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The Cost of Raising Replacement Dairy Heifers

The Cost of Raising Replacement Dairy Heifers. Brian Lang, OMAFRA, Woodstock Bill Grexton, CanWest DHI, Guelph. Average Age at First Calving with 20 and 80 Percentiles. The average age at first calving in Ontario has remained between 26.6 and 27.0 months. Age at First Calving.

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The Cost of Raising Replacement Dairy Heifers

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  1. The Cost of Raising Replacement Dairy Heifers Brian Lang, OMAFRA, Woodstock Bill Grexton, CanWest DHI, Guelph

  2. Average Age at First Calving with 20 and 80 Percentiles The average age at first calving in Ontario has remained between 26.6 and 27.0 months

  3. Age at First Calving 63% of heifers 41% of heifers calved at 27 months of age or older CanWest DHI 2008-09 (212,435 heifers)

  4. Comparison of Age at First Calving and Productive Life Productive life in a dairy herd is similar across all ages with a range of less than 4 months Heifers calving at 25-26 months have the longest herd life CanWest DHI 2008-09

  5. Age at First Calving and Lifetime Milk Production Highest lifetime production is from heifers calving at 23 to 25 months of age CanWest DHI 2008-09

  6. Heifers required to supply replacements for 100-cow herd 15% allowance for culling, non-breeders and death loss

  7. Replacements Required If calving interval is 14 months for both farms and 15% allowance for culling • Farm 1 has 12 heifers to sell each year • Farm 2 must buy 5 heifers each year

  8. Wisconsin 2007 (US$) Ave. weaning age 7 weeks; age at first calving 24.1 months

  9. The effect of body weight and age on costs of raising one heifer in Wisconsin Preweaned calves have the highest daily cost. After weaning, costs are fairly flat until breeding then rise again in late pregnancy. Zwald et al, 2007

  10. Tie Stall vs. Free Stall - Wisconsin Tie Stall Free stall Preweaned cost 381 315 Wean to calving cost 1,416 1,362 Total $US 1797 1,677 Zwald et al, 2007

  11. Tie Stall vs. Free Stall – Wisconsin 2007 Tie Stall Free stall Preweaned 381 315 Wean to calving 14161362 Total $ 1797 1677 Biggest expense difference was labour Labour (ave.21.3 hours) 27.7 hr 17.7 hr paid $ 157 258 unpaid $ 34871 $ 505 329

  12. New York 2007 Feed 885 Labour 234 Bedding 63 Health 40 Breeding 47 Mach. & Building Operating Expenses 60 Deprec/Taxes/Insur 150 Manure Spreading & Storage 57 Interest 137 Other Expenses 61 Total $ US 1734 17 farms ave. 865 heifers 22.9 months @ first calving 18.2 hrs. labour/heifer

  13. Age at First Calving and Net Farm Income Ontario 2006 $288 difference 105 Ontario Dairy Farms - OFMAP 2006

  14. Ontario Dairy Farm Analysis Project2010 Purchased Feed $ 275 Crop Production Input Costs 127 Vet, Medicine & Breeding 109 Other Animal Costs 133 Building & Land Repair & Maint. 183 Machinery & Equip Repair & Maint. 99 Fuel and Lubricants 78 Custom Work 81 Property Tax & Insurance 85 Hydro & Telephone 23 Hired Labour 73 Other Cash Expenses 49 Interest 167 Total Cash Costs $ 1,483

  15. Ontario Dairy Farm Analysis Project2010 Total Cash Costs $ 1,483 Machinery/Building Depreciation 121 Unpaid Labour & Management (30.4 hours) @ $12.00 ($365) @ $17.00 ($517) 517 @ $22.00 ($669) @ $26.60 ($809) Total Cost to Raise Replacement $2,252

  16. Hours of Labour to Required to Raise a Heifer from Birth to Calving 2000-2010 In recent years, the labour required to raise a heifer has ranged from 35 to 48 hours (includes family and employee labour) Ontario Dairy Farm Accounting Project

  17. Profit Profiler • Replacement Costs 2010 • 46 farms, averaged 218 cows, 9,681 kg • 11% of milk revenue • Range 9-13%(25 to 75 percentile range) • Average cost $900 / per 12 months ~ $1,995/heifer + interest and depreciation costs

  18. How to Measure Impact • COP of heifer may not be the best indicator of success • 1st Lactation Production compared to herd average is needed to see other side • Most herds = 89% • Range 87- 91%(25 to 75 percentile range) • Some herds as low as 80% = program is not working • You need a good indicator to know if your heifer program is working

  19. Impact of Age @ Calving • 2 groups of herds based on age @ 1st Calving (24 and 28 mo) • Low Age Group … • Produced 1400 kg milk more per cow ($885) with higher % margin • Spent .9% of milk cheque LESS to raise a heifer • Spent $14 more per heifer per year but… • Spent $281 LESS overall to bring heifer into milking line • 1st lactation production was 1,170 kg higher • Good overall management dictates that in addition to getting economical high milk production, you need to get higher production heifers into the milking line sooner - it can be done!

  20. Summary $2,000 - $2,500 average cost to raise a replacement heifer • Remember overhead costs • Unpaid labour • Plus value of calf

  21. Summary • Herds that calve earlier get higher 1st lactation and lifetime production • There is a wide range of costs between farms to raise heifers. • There is no advantage to delaying the age to 1st calving. • Herds with good management can raise heifers which perform better than those who do not. • Herds that combine good management with wise cost of production decisions not only have good results but also add considerably the overall profit of the business. • The difference in cost can be in excess of $25,000 per year for the heifer program and $60,000 in the overall farm profit for a herd size of 100 cows.

  22. Thank you

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