News September - October 2021
Achieve more profit from more lactations
H
erds are always striving for more production. Instead of adding cows, you change your herd dynamics to accomplish this goal, and at the same time reduce herd turnover and the number of heifers you need to raise, both of which reduce costs. Here we will drill down on the idea of why you need more of your herd as third and greater lactation cows. Let’s start with a goal, which should be to have 40 percent or greater of your herd as third and greater lactation animals. Not only does this goal grow your profitability, helping you stay in business, but it also increases efficiencies, and lowers greenhouse gases and your herd’s carbon footprint. When you have more first lactation animals, you have lower production and less profit. Generally, a second lactation cow produces 15 percent more than a first lactation cow, and a cow in her third or greater lactation will produce 10 percent more than a second lactation, or 25 percent more than a first lactation. When a cow stays in the herd until a fifth or greater lactation, she produces about 60 more pounds per day of life.
How increasing the percent of third and greater lactation cows affects your bottom line. Using a replacement value calculation you can see by reducing the number of first lactation cows from 43 to 30 percent, the increased production alone in this 491-cow herd would be worth over $59,709 at $17 milk. All this gain can be made without milking any more cows.
PROPOSED Scenario
CURRENT Scenario Cows Sold 108
Cows Sold 124
Cows Died
Cows Died
Replacement Cost
42
Replacement Cost
$1,800
10 $1,800
Cull Cow Value $0.65
Cull Cow Value $0.65
Cull Cow Weight 1,500
Cull Cow Weight 1,500 CWT Milk Sold 116,656
CWT Milk Sold 116,656 Reduced 1st Lact % - Addl Milk CWT Cost per CWT Produced
0
Reduced 1st Lact % - Addl Milk CWT 3,512 Cost per CWT Produced
$1.41
Total Cost $120,300
Total Cost $164,700 Expense
$1.00
Savings $44,400
-$44,400
Viewed another way, set your herd goals for lactation ratios.
CURRENT Scenario
GOAL Scenario
Lactation Group
# of Cows
305-Day Milk Avg..
CWT Produced
Lactation Group
# of Cows
305-Day Milk Avg..
CWT Produced
43% First
240
23,891
57,338
30% First
147
23,891
35,120
31% Second
96
27,494
26,394
30% Second
147
27,494
40,416
26% Third+
155
27,761
43,030
40% Third+
196
27,761
54,412
Total
126,762
Total
129,948
Milking 40 percent or more third and greater lactation cows is about profit per stall. Each stall must be occupied by the most profitable cow, which is typically an older cow.
Subtracting the "Current Total" from "Goal Total" results in 3,186 more hundredweights of milk produced. At $17 milk, the difference between the two (3,186) equals $54,162 more profit.
There’s nothing but upside to this concept of having more third and greater lactation cows. Take a look at the examples to the right and see how it can improve your bottom line.
Want to pursue this idea further? Talk to your CentralStar team or contact me.
That profit is made without adding cows, but instead by having different lactation group ratios. These are real numbers obtained by not having too many heifers push older cows out the door. Julie Ainsworth Dairy Records & Consulting Coordinator julie.ainsworth@mycentralstar.com