate sources such as starch. Dairy nutrition formulation software, such as the Cargill Dairy MAX system, pulls the right ingredients in the right amounts to optimize both the nutrition for the cow and the cost for the dairy owner.”

Young says that sourcing the upcycled Hershey candy is easier compared to other options, and more cost-effective, too.

“The candy meal got drawn in incrementally,” Young explains. “And it provided the right nutrients at the right price point that we wanted.”

At the end of the day, Young says feeding candy is a win for all those involved.

“Farmers are the original sustainability experts,” he says. “Taking the milk from dairy cows to make milk chocolate and seeing now that waste stream cycle back again is totally consistent with dairy’s long history of sustainability cycles.”

How Can I Make Money with Beef-on-Dairy?

Wed, 29 Mar 2023 20:17:16 GMT

With drought and production costs pushing the native beef population to a record low, beef-on-dairy has a huge opportunity to keep the feedlots and processors at full capacity. This also means the demand – and prices – for beef calves are at a high. Lauren Kimble, manager of ProfitSOURCE and LCT Supply Chains with Select Sires, offers five tips on how producers can capitalize on these prices.

Know Your Buyer

Building a relationship with your calf buyer is a great way to gain visibility and make some noise for your high-quality beef-on-dairy calves. Get to know them – where are these calves headed? What does that system want? Use beef genetics that not only allow for easy calving, but also address the specific beef supply chain needs.

Calf Care

One of the perks of beef-on-dairy is that the calves are born in controlled environments – and we know that dairy producers are experts at rearing newborns. Colostrum management at birth is vital as these calves, unlike native beef calves, undergo serious change within the first few weeks of life, adjusting to the stresses of transport and new home(s).

Trace It

Offering some level of traceability demonstrates the added value of both your genetics and calf care by making it possible to validate lifetime performance. While calf prices are high at the moment, the beef-on-dairy market is rapidly evolving – and many buyers feel that a high quality, traceable ‘program’-type calf will become the norm, with everything else being discounted.

Advanced Repro Technologies

Got repro success? Using sexed male semen or even transferring full beef embryos into your lower genetic merit females are both opportunities to capture value – especially if your market is discounting heifer calves, or your Jersey crossbreds are not worth as much as they once were.

Different Marketing Streams

If you’re able to retain and raise your calves to a higher weight, marketing direct-to-feedlot can maximize on all the above tips.

Advice from a Calf Ranch

Amanda Arata, general manager with Kansas Dairy Development (KDD) in southwest Kan., oversees more than 65,000 heifers in a custom facility. She says the following is vital for the calf—whether it is a dairy or beef cross to make a good start before it is transported to the calf ranch.

The calf is born in a clean calving area.
The calf receives high-quality colostrum.
A solid vaccination program was used on the dam.
Ensure the calf is warm and dry.
Make sure it has had several feedings in it before being transported.

With beef calf prices hot, it’s time to not only capitalize on them now, but set yourself up for success in the future.

Combat Labor Headaches Head On

Fri, 04 Nov 2022 21:45:13 GMT

Labor shortages are no longer a stark headline, but instead a continued headache dairy farms are faced with. Recently on an Ag Future podcast, Dr. Luke Miller, dairy technical support specialist at Alltech, spoke about training and retaining labor on dairy farms.

Miller has a wealth of expertise in this topic and a deep pedigree in the dairy industry, including his experience as the general manager of a 6,000-head, multisite dairy in central Calif., managing a team of 45 employees. In addition, Miller served as a large-animal veterinarian and became the owner of a practice that addressed all facets of large-animal medicine.

While the struggle is real in finding labor, Miller recommends dairy owners hit pause and understand who they are trying to hire in the first place.

“The basics, to begin with, is to start understanding who we’re trying to hire and understanding where they came from and their basic levels of both education and interest in the group, in the dairy,” he says. “We know that many of our laborers are not loyal to a particular place or particular farm, so we try to invest in them as much as we can.”

According to the National Milk Producers Federation (NMPF), immigrant labor accounts for more than half of all dairy labor, and dairies that employ immigrant labor produce 79% of the U.S. milk supply. NMPF takes a bold stance on key issues, like labor and immigration reform and says if the U.S. dairy industry lost its foreign-born workforce, it would nearly double retail milk prices and cost the total U.S. economy more than $32 billion.

Helpful Tips with the Hiring Process

Miller offers some tips to help with the hiring process, including:

Organizational Charts

Miller suggests an organizational chart, something he says that a dairy of all sizes should have.

“I preach this every place I go, that — understanding employees want to have a box,” he says. “They know where the top is and know where the bottom is. They want to be put in that box, and they want to understand the basics of their job so that they can fulfill what you want them to do, and they feel like that’s gratifying to them.”

Job Description

Many dairies do not offer job descriptions to their employees. Miller says they are simply hired because they showed up that day.

“Job descriptions and some early vetting of who we’re actually bringing into the dairy is important.”

Proper Hiring

Miller strongly encourages producers to take a stronger stance when it comes to proper investment in the hiring process. He shares if a carload of employees stopped, asking for work, very few producers would turn any of those employees away.

“In reality, at least 20%, at least one of those guys or girls in that car —someone in that car is going to hurt you, and it might be through OSHA. It might be through morale. You might turn around and six months later, your entire workforce has flipped over and it’s a negative experience, and that is not what we want to do. We need to understand who we’re bringing in,” he says.

Top 10

Miller says part of the onboarding process should include 10 questions. He shares that there is no cookie-cutter questionnaire list.

“I think that having 10 questions - and they don’t have to be my 10 or your 10 or anybody else’s 10 but having the 10 for our dairy — you can sort a lot of things out if you just ask the basics,” he shares. “The second step of that is to train the trainer. We have to have somebody on the dairy who knows how to train people, and we put them in charge of — not the hiring, but the actual onboarding of the person when they start. We find a guy we like. We find someone we want to put on the dairy. We send them out with a trainer. You have an hour, two hours a day — whatever it takes to appreciate their skill level.”

To listen to the entire podcast where Miller talks about educating employees on stockmanship, technology input, employee feedback and more, go to #211: Training and retaining labor on dairy farms | Dr. Luke Miller (podbean.com) .

Do you have a Calf Herd Program?

Wed, 31 Aug 2022 23:06:58 GMT

In the last decade, the dairy industry has been moving away from its record production of replacement heifers and moving more towards the production of more beef crosses. According to the USDA’s 2022 annual Cattle Report, this has resulted in a decrease in national heifer inventories by 3.4%. To ensure we will continue producing quality animals, despite this reduced inventory volume, the industry has invested millions of dollars into superior semen and genomic testing for the remaining replacements.

One great example of a way to craft investment protection comes with a new revelation in the industry, the Calf Herd Health Program. This program has led to more intensive management programs; causing our clients to reevaluate their opinions about calf management.

Lung Ultrasound

As Calf Herd Health Programs become more and more popular among our clients, they have begun to invest more training, equipment, and time in disease detection within their young stock herd which has improved their end results. The core of these programs is like an adult herd health program in that it revolves around the diagnostic ultrasound machine and utilizes a technique called thoracic aka: Lung Ultrasound, to diagnose subclinical pneumonia.

Based on the literature and our experience, we know that anywhere between 7 to 22% of calves will experience clinical pneumonia in our calf herds. This technology allows for the detection of this health event well before clinical signs occur which helps to protect against the 1,200 lb. milk loss associated with clinical pneumonia established by Ollivett and Dunn in 2018.

Lung Ultrasound is a relatively simple technology in which a veterinarian can scan a calf in about a minute. The scan evaluates lung tissue for signs of lung consolidation which are areas of lung tissue that can no longer fill with air due to damage from a respiratory infection.

While Lung Ultrasound is the cornerstone of any good Calf Herd Health Program, there are many other benefits to getting your herd vet in your calf barn regularly. Even if you or your employees are taking excellent care of your calves, it can be easy to miss small daily changes that might be better diagnosed by a less involved outside eye. Additionally, your herd vet can better detect protocol drift within your barn; a level of quality control that might have been missed without such a program.

Our clients have articulated high praises for our Calf Herd Health Programs. As we’ve become more active members of our client’s calf consulting team, we’ve been better able to detect vaccine protocol drift, errors in feeding, head off diarrheal diseases, detect infected navels as well as joints before they are untreatable and have diagnosed/successfully treated hundreds of calves with subclinical pneumonia that would have otherwise gone undetected and untreated. These actions have resulted in reduced postweaning costs and disease rates, higher survival to first calving rates, and more thrifty animals overall.

These clients have received all these benefits at a cost that ranges from $5-$15 per calf. This is a small investment when you consider the elevated importance of each animal in today’s market. I invite you to open the lines of dialog with your herd vet and ask them if they would consider helping you protect your investment via a Calf Herd Heath Program during your next herd check.

Premium Alfalfa Hay Delivered by Amazon Prime

Mon, 22 Aug 2022 16:37:12 GMT

According to EarthWeb, Amazon reports that its Prime version had more than 200 million members in 22 countries in April 2021. From accessories to clothing to toiletries, households can get just about anything with one click through their Amazon app.

Dairy farmer, Steve Maddox knew his wife loved Amazon. Recently he also found a newfound love, as he began utilizing their shipping service. Earlier this month, an Amazon Prime truck hauled premium alfalfa dairy hay from his Logan, Utah hay ranch to his Riverdale, Calif. dairy farm.

Amazon worked with a dispatcher who then was able to fill the truck with Maddox’s milk cow alfalfa hay. Although, the load of hay didn’t qualify for free shipping.

“Amazon Prime back hauled 21 tons of hay from our hay ranch to our dairy,” Maddox shares. “The cost of shipping was $1,250.”

He says his hay trucking cost is down from its peak in December 2021, at around $2,000, but up considerably from 8 years ago.

“The cost of trucking from Utah to California back then was between $900 to $1,000,” he says.

Maddox Dairy milks 4,000 cows, with an equal number of heifers, and farms 1,600 acres of almonds and 3,00 acres of wine grapes, as well as cropland to supply feed for their cattle.

According to Maddox, Amazon Prime has many orders heading east but lacks loads coming west.

“They look to backhaul,” he shares.

Delivered in a straight truck, Maddox says they use a forklift and a ramp to underload the 1,400 lb. bales.

(Farm Journal)

“We have 2,500 tons of hay that will get moved from Utah to California,” Maddox says. “That is 120 loads that are trucked from June to the first part of November. Sometimes we will store the hay in Utah and move it west when we need it.”

Amazon is known for its quick deliveries and when the big semi-truck showed up, Maddox didn’t question what his wife had ordered and realized there are many benefits to holding a Prime membership.

The Heifer Discussion

Wed, 01 Jun 2022 14:13:04 GMT

The goal of producers is to raise heifer calves to fill their future pipeline. However, the increased cost associated with raising heifers has made us retool our thinking. Today many producers’ philosophy with raising heifers is only keep the heifers you need. Earlier management decisions are happening on dairies, with a more dialed-in, strategic breeding philosophy being adapted. While our Illinois dairy has also revised our breeding protocols, we still have room for improvement.

Our family dairy has increased the use of beef semen being served to our bottom-end cattle year-over-year. Recently, my husband, Scott, sighed when he learned all the calf hutches were full and four newborns needed a place to go. I kindly remind Scott that we only need so many heifer calves to fill the future pipeline.

Truth be told, Scott has a hard time breeding what is considered low-genomic-value cattle to beef. He often replies, “They are scored Very-Good or Excellent for a reason.”

While those low-genomic-value cattle have a place on our dairy, and on other dairies, too, I encourage producers, like my husband, to review the set protocols on which animals qualify for beef semen. Come up with a breeding game plan on how you handle those “VIP” cows.

Impacting Profitability

Our dairy has sold many surplus heifers, from open to bred heifers, to other dairies over the past decade. This has added a nice income to our bottom line, but with the increased cost associated with raising heifers, I’m not sold that we are truly getting our return on investment back. A heifer discussion is needed on our dairy. My guess is it wouldn’t be bad to revisit yours, too.

A Princess for a Princess

My daughter, Cassie, purchased a Jersey heifer calf in a junior-only sale back in 2014. At the age of 8, Cassie earmarked a few heifer prospects she liked after reviewing the catalog with her father. She ended up buying a heifer named Princess. Cassie’s Princess family has produced 20 heifer descendants. One of those descendants was recently sold in a pot load of surplus heifers that our farm sold to a Canadian herd last month.

The return on investment for Cassie has paid in spades. I’ll admit, sometimes the return on investment when raising heifer offers more than filling the future bulk tank or adding profit to the dairy’s bottom line. It also helps fund other projects, like a kid’s college savings account, or, to Cassie’s appeasement, her first car.

Dairy Semen Sales hit 17-Year-Low: What Will the Trend be Going Forward?

Thu, 14 Apr 2022 18:34:48 GMT

With the cost of inflation impacting every corner of a dairy, including the costs to feed heifers, the producer’s breeding strategy has been forced to become finetuned. More and more producers are keeping just enough replacements to fill the pipeline, so it is not surprising that the market for dairy semen sales has hit a 17-year-low, with year-over-year sales dropping nearly 7%, according to the National Association of Animal Breeders (NAAB) data.

With beef-cross calves creating a value-added revenue stream for producers, Beef x Dairy numbers have indeed skyrocketed. The 2021 NAAB year-end report showed that Beef x Dairy sales totaled 8.5 million units, an increase of more than 30% over 2020.

According to Lyle Kruse, Vice President of U.S. market development for Select Sires, Inc., Holstein dairy owners will continue to prioritize strategic use of sexed and Beef x Dairy due to the increased costs of rearing replacements.

“We could still see some growth in Beef x Dairy in the U.S.,” Kruse says. “Most Jersey dairy owners are already intensively using sexed semen and Beef x Dairy, as well as pure-beef embryos.”

Kruse reports that Select Sires has seen a decline in the U.S. on conventional semen sales over the last 4-5 years, while sexed semen sales continue to increase.

“Total dairy semen sales have also declined,” he notes. “Some of this is from the improvement in dairy reproductive efficiency (fewer units needed per pregnancy), but Beef x Dairy is nearing one unit per cow, which is clearly replacing dairy semen.”

Low Culling Rates

With Beef x Dairy ramped up, the question begs to ask, ‘Will we have enough dairy replacements?’ Kruse says he already sees some herds with a 30% or less culling rate.

Kruse shares that based on research from Dr. Albert DeVries and Dr. Chad Dechow, the optimal herd turnover rate to optimize production and not hinder genetic progress is between 25-30%.

“We are not there yet but heading that direction,” he notes. “To get there, dairies will need productive, healthy and reproductively fit older cows.”

However, he remarks that the trend in declining culling levels has occurred for several years, and he expects that to continue. Kruse also states going forward, this will lead to producers honing their genetic selection focus by using indexes that consider more factors affecting longevity, like Select Sires’ Herd Health Profit$^™ (HHP$^™) or Zoetis Dairy Wellness Profit$^® (DWP$^®).

Kruse says that dairy owners will start focusing on increasing the percentage of older lactation cows (third lactation and up) to eventually be equal to or more than 40% of total lactating cows.

“Herd management, cow comfort and utilization of technology, such as CowManager^®, to aid in accurate individual cow alerts for repro and health management will play a role also,” Kruse remarks.

While we are not there yet, Kruse believes this is what the U.S. is leaning towards. “It also fits our animal care and sustainability needs for the future. Most U.S. dairy owners want to continue to reduce herd replacement costs and harvest additional income by generating excess beef calves from uteruses not needed to gestate replacements,” he says.

With record inflation felt from every angle of the dairy, fine-tuning management must continue, and Kruse says he believes strategic breeding and smart replacement planning is here to stay.

“This includes planning for the most profitable outcome for every pregnancy generated based on the specifics of every individual cow and heifer in the operation,” Kruse notes. “This will include a mix of dairy conventional, dairy sexed and beef conventional and sexed semen and embryos.”

Based on estimates from the USDA-NASS, Chuck Sattler, vice president of the genetic program for Select Sires, shares with his team that the number of replacements is relatively low.

“We only have enough replacements to cull 31-32% of the current dairy cows and this will likely drive herd life and lead to less forced culling of older cows,” Sattler states.

Kruse believes the Beef x Dairy market for semen sales will continue to increase to eventually level off at around 10-11 million units sold per year.

“Some of this decision process is going to be driven by changes in the availability of native beef cattle, replacement dairy heifer prices and the Holstein bull calf prices as well as the level of adaptation for pure-beef embryos,” he says.

Minnesota Producer Perspective

Carlson Dairy, located in Pennock, Minn., has switched up their culling determinations in recent years, especially as they have strategically dialed in on their breeding program.

“We used to cull a lot more, but that has really changed,” one of the owners, Carl Carlson, shares.

Before, cows were culled for mastitis or low production and now cows are only leaving for low production. Carlson’s culling rate hovers between 31-32%.

“We want to keep older lactation cows in the herd longer because obviously we’re getting more milk out of them,” he notes.

Understanding their ultimate goals, the Carlson’s began utilizing Beef x Dairy a couple of years ago on both heifers and mature cows.

“Right away we went with using beef, as well as some conventional semen,” Carlson shares. “And now we’re strictly using either beef or sexed.”

The Carlson family milks 2,000 cows and basically raises all replacements on the home site, except for the 15% that are raised by a nearby family member. In addition, they farm 2,500 acres, including 1,000 acres of alfalfa and 1,500 acres of corn, all of which goes back to the dairy to feed cattle.

(Farm Journal)

Before breeding to beef, Carlson was raising excess heifers that they would later sell as bred heifers, but that changed when the market changed. Rising inflation costs increased (swallowed up sounds like lowered to me) the costs of raising heifers and selling bred heifers later didn’t always guarantee a returned profit.

“We weren’t getting the money back that we were putting into them,” Carlson shares. “We don’t want to raise more heifers than we need because obviously it costs a lot of money to raise a heifer today.”

While the prices for bred heifers have increased with rising milk prices, Carlson says they don’t plan to raise more heifers than they need.

The focus for this Minnesota dairy is to produce 60 heifer calves a month, and their breeding plan has become strategic to reach this goal. Today, 10% of cows are bred to sexed semen while the rest are bred to beef. For the heifers, 50% are bred to sexed while the other half is bred to beef.

An increase in conception rate is proof that the improved management is working. Carlson shares that their current conception rate is 51%. Additionally, the farm relies on a shot program, along with CowScout sensor collars from GEA for heat detection.

Limousine is the breed of choice for Carlson, and he shares that currently he has two buyers for his crossbred calves who pick up calves weekly. Fine-tuned breeding protocols that have introduced Beef x Dairy breeding now generate an additional revenue stream for the operation. Carlson gets $200 per crossbred calf and shares that in 2021 he sold approximately 150 crossbreds a month.

Creating just enough replacements has not only helped Carlson Dairy maintain its herd size, but also generate efficiencies throughout the operation to cushion their bottom line.

“Black” is Not the Only Goal in Beef-on-dairy Breeding

Thu, 03 Feb 2022 19:00:34 GMT

If the dairy industry wants the beef business to embrace beef-on-dairy crossbreds long-term, we need to up our genetic selection game, according to Denise Schwab, Extension Beef Specialist for Iowa State University.

Schwab advised producers at Iowa State’s recent Midwest Dairy & Beef Day that beef-on-dairy breeding decisions need to be made with the same precision they devote to genetic selection for dairy replacement females. “It’s not likely you tell your semen rep, ‘Just give me Holstein semen that’s cheap,’” she stated. “Yet that’s what’s happening with a lot of beef-on-dairy breeding right now. We need to aim for more than just a black calf.”

Unfortunately, many of the dairy-beef crosses today are simply “black Holsteins,” with similar frame characteristics to full-blood dairy animals. “If you’re going to do that, you might as well just produce Holstein steers, because at least there is a specific market for them,” said Schwab. “The tall, black crossbreds don’t fit well into any production or marketing system.”

Many producers aim for black animals so they can qualify for Certified Angus Beef (CAB) premiums. But Schwab noted CAB quality standards specify details that a “black Holstein” animal probably won’t achieve, like 1,050-pound-or-less hot carcass weight, and superior muscling.

And while she is sympathetic to today’s economic conditions that can generate around $100 per head for “any” black calf versus about $30 for a Holstein, she is wary of long-term consequences. “If we flood the market with undesirable animals, that premium will be short-lived,” she stated. “I want to protect that value so we can continue capturing more dollars 3, 5 and 10 years down the road.”

To do so, she suggested focusing on the following characteristics when selecting beef sires to cross with Holsteins:

Breed – The natural inclination may be to reach for Angus semen to produce black calves. But the Angus breed has the largest beef registry in the country, which means it also has the greatest variability. Surprisingly, Angus also now has the highest hot carcass weight of the major beef breeds, which means a Holstein X Angus cross may very well be duplicating frame size. “Think specifically of the bull, not just the breed,” advised Schwab.
Frame size – To develop more compact animals that feed and finish more efficiently, Schwab suggested choosing moderately sized bulls, with frame scores of 5 or under.
Ribeye area – Holsteins tend to marble very well and can have excellent quality grades, but also have elongated, less-desirably-shaped ribeyes. “Select beef sires with ribeye EPDs in the top 25 percentile of the breed,because there is a high correlation between ribeye size and shape,” advised Schwab.
Muscling – Holsteins have a lower muscle-to-bone ratio, so choose bulls with higher muscle scores to enhance the beef composition characteristics – in terms of muscle size and shape -- of the offspring.
Calving ease – While selecting for moderately sized calves is a common decision, Schwab said it actually is less of a concern in beef-on-dairy breeding. “Most Holstein cows easily can lie down and have a 100-pound calf,” she stated. “You don’t need to choose from the top 10% of calving ease beef sires. The top 30-50% is a very reasonable range.”

Finally, Schwab noted beef sires should be one strategic element of a herd’s total genetic plan, and not just “cow fresheners” for repeat-service dams. “The fertility of beef sires is no better than dairy bulls, so beef breeding should not be viewed as a ‘service of last resort,’” advised Schwab.

Rather, she said carefully selected beef sires should be mated with dams based on pre-established criteria, such as genomic testing results, parity or genetic merit – with the overall quality and yield of a finished market animal in mind.

Sleeping With the Cows: A Unique Bed and Breakfast Experience

Fri, 05 Nov 2021 14:44:47 GMT

Dairy farming is a 24/7, 365-day commitment. At times it can even feel like farmers are literally with their cows nonstop. From 2-3 times a day milking to feeding and caring for the cattle, many feel like their work schedule are so full that they could sleep with their cows. Nestled in the small Northeast Iowa town, Dan and Lynn Bolin offer an experience to do just that.

The Bolins operate New Day Dairy GuestBarn, located near Clarksville, that invites visitors to basically sleep with their cows.

Lynn, who grew up in the Minneapolis suburbs, got her first introduction to farm life after marrying her husband, Dan, and moving to his family farm in 2011. “After living abroad and traveling around the world, we realized that we wanted to share a piece of the farm with others,” Lynn says.

(Farm Journal)

In 2015, the Bolins built a new farm facility that includes a natural ventilated freestall barn with perimeter inside feed alleys and a free-flow robotic system with an attached milk house, calf care room, office space, apartment and a Galaxy robot they have affectionately named Rita. While many dairies open their barn doors to their local community, Bolins took it a step further and invite visitors to come to sleep in their barn.

New Days’ GuestBarn is a place where families can experience new adventures on an authentic dairy farm all while having a comfy bed to sleep in at night. An experience that the Bolins believe captures what traveling experiences should include.

“We’ve found that our guests appreciate being able to relax on the farm in nature while they and their family are subtly learning and experiencing a different way of life, understanding where their food comes from, and gaining an appreciation of life that can’t be found on a Disney cruise,” Lynn says. “Their time on the farm enriches their lives back home much like a trip to another country and culture.”

The Bolins hope that the New Day Dairy experience further influences and affects guests’ lives and decisions when they return home.

A truly unique experience

While there certainly are plenty of bed and breakfasts scattered throughout Iowa and some that even originated as a former dairy barn, New Day Dairy GuestBarn stepped up the experience by offering a bed and breakfast where guests can actually spend the night at a working dairy farm.

(Farm Journal)

Guests can come and stay in a loft space above the cows, with two large windows that look directly into the barn. “It’s a 24/7 cow gazing view,” Lynn says. “So, if at 3 a.m., you get up to the bathroom, you can wander out and find out what the cows are doing.”

The 24/7 lifestyle is a lifestyle that Dan grew up with. His great-grandfather moved to the farm in 1890 from Illinois, making Dan the fifth generation to run the family farm. “My father started milking cows at the age of 13 when my grandpa went to work as the Postmaster in town,” he says.

In addition to sleeping with the cows, guests can take on the 90-minute “Be a Dairy Farmer Challenge,” that includes seeing ‘under the hood of Rita’, riding in a tractor, feeding a bottle to a newborn calf, scraping manure and working alongside Dan, or better known from his YouTube channel as ‘Dairyman Dan,’ and getting the very up close and personal view of a Midwest dairy farm. “They even get to scratch a few cow heads if they’re lucky,” Dan says.

Music Man

Visitors will see all the care that goes into producing a gallon of milk and they also can watch Dairyman Dan play his guitar or piano in the barn. Dan describes music as ‘life-giving’ and he collects instruments the same way that some collect art, purses, old tractors or tools. “Music provides me a space to worship, create and also provides a mental break from the ever-present stress that dairy farming can be,” he adds.

(Farm Journal)

Dan keeps a guitar in the robot room to tinker on while observing a new heifer learning to milk for the first time. Additionally, he has a piano in the alley that provides impromptu concerts for guests and several more instruments in their family home to enjoy as a family.

City Advantage

For Lynn, growing up in the city, nothing on the farm seemed what she now considers normal and has the advantage of connecting with consumers, as she “sees it with the eyes of an outsider.”

Like how health professionals talk to each other differently than what they ‘translate’ to their patients, Lynn says that she too has the advantage of talking to consumers coming from the city and crafts her way to talk to consumers—both in-person on the farm or through social media.

“As I’ve learned more about the farm, I can then take that knowledge and ‘translate’ it in a way without all the ‘farm’ words to consumers who are visiting our farm,” she states. “It’s all about giving enough information that someone understands but not so much they drown or are overwhelmed.”

During a struggling dairy economy, the New Day GuestBarn has been able to provide a place and a way for the Bolins to be at home on the farm with family. “Because we built the GuestBarn in such a unique way with 24/7 cow grazing, we have an exclusive product that we can price according to the market, not having to rely on the ‘markets,’ like our milk price,” Lynn says.

For more information about sleeping with the cows’ experience, visit www.newdaydairy.com .

Evaluating the Economics of Adding Management Practices or Products to the Farm

Most of the management practices implemented on the farm are either to manage disease or increase milk production. The market is flooded with products that can help with both goals. Understanding the economics of management practice adoption can make it easier to make adoption decisions.

Determining Disease Costs

Disease costs can be calculated using the simple equation: C = L + E or Costs = Losses + Expenses. Expenses are more straightforward to configure because they include the costs we typically associate with treating the disease, like drugs or added labor. However, preventative expenses are often overlooked. For example, using a pre or post-dip should be considered when evaluating mastitis expenses. Losses can be more challenging to estimate because the costs are not direct. Losses may come in the form of lost milk yield, decreased fertility, or lost milk premiums.

If nothing is done to manage or prevent a disease, the total cost of the disease comes from losses alone. Once a management practice is added, the losses will decrease to a certain point, and expenses will increase. A technical optimum is reached when disease incidence drops to a point where the incidence rate can go no lower regardless of what management practice is added. In that case, expenses are the highest portion of the total disease cost. Often, the economic optimum, the point where we see no financial returns to lowering a disease incidence rate, comes well before the technical optimum.

Marginal Level Milk

The adoption of products or changing management practices to increase milk yield should be evaluated using marginal economics. This means the cost and benefit of increasing milk per pound. Like disease management, a point will come in which the benefit of increased milk yield will not cover the costs. All costs should be considered to make the marginal level milk yield as accurate as possible. For example, feed costs typically increase as milk yield increases, so when determining the potential benefit of adding a product to the farm, feed costs and the costs of the product need to be considered.

Before adopting a product or changing a management practice, try to consider the whole picture. Determine which direct and indirect benefits or drawbacks might occur from management adoption. Overestimating costs of management practices can help ensure that hidden costs may be accounted for.

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How Dairy Producers are Boosting Profitability

In the ever-competitive world of agriculture, dairy producers are continuously exploring new avenues to ensure the sustainability and growth of their operations. In the face of fluctuating market dynamics and economic pressures, innovative profitability strategies have become crucial, particularly in the dairy industry.

Alternative Profit Strategies
With the spotlight on profitability, many dairy producers have turned their attention to alternative profit sources. This shift has been especially significant during times when milk prices are less than favorable. Robin Schmahl from AgMarket.Net highlights the beef-on-dairy strategy as a pivotal approach to increasing income. By integrating beef genetics into dairy herds, many producers have successfully split their breeding practices between sexed semen and beef, leading to substantial income boosts over recent years.

Understanding Market Dynamics
Market dynamics play a critical role in shaping milk production. According to Phil Plourd, head of market intelligence at Ever.Ag Insights, the unfavorable economic conditions have historically squeezed milk production. Despite this, he remains optimistic about the upcoming 12 months, suggesting they present the best profit potential for dairy producers in recent times. His observation that “Historically, more money generally means more milk,” underlines the intricate relationship between economic conditions and milk yield.

Challenges with Dairy Replacement Heifers
The adoption of beef-on-dairy practices has, however, led to a decrease in the availability of dairy replacement animals. This scarcity has driven up prices, presenting a challenge for producers, especially those planning for expansion. Larger operations are now strategizing ways to secure replacements either through internal growth or external purchases well in advance.

“I don’t think they’re going to wake up three days before they open the new dairy and say, ‘Oh, wait, I need heifers,’” Plourd says.

Adapting to Market Signals
While there is potential market growth with higher milk prices, current dairy heifer inventory doesn’t entirely align with this trend. However, Schmahl points out that the increased milk prices offer producers more flexibility, allowing them to invest in replacements or retain older cows to maximize their output.

Risk Management in a Volatile Market
Efficient risk management strategies are crucial to navigating the ups and downs of the market. Schmahl emphasizes the importance of engaging in risk management without capping potential gains. He recommends option strategies or revenue protection, advising producers to remain flexible and informed as they plan for the future.

“You don’t want to limit your upside,” Schmahl insists, while cautioning producers about using futures, encouraging a balance between protection and opportunity.

As the dairy industry continues its evolution, staying informed and adaptable is essential for producers looking to capitalize on emerging trends. By employing innovative strategies and maintaining a sharp focus on market signals, dairy producers can navigate economic challenges to secure and enhance their profitability.

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