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KENTUCKY
January - February 2016 w w w. k y d a i r y. o r g
Milk Matters Warren Beeler Appointed as Executive Director of GOAP Find out more on page 5 Spending Your $$$ Wisely on Your Dairy Replacement Program Find out more on page 14
I
Winter Storm Jonas Left Its Mark
heard the sleet start hitting the window at 12:10 AM Friday, passed as if they hadn’t even been there. The same scenario occurred January 22st. It was no surprise that it had arrived, the local in Adair Co. as one county salt/scraper truck turned over and others news and weather had warned it was to begin about that got stuck trying to pull it out. Many of these county crews worked to exhaustion without a lot to show for their efforts because of the ice base time. Watching as it came down from the security lights broad and amount of snow. illumination, it changed from sleet to a fine snow. The wind gusts The Kentucky Dairy Development Council contacted newly appointed created a whiteout to the point it was difficult to even know where GOAP Executive Director, Warren Beeler and he quickly contacted the snow was coming from or where it was state transportation and highway officials in an attempt to mobilize manpower and going. When the snow finally stopped, equipment to problem areas. Local farmers about seven inches had accumulated in were contacted to evaluate the condition of my yard; but as it moved east across their roads and estimate how long they had Kentucky, the winter storm named “Jonas” before having to dump milk. The situations by the National Weather Service, had were overwhelming with snow falling and dumped up to 22 inches in some places drifting over a solid layer of ice. Much thanks to Sharon Burton, her daughter Toni with drifts as deep as five to six feet. Humphress and Mike Keltner, Adair Co., Some milk haulers in preparation had KY Emergency Management Director, for picked up as much milk as they could on their hard work as well. Thursday and even dropped tanker trailers By Saturday the 23rd milk trucks were at larger dairies for extra storage. State road running in some areas of west KY and crews cleared interstates and parkways first by Sunday the 24th roads were gradually then moved on to secondary becoming passable as you moved east. roads. County crews had Unfortunately as tankers got full and tremendous challenges trying went to plants to unload another obstacle to stay on the less traveled sometimes occurred, long lines of full milk KY roads as the wind drifted trucks waiting hour upon hour to off load. snow. Producers were waiting to milk because In South Central KY, near Winter storm Jonas put they thought the hauler was on the way and Temple Hill one dairy farmer a halt to most everytheir tank was full. As we see one problem leads reported finding four county thing across the state to another, but thanks to all those involved, some road department trucks stuck of Kentucky, including warmer weather and time, things have finally in ditches as they attempted the dairy industry. gotten back to normal. to clear roads. Their area Snow covered roads The KDDC checked with all markets in the received freezing rain rather led to vehicles getting state to have accurate amounts of milk dumped than sleet and the light snow stuck and since the due to the storm. There was 1,245,939 pounds of that fell on top made the roads weren’t cleared KY producer milk dumped or just slightly under roads dangerously slick. The the milk couldn’t be 25 tanker loads. This was quite a great loss due to high winds would cover the picked up. Mother Nature’s winter storm “Jonas”. roads as the scraper trucks
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2015 KDDC Board of Directors & Staff Executive Committee President: Richard Sparrow Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Past President: Bob Klingenfus
Board of Directors District 1: Freeman Brundige 731.446.6248 District 2: Josh Duvall 270.535.6533 District 3: Don Kinslow 270.646.0086 District 4: William Crist Sr. 270.590.3185 District 5: Tony Cowherd 270.469.0398 District 6: Todd Burgess 270.427.6403 District 7: Larry Baxter 859.612.2738 District 8: Jerry Gentry 606-875-2526 District 9: Dwight Leslie 859.588.3441 District 10: Richard Sparrow 502.370.6730 District 11: Bill Mattingly 270.699.1701 District 12: Larry Embry 270.259.6903 Equipment: Eric Risser 423.368.7753 Milk Haulers: Alan Wilson 606.875.7281 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dr. Ron Wendlandt 502.839.4222 Dairy Co-op: Fabian Bernal 859.351.0610 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Michael Smith Former Pres.: Bob Klingenfus 502.817.3165
Employee & Consultants Executive Director: Maury Cox 859.516.1129 DC-Central: Beth Cox 859.516.1619 • 270-469-4278 DC-Western: Dave Roberts 859.516.1409 DC-Southern: Meredith Scales 859.516.1966 DC -Northern: Jennifer Hickerson 859.516.2458
KDDC 176 Pasadena Drive Lexington, KY 40503 www.kydairy.org KY Milk Matters produced by Carey Brown
January - February 2016 • KDDC • Page 2
President’s Corner Richard Sparrow
A
s a dairy farmer today, it is easy to be depressed at the milk price. However, I am a half-full glass of lemonade type of guy. I just read in the January 26th Hoard’s Dairyman, Washington Dairygrams, that in 2015 milkfat contributed to two-thirds of the total U.S. milk check. Historically, this proportion averaged just over one-third. This relationship surprised me; so I pulled some of my 2015 milk checks. Since I was working on my taxes, I had them handy, anyway. I found that my milkfat value percentage of the gross milk check was between 64 percent and 68 percent for the second half of 2015. As you know, there are two basic ways to increase the milk fat pounds in your herd, through genetics and nutrition. While I think most commercial Holstein herds could improve their profitability through a sound crossbreeding program, in the short run, a balanced approach through nutrition would yield the most positive results.
We are in a period of low milk prices; and, while it is true that we as dairymen and dairywomen cannot affect the supply and demand imbalance that is causing our current depressed milk price situation, we can increase our revenue. I am not a dairy nutritionist, but I know that you do not have to give up milk production in order to increase butterfat percentage. I urge each of you to have a frank conversation with your nutritionist to see if it is economical to adapt your milk ration to increase your butterfat pounds. The milk market is sending us a signal—in order to maximize our income, we need to maximize our milkfat portion on each 100 pounds of milk produced.
Your Input Is Needed
Most are aware of what The Kentucky Dairy Development Council mission statement is “To educate, promote and represent dairy producers and foster an environment for growth of the Kentucky Dairy Industry.” What better way to do this than listening to the producers! We are dedicated to helping dairy producers in any way that is possible and continually strive to better our services to you. That’s why we are seeking input for your newsletter. What would YOU like to see covered in each issue. Your input and opinions are a valuable resource to us and we would enjoy hearing from you. Please take a minute to share with us what you would like to see included in the newsletter. Responses can be sent to KDDC at 859-516-2458 or email @ kddc@kydairy.org
97
%
of feed samples were contaiminated with at least one mycotoxin 15.51%
of samples contained 8-11 different mycotoxins
68.96%
of samples contained 4-7 different mycotoxins
5.17%
8-11 0-1 2-3
of samples contained 0-1 different mycotoxins
10.34%
of samples contained 2-3 different mycotoxins
From September 2015 to November 2015, Alltech analyzed 116 corn silage samples in key production areas across the United States and Canada, testing for more than 37 mycotoxins through the ALLTECH 37+ÂŽ mycotoxin analysis.
Contact your local representative to learn how Alltech is helping producers navigate the threat of mycotoxins.
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Executive Director Comments -‐ Maury Cox
Executive Director Comments Maury Cox
A
t the writing of this article the news of the Blue Grass Stockyards being destroyed by fire has taken place, Saturday, January 30, 2016 in Lexington. The historic Stockyard was 70 years old and encompassed over seven acres and employed 55 people. Fortunately no one was injured and not many animals were there. It is reported 40-50 cattle were lost in the fire. There were 120 firefighters on hand to fight the raging fire. Jim Akers, Chief Operating Officer at the stockyards stated, “Blue Grass is a lot more than a building, while this is a sad day historically and certainly the beginning of a lot of hard work, we have already beefed up operations at our other facilities to take care of our valued customers. We will have staff on sight to direct any customers that do come here to our other facilities.” We wish the folks at the Blue Grass Stockyards the very best as they look to rebuild.
At the writing of this article the news of the Bluegrass Stockyards being destroyed by fir place, Saturday, January 30, 2016 in Lexington. The historic Stockyard was 70 years old a encompassed over seven acres and employed 55 people. Fortunately no one was injure animals were there. It is reported 20 cattle were lost in the fire. There were 120 firefigh fight the raging fire. Jim Akers, Chief Operating Officer at the stockyards stated, “Blue G New athistorically GOAPand – cGood of of a lot of than a Executive building, while tDirector his is a sad day ertainly tfriend he beginning Dairy andbAgriculture have already eefed up operations at our other facilities to take care of our valued custo Westaff are oexcited announce Governor tapped have n sight to to direct any customers that do Matt come hBevin ere to ohas ur other facilities.” W Warren BeelerStockyards as the new Director the Governor’s at the Bluegrass the vExecutive ery best as they look to rof ebuild.
Office of Agricultural Policy. Warren is certainly no stranger to KY New Executive irector at GOAP – Good fand riend of Dairy aleaders nd Agriculture Agriculture orDto the many farmers industry in the state. He has worked the past 16 years for the Kentucky Department We are excited to announce Governor Matt Bevin has tapped Warren Beeler of as the new Agriculture, recently Director of WAgriculture Policy. Director of the most Governor’s Office asof the Agricultural Policy. arren is certainly no stranger t Mr. Beeler is afarmers well-respected spokesperson agriculture traveling or to the many and industry leaders in the for state. He has worked the past 16 yea the Commonwealth promoting the importance of agriculture Kentucky Department of Agriculture, most recently as the Director of Agriculture Policy. and the farmers that produce our food to civic professional well-‐respected spokesperson for agriculture traveling the Cand ommonwealth promoting th organizations and groups. Warren is an acclaimed livestock judgeorganization as agriculture and the farmers that produce our food to civic and professional well. He lives with his wife DeeDee on their farm in the Caneyville Warren is an acclaimed livestock judge as well. He lives with his wife DeeDee on their fa area. Caneyville area. The latest forecast of Federal Order 5 Uniform Prices dated Jan – The shows latest forecast f Federal Order 5from Uniform dated – 16, shows a drop of $2 16, a drop oof $2.26/cwt. DecPrices - 2015 toJan March – 2016. Dec -‐ 2 015 t o M arch – 2 016. I nteresting a spect o f t he p rice: N otice t he b utter Interesting aspect of the price: Notice the butter fat price is stillfat price i over $2.47. This $2.47. is significant. can you maximize r get you the maximize most out of tor hat compo projected over ThisHisow significant. How ocan milk? get the most out of that component of your milk? Forecast of Federal Order 5 Uniform Prices
Last Month's Announced Prices
January-‐16
February-‐16
March-‐16
Butterfat
$2.9953
$2.5702
$2.3653
$2.4709
Skim
$8.49
$8.34
$8.59
$8.05
@ 3.5%BF
$18.68
$17.04
$16.57
$16.42
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Calvin Covington’s Dixie Dairy report will give you some idea of expectations for the coming months regarding milk prices and what to expect as it relates to the Southeast. As we get closer to the KDDC Young Dairy Producers Conference, the KY Dairy Awards Banquet and KY Dairy Partners Meeting scheduled for February 23-24, 2016 at the Sloan Convention Center it is exciting to see the production levels of the state’s top herds. We thought it would be hard to exceed the production and quality records of 2014, but 2015 winners have surpassed and set new milestones in both categories. The Dairy Awards Banquet recognizes the top herds in the 12 KDDC Districts in KY along with the top Holstein and non-Holstein herds. There also is a Proficiency Award which considers 11 different inputs developed by Dr. Jack McAllister. Additionally, we will be recognizing KY’s top Quality Milk Hauler for 2015 based on producers’ recommendations and inspections reports submitted by Milk Safety Branch and the University of KY Regulatory Service. We look forward to seeing a full house to celebrate these hard working fellow dairy farmers and hauler.
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Governor Bevin Appoints Warren Beeler as Executive Director of the Governor’s Office of Ag Policy Livestock Marketing Specialist. Before joining the Kentucky Department of Agriculture, Beeler served as an Agriculture overnor Matt Bevin today announced the Extension Specialist at the University of Kentucky, where he helped develop the first on-farm testing program for swine in appointment of Warren Beeler as Executive Kentucky. Director of the Governor’s Office of “I applaud Governor Bevin for appointing Agriculture Policy. Beeler has worked for the Warren Beeler as the Governor’s Office of Ag Policy’s new Executive Director,” said Agriculture Kentucky Department of Agriculture for the Commissioner Ryan Quarles. “His knowledge past 16 years, most recently as Director of and expertise in agriculture will make him an Agriculture Policy. invaluable partner in the Governor’s Office.” “Warren is a respected agricultural leader “I believe the link between Agriculture and the known throughout the Commonwealth, and I am Governor’s Office is one of critical importance excited to have him as executive director of our to our state today,” said Beeler. “I am honored to office of agricultural policy,” said Governor Matt Warren Beeler, a respectbe part of Governor Bevin’s team, and I’m proud Bevin. “The Kentucky Agricultural Development ed agricultural leader, has that he trusts me to serve as his connection to been appointed by GovFund is critical to the Commonwealth’s agriculture ernor Bevin as Executive the agriculture community. I look forward to the and rural economic development, and we are Director of the Governor’s challenge of researching valued projects to present excited to have Warren leading this effort.” Office of Ag Policy. to the Agriculture Development Board. I’m anxious Beeler is a graduate of Western Kentucky to convey agriculture’s amazing message on behalf University, where he majored in Animal Science. In addition to of the Governor Bevin’s Office of Agricultural Policy.” his role as Director of Agriculture Policy, Beeler served in other Beeler, a graduate of Western Kentucky University, lives in capacities during his tenure, including Director of Livestock Caneyville with his wife, DeeDee. Marketing, Director of the Shows and Fairs Division, and
Frankfort, KY ( Jan. 15, 2016)
G
January - February 2016 • KDDC • Page 5
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
KDDC Welcomes New Dairy Producers to Kentucky
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milking the last week of November in Christian County. He is milking in a tie stall barn he is renting f rom his father, Nathan Zook. Jonas plans to milk around 40 Holsteins. Daniel Glick began milking in Todd County in early November. He has rented his dad’s dairy that had been idle a few years and will be milking about 40 head of Holsteins. Noah We a v e r constructed a new parallel parlor and compost bedded pack barn in Todd County not far from his home farm. In October Noah began milking 30-40 head which are pasture based and organic. We would like to welcome Henry Yoder to Henr y County, Kentucky near James Leid’s barn in Christian County.
e would like to welcome a new producer to Christian County. On November 16 th James Leid and wife, Louise began milking in their fifty two cow pipeline tie stall barn north of Fairview, Kentucky. James, Louise and son Wendell moved from Shippensburg, Pennsylvania this last summer and built their facilities on seventy five acres. When asked about their move to Kentucky, James said, “Here there was available land at an affordable price”. Jonas Zook started
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KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Pleasureville. Henry is milking 30 cows. We would also like to welcome Aaron Fisher and family to Kentucky. Aaron and his wife came from western Kentucky to the northeast region. They are milking approximately 30 head of mostly Jersey cattle in a tie stall barn. Welcome to KY from the KDDC to Jacob L. Stoltzfus and family having moved from Pennsylvania to Bath County. Jacob is a pasture based dairy operation with a tie stall barn. He has around 60 head of Holsteins, Jerseys and crossbreds. Jacob started milking in December and he is an organic producer. Janney Holsteins relocated to the Clarkson area of Grayson County last fall. James and LaVaun Janney, along with their daughter, Ayla, moved their herd from Virginia in October. Currently milking 85 head of registered Holsteins with a few Red and Whites; James and LaVaun focus on breeding for type and longevity. The Janney’s concentrate management goals on milk quality and reproductive efficiency. A new 10,000 sq. foot bedded pack barn contributes greatly to reaching these objectives. In the show ring, Janney Holsteins has garnered many All-Virginia awards and several Red and White All- American nominations. Janney
Talent Scarlett- Red and Janney Pretty Cinnamon-Red made the Janney’s accustomed to success in the Red and White show ring, and many members of the Pretty family were relocated to Kentucky. The herd also includes members of the Frosty, Promise, and Talent Barbara families. Visitors are always welcome and you can follow the happenings at Janney Holstein on Facebook. KDDC would also like to welcome the James Lehman family, 7700 KY Hwy 78, Stanford KY to the Kentucky dairy industry. James migrated to Lincoln County, Kentucky from Greenville, Pennsylvania. He and four other families will be transitioning to organic as they become certified. He began milking on November 9 th 2015 and is planning to soon be milking between 60 – 80 cows in the newly constructed double eight parallel parlor. We at KDDC are thankful and appreciate the opportunity to be able to work with this new group of dairy farmers in selecting Kentucky as their choice to continue dairying and rearing their families. We will feature the other families as they get their facilities up and running.
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January - February 2016 • KDDC • Page 7
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Value to Every Dairywoman
Bringing
FOR IMMEDIATE RELEASE Contact: Brenda Gilbertson 608.574.2855 – brenda.gilbertson@gmail.com
Dairy Girl Networking Event will be held at KY Dairy Partners Conference Bowling Green, KY – February 1, 2016…. The Kentucky Dairy Development Council welcomes the Dairy Girl Network (DGN) at the KY Dairy Partners Conference. Dairywomen will meet on Tue., Feb. 23 at 4:30pm in the Sloan Convention Center for a networking event. The Dairy Girl Network strives to connect dairywomen with one another as a source of support and inspiration. The networking event is open to women involved with any part of dairy – whether as a calf feeder, dairy owner, marketing or sales consultant servicing dairy farms or cheese producers, veterinarian, researchers, etc. If there is a dairy cow involved in what she does, she’s invited. “There is something to be said about the impact being made by women involved in dairy farming,” stated Brenda Gilbertson, communications coordinator of Dairy Girl Network. “Their passion is rooted by commitment but as challenges arise it’s vital to have mentors and other women to lean on through career growth. The powerful opportunities of the Dairy Girl Network are endless.” Dairy girls will meet and be empowered with connections and tools to achieve goals. Programs being developed by the fast-growing national organization will be introduced at the event. Later in the evening, founder and president of the Dairy Girl Network, Laura Daniels is scheduled to speak at the Dairy Awards Banquet. The networking event open to women dairy farmers and industry partners is made possible by vision sponsors, DairyBusiness Communications, Diamond V and Land O’Lakes, plus event support through Zoetis and ImmuCell. Pre-registration is encouraged at www.dairygirlnetwork.com. Walk-ins are also welcome at the event. Learn more about the KY Dairy Partners Conference at kydairy.org. The Dairy Girl Network connects all women of the dairy industry, encouraging ideas and camaraderie in an effort to achieve personal and professional development. Designed as a welcoming network of passionate women involved in dairy, relationships will grow through shared experience, support and inspiration.
-endwww.dairygirlnetwork.com Laura Daniels, Founder – lauradaniels@uwalumni.com | Brenda Gilbertson, Communications Coordinator – brenda.gilbertson@gmail.com Michelle Philibeck – mphilibeck@immucell.com | Sarah Englebert – senglebert@elanco.com | LuAnn Troxel – lutroxel@csinet.net Carrie Mess – carriemess@gmail.com | Sadie Frericks – gsfrericks@meltel.net | Kristy Pagel – kpagel@diamondv.com Leah Hurtgen Ziemba – lhziemba@michaelbest.com
January - February 2016 • KDDC • Page 8
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2016 YDP Conference and KDP Meeting Schedules DAY 1 - TUESDAY, FEBRUARY 23 9:00
Registration and YDP Welcome
10:00
Kenny Burdine, Ph.D. University of KY 2016 - Dairy Outlook
10:45
Gordie Jones, DVM - Dairy Stockmanship
11:45 12:00
Door Prizes Lunch and Trade Show Opens
1:30
Fabian Bernal, DFA - National FARM Program: Providing Animal Care on the Farm
2:15
Gordie Jones, DVM - The Goldie Locks Dry Cow Diet
3:15
Ice cream Break - Sponsored By Chaney’s Ice Cream
3:45
Ashley Newhall, UMD - Hiring and Firing
4:30
Dairy Girls Network Reception
6:00
Dairy Awards Banquet
FEATURED SPEAKER: Laura Daniels - a Dairy Farmer, Agriculture Advocate and Founder of Dairy Girl Network
DAY 2 - WEDNESDAY, FEBRUARY 24 8:00
Registration and Trade Show Exhibits Open
9:00
Welcome
9:10
Billy Rowe, President of ADA of KY and Cheryl Hayn, SUDIA General Manager
9:50
Gordie Jones, DVM - Achieving Excellence in Dairying
10:45
Randy Shaver, UWM - What’s New with Corn Silage for Dairy Cows
11:30
Lunch, KDDC Annual Business Meeting and Trades Show
1:30
Kayla Matrunick, MS, RD, CSSD, LDN, Director of Performance Nutrition U of L Athletics
2:00
Randy Shaver, UWM - Making Sense of Modern Feed Tests
2:40
Ashley Newhall, UMD - Animal Welfare Statues and Farm Protection Laws
3:15
Closing and Door Prizes
State Production Monetary Awards provided by KY Farm Bureau KY Quality Milk Producer & Milk Hauler Awards provided by KDDC Dairy Promoter of the Year Award provided by SUDIA
IMPORTANT INFORMATION See the enclosed registration form and instructions in this packet. The Young Dairy Producer Conference is no charge to all dairy farmers. Trade Show Exhibitors and Event Sponsors will be provided lunch tickets according to sponsorship level. All others will be $30 per person. The Dairy Awards Banquet is hosted by KDA, SUDIA and KDDC. Dairy farmers and host board members are no charge. Trade Show Exhibitors and Event Sponsors will receive registration benefits according to sponsorship level. All others are $30 each. The KY Dairy Partners registration is $30 per person. The KDDC will sponsor two KY dairy farmers per farm and all KY YDPC attendees who were present by lunch. Trade Show Exhibitors and Event Sponsors will receive registration benefits according to sponsorship level. All other registrations are $30 per person. The KDDC will also cover the cost of overnight stay at the University Plaza Holiday Inn for KY Young Dairy Producers who have registered and are in attendance by lunch at the YDP Conference. Additional room charges will not be covered and a credit card or some form of security must be submitted by the producer at check-in. NO EXCEPTIONS. The KDDC is able to sponsor these events and cover the cost for dairy farmers partially from a grant from the KY Agricultural Development Fund and the many allied industry sponsors which support the organization and participates in the two day event. If you attend please express your gratitude by utilizing the goods and services of the allied industries where you can throughout the year. THANK YOU
January - February 2016 • KDDC • Page 10
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Young Dairy Producers - PRE-REGISTRATION FORM - Dairy Farmers only
Yes, I (we) will attend:
Young Dairy Producer/KY Dairy Partners Conference February 23-24, 2016
First person attending:
___________________________________
Second person attending:
_________________________________
Address:
___________________________________ _______________________________
Home phone: Cell phone: Email address: # of cows:
__________________________ County:
Meeting - Check all that apply: ______I will attend the YDPC on Tuesday, Feb 23 (full day of meeting.) I will attend Ky Dairy Awards Banquet Tuesday evening, Feb 23 ____________ I will need a hotel room for Tuesday night, Feb 23 I will attend Wednesday, Feb 24 - Ky Dairy Partners Meeting and lunch
Mail registration form to: Ky Dept of Agriculture c/o Eunice Schlappi 111 Corporate Drive Frankfort, KY 40601
or
Fax: 502-573-2543
If you have any questions, contact Eunice Schlappi at 502-545-0809 January - February 2016 • KDDC • Page 11
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
By Calvin Covington
Dixie Dairy Report
February 2016
Lower blend prices ahead. Our southeast blend price projections for the coming months are lower. The main reason – milk supply continues to exceed dairy demand. Here in the U.S. milk production has increased every month during the past two years. Cow numbers are not declining, and the heifer inventory is strong. (See cattle inventory table below) In the European Union (EU), the world’s largest milk producing entity, production continues to be significantly greater than a year-ago. EU dairy farmers’ response to the end of their quota system was to produce more milk. According to Dairy Market News, November European milk production was 4.9% higher than last November. Processors are challenged with what to do with all the milk. The EU is burdened with heavy inventories, especially powder. Russia’s continued ban on dairy imports makes the situation worse. On the demand side, domestic demand for manufactured products is above last year. However, U.S. butter exports are over 70% lower than last year primarily due to relatively high domestic prices. Cheese exports are down about 15%. Better news is that U.S. powder exports are slightly higher than last year. However, the price received for those powder exports are significantly lower than a year ago. The world skim milk powder price in 2015 averaged $0.98/lb. compared to $1.67/lb. in 2014. Globally, the balance between supply and demand must improve before any significant upward movement in milk prices. A few months back we were optimistic such improvement would start taking place by the middle of 2016. Now it appears it could well be the end of 2016 before it happens, thus the reason for lower projected blend prices. The following are our current southeast federal order blend price projections for the next six months:
January - February 2016 • KDDC • Page 12
Cattle numbers are increasing. As shown below, the USDA January 1 cattle inventory shows more dairy cows and heifers, and beef cows compared to a year ago.
Class I utilization flat in Florida and the Appalachian orders, but up in the Southeast order. Since 2010 there is little change in the Florida and Appalachian orders’ Class I utilization. However, Class I utilization in the Southeast order increased about 10 percentage points.
Southeast milk production up more than the U.S. average in 2015. The ten southeast states, as shown below, produced 2.1% more milk in 2015 compared to the previous year. Milk production in the entire U.S. increased 1.2% in 2015 versus 2014. Four of the ten southeast states (Florida, Georgia, Kentucky, and North Carolina) increased production while the other six produced less milk in 2015 compared to 2014. Since 2010, southeast milk production has moved steadily upward. Milk
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices FMMO 5
www.malouisville.com January 2016 Class I Advanced Price (@ 3.5% BF) $19.44 February 2016 Class I Advanced Price (@ 3.5% BF) $17.04
FMMO 7
production in the southeast is becoming more concentrated in the states of Florida and Georgia. In 2010, these two states were responsible for 39% of southeast production. Last year it was 45% of total production. Since 2010, cow numbers in the southeast are down slightly. More milk per cow is the reason for the increase in production.
www.fmmatlanta.com January 2016 Class I Advanced Price (@ 3.5% BF) $19.84 February 2016 Class I Advanced Price (@ 3.5% BF) $17.44
January - February 2016 • KDDC • Page 13
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Spending Your $$$ Wisely on Your Dairy Replacement Program By Donna M. Amaral-Phillips, Extension Professor and Dairy Nutritionist, University of Kentucky
R
aising dairy heifers represents a major time, financial and managerial commitment. Gone are the days when heifers are put out on the “back forty”, fed a little grain, placed on pasture or fed forage not suitable for the milking cows during the winter months, and then dealt with when they were springing. Today, raising replacements should and often do receive as much managerial attention as the milking herd. Management practices must be devised and implemented, such that heifers are raised economically and labor efficiently to attain the proper size and weight by 24 months of age with the goal of getting them to milk well after calving. So, the question you might ask yourself, “Can I tweak my dairy replacement program to improve the future performance and profitability of my dairy operation?”. However, before you can answer this question, you need to determine how well the replacement program is currently meeting expected goals for performance after calving, growth standards, and use of feed and labor resources.
Goals for First-Calf Heifers
The first place to start when evaluating your replacement program is performance records for first-calf heifers in your herd. This evaluation allows you to see if your first-calf heifers are meeting performance expectations after calving. Jason Karszes from Cornell University suggests evaluating the following performance measures. •Milk production of heifers at peak—at or greater than 80% of mature cows •First lactation total milk production- at or greater than 80% of mature cows •Less than 5% of heifers culled within the first 60 days in milk
January - February 2016 • KDDC • Page 14
•Greater than 85% of first-calf heifers retained to second lactation •Average age at first calving- 24 months (heifers actual calve at 22 to 25 months of age) Heifers should calve between the ages of 22 and 24 months of age. Heifers that are older at calving are more costly to raise and increase the total number of heifers which must be managed and fed. Generally, feed costs for heifers over 24 months of age are in the $2 to $3 per day range. Thus, a heifer calving at 28 months of age, costs an additional $240 to $360 in feed costs alone. In addition, with an older age at first calving, more heifers are fed and managed as part of the heifer herd if lactating herd size is to be maintained. For a dairy herd with 100 lactating and dry cows and a culling rate of 33%, 3 more heifers must be fed and managed for each month the age of calving increases above 24 months of age. For our example 100-cow herd where heifers average 28 months of age at calving, an additional 12 heifers are needed to maintain the size of the milking herd. Raising more heifers means higher total cost associated with a replacement program with additional labor and housing needed to feed and manage these additional heifers. Reducing the age of calving to 24 months repeatedly results in the largest reduction of costs associated with a replacement program.
Financial impact
Replacement heifers represent a substantial financial investment. Dairy economists indicate that raising replacements accounts for 20 to 30% of the total costs associated with a dairy operation. The question then is, “What does it cost you to raise replacement heifers?”. In 2012, Jason Karszes collected economic data from 17 operations raising dairy heifers in New York. Data collected included actual costs associated with feed, labor, housing and other itemized expenses just for heifers and not those associated with the milking herd. In this study, the average cost to raise a dairy heifer to calving was $2090, up $356 from a cost analysis done 5 years previously. (This cost survey is completed every 5 years.) Of the total cost, 53% represented feed costs followed by an additional 12% associated with labor expenses. Each of the other cost categories, such as bedding,
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund housing, health, breeding, or manure storage, were half to onethird of the cost associated with labor. With feed and labor costs being the largest two cost categories, one could ask: •Are there modifications or changes in housing that can improve the efficiency of feeding and caring for heifers? The range in heifers managed per labor hour in this study was huge. They ranged from less than 30 heifers per labor hour to greater than 55 heifers. Housing and time for feeders to move from one group to the next can greatly impact labor efficiency and the ability to get everything done on the farm. •Are diets being fed that meet, but do not exceed, the nutritional needs of each group of heifers? Is there a more economical way to feed heifers? The amount and type of grain fed is determined by the type and quality of forages being fed and environmental conditions. The old standard was to feed 4 to 5 lbs of grain to heifers. This may or may not be the correct amount of grain. It depends on the quality of forage being fed!!!! Although, perception may be that balancing rations for heifers does not save much money, but every little bit counts!!! Environmental conditions impact energy needs for heifers and thus, the amount of grain which should be fed. Energy needs for heifers increase during cold weather, wet/muddy conditions, wind exposure, and exercise. For example, heifers on cold, unbedded-resting areas have an increased energy requirement when compared to the same housing during warmer times (no heat stress) during the year. But, heifers housed inside a barn have lower energy needs than those
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housed outside on the same day. Activity (pasture vs housed in a barn) also impacts energy needs and the amount of grain that should be fed.
Evaluate Heifer Growth
The old saying is, “if you cannot measure it, you cannot manage it”. Very true when one is trying to evaluate and tweak heifer management programs. Heifer growth should be measured at key management times so that modifications can be made, if necessary. These should include weight and height at: 1. Birth, 2. Weaning, 3. 6 months of age, 4. Breeding, and 5. Calving. From these data, rates of gain and comparisons to expected weight and height can be made. Large breed heifers should gain 1.8 to 2.0 lbs daily. To account for different breeds, crossbreds, and sizes within breeds, growth standards for height and weight at a given age are calculated based on an expected weight and height at maturity or during the third lactation. For a given age, heifers are expected to reflect a certain percentage of mature weight or height. Spreadsheets are available for plotting actual heifer weights and heights in relation to expected values. (Penn State Penn State Dairy Website (www.extension.psu.edu/animals/dairy/nutrition/ heifers). In addition, body condition in heifers should be noted. Sometimes, having someone not involved in the daily management body condition score your heifers, can detect over- or under-conditioned heifer(s). Changes in heifer feeding and management programs can be made if heifers fall outside of expected values for weight, height or body condition. In today’s dairy business climate, evaluating performance and costs associated with not only the milking herd, but also replacement heifers is critical. Using production and culling data can provide valuable insight into how well your genetic and heifer management programs are working. However, to evaluate how well heifers are growing, weight gain, height, and body condition must be measured. From this information, changes can be made and the subsequent results on growth and financial impact can be measured. Recently, I read a comment from a US nutritionist in a popular press magazine. Essentially, the comment regarding changing feeding practices was as follows. Producer: “This is how we have always done it.” Nutritionist bold response: “It’s been wrong for so long that you think it’s right.”
In Glasgow: 1-800-859-2174
In Danville: 1-800-786-2875
On the Web: www.burkmann.com
Today’s dairy industry needs and rewards those that evaluate their current practices and recognize when change is needed.
January - February 2016 • KDDC • Page 15
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
A Review of the Southeast Quality Milk Initiative Meeting By Katie Wolf, Mickayla Myers, and Richard Berger
T
he Southeast Quality Milk Initiative is a USDA research project that involves six land grant universities including the University of Kentucky, University of Florida, University of Tennessee, Mississippi State University, and Virginia Polytechnic Institution and State University. The mission of SQMI is to increase cost effective mastitis prevention and control strategies for the southeast region toward higher milk quality, increased milk production and improved overall profitability on dairies in the southeast United States. The program also aims to provide information to benefit the dairy producers in the southeast region while also enhancing the sustainability of the dairy industry in this region. The morning portion of the program included the option of two sessions, one of which was an on-farm culturing workshop. Culturing should occur in all clinical cases, but also is useful for high-SCC cows, in general. This allows veterinarians and producers to determine what the causal pathogen is before treating, allowing more precise use of antibiotics. The first presentation was from Dr. Arnold and it was essentially an overview of mastitis and the different approaches to treatment. One big point that was stressed repeatedly was that producers needed to culture in order to determine what pathogen was the cause. For example gram negative bacteria usually have a rapid clearance and the SCC will drop rapidly, unlike gram
January - February 2016 • KDDC • Page 16
positive which will go into a subclinical state and make the cow a chronic case. The second presentation was from Dr. Bewley and Michele Jones who discussed DHIA records and how to interpret and use them. The discussion was not only over the generalized hot sheet, but also more specific sheets like DHI 427 and DHI 421. A major point stressed to producers is that these records are useful but unless it is also used to identify and address problems on the farm, it is merely a Band-Aid and won’t solve long term problems. Dr. Bewley and Derek Nolan then presented simple computer tools that the producer can use to make informed decisions about managing their herd. The first two tools discussed were the Hot Sheet Dashboard and the Milk Bonus Dashboard which discuss the economic impact from using hot sheet data and lowering the herd’s SCC respectively. A very interesting tool was presented called the Mastitis Cost Calculator, which is still being developed. Dr. Nickerson discussed heifer management strategies and started with a startling statistic. Over 70% of heifers have subclinical mastitis and that this will negatively impact milk production before the heifer even begins producing milk. The treatments discussed included using dry cow therapy (DCT) and teat sealant to protect the udder from pathogen infections. A supplement called OmniGen was also discussed as a preventative measure. An employee communication session was one of the two early afternoon options. This session itself consisted of two
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund components- the first being one to help employers better involve Hispanic employees, and the second more of a general communications-improvement presentation.
Explanations of SOPs in Spanish
Hispanic employees make up a large portion of the workforce within the dairy industry. However, surveys have shown that while most Anglo employees indicated they often felt like part of the family, Hispanic employees feel less involved with the farm. This group also receives less one-on-one training from the farm owner or manager, more frequently receiving training from other employees. These problems are due in large part to the language barrier. Ideally, managers would be able to speak some degree of Spanish, but regardless materials and information should be provided to Hispanic employees. Relating directly to employees can help them feel more involved with the operation and put even greater effort into doing things correctly.
Better Communication with Employees
Employers can communicate better with all employees. Another survey indicated that employees want to learn more than employers realized. Providing employees with resources and having meetings more frequently than when something is wrong can make everyone feel like they are part of the team. Every time an employee must be replaced, it costs money, so keeping employees around for longer is generally more economically efficient.
Setting cows up nutritionally to thrive is a key mastitis prevention consideration. Cows spend the early part of their lactation in a negative energy balance. Preparing them for this during the dry period is crucial to keep them from crashing. Cows should have a body condition score of around a 3.0 at dry off, and shouldn’t drop by more than half a body condition score over the dry period. Minerals also play an important role in optimizing immune function to help prevent mastitis. Copper and zinc both are key pieces which must be balanced to aid in the reduction of somatic cell count, and even the source of both minerals has been shown to be important, with organic sources of these minerals being correlated with lower infections. Selenium and vitamin E are required for the function of macrophages, which consume potential mastitis-causing organisms. Lastly was the producer panel. It was interesting to learn about each of the three producer farms and management practices. One of the most interesting quotes that I picked up from the panel was by Mr. Harrison, a dairy operator of Harrison Dairy in Sweetwater, Tennessee. When asked about decreasing somatic cell counts, Mr. Harrison replied by saying that “somatic cell counts are the new bragging rights for farmers. It used to be all about beating your neighbor on production, but now we are currently chasing a lower somatic cell count.” Mr. Harrison went on to say “is there a point where we start getting to low? Where we can say that the cell count is ok and can move on to more challenge issues.”
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January - February 2016 • KDDC • Page 17
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2016 Dairy Calendar of Events February 2016
March 2016
February 23 KDDC Young Dairy Producer Conference, Sloan Convention Center. Bowling Green, KY 9:00 AM CST February 23 SUDIA Board Mtg. Sloan Convention Center, Bowling Green, KY 2:00 PM CST
March 8-9 Southern Dairy Conference, Embassy Suites, Atlanta Ga. 9:00 A M EDT March 25 KDDC Board Meeting, TBA March 25 State 4-H Dairy Jeopardy Contest, Barren County Extension Office TBA
February 23 Dairy Girls Network Reception, Sloan Convention Center, Bowling Green, KY 4:30 -5:30 PM CST February 23 Dairy Awards Banquet, Sloan Convention Center, Bowling Green KY 6:00 PM CST February 24 KDDC Board Directors meet to elect 2016-2017 Officers, Sloan Convention Center, 8:45 AM CST – Rm TBA February 24 KY Partners Meeting and Industry Trade Show, Sloan Convention Center, Bowling Green, KY 9:00 AM CST February 24 KDDC Board Mtg. Sloan Convention Center Bowling Green KY 12:00 Noon February 27 4-H Dairy Oral Reasons Workshop, Larue County Extension Office TBA
April 2016
Milk Matters January - February 2016
April 7-9 Kentucky National Dairy Show and Sale, State Fairgrounds, Louisville KY April 22 Lincoln County 3rd Grade Ag Day, Lincoln Co. Fairgrounds 10:00 AM EDT April 30 4-H Dairy Cow Camp, Taylor County Extension Office TBA May 2016
May 14 May 27
Dairy U: Know Before You Show, Burley Fields Livestock Center, Horse Cave KDDC Board Meeting, TBA