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Developing Dairy Producer Peer Groups in Kansas. Kristen Schulte Kevin Dhuyvetter Mike Brouk Rich Llewelyn Kansas State University. Kansas Dairy Industry. 2010 17 th U.S. Milk Production 0.4% increase in milk production since 2009 9 th in 3-year annual milk production growth
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Developing Dairy Producer Peer Groups in Kansas Kristen Schulte Kevin Dhuyvetter Mike Brouk Rich Llewelyn Kansas State University
Kansas Dairy Industry • 2010 • 17th U.S. Milk Production • 0.4% increase in milk production since 2009 • 9th in 3-year annual milk production growth • 11th Milk pounds/cow/day • 21,000 rolling herd average • 13th average herd size • 305 cows (119,000 total cows) • 390 licensed herds Progressive Dairyman, 2010 U.S. Dairy Statistics & USDA, National Agricultural Statistics Service
Opportunities • Variable dairy enterprise returns due to increase of volatility in milk and feed prices • Structurally diverse dairy operation types between regions in Kansas • Limited individual farm benchmark comparison for all types of dairies • Risk management education to reduce financial risk
Objectives • Provide benchmark measures so producers can evaluate their own operations and make plans to change their operations based on this information • Assist producers in analyzing strengths and weaknesses of their operations • Evaluate how milk revenue relates to inputs in order to manage the financial and production related risks • Educate and provide peer-learning opportunities related to marketing, and herd, feed, and employee management
Peer Group Meeting Quarterly meetings comprised of two sections: • Benchmarking • report results for key production and financial measures such as price, production, reproduction rates, culling rates, and feed prices. • Individual and group statistical measures are reported allowing producers to benchmark their farm over time and to the group’s measures. • General education • Topic chosen by the group such as marketing, new aspects of production and technology, and feed management.
Current Participation • 8-11 dairy operations per group • 3 producer peer groups • 29 total operations • 1 group with 6 quarters of data • 2 groups with 2 quarters of data • Farm size range: ~100 – 700 cows • Industry support from local financial institution, feed supplier, and veterinarian • Utilize Excel and Word to collect data via e-mail correspondence with producers
Meeting Outline • 10:30 Welcome • 10:45 – 12:15 Educational session (topics picked jointly by producers and KSU) • 12:30 – 1:00 Lunch • 1:15 – 2:30 Analysis of benchmark data and DHIA records • 2:30 Farm tour
Meeting Preparation Outline • Pre Meeting • Finalize quarterly meeting plans • E-mail reminder for meeting and submission of farm benchmark input data • Collect, compile, and analyze farm benchmark data • Prepare benchmark reports for group and individual farms • Post Meeting • Update farm data with changes highlighted in meeting • Prepare and send next quarters’ input data sheets • Follow-up with producers from prior meeting
Benchmark Data – Milk Production • Record: • Entry comes directly from milk check • Lbs milk sold and used on farm • Milk price received (producer premiums and deductions) • Output: • Milk shipped/cow/day • Milk income/cow/day • Component levels • Hauling cost/cwt milk • Milk price received
Producers enter milk check data into a spreadsheet each quarter (blue values are inputs, other values are calculated).
Benchmark Data – Herd Inventory • Record: • Total cow and heifer inventory • Number of cull animals • Transition cow complication frequency • Veterinary cost • Output • Heifer-to-cow ratio • Cull rates (Cows: <60 and >60 DIM; abortion; stillborn; Heifers:<2, 3-8, and >9 months) • Veterinary cost per head • Rate of transition cow complication
Producers enter monthly cow inventory data into a spreadsheet each quarter (blue values are inputs, other values are calculated).
Benchmark Data - Feed • Lactating, dry, and transition cows • Record for each feed ingredient: • Value/ton • Dry matter percentage • Total poundsfed per group • Output: • Pounds fed/cow, DM basis • Feed cost/cow/day • Feed cost/cwt shipped/day • Major feed component cost comparison • Income over feed cost
Producers enter monthly feed prices and quantities into a spreadsheet each quarter (blue values are inputs, other values are calculated) for each diet (up to four lactating diets, one transition cow diet, and one dry cow diet).
Benchmark Data - Reproduction • Record: • Breeding rate per given 21-day interval • Pregnancy rate per given 21-day interval • Conception rate, number monthly services and successes • Output (6 month average): • Breeding rate • Pregnancy rate • Conception rate per lactation and number of services
Producers enter monthly data regarding number of services and number of successful conceptions into a spreadsheet each quarter (blue values are inputs, other values are calculated).
Benchmark Data - Output • Statistical Analysis (group) • Average, maximum, minimum • Farm Data • Current quarter • Prior quarter • Current quarter, historical year • Rolling year average
Additional Education • Feed inventory, shrink analysis • Cost of production – corn silage • Labor - hours per task category • Educational sessions • Commodity markets and marketing options • Utilizing DHIA records in transition cow management • Vaccination protocols • SCC and udder health • Foot care roundtable
Concluding Thoughts • Continuous learning and development of materials • Producers are still learning (approximate two quarter learning curve) • Feedback has been positive • Time commitment bigger than anticipated(haven’t been able to get producers to provide leadership) • Excel and email capabilities essential • Informal networking / camaraderie might be as important as formal topics presented
THANK YOU Kristen Schulte, schulte@ksu.eduKevin Dhuyvetter, kcd@ksu.edu