Providing a Legacy of Herd Profitability

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2 Providing a Legacy of Herd Profitability

3 Historically, the feeding and care of the replacement heifer has been treated as a sideline to the management of the lactating herd. In the modern era of high production, high culling rates, high heifer costs and rapid expansion, management of the replacement animal has become a focal point of the successful operation.

4 Begin With The End In Mind Focus needs to be on: Age of first calving Return on investment Lifetime yield

5 The development of replacement animals represents the second largest production cost (feed cost is the highest) for a typical dairy. However, heifer rearing can have the largest impact on profitability of the farm. Heifers grown at suboptimal rates do not reach breeding size at the desired age. As a result, they calve later than 24 months and produce considerably less milk during their lifetimes compared to heifers fed nutritionally balanced diets to achieve optimum growth rates ( lb/hd/day). A successful heifer development program allows the dairy operator greater flexibility in decision-making. Two-year-olds make up more than 40% of most high-producing herds, which means that first-lactation heifers have a large impact on the lactating herd s performance.

6 Early life events have long-term effects on the performance of the heifer calf. Pre-weaning calf nutrition and management can yield 4-8 times more milk than genetic selection.

7 Average: + 1,360 lb milk

8 Gold Standards Established by Dairy Calf & Heifer Association Calfandheifer.org

9 Nutrition and Feeding Management are the Backbone to a Strong Heifer Program Select good-quality forages No hay until 2 weeks post-weaning Best if limit-fed Feed a consistent ration, delivered on a consistent schedule Starter & grower should be fed free-choice

10 GOAL: Gold Standards for Heifers Birth to 6 Months Growth Rate Target growth rate standards for Holstein calves: 1. 1 to 60 days of age: Double birth weight to 120 days of age: 2.2 lb average daily gain to 180 days of age: 2.0 lb average daily gain Source: select DCHA Learning Center for the Gold Standards.

11 Gold Standards for Pre-weaned Calf Care Mortality Scours Pneumonia <5% die <25% treated <10% treated Double weight in first 60 days: [1.5 lb/day] 90-lb calf becomes 180-lb heifer

12 Temperature has a Huge Impact on Heifer Calf Energy Requirements Grain Drives Growth 4 lb of calf grower/day in summer vs winter: 60 degrees F 20 degrees F ADG ADG 170-lb Calf 1.2 lb 0.2 lb 185-lb Calf 1.1 lb 0 lb

13 Goals Holstein Jersey Age at first calving 22 to 24 months 22 to 24 months Post-calving weight and body condition score at calving 1250 to to to to 3.5 Wither height at calving 54 to 56 inches 49 to 51 inches Age at first breeding 13 to 14 months 13 to 14 months Approximate weight at conception 850 lb 600 to 650 lb Wither height at breeding 48 to 50 inches 44 to 46 inches Average growth rate 1.7 to 1.9 lb for 24 months of age at 1st calving or 1.9 to 2.1 lb for 22 months of age at 1st calving 1.2 to 1.45 lb

14 Feed costs represent 40% to 60% of the total cost of raising a heifer from birth to 24 months of age (or 1350 lb) Increased feed costs Over-conditioned animals Increased calving problems and lower first-lactation and lifetime production Calving at an older age also increases the non-productive life of the heifer and makes it necessary to keep more replacement heifers on the farm.

15 If a heifer calves at 28 months instead of 24 months, she has an extra 120 days of non-productive feed costs. If an average feed cost of $1.65 per heifer daily is used, the additional cost is $198 per heifer for the additional 120 days. Also when calving is delayed from 24 months to 28 months, we are sacrificing 4 months of milk production potential. Consider an average daily milk production level of 70 lb per head at $20.00/cwt. milk = $1,680 less potential milk income

16 Consider an average lactating feed cost of $6.50 per head daily or $780 over a 120-day period. Income gained (IOFC) could equal $900 per heifer, assuming no increase in fresh cow problems. Milk production is reduced when heifers weigh less than 1300 lb just prior to freshening. Approximately 200 lb is lost in first lactation milk for every 100 lb the heifer is below 1300 lb before freshening.

17 80 heifer replacements $195 less in heifer feed cost x 80 heifers = $15, >days to produce milk (70 $20/cwt) x 80 heifers = $134,400 in added milk income - $62,400 in feed cost = $72,000 added IOFC. If freshen at 1,300 lb vs. 1,250 lb = 50 lb 200 lb for every 100 lb <1,300 lb = 100 lb more milk/heifer in first lactation x $20/cwt. x 80 heifers = $1,600 > milk potential. Total improvement (barring any health challenges) = $89,200/80 heifer replacements = $1,115/heifer improvement.

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19 The Beginning Starts with a Sound Milk Replacer Program NurseTrate PowerMAX Full genetic potential program 28% all-milk protein and 18% fat ADM exclusive SI Inside SM Selenium yeast NurseTrate PowerCHARGE Similar nutrient package as PowerMAX 25% protein from milk and quality non-milk proteins and 20% fat ADM exclusive SI Inside Selenium yeast

20 The Beginning Starts with a Sound Milk Replacer Program NurseTrate Classic and Classic Plus 20% all-milk protein and 20% fat (Classic) 22% all-milk protein and 20% fat (Classic Plus) ADM exclusive SI Inside Selenium yeast NurseTrate PowerGRO Superior blend of protein sources 22% protein and 16% fat ADM exclusive SI Inside Selenium yeast

21 ADM Premium Milk Replacers Contain ADM Exclusive SI Inside SM What Is ADM SI Inside? A specific, advanced blend of carbohydrates, prebiotic starch, natural-source vitamin E, complexed (organic) trace minerals, and natural botanicals. Research has shown calves fed milk replacer containing a component in SI Inside responded with increased weight gains and higher milk replacer intake, supporting a better feed:gain ratio.* SI Inside also contains an exclusive yeast mannan component (CitriStim ) which has been shown to be more effective in lowering the E. coli (pathogenic bacteria) population compared to a leading competitive product. Fewer pathogens mean better health. This yeast mannan provides greater support to intestinal tissues. Calves responded to this yeast mannan with a 12% ADG advantage over controls.* *References available upon request

22 A comprehensive lineup of Calf and Heifer Feeds offering the latest nutritional enhancements

23 Dairy Calf Feed Line-Up LegenDairy Concentrates LegenDairy 36% Concentrate LegenDairy 30% Concentrate Complete Feeds LegenDairy 18% Starter pelleted LegenDairy 20% Starter pelleted LegenDairy 22% Starter pelleted LegenDairy 16% Grower pelleted

24 Features Range of protein options available from 16%, 18%, 20% & 22% complete feeds to 30% and 36% concentrates to supplement home-grown grains CitriStim ADM natural-source vitamin E Prosponse yeast Benefits High-quality proteins maximize protein digestibility to optimize growth A proprietary yeast compromised of yeast mannans and beta glucans that documented research studies show help the animal fortify its defense against gastrointestinal health challenges. CitriStim has been shown to manipulate pathogens and favorably influence gut immune activity. Natural-source vitamin E is a highly bioavailable antioxidant protecting body tissue from oxidative damage and enhancing immune system function, which is especially critical under stress conditions. Research studies show natural-source vitamin E has more potent antioxidant activity compared with synthetic vitamin E. Exerts effect on fiber digestion which impacts rumen development and feed intake.

25 Features Multiple energy sources Balanced mineral fortification Vitamins Hydroxy forms of copper, zinc, and manganese Special ADM sugar blend Benefits Supports growth, helps stimulate rumen development, and gives calves a healthy bloom Provides needed base and trace minerals in amounts and ratios necessary for optimum growth, skeletal development, body processes, and immune function; incudes salt, which is needed for proper electrolyte balance Crucial for reproduction, immune function, and metabolism Higher mineral potency; non-hydroscopic; better handling characteristics and stable in feed; reduces degradation of vitamin E and potentially other biologically active compounds; bypasses the rumen for more absorption in the small intestine where it is needed the most; independent research validates higher absorption Proprietary sugar blend is beneficial to rumen function; provides energy and encourages feed intake

26 Dairy Calf Feed Line-Up Sweet Unique LegenDairy Customs Sweet Unique 18% Starter LegenDairy 36% Conc Sweet Unique 20% Starter Sweet Unique 22% Starter Sweet Unique 16% Grower LegenDairy 30% Conc LegenDairy 18% Starter pelleted LegenDairy 20% Starter pelleted LegenDairy 22% Starter pelleted LegenDairy 16% Grower pelleted Texturized Starters Customer Specific Feeds

27 A comprehensive line-up of Heifer Feeds offering the latest nutritional enhancements

28 Dairy Heifer Feed Line-Up LegenDairy Concentrates LegenDairy 40% Heifer Concentrate (all-natural protein) LegenDairy 45% Heifer Concentrate (natural protein plus NPN) Complete Feeds/Minerals LegenDairy 14% Heifer Complete pelleted LegenDairy 16% Heifer Complete pelleted LegenDairy 18% Heifer Complete pelleted LegenDairy Heifer Mineral LegenDairy Heifer OTM Plus Mineral

29 Features Plant protein sources Balanced mineral fortification Added salt in mineral products Vitamins ADM natural-source vitamin E Benefits Highly digestible and palatable, maximizes protein utilization to consistently meet the needs of growing heifers. Provides needed base and trace minerals in amounts and ratios necessary for optimum growth, skeletal development, body processes, and immune function; incudes salt, which is needed for proper electrolyte balance Needed for proper electrolyte balance and provides an economical salt source to minimize bag inventory, mixing, and handling Crucial for reproduction, immune function, and metabolism Natural-source vitamin E is a highly bioavailable antioxidant protecting body tissue from oxidative damage and enhancing immune system function, which is especially critical under stress conditions. Research studies show natural-source vitamin E has more potent antioxidant activity compared with synthetic vitamin E. Vitamin E supplementation is advantageous during late pregnancy and through calving when plasma tocopherol levels plunge. In some instances, vitamin E supplementation has been shown to have positive impact on lowering occurrence of mastitis and retained placenta, and potentially lowering somatic cell counts, resulting in better milk quality.

30 Features Hydroxy forms of copper, zinc, and manganese (except LegenDairy OTM Plus Mineral) LegenDairy Heifer OTM Plus Mineral Only Benefits Higher mineral potency; non-hydroscopic; better handling characteristics and stable in feed; reduces degradation of vitamin E and potentially other biologically active compounds; bypasses the rumen for more absorption in the small intestine where it is needed the most; independent research validates higher absorption Provides specific formulation of complexed (organic) and inorganic minerals (zinc, manganese, copper, iodine, and selenium) in amounts and ratios shown to be beneficial to claw integrity. Zinpro s Availa * Plus provides the complexed trace minerals (zinc, manganese, copper, and cobalt) and potassium iodide. Do not feed to lactating dairy cows. *A trademark of Zinpro Corporation. Medicated options are available in some products, including Rumensin * and Bovatec * *Not trademarks of ADM.

31 Hydroxy Trace Minerals Vital 5 NEW Technology in LegenDairy Products Hydroxy Trace Minerals-Vital 5 The sole trace mineral package in all LegenDairy calf and heifer feeds (with the exception of Heifer OTM Plus Mineral) Hydroxy trace minerals are not detrimental to stability of vitamin E and possibly less detrimental to vitamins A and D along with other biologically active compounds, such as methoprene (the active compound in feed-through horn fly control products) Benefit the rumen Benefit the calf and heifer Comparing Trace Mineral Sources Inorganic sulfates, oxides. Weak bond Organic Complexed to an organic molecule Hydroxy Metal is covalently bonded to multiple hydroxy groups.

32 Why Hydroxy Trace Minerals? Insoluble in water, but become soluble under acidic conditions (ph 4.0); most bypass the rumen Hydroxy TM have higher bioavailability compared with sulfates, primarily because of their ability to bypass the rumen Strong covalent bonds means they are less reactive in feeds and premixes compared with sulfate forms Results in greater vitamin stability Results in less oxidation of fats

33 Benefits of Rumen Bypass Minimal antagonistic compound formations in the rumen Avoids detrimental effect to rumen fiber digestion or fermentation Integrity of trace mineral is maintained to optimize absorption in the small intestine

34 Hydroxy Trace Minerals Vital 5 Targeted Use of Trace Minerals Zinc, copper and manganese Hydroxy form Rumen requirements for these trace minerals are low and can be met with inorganic Zn, Cu and Mn in natural feedstuffs. Hydroxy form is targeted for animal needs Cobalt provided as cobalt carbonate. Rumen available for microbial use in turn facilitates improved fiber digestion leading to more energy available for production. Iodine provided as calcium iodate

35 Using Copper as an Example Rumen available copper (copper sulfate) can have anti-microbial effects. Inorganic copper can also have a detrimental effect on the stability of other nutrients in the FEED; for example, vitamin E.

36 Improved Nutrient Stability in the Feed

37 Claw Integrity is Important Digital dermatitis is a significant challenge on many dairy farms resulting in loss profits. Detecting the disorder early, implementing good hygiene and biosecurity are all important factors in lessening the occurrence of digital dermatitis. Providing nutritional support for healthy claws during the rearing period may lower the occurrence of poor claw health in the lactating herd.

38 Zinpro has researched a new trace mineral combination of Zinpro s Availa Plus (which includes Zinpro Performance Minerals * and potassium iodide) and inorganic minerals aimed at providing specific amounts and ratios of minerals shown in research trials to have a beneficial impact on hoof health and immunity This specific combination of minerals provides Zinpro s complexed (organic) sources of zinc, copper, manganese, and cobalt along with inorganic sources of zinc, copper, manganese, selenium, and iodine. Zinpro research in corroboration with research at the University of Wisconsin suggests cattle fed this specific combination of complexed and inorganic trace minerals may be at less risk of developing claw integrity problems. Ideal mineral product to use in non-lactating heifers with subpar claw integrity. This product should NOT be fed to lactating dairy cattle.

39 Summarizing the Features included in the LegenDairy Calf & Heifer Development System LegenDairy calf products provide the following: CitriStim ADM natural-source vitamin E Prosponse yeast Balanced mineral and vitamin fortification, including salt Hydroxy forms of Cu, Zn, and Mn ADM sugar blend High-quality, highly digestible plant protein sources Multiple energy sources LegenDairy heifer products provide the following: ADM natural-source vitamin E Balanced mineral and vitamin fortification, including salt Hydroxy forms of Cu, Zn, and Mn (except Heifer OTM Plus Mineral) Zinpro s Availa Plus (in Heifer OTM Plus Mineral only) High-quality, highly digestible plant protein sources (except mineral products)

40 Succession Planning When it is her turn make sure her performance is LEGENDAIRY

41 Thank You! Any Questions?

42

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