PDPW Dairy's Bottom Line November 2019

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BOTTOM LINE Thursday, November 14, 2019 SECTION E

Sharing ideas, solutions, resources and experiences that help dairy producers succeed.

Mind net herd-replacement costs

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et herd-replacement cost is a frequently underestimated expense on dairies. It’s a significant determining factor in overall dairy profitability. Producers often view having plenty of heifers as the most effective hedge against herd-replacement cost. While that may be a proud testament to reproduction management and genetic selection, if there are more heifers than MATT needed it’s a drain LANGE on operational performance and profitability. Knowing and understanding net herd-replacement cost and managing that margin can improve an operation’s performance, cash flow and profitability. It’s important to note that net herd-replacement cost is not the cost of raising a heifer. Rather it’s her value as a replacement compared to her cull value. Net herd-replacement cost per hundredweight is the difference between the cost of a replacement heifer and the value of the re-

in key areas can be benchmarked. For a 1,000 cow dairy – dry cows included – with a calving interval of 24 months, a replacement rate of 30 percent, and an 8 percent loss represented by heifers that don’t enter the milking herd, it takes about 648 heifers to maintain herd size. That’s 27 heifers each month. At more than the target number, every additional heifer entering the milking herd increases the replacement rate. With the goal of reducing additional heifers in mind, set a benchmark for replacement rate. CONTRIBUTED Determine a value for each heifer based on her productive life less Knowing and understanding net herd-replacement cost and managing her cull value. that margin can improve an operation’s performance, cash flow and Keep in mind increasing profitability. It’s important to note that net herd-replacement cost is milk production can reduce net not the cost of raising a heifer. Rather it’s her value as a replacement herd-replacement costs, but it’s compared to her cull value. just a small piece of the puzzle. To realize true cost savings it’s also placed cull cow. If a cow is valued $210,000.  If the herd shipped 27 million important to decrease the number at $1,700 and the cull value is of involuntary culls. Managing $700 cash, the net herd-replace- pounds a year, the net herd-rethat area allows for greater opplacement cost would be $1.43 ment cost is $1,000. portunity to increase overall milk  If a 1,000-cow dairy has 300 per hundredweight. production while reducing net There are a number of ways to cull cows and a mortality rate of herd-replacement costs. 50 cows annually, it will have a to- manage that margin and reduce Of course greater cull prices tal cull-cow revenue of $210,000. its impact on total cost of producalso shrink net herd-replacement tion.  The net herd-replacement costs. Though cull-cow prices Begin by establishing a target cost would be $385,000 – which is 350 multiplied by $1,700 minus replacement rate so performance have generally been depressed the

Calf-care managers learn from experts In a workshop series designed to challenge even the most seasoned calf-care managers, three experts will present the latest in calfcare management strategies and research. The PDPW Calf Care Connection® will be held in three Wisconsin locations – Nov. 19 in Chilton, Nov. 20 in Eau Claire and Nov. 21 in Fennimore. Featured presenters are Jennifer Van Os and veterinarians Dr. Theresa Ollivett and Dr. Franklyn Garry. They will offer several sessions.  Learn what scientific data indicates regarding social calf housing.  Learn how to diagnose clinical and subclinical pneumonia.  Be part of a hands-on session to examine postmortem calf lungs. Participants will also learn data-keeping and tissue-sampling techniques in a session led by Garry. Showcasing normal and abnormal calf anatomy, he’ll highlight the most common causes of calf mortality and how to enhance calf care. The program is geared to calf feeders and team members who work with young stock and newborn calves. College and technical students studying animalor dairy-science-related courses are also encouraged to attend. Craig Lallensack, dairy-agribusiness instructor at Lakeshore Technical

PDPW Calf Care Connection workshops 9 a.m.-4:15 p.m. Nov. 19, Fox Valley Technical College, Chilton Regional Center, 1200 Chestnut St., Chilton, Wisconsin 9 a.m.-4:15 p.m. Nov. 20, Chippewa Valley Technical College, Energy Education Center, 4000 Campus Road, Eau Claire, Wisconsin

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9 a.m.-4:15 p.m. Nov. 21, Southwest Technical College, 1800 Bronson Blvd., Fennimore, Wisconsin

College in Cleveland, Wisconsin, has participated in Professional Dairy Producers of Wisconsin programs during the past five years, accompanied by students enrolled in his courses. He said the program presents an off-campus opportunity to gather with producers and industry professionals to network and share their knowledge about the newest methods and research specific to calf raising. “The value of the educational benefit to them – and me – is immeasurable,” he said. “The Calf Care Connection workshops keep all those in the industry up-todate on the latest practices and research to allow all of us to provide the best life for ourselves and the animals we care for.” Each one-day session will begin with registration at 9 a.m. and conclude at 4:15 p.m. The registration fee covers the workshop, materials and lunch. Visit pdpw.org or contact 800947-7379 or email@pdpw. org for more information.

past two years, there are strategies to increase those values. Managers can establish sound voluntarily culling protocols to reduce the herd’s mortality rate. Proactively culling can also lessen the negative financial impact of death loss. Soundly managing animal-health basics such as transition-cow management, hoof care and overall herd health can also reduce the number of involuntary culls – and increase the value of cows that are culled. Reducing net herd-replacement costs is a fundamental component to lessening the overall cost of production and improving profitability. When a strategy is formulated that includes raising the correct number of heifers, wisely choosing which heifers to cull or sell, minimizing mortality and optimizing animal wellbeing, a full barn can be a testament to an operation that is both soundly managed and positioned for profitability. Matt Lange is a dairy-business consultant with Compeer Financial, a vision sponsor of PDPW. Email matt. lange@compeer.com to reach him.

Consider serotonin’s relationship with calcium

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uring late pregnancy and lactation, the udder undergoes an immense amount of change to support milk production. Calcium is the major mineral in milk; large quantities of calcium are excreted into milk as the cow starts lactation. Immediately before and after calving, a cow experiences a substantial nutritional LAURA HERNANDEZ and physiological demand to support milk production while simultaneously maintaining health. During the past several years, improving the processes by which the cow maintains adequate calcium levels during the transition period has been given a lot of attention. Research has been primarily focused on improving cow health, welfare and overall herd productivity. Researchers have sought to learn more about such management

active compounds. Those compounds impact milk synthesis and secretion. They also interact with tissues to coordinate maternal metabolism and physiology – one of them being calcium. Our research team conducted a study into late-lactation dairy cows. We demonstrated that treatment with 5-hydroxy-L-tryptophan – a direct precursor for serotonin synthesis – acutely decreased circulating total CONTRIBUTED calcium and urine-calThe relationship between serotonin and calcium in the cium concentrations. But transition cow is a complex one. Researchers continue to it increased milk-calcium study how oral calcium boluses and a ration’s dietary cation- concentrations. That anion difference can be used as effective management tools finding suggested that to optimize cow health, welfare and herd productivity. serotonin was potentially coordinating calcium flux between the kidneys, tendency to maintain tools as dietary catrelative physiological sta- bones, intestines and ion-anion difference and the udder. It was seen by oral calcium boluses – and bility. Another goal is to determine how serotonin changes in calcium in the how those tools impact blood, urine and milk. may synergize with – or cow health during her When multipawork independently from corresponding lactation. – management tools cur- rous-transition cows The fundamental goals were treated with 5-hyrently available for reguof my research program lating calcium metabolism droxy-L-tryptophan for have been to understand one week prepartum, during the transition how serotonin that’s total calcium concentraperiod. produced outside the tions increased during During the transition brain works to regulate period the udder produces calcium signaling and homeostasis – the body’s and secretes biologically Please see HERNANDEZ, Page E2

“But what impressed me is we had zero mastitis...” — Bob Keefer

HARD EARNED ACRES, Bob and Barb Keefer SHIPPENSBURG, PENNSYLVANIA 700 cows, RHA 28,900M SCC 100 to 135,000 “We try to do things right and get better. After starting fresh cows on Udder Comfort™ 2 years ago, I was impressed with our improved SCC Quality Udders Make Quality Milk and production. I’m sold on this even before the pre-fresh trial,” says Bob To locate a distributor and learn more about the Keefer, milking 700 cows at Hard Earned Acres, Shippensburg, Pa. Bob alternated months for groups of heifers to get Udder Comfort mostly before they calved, 1x/day 5 to 7 days pre-fresh and 2x/day 1 to 2 days post-fresh. “We averaged more milk across groups getting it pre-fresh, and I could see the benefits when I lined them up every Friday. “But what impressed me is we had zero mastitis in groups getting Udder Comfort pre-fresh, and treated 5 cases in groups that did not,” Bob reports. “That’s big. We’ll keep using Udder Comfort on the pre-fresh and include the mature cows.”

new Backpack Sprayer, call 1.888.773.7153 uddercomfort.com @uddercomfort

For external application to the udder only, after milking, as an essential component of udder management. Always wash and dry teats thoroughly before milking.


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