USA Balance - Spring 2012

ROBOT READY™: NOT JUST FOR ROBOTS PG 4-5 SEMEX’S SHADOW – THE GOLDEN CROSS PG 6-7 REPROMAX™: HELP HER PAY HER WAY PG 8-11 IS 100 YOUR GOAL? SHOULD IT BE? PG 12-13 AI24™: GETTING SEMEN IN COWS AT THE RIGHT TIME PG 14-15 MANAGING YOUR REACTIONS PG 16-17 STRONGER THAN EVER PG 18

ROBOT READY™: NOT JUST FOR ROBOTS

Page 6-7 SEMEX’S SHADOW – THE GOLDEN CROSS

Page 8-11 REPROMAX™: HELP HER PAY HER WAY

Page 12-13 IS 100 YOUR GOAL? SHOULD IT BE?

Page 14-15 ai24™: GETTING SEMEN IN COWS AT THE RIGHT TIME

Page 16-17 MANAGING YOUR REACTIONS

Page 18 STRONGER THAN EVER

At Semex we’re working hard to ensure that you have the genetics that will make you profitable for generations to come.

This means that we’re working shoulder-toshoulder with dairymen worldwide, gathering information, asking questions and taking action.

Genetics For Life

Page 4-5

One of our newest product lines, Robot Ready™ is a great example of this dedication. These Semex sires are specifically selected to help dairymen in automated milking operations. What is especially exciting is that these bulls also offer an interesting and progressive genetic package to our customers and as Jay Shannon, Semex Alliance Global Dairy Solutions Manager, says, “If they’re good enough for the robot, they’ll work in any parlor!” To find out more about this innovative product line go to pages 4-5.

Online we’re working hard to show you what Semex sired daughters look like day in and day out. Through Semex’s Youtube channel and our social media outlets we’re able to instantly show our customers an upclose and personal view Cover photo: “Bertagnolli Jersey Herd in Brazil. Photo provided by Semex Brazil.” of these cows. These videos Balance is a magazine designed to promote dairy genetics, showcase Semex sired daughters technology and management. The magazine is published by in the stall, freestall and on the the Semex Alliance. The Semex Alliance is focused on global walk, showing you first-hand the great things we’re seeing in the leadership in the genetics marketplace. field every day. Response to these videos has been tremendous and Semex Alliance Canadian Partnerships: only continues to grow! If you have not visited Semex’s Youtube

2

channel we encourage you to do so today and check out videos of some of Semex’s most popular Holstein and Jersey sires.

0200HO05567

R-E-W SEAVER

0200HO02137

PINE-TREE SID

0200JE00447

LENCREST CAVALIA We’re very excited about these changes at Semex and we’re looking forward to showing you even more in the upcoming months. Stay tuned to our website and social media channels (Facebook, Twitter & Youtube) for the latest from Semex!

Comments or submissions to the editor should be forwarded to Brenda Lee-Turner, Semex Alliance, 130 Stone Road West, Guelph, Ontario, Canada N1G 3Z2. tel: 519-821-5060, fax: 519-821-7225; email: bturner@semex.com SEMEXX™, Genomax™, Genomaxx™, Repromax™, ProMate™, ReproMix™ , Semex Premier™, Health$mart™, ai24™ , Designer Series™, .25Plus™, CVG™ and Robot Ready™ are registered trademarks of the Semex Alliance.

TM

.25Plus™ Best Use Practices Semex recommends utilizing a universal insemination gun and tweezers (or ¼ cc gun and tweezers) along with the following standard handling procedures when using the ¼ cc straw: • Ensure a warm, draft free environment for thawing semen • Be sure that all equipment including guns, sheaths, and paper towels are warm before coming in contact with thawed straws • Hands should be clean • Keep equipment free of contamination, use clean thaw water • Use a 1-pint, wide-mouth thermos filled with clean water and a dial thermometer to thaw straws • Periodically confirm the accuracy of your thermometer by comparing it to a known standard • Check to make sure that the thermos water temperature is 98°F before each straw is removed from the tank

• Always use nitrogen cooled tweezers to handle the straws; fingertips should not be used • Thaw semen in 98°F water for 60 seconds • Only thaw one straw at a time • Breed the cow as soon as possible. No longer than 15 minutes after thawing • Use paper towels to clean vulva, use a clean towel to open vulva • Keep the tip of gun that enters cervix & uterus free of contamination • Ensure animal is in heat by picking up the cervix and uterus. If you get a clear mucous discharge from the vulva it’s a good sign she is in heat

3

for robots Not just

Jay Shannon, Semex Alliance, Global Dairy Solutions Manager

Semex has recently launched a new progressive brand for Holstein and Jersey producers appropriately named Robot ReadyTM. This brand represents bulls that are selected based on their ability to sire functional daughters for robotic automatic milking systems (AMS).

But, Robot ReadyTM is not just for robots alone, it’s a product line that is ready to work on nearly all operations.

Dairymen know that close rear teats, combined with a growing tendency toward shorter teats (particularly in the Holstein breed), causes milker attachment problems. This makes Robot Ready™ sires attractive to non-robot dairies as well, because if a bull’s daughters are good enough for a robot, then they should work well in nearly any milking parlor!

The first robots were installed in Europe in the early 1990’s.

Early adopters had mixed reviews, but the technology has advanced incredibly from those early years. The number of installations has steadily increased over time to a reported 4

+2,400 farms globally, with Lely announcing their 12,500th robot installation in December 2011. This past year parlor manufacturer DeLaval won several new product awards for their new AMS rotary parlor that features five operational robots. All accounts indicate that the robotic milking outlook is marked for growth, especially with the new potential seen with robotic set-ups designed for larger herds. For North America, this growth is quickly becoming a reality. Industry leader Lely is so convinced of this market expansion that they’ve recently opened a robot assembly plant in Iowa.

Progressive operators seeking the latest in innovations were among the first producers to consider the merit of robots and adopt this technology. However, the most common reasons for installing a robot boil down to two issues any dairyman can relate to: labor (cost and availability) and the desire for an improved quality of life. Another reason cited by producers for their move to robots was the opportunity to increase the average number of milkings per day, aiding in the cows’ well being by increasing cow comfort and reducing stress.

And, robot operators say that robots have made their mediumsized herds more competitive with larger herds.

Not all cows are built the same, and those not designed for robots can be a nuisance to manage within these facilities. In a survey conducted by the Ontario Ministry of Agriculture and Food in 2007, robot operators reported that the most common reasons (besides behaviour & adaptability) for cows not going into the robot on their own included: lameness; udder conformation; clinical mastitis; teat injury; and other reasons that required manual milking.

Semex has studied this information and consulted with a group of robotic AMS farms to identify cow traits that have led them to be successful in the robot operation. What we learned was that for a cow to be considered a ‘good robot cow’ she must first have properly placed and sized teats, with a shallow, quality udder. These cows must be mobile with a structural resistance to lameness, also a built-in immunity to mastitis.

They’re functional cows with average to fast milking times and an assertive yet cooperative demeanor. And, of course, these cows must be good milk producers!

Semex geneticists then went to work formulating the criteria that would be the best fit for both the robot and the dairyman, resulting in the following four main characteristics:

1.

2.

3.

4.

Teat & Udder Conformation Mobility & Resistance to Lameness Lower Mastitis Incidence Workability & Functionality

It’s not surprising to see breed leading Holstein proven bulls among the Robot Ready™ lineup: 0200HO03591 BEAVER RAY MURAL 0200HO05630 COMESTAR LAVANGUARD 0200HO05592 CRACKHOLM FEVER 0200HO01584 DIAMOND-OAK FROSTY 0200HO05549 REGANCREST REGINALD 0200HO05868 TWIN-SPRUCE FACEOFF 0200HO05843 GEN-I-BEQ TOPSIDE 0200HO02167 STANTONS ACHIEVER 0200HO05565 REGANCREST LONGTIME And, popular Genomax™ bulls offer producers more alternatives: 0200HO03742 AMMON-PEACHEY STANTON 0200HO06319 LOOKOUT P LAST CHANCE 0200HO06343 OLSZEWSKI SMORE 0200HO02731 VER-HAGES TT SHOWDOWN*RC Jersey bulls including the popular sires: 0200JE00430 LENCREST ON TIME 0200JE00349 DUTCH HOLLOW IMAGINATION-P

1. Teat & Udder Conformation Rear Teat Placement – mid-range of quarters Front Teat Placement – mid-range of quarters Teat Length – avoid short teats Udder Depth – medium to shallow depth Overall Udder – well above average

2. Mobility & Resistance to Lameness

Rear Legs Rear View – well above average Feet & Legs – above average

3. Lower Mastitis Incidence Somatic Cell Score – average to low cell counts

4. Workability & Functionality Milking Speed – average to fast milkers Temperament – avoid nervous or poor temperaments Production – fat & protein (lbs) well above average

Robot ReadyTM is a highly select group of sires, with 18% of the Semex product line qualifying for this status.

It is a product line that satisfies the changing global customer needs, as well as the changing needs of your dairy cows. No matter your milking system, look for Semex and its Robot ReadyTM bulls today.

For a complete listing of Semex Robot Ready™ sires visit www.semex.com 5

SEMEX’S SHADOW: THE GOLDEN CROSS Mike West, Semex Sire Analyst & Product Support Specialist

0200H003579 B-Crest Shadow is one of the most intriguing sires in the Holstein breed today, offering the breed’s ‘golden cross’ (Goldwyn x Durham) and delivering what many others have been unable to do. First proven in December 2011, he’s climbed up the rankings in April 2012 with a proof that matches field reports.

special,” says Carl Saucier, Progeny Analyst, CIAQ. “Their combination of balance, style and great mammary systems certainly make them standouts in their herds.”

The Proven Pedigree

You have to admire the Shadows for the quality mammary systems as well. Whether it is their high wide rear udders, their long, well-attached fore udders or their extremely impressive quality and center ligaments, the Shadows have some of the best udders in herds. His daughters are strong loined and low in their pins, finishing off their balance and correctness and making them the complete cows that Shadow’s pedigree dictates that they should be.

Shadow is the result of two pedigrees that represent an ideal combination for today’s dairymen. His sire Goldwyn offers many great traits including low SCS, positive deviations, great type and health traits. His Durham dam, and her strong maternal line, add to Shadow’s stability and reliability. His dam is EX-92-2E 3* and produced more than 106,000 lbs in three lactations, with an average of 3.5% fat and 3.3% protein proving herself to be a very complete cow. The next dam is Sher-Est Emory Swanny, the EX-90-2E DOM 2* dam of several well-respected sires including Semex’s own 0200HO04608 RegancrestMr Samuelo. A full sister to Shadow’s dam is Regan-Joy Durham Regenia EX-92 GMD DOM 1*, who is also a dam of multiple AI sires. Behind Swanny are five more EX dams from the famous Sher-Est breeding line with a sire stack that includes such influential sires as Prelude, Southwind and Chief Mark. This is a pedigree that has become a household name in Holstein breeding, with multiple sons, grandsons and great grandsons in AI, along with numerous females being used extensively in breeding programs worldwide. Shadow’s pedigree can be relied on to produce great things at the farm gate.

The Performance “Shadow is one of those sires that after you see the first 10 or 12 daughters you know you have found something 6

Shadow fits the profile of what many producers are looking for, offering solid production with positive deviations, high final conformation and great mammary systems. He’s also low for SCS and positive for herd life with good fertility evaluations, making him a very complete sire and a Semex Designer Series™, Repromax™ and Health$mart™ sire.

In the field, the Shadows are striking, showing a very correct and strong frame with the right amount of depth and strength that tells you these cows are going to work and work hard!

“Shadow daughters have a great amount of strength to them. We see many of them thriving in freestall environments because their structure allows them to be aggressive and to compete,” states Saucier.

Watching the Shadows progress through their first lactations we know that these are the cows that are not only great now, but that they will mature into the best, most productive cows in their herds years down the road.

Mating Suggestions Shadow’s breakdown allows him to be useful on a variety of cows, and even though he does not have any major weaknesses or concerns he still needs to be used correctly for the best results.

Shadow should be used on cows that are correct in their foot structure and generally considered to be some of the wider rumped cows in their herds. He will show the most improvement in the mammary system as well as frame and structure, while maintaining production levels and decreasing SCS. Shadow will work well on typical daughters of Talent *RC, September Storm *RC, Baxter, Toystory, Buckeye and Mr Burns *RC.

0200HO03579

B-CREST SHADOW VG-89-CAN ST

GOLDWYN x EX-92-2E DOM 3* DURHAM x EX-90-2E DOM 2* EMORY

CARMEL SHADOW BRITNEY GP-83-2YR-CAN

CARMEL SHADOW LAUREA VG-85-2YR-CAN

FERME MARIO DUMOUCHEL INC, LACOLLE, PQ CANADA

“Shadow has been a bull that we have been watching for quite a while. His proof today really solidifies what we’ve been seeing in the field.”

Carl Saucier, Progeny Analyst, CIAQ

7

Your cows need to pay their own way on your dairy.

This payback can only begin if your cows get pregnant and have a calf.

At Semex we think you should get this calf and genetic progress.

88

How Much Are Those Days Open Costing You?

HELP HER PAY HER WAY Brenda Lee-Turner, Semex Alliance Marketing Communications Specialist

There’s lots to consider within your reproduction program breeding protocols including conception rates, pregnancy rates, inseminations/ conception rates. Additionally, there’s the systems designed to make getting your cows in calf easier including timed A.I. and electronic heat detection systems. Each figure and system is designed with one goal in mind: reduce the number of days open on the dairy. However, not to be forgotten in this endless sea of reproductive figures and options is the bull himself.

At Semex, we’ve made this part of reproduction easy for you with our Repromax™ lineup. In 2008, Semex scientists gathered SCR, ATA and Canada’s Non-Return Rate data to develop the world’s first international fertility evaluation.

Known as Repromax™ sires, these sires are Semex’s highest-ranked fertility sires. They are the code 200 bulls that are proven to be fertility leaders in our industry, and best of all they offer the same leading genetic package you expect from Semex.

This impact may be greater than we think. A 2006 University of Florida study shows that this cost varies between $3.20 and $5.40/day and increases with average days open. These numbers take into account things like the value of the milk the cow would have produced, the value of her calf and other concerns.

Averaging these two figures at $4.50, it’s easy to see how a dairy can be losing ground. If one cow stays open 20 days longer than she should have, that dairy will lose $90 on just her alone.

On a 100-cow dairy this effect is tremendous and can cost the dairy an additional $9,000 in reduced profitability. Subsequently, larger herds feel this economic loss even greater.

REDUCED PROFITABILITY FROM 20 EXTRA DAYS OPEN Cows

(US$)

50

$4,500

100

$9,000

200

$18,000

300

$27,000

500

$45,000

1000

$90,000

2000

$180,000

Repromax™ Is A Proven Solution “The Repromax™ sire list combines the best fertility information from all sources,” says Senior Geneticist, Dr. Jacques P. Chesnais. “We’ve taken into consideration the well-known and established forms of fertility analysis, Sire Conception Rate (SCR), AgriTech Analysis (ATA), as well as Canada’s Non-Return Rate data to determine which Semex sires are fertility specialists, and we have designated these sires as Semex Repromax™ sires.”

9

COMBINES THE BEST FERTILITY Used worldwide since its launch, Repromax™ sires are proven to be very effective at getting cows in calf. Recently, the following study was released by Semex Brazil clearly showing the advantage Semex’s Repromax™ sires have over the competition. The study was carried out on nine dairy farms in the counties of Castro and Carambeí, State of Parana, Brazil, where high milk yields contribute to even greater reproductive challenges. The results speak for themselves: TABLE A

Field Study Results From Nine Brazilian Farms Number Pregnancies Conception of AIs (%) All Others

4234

1192

28.20

Other Semex

2617

804

30.70

Repromax

1596

529

33.10

TM

“Our customers need to get their cows in calf as quickly as possible. We deal with the warmer seasons that making breeding and getting cows in calf more difficult and we need every advantage we can get in Brazil,” says Nelson Eduardo Ziehlsdorff, Director Semex Brazil.

“When we presented our dairymen with the Repromax™ sires they were eager to use them,” says Ziehlsdorff.

“Now, when we visit with them they want to only discuss Repromax™ sires! They know with Repromax™ they’re getting the best of both worlds. They no longer have to choose to either get a cow pregnant or to have genetic progress.”

Fertility Important At Semex “We’re committed to our customers’ profitability,” says Brad Sayles, Semex Alliance, Vice President Global Marketing.

“And, on the farm if your cows aren’t getting pregnant, they’re not returning your investment to you. Code 200 sires are subject to strict quality controls and fertility measures that simply put, make them the best options for dairymen.”

Starting in August 2008, the United States Department of Agriculture established sire conception rate (SCR) as a new and more accurate fertility evaluation of A.I. sires.

This evaluation was a significant improvement over older methods as it takes into consideration both the bull and the variables relating to the cow that had previously distorted bull fertility measurements.

10

Get the best of both worlds with RepromaxTM

INFORMATION The April 2012 sire evaluation saw the release of new Sire Conception Rates (SCR) and saw Semex sires as the industry leaders in several categories including:

•N ew and emerging sires with less than 1,000 services •S ires with breedings between 1,000 - 5,000 services • Sires with more than 5,000 services Interestingly, Table C shows a breakdown of bulls just getting their first scores (less than 1,000 breedings), with Semex clearly being the most consistent stud available without any poor performers. This is a clear attribute of Semex’s strict quality control measures and established Gold Standards. Dairymen should feel confident in the Semex product whether they’re purchasing a Genomax™ sire or a bull with second crop daughters, the Semex product is the highest quality, most fertile available.

TABLE B < 1,000 Breedings

Between 1,000 & 5,000 Breedings

> 5,000 Breedings

Stud

# Bulls

SCR

# Bulls

SCR

# Bulls

SCR

Stud A

48

0.4

168

0.3

90

1.7

Stud B

48

0.4

444

0.7

101

1.1

Stud C

101

-1.4

198

-1.2

29

-0.1

Stud D

149

-1.4

400

-1.0

55

0.5

Stud E

29

-2.5

42

-2.2

2

-1.0

Semex

43

0.6

245

0.0

36

1.1

Source: USDA April 2012 Interpreting results: An SCR of 1.0% is expected to produce a conception rate of 41% in a herd that normally averages 40%

TABLE C

< 1,000 Breedings # Bulls

Average SCR

Stud

Range Low

High

Stud A

48

0.4

-5.3

3.3

Stud B

48

0.4

-4.6

3.7

Stud C

101

-1.4

-7.9

2.2

Stud D

149

-1.4

-17.3

3.8

Stud E

29

-2.5

-6.0

1.2

Semex

43

0.6

-3.0

3.7

Repromax™: More Calves On The Ground In Brazil Dr. Claudio Aragon, Semex Brazil, All Breed Technical Director

The major reproductive challenges in Brazil are similar to those in various other countries, with cows in our commercial herds peaking at over 50 to 60 kg of milk per day. However, the challenge of getting high producing cows in calf is universal.

When we put in the warm weather and high humidity such as in Brazil into the equation the issue grows tremendously. Several producers are now realizing the importance of cow comfort in its relation to improved reproduction, along with other benefits like better hoof care, lower somatic cell count and higher production.

In Brazil, we’re paying more and more attention to cooling the cow. What we are seeing in the new freestalls are ventilation and watering systems that effectively cool the cow, improving comfort and the total efficiency of the animals. Another issue that is a major reproductive challenge in Brazil is heat detection. More and more herds are relying in electronic heat detection systems to improve the service rates and consequently pregnancy rates.

Reproductive issues are the number one disposal reason for the large majority of Brazil’s large commercial herds. This, followed by mastitis and foot problems, account for over 70% of the culling reasons in our herds. Again, cow comfort is having a major impact in these issues.

To help with reproductive challenges many of Semex’s customers are adopting Semex Brazil’s total reproductive program, of which the Repromax™ bulls are a major factor.

On farm results are extremely important. Table A shows Repromax™ results in Brazilian herds. These results are multiplying themselves on various operations across the country and are even more notable in areas where the warm and humid climate is even a greater issue. The evidence shows that when a producer uses Repromax™ in the summer months, he sees the improved results, and then continues to use Repromax™ bulls in his program year round.

Today, several of our customers have been using Repromax™ bulls for the last three years. The usage varies among clients, especially in the summer months, from those that use Repromax™ sires more heavily in the warmer months to those that use these high fertility bulls routinely year round, while others use them in all third inseminations.

Repromax™ is a product that gives dairymen confidence when approaching their reproductive issues. It gives the results dairymen need with more calves on the ground sired by the genetics they need to advance their herd.

11

Is 100 Your Goal?

Mark Carson, MSc. BSc. (Agr)., EastGen Reproductive Specialist

Most dairymen agree that the goal is to have cows pregnant by 100 days in milk (DIM).

For this to happen, you need to have an excellent pregnancy rate, good conception and great insemination rates. And, to average 100 DIM the majority of your cows have to become pregnant between 70 and 130 DIM. This gives you four estrous cycles to get a cow pregnant.

Let’s Break It Down: INSEMINATION RATES Often an overlooked statistic in a breeding program, the insemination rate is the percentage of cows that are eligible to be bred over a period of time (normally 21 days) that actually get bred. This rate helps you to answer the question, “Are my cows getting bred?”

Any changes in heat detection, such as introducing an activity monitoring or new synchronization protocol, will be accounted for in this number.

The insemination rate goal should be approximately 60%. However, the average insemination rate for the industry is approximately 40%, meaning that on average only four out of 10 open cows are seen in heat and subsequently bred during the estrous cycle.

Looking at 2011 CanWest DHI data from 134 herds, the insemination rate’s economic impact becomes obvious. For every 5% increase in the insemination rate, there is a $25/cow gain in revenue. For a 100-cow herd, moving from 12

40% to the industry goal of 60% means an additional $10,000 in revenue. Over the past decade, there have been two tools that have been developed to help producers increase insemination rate, timed A.I. protocols and more recently activity monitoring systems.

OPTIONS TO HELP IMPROVE Activity monitoring systems such as Semex’s ai24™ have seen tremendous growth in recent years, helping to reduce days open by assisting the dairymen in getting cows pregnant more quickly.

Some cows show heat for as little as six hours, making the ai24™ technology valuable as it works 24 hours a day, seven days a week.

A recent study completed by the University of Guelph found that activity monitoring systems can help reduce days open by up to 27 days in some herd management systems. This is accomplished by simply increasing the insemination rate in the herd.

One of the ways activity monitoring systems help to increase insemination rates is by helping to lower the days between first and second services for cows that did

100 cow herd $2,500

250 cow herd

500 cow herd

1000 cow herd

$6,250 $12,500 $25,000

Should It Be? not get pregnant on first service. Two of the three herds in the University of Guelph study were able to rebreed open cows up to 7 to 10 days faster than cows bred in a predominately timed A.I. based system. Also, herds that maximize activity monitoring systems find more than just cows in heat, they’re also able to manage the herd’s health through the activity tool. This tool helps to identify the cows that are not cycling, but also those have not exhibited their typical movements, allowing dairymen to take action more quickly.

Timed A.I. (TAI) protocols (ex: ovsynch, double ovsynch, pre-synch, CIDR-ovsynch and target breeding) have been effective tools used to increase a herd’s insemination rate. With so many options, dairymen are often asking which TAI should be used on their dairy. The answer is simple; a dairyman needs to use the one that works best for them. To help identify which will be most effective for you there are two questions you need to answer:

in milk or are you going to be using TAI on problem cows? This is an important question to answer because this will help you determine how intensive your protocol will need to be.

Answering these two questions, and working with your veterinarian will help you select the best TAI for your herd.

A recent study completed by the University of Guelph found that activity monitoring systems can help reduce days open by

UP TO 27 DAYS

in some herd management systems. This is accomplished by simply increasing the insemination rate in the herd.

1) C an your herd deliver this TAI protocol correctly? Remember, some protocols involve up to six shots being delivered with a high degree of accuracy. If your herd struggles to deliver two shots accurately, a longer more complex protocol will fail unless you’re prepared to make the necessary management changes.

Once you’ve settled on a program it’s important to track its performance. Set a goal with your veterinarian or herd reproductive consultant for the conception percentage you’re expecting with your new protocol. Monitor the conception and make any necessary adjustments.

Remember, if you’re breeding only your problem cows with a given protocol don’t expect stellar conception. Also, make sure you have more than just a few breedings before making a final judgment on a protocol. Having more than 50 breedings is ideal, but smaller herds will have to rely a little more on their gut, as this number can be difficult to achieve.

Activity monitoring systems and timed A.I. are both effective tools to increase insemination rate. Using these tools will help to increase insemination and make more profit for your herd.

For more on Semex’s ai24™ program, ask your local Semex representative.

2) I dentify which cows will get bred with TAI. Will you be breeding all cows or only cows past a certain number of days

13

GETTING SEMEN IN COWS AT THE RIGHT TIME Jake Kempel, Semex Partner Development Manager

The Paul Frost Farm, LLC is a progressive family farm owned by Paul and Greta Frost near the southeastern Wisconsin town of Waterford. The Frosts began farming on their own in the mid 1970’s, and started their dairy in 1988 with 40 cows in a stanchion barn. By 1995 they were milking 120 cows in two barns. Just a year later, the Frosts underwent their first major expansion as their children expressed interest in the dairy, building a new freestall barn with a double eight parlor that accommodated 200 cows. In 1998 they added a second freestall barn, bumping cow capacity to 450 and making the parlor a double 12. The most recent addition was completed in 2000, increasing cow capacity to 600 cows for this 1500-acre farm.

This family operation consists of owners Paul and Greta Frost, and sons Spencer (wife Heidi, children Gus and Maggie) and Stewart (fiancé Shannon). Their herdsman, Jimmy Lang, is also a key component to this operation’s success. Truly a team effort, Spencer manages the farm finances, Stewart manages the crops and the dairy and Jim is the cowman, in charge of reproduction and cow care. Along with Paul, this group operates as a team, helping each other out and covering the daily farm work.

Stewart has always been open to trying new things and technologies in order to increase efficiency and profitability. In 2009, he and Jimmy identified that their reproduction program of full tail chalking was not as effective as they needed it to be, and moved to a G6G/Ovsynch program with tail chalking and some resynchronization for repeat breeders.

This protocol brought along its own challenges and with it the Frosts realized that they needed to reduce the time their cows spent in headlocks and move them more quickly through the breeding pens in order to make room for the next wave of cows needing to be serviced. Also, the Frosts saw that administering shots in the pens and parlors was disturbing the cows, and they also wanted to reduce hormone shots and the labor involved in their reproduction program.

“I no longer have to chalk cows and guess who is in heat. I am now able to dedicate a lot more time to areas that would have required another person before.”

“It takes me about 20 minutes in the morning and afternoon to check the list of who needs to be bred, see if the time is right yet and place semen in the cows that need it,” Jimmy says. “We are breeding twice a day to get more semen in cows at the right time, maximizing conception rates.”

According to Stewart, the dairy has reduced hormone shots and related expenses.

“We have reduced our hormone shots per cow from five to one and a half since installing ai24™. We are still using a pre-sych to help clean cows out and get them cycling sooner. We have also reduced hormone shot labor by one and a half hours per day, five days a week. This has really opened up our mornings to be spent on fresh cows or outside the barns on the crops.”

Reducing pen disturbance and lockup time due to chalking and hormone injections allows for the Holsteins at Frost Farms to increase both their dry matter intake and the time they spend lying down, helping them produce more milk which means more profit at Frost Farms.

“We have been able to increase the speed at which we get cows pregnant while reducing semen usage and checking a lot less open cows at herd check,” says Stewart. “Looking ahead, the number of animals due to calve every month is higher than it has ever been!”

“I no longer have to chalk cows and guess who is in heat. I am now able to dedicate a lot more time to areas that would have required another person before.”

Activity monitoring was interesting to Stewart as it answered these needs, and after visiting a Semex ai24™ customer with Semex Genetic Consultant Gale Shelbourn and me in April 2011, Stewart decided to put the ai24™ SCR-H-tag technology to work.

14

A year later, herdsman Jimmy shared some key areas where ai24™ has helped his daily routine.

In the 10 months prior before they installed ai24™ the Frosts had conception rates of 34% (first service) and 28% (second service) with their G6G program. At this time, services per conception (SPC) was 3.2 and they bred 986 cows, producing 310 pregnancies.

Milking the same number of cows in the 10 months following installation, conception rates rose to 36% (first service) and 36% (second service) while SPC dropped to 3.0 and they bred 1,085 cows, producing 357 pregnancies. That’s an impressive 47 more pregnancies attained with ai24™ than with their G6G program.

With an April 2011 installation, the ai24™ results include the warmer summer months and also the month of October which, historically, is their biggest breeding month. Using the month of October as a benchmark, the reproduction gains seen with ai24™ are obvious: • October 2009 (heavy tail chalking program): 29% first service conception rate and 4.6 SPC • October 2010 (G6G program): 42% first service conception rate and 2.6 SPC • October 2011 (ai24™ system): 48% first service conception rate and 2.3 SPC The Frosts were running a very good synchronization program before they installed ai24™ and they were very excited to see these gains. In this same time period, they have also reduced the calving interval from 13.3 to 12.8 months, dropped days in milk from 172 to 152 days and had their days open be as low as 115 days. With savings also seen in areas such as hormones, labor, supplies, semen usage and lock up times, Stewart estimates the system will be paid for in two years. Although he quickly adds that a fair amount of this payback was already seen within his first 10 months of installing ai24™!

The Frosts speak highly of their Semex representative Gale Shelbourn, appreciating his knowledge, service and dedication, with Jimmy stating that Gale goes out of his way to take care of them. We’re part of the team at Frosts, and I perform herd walk throughs, help monitor reproduction and enjoy sitting down with both Gale and Stewart, bouncing ideas off of each other.

The team at Paul Frost Farm LLC (l to r): Jimmy Lang, Spencer Frost, Stewart Frost and Paul Frost

Stewart Frost with Semex Partner Development Manager, Jake Kempel

15

Mike North, Senior Risk Management Advisor, First Capitol Ag

MANAGING YOUR REACTIONS

16

In the last edition of Balance, we talked at length about the three-year cycle of milk prices and the inevitable risk that 2012 presented.

We also spent some time talking about the emotional cycle that often accompanies movements in price (see graph at top right). It is one thing to identify an issue, and completely another to do something about it.

As 2011 unveiled opportunities for 2012, very few people were excited about what the market had to offer. Seventeen dollar milk, for many, did not provide the profit opportunities that most were hopeful of. In some cases, it did not present an opportunity for a profit at all. Corn prices remained north of $6/bushel and soybean meal was hovering around $320/ton. Milk over feed costs at the farm level did not present the quality of returns that were presented in 2011. However, that did not change the fact that cow numbers were growing, milk receipts were escalating and product inventories were building.

All of these trends pointed towards looming downside risk in the market for 2012 (not to mention the risk forecasted by the cycle). Some began to dip their toe in the proverbial waters of risk management. Others, when viewing their margin opportunities, dove right in. Of course, some decided to pull up a chair by the pool and take in the serenity of the moment!

Regardless of where you were at when the year started, the markets have a way of keeping people guessing. Milk prices found a way to move higher early in the year and had many second guessing their efforts asking, “Will my efforts to manage margin perform as well the market would have on its own? Was this educated choice to create predictability the best for my business?”

These are the moments when discipline becomes priceless. Now, as soybean meal has breached $400/ton and corn has hung in the $6+ territory, while milk futures prices tested $14/cwt on a Class III basis, many are very pleased that they stuck with that choice. Others, however, are left asking the question, “What do I do now?”

Obviously, margins are not spectacular for the un-hedged individual. Lower milk prices, higher protein prices and historically elevated corn prices squeeze the bottom line incredibly.

You’re wondering, “Will the market, offer us an opportunity for a (growing) profit?” As much as you and I hope, there is no guarantee for such returns. We need not look any further back than 2009 to recognize that the world market does not concern itself with making sure that each month is a profitable one.

The good news is that the market is offering (at the time of this writing) a better opportunity in the second half of the year ($15.74 Class III futures average) than what was received or remaining for the first half of the year ($15.68). This begs the question, “What should I do about it?“ This is where we need to be careful. Managing our emotions and perspectives will be one of 2012’s greatest lessons.

It is very easy to react out of panic or to kick into survival mode without weighing all of the information. Given the more than $150/ ton or 155% hike in prices since last fall’s low, now is not the time to become aggressive in buying soybean meal. Instead, a more passive approach is in order. This is a time to use call option strategies in order to defend further price elevations. With corn likely to be in heavy supply come harvest, now is not the time to be getting super excited about booking all of your corn needs either. Here again, a call option strategy is more appropriate.

What about milk?

Since prices are neither historically high nor historically low, we are presented with choices to ‘play the middle.’

In this environment, multiple approaches are acceptable.

You may sell milk futures or contract with your buyer.

However, act prudently if this is your choice. Too many times I have heard dairymen recount stories of how they contracted milk after a fall out in price. They justified their efforts as a means of defending against what just happened. Almost invariably, that is when the market began its next move higher. If you should choose this avenue at current price levels, buying calls would be a prudent follow-up to that sale in order to allow any surprise upside movement to reward you.

Bottom line: Manage your reactions with a plan! At this point, many are left feeling that they have missed the bus.

In your efforts to catch up, please don’t make hasty and irrational decisions that end up throwing yourself under the bus.

You may also choose to purchase put options. This strategy provides you coverage from lower/falling markets while allowing you the flexibility to take advantage of potential price hikes. Other alternatives are available, but you should consult your risk management advisor to help you develop a specific plan tailored to your margin situation.

If you do not have a plan…or an advisor, you are welcome to contact me for assistance. It is most essential for you to work through the process of identifying risk, your tolerance for it, and your plan to overcome it.

17

STRONGER

THAN EVER

The 2011 show season once again showed Semex sires to be the dominant source of high-caliber show cattle.

Names such as Licorice, Rejoice, Tidbit, Jolie, Apple, Marmee and of course Missy are synonymous with the Tanbark Trail and with code 200 bulls.

Led by the wildly popular Braedale Goldwyn, Semex dominated the All-American and All-Canadian Nominations in 2011, siring an impressive 58% of the All-American awards and 66% of the All-Canadian Awards. These awards were represented by seven different Semex sires and resulted in six All-Americans (four unanimous) and 10 All-Canadians (four unanimous) for their owners. No other stud can claim this kind of dominance or diversity in its lineup.

Already in 2012 we’re seeing this legacy continue with Semex sires placing well and capturing grand champion awards at nearly all national shows to date.

And, this success is growing with champion honors being bestowed on Semex Red & White and Jersey sires as well – underscoring Semex’s commitment to provide our clients with the genetics designed to match their needs.

With sires such as 0200HO05592 Crackholm Fever, 0200HO02137 Pine-Tree Sid, 0200HO02106 Stantons Steady, 0200HO05588 Comestar Lauthority, 0200HO03501 Gillette Windbrook, 0200HO05024 Dudoc Mr Burns *RC, 0200JE00131 Bridon Remake Comerica, 0200JE00423 Lencrest Blackstone and of course, Goldwyn dotting the headlines of show and sale reports worldwide this spring, there is no doubt that Semex is and will continue to be the source for elite, eyecatching genetics for generations to come.

Ask your Semex representative today about these and other Semex Designer Series™ sires.

Great Lakes Spring Show, 1st Summer Yrlg, Long-Haven Fever Addie by Crackholm Fever

Grand Champion Quebec Spring R&W Show, Blondin Mr Burns Laurence by Dudoc Mr Burns *RC

One of the high sellers at the Canadian National Holstein Convention, SeagullBay Wnbrk Sunday by Gillette Windbrook 1st Summer Yrlg, Quebec Spring Show, Kostka Steady Dinamite, by Stantons Steady

Grand Champion & 1st 4 Yr Old, Wisconsin Spring Spectacular Jersey Show, Random Luck Tay Helen by Bridon Remake Comerica

2nd 4 Yr Old Quebec & Ontario Spring Shows, Hartveld Windbrook Jewel, by Gillette Windbrook

Photos by: Holstein Quebec, Cowsmo, Holstein World, DAT

INVESTING MORE IN EACH DOSE Getting your cows pregnant is as much a priority for Semex as it is for you. Semex takes great care to produce and deliver the highest quality semen to your dairy.

The Semex Gold Standard ensures that strict protocols are followed throughout each and every phase of the production process.

We are continually striving to improve the quality and fertility of our products. The Semex Gold Standard includes an investment of revenues into R&D each year into:

ANIMAL GENOMICS EMBRYO GENOMICS BULL CALF NUTRITION SEMEN PROTEINS SEMEN EXTENDERS SEXED SEMEN This work, and the Semex Gold Standard, continues our commitment to providing the highest quality product available.

This means increased fertility and greater profitability for your dairy!

BEAT THE SUMMER HEAT

Semex Genetic Consultants work hard to find the right solutions to reduce summer heat stress on your dairy including these products and services: Repromix™

Semex researchers have developed Repromix™, a pooled semen product combining three high fertility sires into one powerful “cocktail.” Each one of the three sires in a straw of Repromix™ is proven to have high fertility and high overall semen quality.

Repromax™

Our Repromax™ sires are ones proven to be high fertility sires, with no genetic sacrifices.

Semex Fertility Calculator

Your Semex Genetic Consultant will collect herd conception data and goals to prepare a customized report showing the value of using Semex sires in your breeding program.

Contact your Semex Genetic Consultant to incorporate the right solutions into your breeding program.

1-800-303-BULL (2855) | www.semex.com