Plan to Attend the 2013 Pre-Conference Symposium at Tri-State Dairy Nutrition Conference. Tomorrow s Ideas Today

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1 RP Feed Components Science, Research, Service Plan to Attend the 2013 Pre-Conference Symposium at Tri-State Dairy Nutrition Conference Tomorrow s Ideas Today Tuesday, April 23 Calhoun Ballroom, Grand Wayne Center Fort Wayne, IN 7:00-8:00 AM On-Site Registration and Breakfast Buffet, Gallery Room 8:00-11:45 AM Symposium, Calhoun Ballroom 8:05-8:50 8:50-9:40 9:40-9:55 9:55-10:50 10:50-11:45 We're at Valine, Where are You? Dr. Mike Blair, Pilgrim s Metabolizable Protein and Amino Acid Targets for Prefresh Cows Dr. Patrick French, RP Feed Components Break Dairy Metrics You Need to Follow in Today s Dairy Economy Dr. Greg Bethard, G&R Dairy Consulting Farming and Technology: A California Dairyman s Perspective Dino Giacomazzi, Giacomazzi Dairy Register at or Patrick.French@feedcomponents.com

2 WE RE AT VALINE, WHERE ARE YOU? RP Feed Components Pre-Conference Symposium April 23, 2013 Mike Blair, Ph. D. Senior Director Nutritional Services Pilgrim s

3 Famous Quotation 2 once you have by-passed the rumen, its just like feeding a turkey J.Dale circa 1995

4 3

5 TOPICS 4 Nutrients Feed Ingredients Amino acids & N metabolism Feed Formulation Practical Evaluation of Feed Additives Pilgrim s at a Glance

6 NUTRIENTS 5 1. Most Important Nutrient? WATER 2. Energy/ calories Metabolizable Energy (ME kcal/lb) 3. Amino Acids Total and Digestible - DAA drive Crude Protein Level ; Key amino acid s are methionine + cystiene (TSAA), lysine, threonine, isoleucine, valine, tryptophan. 4. Minerals Sodium, Chloride, Calcium and Available Phosphorus (Macro) ; Zinc, Manganese, Iron, Copper, Idodine, Selenium 5. Vitamins - A, D, E, K (Fat Soluble); B vitamins including choline

7 Nutrient Requirement of the Bird 6 Requirements vary by age, strain and other conditions Energy/calories (ME) increase with age Amino Acids (Crude Protein), Minerals and Vitamins decrease with age Due to this principle, several diets are used over the life of the broiler depending on market age, product mix (whole bird versus deboned) and limitations of the feed mill

8 Feed Ingredients - Energy 7 Primary cereal grains and fats Corn Wheat Milo low tannin Fats Secondary oilseed meals, by-products and animal proteins Soybean Meal Canola Meal DDG s Bakery Meals Meat and bone meal & animal protein blends

9 Feed Ingredients Amino Acids/CP 8 Primary Oilseed Meals Soybean meal Canola meal Meat and bone meal & animal protein by-products Added amino Acids Lysine (liquid and dry; Lys HCL or Biolys) Methionine (liquid and dry; methionine analog or DL-methionine) Threonine (dry) Secondary cereal grains and by-products Corn Wheat DDG s

10 Efficient use of Amino Acids 9 Principle Adopt Amino Acid nutrition to meet animal requirements. Digestible Amino Acids Ideal AA Ratios Use Reduction of crude protein Inclusion of amino acids into feeds Phe Trp Val Ile Available Amino Acids Methionine; Lysine Tryptophan; Threonine Valine, Isoleucine Thr Met Lys Leu Philippe Becquet, GFFC III, April 2010

11 Feed formulation to reduce $$, N excretion and ammonia emission 10 Amino Acid Supplementation can reduce N excretion by 40%. This can be as high as 50% for layers. For every 1% drop in CP, from the use of AA s, N excretion can drop by 8.5%. Reduction in N excretion reduces ammonia emissions. Reducing N levels in the feed will decrease N excretion and ammonia emissions from poultry manure. Nahm, 2007

12 Nitrogen Flow in Monogastrics 11 Reduce Reduce Reduce Increase Reduce Ferket et. al., 2002

13 Broilers 12

14 Live Performance of Broilers at 6 and 8 weeks when given feeds meeting EAA requirements, but with CP 3% less than NRC. F/G BW (kg) 6 Wk Litter CP 0-3 Wk 6 week DM % N NRC a Reduced b Moran et. al., Week BW (kg) 0-8 Week 8 Wk Litter CP g Gain F/G 8 week F/G DM % N NRC a Reduced b Moran & Bushong, 1994

15 Feed Formulation 14

16 Feed Formulation 15 Use linear programing (least-cost) to find the best cost formula given the ingredient make-up and nutrient requirements Weight/Space is a nutrient must assess the impact of the additive on final ingredient makeup and cost of the diet.

17 Feed Formulation - Example 16 Ingredients but no nutrient requirements but weight 100% limestone Add energy minimum corn, fat, maybe some meat and bone meal Add Crude Protein minimum soybean meal and DDG s Add amino acid minimums - lysine, methionine and threonine - $$$ and decrease N! Add sodium, calcium and Av. Phos minimumssalt, limestone, phosphate Add trace mineral and vitamins trace mineral and vitamin premixes and choline/betaine

18 Reading Feed Formulas & Batch Sheets 17 Left- Side list of ingredients in the formula with mins, maxes, shadow prices and rejected ingredients. Right-Side Nutrient minimums and maximums set for nutrient requirements of the broiler -primarily age Batch Sheet ingredient levels from formula based on 2000 lbs increased to mixer size and ingredient order in scaling.

19 PRACTICAL EVALUATION OF FEED ADDITIVES

20 PRIMARY CRITERIA What s the price? 2. What do I get out of using it? Any Questions?

21 First Evaluation 20

22 CONSIDER THE VALUE CHAIN 21 The Bird Feed Mill Feed Formulation Technical Data and Trials People

23 Economic Validation by the Bird 22 Additive must be priced to lower the feed cost per pound of meat /dozen eggs or increase yield which the birds will tell us. Strain and bird size needs to be considered Consistency and reliability of product performance will be key. Is the additive is another me too additive and if so they will be defined as a commodity Does the bird need the additive e.g. MET Differentiate and investigate how products work individually or with other products

24 Economic Validation by the Bird 23 EXAMPLE USING BROILER FEED CONVERSION Per 1,000,000 Broilers per $320/ton average feed cost One (1) point of feed conversion (0.01 e.g to 1.64) is worth: Small bird ~4.00 lbs. = ~$6,400/week Medium bird ~ 6.00 lbs. = ~$9,600/week Big bird ~ 8.00l lbs. = ~$12,800/week

25 Feed Mill 24 Can the additive be used in the feed mill? Every feed mill is different! Package size Dosage rate Magnitude Constant or variable? Mixability Stability of additive through feed processing Micro bin space Hassle factor for the feed mill

26 Feed Formulation 25 Add on-top or formulate in? On-Top simply add to the feed Formulate in assign nutrient values ACCURATELY Space is a nutrient must assess the impact of the additive on final ingredient make-up and cost of the diet. Dosage or inclusion rate

27 Technical Data and Trials 26 One trial does not do it! Consistency and reliability of response - Show the good, the bad and the ugly. Properly designed trials with negative control and adequate responses to additive based on claims. Feature /Benefit Analysis Use US measures and adjusted feed conversions to a common body weight.

28 People 27 People buy from people Know your customer (and vice versa) and work to define their needs Customer Service is additive shipped in timely manner and in good condition, supply adequate and issues resolved efficiently Keep it simple especially pricing

29 PILGRIM s April 23, 2013

30 Pilgrim s Facts 29 Second largest poultry company in the world Employs ~38,000 people Capacity 36 million chickens per week which is 9.5 billion pounds of chicken per year

31 Pilgrim s Locations 30

32 Vertical Integration The Process 31

33 At the Feed Mill 32 Pilgrim s Pride owns and operates 31 feed mills. Every year, we purchase 200 million bushels of corn and 2.0 million tons of soybean meal as ingredients for our poultry feed. Our feed is manufactured using a proprietary mixture that includes only natural ingredients. No growth hormones of any kind are used in our poultry diets. Once the feed is ready, it s loaded onto feed trucks and delivered to grow out farms.

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36 THANK YOU! 35

37 Metabolizable Protein and Amino Acid Targets for Prefresh How to Meet the MP & AA Needs of Most Cows 2013 RP Feed Components, LLC

38 Outline 1. Response to greater prefresh metabolizable protein (MP) and amino acid (AA) intake 2. Why cows respond to greater MP and AA intake 3. How to ensure that prefresh cows receive sufficient MP and AA

39 Item #1 Cows respond to greater Prefresh Methionine and Lysine intake

40 Why be Concerned about MP and AA Prefresh? During the first 7 10 d of lactation dairy cows may need to mobilize as much as 1000 g tissue protein/d to satisfy the mammary gland s demand for amino acids and glucose. (Bell et al., 2000) Depletion/Mobilization of labile protein reserves prior to calving reduces the amount available after parturition.

41 Amino Acid Mobilization Begins Prefresh Muscle mobilized prior to fat Cows with higher 3 MH concentrations had lower BHBA conc Higher mobilization of protein around calving may restrict ketones van der Drift et al. (2012)

42 Results are Mixed when Increasing CP Prefresh 6/15 2/15 7/15 Bell et al. (2000)

43 Why are Results Mixed when Increasing CP Prefresh? In pregnant dry cows the relationship between CP intake and MP and AA supply is variable and dependent on: 1.Feed Intake 2.AA Composition and Level of Dietary Protein 3.Fermentable OM for Rumen Microbial Protein Synthesis Bell et al. (2000)

44 Published Study Analysis Review published transition cow studies Modeled rations and determined if the nutritional models can predict a productive response This is not to be confused with a meta analysis Multiple study Analysis

45 Prefresh MP Database Study Trt N Caldari Torres et al., 2011 (FL) 2 20 DeFrain et al., 2005 (SD) 4 40 DeGroot et al., 2010 (OR) 4 36 Doepel et al., 2002 (CAN) 4 28 Janovick and Drackley, 2010 (IL) 3 24 Ji et al., 2012 (IL) 2 14 Morey et al., 2011 (KS) 1 7 Peterson et al., 2005 (MI) 3 42 Sadri et al., 2009 (IRA) 4 32 Smith et al., 2005 (NY) 2 72 Stone et al., 2012 (NY) 2 70 Winkelman et al., 2008 (OH) 2 18 Yuan et al., 2012 (WI) 1 15 Total

46 Database Requirements Multiparous Holstein Cows d Prefresh to d Postfresh DMI Milk Fat & Protein Rations and Cows Adequately Described to Model in CNCPS Data were analyzed in JMP Metabolizable Protein, Metabolizable Methionine (mmet), Metabolizable Lysine (mlys)

47 Prefresh Database Summary Item Mean SD Min Max DMI, lbs ME, Mcal/d ME Bal, Mcal MP, g/d 1, MP Bal, g gmp/kg DM CP, % NDF, % Starch, % Met, g/d Lys, g/d

48 Postfresh Ration Summary Item Mean Min Max DMI ME, Mcal/d ME Bal, Mcal MP, g/d 1,890 1,355 2,356 MP Bal, g gmp/kg DM CP, % NDF, % Starch, % Met, g/d Lys, g/d

49 BW, BCS, & Production Item Mean Min Max Pre BW, lbs 1,649 1,490 1,787 Pre BCS Post BW, lbs 1,458 1,322 1,541 Post BCS Milk, lbs/d Fat, % Fat, lbs/d Protein, % Protein, lbs/d FCM:DMI

50 Prefresh vs Postfresh DMI Plot Postfresh DMI, lbs/d Postfresh DMI (lbs) = 1.6 x Prefresh DMI (lbs) + 18 r² = Prefresh DMI, lbs/d

51 Effect of Prefresh MP on Protein Yield 1.40 Milk Protein, kg/d Prot Yield (kg/d) = 0.2 x kg Prefresh MP r² = 0.19 Every 1 g MP Prefresh = 0.2 g Milk Protein Postfresh Prefresh MP, g/d

52 Effect of Prefresh mmet on Protein Yield Milk Protein, kg/d Prot Yield (kg/d) = x g Prefresh mmet r² = 0.29 Every 10 g mmet Prefresh = 0.13 g Milk Protein Postfresh Prefresh mmet, g/d

53 Effect of Prefresh mlys on Protein Yield 1.50 Milk Protein, kg/d Prot Yield (kg/d) = x g Prefresh mlys r² = 0.25 Every 30 g mlys Prefresh = 0.12 g Milk Protein Postfresh Prefresh mlys, g/d

54 Item #2 Why do Cows Respond to Greater MP and AA intake

55 MP, mmet, & mlys Needs of Prefresh Cows What do the Models and Experts Say? MP, g/d mmet, g/d mlys, g/d Nutrition Models (4) 820 1, Experts 1,100 1, Model/Expert Avg 1, % MP 6.9% MP 1,600 lb Mature Holstein 275 Days Preg 25 lbs DMI 95 lb Calf

56 Prepartum DMI Varies (A Lot) in Prefresh Pens Number or Percentage % Eat Less Than Avg 2. 16% Eat 80% of Avg % of Cows % of Cows Avg = 27 lbs SD = 5.5 lbs % of Cows Phillips et al. (2003)

57 Prepartum DMI Varies (A Lot) in Prefresh Pens Number or Percentage % % Avg = 27 lbs SD = 5.5 lbs % Phillips et al. (2003)

58 21 d Postpartum DMI, lbs r² = 0.59 Relationship Between Pre and Postpartum Intake Pre DMI = 23 lbs Post DMI = 26 lbs SD = 4.4 lbs Holstein Jersey Pre DMI = 30 lbs Post DMI = 35 lbs SD = 5.5 lbs d Prepartum DMI, lbs French (unpublished)

59 Prefresh DMI Variability Has To Be Considered! What does all this Mean? 15% of Cows consume at least 5 lbs less DM than Pen Avg or ~25 lbs DM This same 15% consume ~20 lbs DM the week before calving If you re balancing the ration for 30 lbs DMI and 15% of the cows are consuming less than 20 lbs DM, then it is reasonable to assume that these cows are in negative nutrient balance

60 Item #3 How can We Ensure that Prefresh Cows Receive Sufficient MP and AA

61 How Can We Account for the Variability in Prefresh Pens? Not all cows consume the average (½ more and ½ less) We can account for most of those eating less than average Std Dev of transition intake is 4.6 lbs, as a ref SD in a one group herd is 6.8 lb

62 Development of Adjustment Factors to Meet the MP & AA Needs of Prefresh Cows MP, g/d Met, g/d Lys, g/d Benchmark 1, To meet the requirement of 50% of the cows 1,080 g MP/d, 25 g Met/d and 75 g Lys/d To meet the requirement of 83% of the cows, multiply by g MP/d, 30 g Met/d and 90 g Lys/d To meet the requirement of 95% of the cows, multiply by g MP/d, 32 g Met/d and 97 g Lys/d

63 Prepartum DMI StDev Study lbs Caldari Torres et al., 2011 (FL) 5.4 DeFrain et al., 2005 (SD) 6.9 DeGroot et al., 2010 (OR) 4.0 Doepel et al., 2002 (CAN) 5.2 Janovick and Drackley, 2010 (IL) 4.5 Ji et al., 2012 (IL) 4.1 Morey et al., 2011 (KS) 5.2 Peterson et al., 2005 (MI) 5.8 Sadri et al., 2009 (IRA) 2.2 Smith et al., 2005 (NY) 2.6 Stone et al., 2012 (NY) 5.2 Winkelman et al., 2008 (OH) 4.0 Yuan et al., 2012 (WI) 6.0 Avg 4.7

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65 Response to mlys in Early Lactation Control Blood AjiPro L Product A n Period 4 7wk of lactation Lys, % MP Lys, g/d DMI, lbs Milk, lbs 94.2 a 93.9 a 97.7 b 92.8 a Fat, lbs 3.79 a 4.18 bc 4.26 c 3.89 ab Protein, lbs 2.49 a 2.45 a 2.59 b 2.41 a ab Means in the same row with different superscripts are different (P<.05) by Tukey s mean separation test

66 Plasma Amino Acids ( mol/dl) Control Blood AjiPro L P= Tyr 4.9 ab 5.1 a 4.7 ab 0.05 Thr Trp His 7.2 ab 8.1 a 7.0 b 0.03 Asp Lys 7.4 b 9.7 a 8.3 ab Leu 16.3 b 21.4 a 15.9 b Ile Met Val 27.8 b 38.3 a 29.5 b Phe 4.8 b 5.5 a 4.8 b Orn 3.4 b 4.3 a 3.7 ab 0.03 Urea

67 Xu et al. (1998) 1. NC (86% of mlys and 90% of mmet Req) 2. PC (112% of mlys and 103% of mmet Req by supplementing blood, fish and meat & bone meal) 3. NC + RPAA (Post 27 g/d of mlys and 8 g/d of mmet; Pre 13.5 g/d of mlys and 4 g/d of mmet) 4. NC + Hi RPAA (Post 40 g/d of mlys and 13 g/d of mmet; Pre 13.5 g/d of mlys and 4 g/d of mmet)

68 Xu et al. (1998) Prefresh Ration NC PC NC+RPAA NC+Hi RPAA DMI, lbs/d 20.5 a 24.5 b 20.7 a 23.8 b CP, % NDF, % Starch, % ME, Mcal MP, g/d mmet, g/d mlys, g/d

69 Xu et al. (1998) Postfresh Ration NC PC NC+RPAA NC+Hi RPAA DMI, lbs/d 35.6 a 37.7 a 38.3 a 46.3 b CP, % NDF, % Starch, % MP, g/d Met, g/d Lys, g/d Milk, lbs/d 74.5 a 86.8 b 82.7 b 86.0 b Milk Fat, lbs/d 2.67 a 2.98 b 3.15 bc 3.31 c Milk Prot, lbs/d 2.27 a 2.62 bc 2.51 c 2.80 b

70 Effect of Prefresh MP on Protein Yield Milk Protein, kg/d ,300 g MP Prot Yield (kg/d) = 0.2 x kg Prefresh MP r² = Prefresh MP, g/d

71 Effect of Prefresh mmet on Protein Yield Milk Protein, kg/d g mmet Prefresh mmet, g/d

72 Effect of Prefresh mlys on Protein Yield Milk Protein, kg/d g mlys Prefresh mlys, g/d

73 Concluding Remarks Published Study Database As prefresh MP, mmet, and mlys intake increase, so does milk protein yield; 1,300 g MP, 30 g Met, and 90 g Lys Not just grams of MP; focus on AA Xu et al. (1998) study enforces that prefresh and postfresh AA supply are coupled and need to focus on both!

74 Questions

75 Dairy Metrics You Will Need to Follow in Today s Dairy Economy Greg Bethard, Ph.D. G&R Dairy Consulting DRMS Blacksburg, VA greg.bethard@gmail.com

76 Concepts Metrics need to relate to the P&L Benchmarking is a bad idea Goal Setting and tracking makes a lot of sense The lowest cost/cwt typically wins Economics trumps Biology Milk per cow doesn t mean anything

77 What are some good questions? Do I have too many heifers? Am I getting enough or too many cows pregnant? Am I getting them pregnant too late? Are heifers getting pregnant quickly? Are herd demographics costing milk and feed? How are Fresh Cows starting? Are my cows performing better than in the past? Am I culling too many or too few cows? Am I making money?

78 There are good metrics and bad metrics to answer these questions Even good metrics can go wrong if computed incorrectly or from using misleading data

79 What are some good metrics? Cows in tank, cows in hospital Daily milk sold, fat%, prot%, OS%, SCC Feed Shrink Requires monthly inventories P&L (monthly) done correctly Milk-Feed Margin Static IOFC considering components Need DMI, components, milk/cow

80 What are some good metrics? Breakeven Class III milk price Projected cow flow, inventory, P&L Herd distribution and demographics Fresh Cow milk (with components) Fresh Cow losses 21-day preg rate and hard count

81 What are some bad metrics? P&L (monthly) done incorrectly Any ratio with feeding economics Feed cost/cwt Milk:Feed Cost/cwt not corrected for components or milk check Cull rate (potentially) Metrics that ignore failures Metrics that span too much time (momentum)

82 Dairy Economy is extremely volatile Volatility = opportunity Need metrics that quickly indicate directional movement and lead to intervention Metrics need to be correlated to something on the P&L more milk, less feed, etc.

83 The 2 Biggest Variables that determine P&L. Margin generated after feed costs are covered Management has more control over this number than most numbers on the P&L Feed costs overwhelm the P&L (60+%) Milk production and herd demographics are key Milk Sold per day

84 The P&L Defines Operational Efficiency. Milk Volume and IOFC drive current P&L Cow Flow drives future P&L Herd Health greatly impacts both

85 Problem with Cost/cwt Ignores income Holstein versus Jersey Premiums Is cull cow income part of income? should be part of replacement cost Is milk hauling a cost? Best Single Number? Breakeven milk price, considering basis (relative to Class III)

86 Feed Costs Overwhelm the P&L What are the best metrics to evaluate?

87 Were we better off with cheaper feed? Old days Ration: $0.08/lb DM Milk: $14 75 lbs milk, 50 lbs DMI Today IOFC = $6.50 Ration: $0.14/lb DM Milk: $20 75 lbs milk, 50 lbs DMI IOFC = $8.00

88 Were we better off with cheaper feed? Old days Ration: $.08/lb DM Milk: $14 75 lbs milk, 50 lbs DMI Today IOFC = $6.50 Feed Cost/cwt: $5.93 Ration: $0.14/lb DM Milk: $20 75 lbs milk, 50 lbs DMI IOFC = $8.00 Feed Cost/cwt: $ % dry cows, $3.00/d dry cow feed cost

89 Feed Cost/cwt Definition: Milking and dry accrual consumption using market values for forages Limitations Ignores milk income It may cost more to produce milk of higher value Don t benchmark to other herds!

90 What About Components?

91 Biology Biological measure of efficiency vs economics 3.5% Fat corrected Milk (0.515 x milk lbs) + (13.86 * fat lbs) 4.0% Fat corrected Milk (0.40 x milk lbs) + (15.00 * fat lbs) Energy Corrected Milk (0.323 x milk lbs) + (12.82 * fat lbs) + (7.13 x prot lbs) Feed efficiency (milk:feed ratio) (FCM lbs) / (dry matter intake lbs)

92 Economics Biological measure of efficiency vs economics Money Corrected Milk Value of milk produced relative to 3.5% fat, 3.0% protein and static component values Units: pounds per day Money Corrected Milk IOFC Value of milk generated relative to cost of feed Value of milk and feed held constant over time Units: $/cow/day Money Corrected Milk is a milk check-based approach

93 Example Herd A 72lbs milk 3.97% fat 3.27% protein 5.70% other solids Herd B 80 lbs milk 3.40% fat 2.90% protein 5.70% other solids Who is better?

94 Example Component Prices Fat: $1.50/lb Protein: $3.00/lb Other Solids: $0.45/lb

95 Example Milk check adjustments Quality: $0.50/cwt Hauling: -$1.00/cwt Promotion: -$0.15/cwt Basis: $2.00/cwt

96 Which herd is better? Herd A 72 lbs milk 3.97% fat 3.27% protein 5.70% other solids Herd B 80 lbs milk 3.40% fat 2.90% protein 5.70% other solids

97 Which herd is better? Herd A 72 lbs milk 3.97% fat 3.27% protein 5.70% other solids FCM: 76.7 lbs Herd B 80 lbs milk 3.40% fat 2.90% protein 5.70% other solids FCM: 78.9 lbs FCM = 3.5% Fat Corrected Milk

98 Which herd is better? Herd A 72 lbs milk 3.97% fat 3.27% protein 5.70% other solids FCM: 76.7 lbs ECM: 76.7 lbs Herd B 80 lbs milk 3.40% fat 2.90% protein 5.70% other solids FCM: 78.9 lbs ECM: 77.3 lbs ECM = Energy Corrected Milk

99 Which herd is better? Herd A 72 lbs milk 3.97% fat 3.27% protein 5.70% other solids FCM: 76.7 lbs ECM: 76.7 lbs MCM: 77.8 lbs Herd B 80 lbs milk 3.40% fat 2.90% protein 5.70% other solids FCM: 78.9 lbs ECM: 77.3 lbs MCM: 77.8 lbs MCM = Money Corrected Milk

100 Which herd is better? Herd A Herd B 72 lbs milk 80 lbs milk 3.97% fat 3.40% fat 3.27% protein 2.90% protein 5.70% other solids 5.70% other solids FCM: 76.7 lbs FCM: 78.9 lbs ECM: 76.7 lbs ECM: 77.3 lbs MCM: 77.8 lbs MCM: 77.8 lbs Income/day = $14.17 Income/day = $14.17 Milk/Cow is an outdated measure of performance

101 Which Cow is better? Cow A 92 lbs milk 4.22% fat 3.41% protein 5.65% other solids Cow B 113 lbs milk 3.30% fat 2.60% protein 5.65% other solids

102 Which Cow is better? Cow A 92 lbs milk 4.22% fat 3.41% protein 5.65% other solids FCM: lbs ECM: 99.3 lbs MCM: lbs Income/day = $18.84 Cow B 113 lbs milk 3.30% fat 2.60% protein 5.65% other solids FCM: lbs ECM: lbs MCM: lbs Income/day = $18.84

103 Which cow should be culled? Cow A 40 lbs milk 4.50% fat 3.40% protein 5.65% other solids Cow B 40 lbs milk 3.30% fat 2.60% protein 5.65% other solids

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106 Which cow should be culled? Cow A 40 lbs milk 4.50% fat 3.40% protein 5.65% other solids FCM: 45.5 lbs ECM: 45.7 lbs MCM: 46.0 lbs Income/day = $8.34 Cow B 40 lbs milk 3.30% fat 2.60% protein 5.65% other solids FCM: 38.9 lbs ECM: 37.3 lbs MCM: 36.7 lbs Income/day = $6.66

107 Money Corrected Milk IOFC Milk-check based income Uses constant feed and milk prices over time. Variables include milk, components, dry matter intake Good barometer as to how the herd is performing Despite poor market conditions, are my cows performing better or worse than in the past?

108 Money Corrected Milk IOFC

109 What is the benchmark for Feed Conversions (Milk:Feed)? Milk lbs/dmi 1.5? 1.7? What is numerator? Fat corrected milk? Energy corrected milk? Money Corrected Milk TM?

110 Goals for Feed Efficiency? What about Days in Milk? What about Value of Milk? Normand St. Pierre, 2011

111 The goal is not to have a good feed efficiency The goal is to have a good margin

112 Questions. Am I culling too many cows? Am I not culling enough cows? Is my cull rate costing me money? Metric: Replacement Costs

113 Replacement Cost = Trade-In Value Cost of Replacements - Value of Sold Cows Cwts milk sold

114 A cow is an income generating asset in a manufacturing business How many lactations until a cow pays for herself? Heifer put into service for $1400 $100 calf born day 1, net $1300 Milk for 400 days, salvage for $1000 Net Ownership cost of $300 or $0.75/day IOFC = $5-7/day

115 Preg Rate means cow flow and lactation distribution Useful repro metrics: 21-day preg rate by lact group % preg by 150 DIM Conception Rate for 1 st service Pregnancy Hard Count Service Rate

116 Herd Distributions

117 Better Repro = Better Lactation Distribution More milk Less Feed Improved IOFC Late Lact Cows eat lots of feed and produce little milk

118 74 lb 3x no bst

119 78 lb 3x no bst

120 100 lb 3x bst

121 70 lb 2x no bst

122 Conclusions It is all about making money: a dairy is a business, so metrics need to be focused on economics Benchmarking is typically inappropriate, goal setting and tracking makes a lot of sense There are good metrics and bad metrics used every day in the dairy industry