On-Farm Results with ReaShure

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1 On-Farm Results with ReaShure The Real Results Challenge is designed to give dairymen a 90-day test-drive to experience how ReaShure can help cows transition more smoothly. This trial program has helped convince dairy producers across the country that ReaShure works. See results from more than 85,000 cows. Choline is essential in the critical transition period and ReaShure is proven to help cows maintain a better energy balance supporting higher milk production, reproductive efficiency and overall animal health. With the Real Results Challenge, dairymen can now try ReaShure in the ration for 90 days and see the results for themselves. To date, 37 herds averaging more than 2,300 cows have completed the program and reported reductions in metabolic disorders and increases in milk productions. The program evaluates eight different health aspects of a transition cow, including milk production. Producers were asked to measure these parameters before and during the challenge. Average results include: 45% decline in clinical ketosis 66% decline in sub-clinical ketosis. Involuntary culling rates dropped 37% 1st test day milk production increased by more than 5 pounds The number of cows in the hospital pen also declined approximately 22%, and death loss was lowered by 18%. Chart 1 Real Results Summary Results standardized to simulate a 1,000 cow herd Improved milk production (lb/head/day) Reduced clinical ketosis (cases/year) Fewer DA s (cases/year) Lower death loss Reduced involuntary culls Total Income Improvement ReaShure Investment Before After Milk production improvement X 45 days X $0.18/lb 2 $50/case 3 $161/case 4 $1,400/head replacement cost 5 $1,400/head replacement cost - $850/head salvage value 6 ReaShure at $2.50/lb fed for 30 days Income Difference $32,400 1 $2,500 2 $3,381 3 $8,400 4 $13,750 5 $60,431 $10,000 6

2 Herds enjoyed a significant return on investment (ROI) as shown in chart 1 and more than 90% of herds continued to feed ReaShure following the test period. Don t miss this opportunity to see how ReaShure can work for you and your clients. It s easy 1. Contact Balchem or your Balchem sales representative to receive program information and enrollment forms or anh@balchem.com 2. Enroll your producers in the Real Results Challenge 3. Feed ReaShure for 90 days at 60 gms/hd/day to the transition cows 4. Your producers will enjoy a $0.75/lb. ReaShure Rebate and outstanding results from their cows To learn more about the Real Results Challenge, click here, visit us at balchem.com or contact a Balchem representative at Balchem Corporation 52 Sunrise Park Road New Hampton, NY Toll-free , Fax anh@balchem.com ReaShure is a registered trademark of Balchem Corporation Balchem Corporaton. All Rights Reserved

3 Improving On-Farm Economics with ReaShure Precision Release Choline Kim Keesey, Dairy Field Marketing Analytics completed by Ric R. Grummer, Ph.D. Emeritus Professor, Department of Dairy Science, University of Wisconsin-Madison Choosing which feed ingredients make it into the ration is not an easy decision. You trust your advisors to recommend the right products and balance the ration to maximize your investment. Ultimately, how do you know you re getting the most bang for every buck? Confidence The cornerstone of an informed decision is access to reliable and repeatable data. Many suppliers use on-farm research to demonstrate product efficacy. This can be helpful, but doesn t give the full story. With ReaShure Precision Release Choline, you can be confident. Results of 13 controlled, peer-reviewed studies conducted around the world were used to verify a repeatable milk production response. Table 1 shows the average increase in milk production across all 13 studies was 4.9 lbs. of milk with an increased dry matter intake of 1.62 pounds. Table 1 Summary of 13 trials on Rumen Protected Choline +4.9 lb/cow/day Measurement Control Rumen Protected Difference SEd P = Choline DMI, lb/d EVALUATING ECONOMIC RETURN Milk, lb/d <.0001 ECM, lb/d Fat yield, lb/d Protein yield, lb/d

4 On-farm studies in real-life situations also prove valuable if there are enough data points. Over 160,000 cows have participated in the ReaShure Real Results Challenge. They saw a similar milk response plus additional health benefits, including reduced incidence of ketosis, displaced abomasum and death loss. (Figure 1) Figure 1 On-Farm Results with ReaShure EVALUATING ECONOMIC RETURN # of Cows in the Herd or lbs/d Table % Ketosis Expected Return for Your Investment Return on Investment (ROI) gives a quick snapshot of results you can expect and offers some confidence for your decisions. Table 2 illustrates the ROI from feeding ReaShure from 21 d prepartum until 21 d postpartum. This data comes from a comprehensive study conducted by the University of California-Davis (Lima et al., 2012). Control ReaShure P value Income Difference $/cow Improved FCM, lb/d 94.4 lbs 98.3 lbs $ Reduced Health Disorders- Total 57.1% 38.4% $ Retained Placenta 11.2% 10.1% Metritis 11.3% 7.9% Clinical Ketosis 11.3% 4.0% Displaced Abomasums 4.5% 2.3% Mastitis 22.5% 14.8% Improved Dry Matter Intake, lb/d 49.8 lbs 52.7 lbs $ Grand Total +$56.63 ReaShure Investment $ Return on Investment -67.7% Sub-clinical Ketosis -47.6% Displaced Abomasum % Death Loss -41.8% Involuntary Culling -36.5% +4.2 pounds Cows in Avg 1st & 2nd Hospital Pen Day Test Milk Before ReaShure With ReaShure 4.1 to 1 1 $0.197/lb. All Milk 2013 Forecast, (USDA WASDE report, April 10, 2013). Calculations made using 21 DIM to reflect post-parturition recommended feeding period for ReaShure. 2 Guard C CVC Kansas City Proceedings 3 $13.61/cwt (USDA Milk Cost of Production report, March 26, 2013) 4 ReaShure at $2.50/lb fed for 42 days

5 Not only did the research show an increase in milk production, but a significant impact on transition cow health and dry matter intake. The bottom line result is a faster start to the lactation and a significant return on the ReaShure investment. The Next Step in Confidence Though ROI is a good indication of economic return, it assumes an average response on your farm. We all know that no farm is average. So often you hear that adding a product will increase milk production or decrease costs. But what happens when the price of milk changes or feed costs increase? The Type l/type ll Error assessment allows us to look at these changes and determine the potential for performing better than break-even. To calculate the risk, we need to know total investment, increased feed costs and the expected increase in milk production. All of this comes from the extensive body of data behind ReaShure. Table 3 shows the break-even milk production response for ReaShure at three different feed costs ($/lb of DM) and milk prices ranging from $13 - $21 per hundred weight. When feed prices are low ($0.10/lb of dry matter) and milk prices are high ($21/cwt), the break even response for ReaShure is less than 1 pound of milk per day. This is well below the 4.9 pounds shown by the extensive research, so the probability of getting at least a break-even milk response is 90% lb Break-even milk 90% Probability of success Table 3 Cost of feed, $/lb DM $0.10 $0.12 $0.14 Value of milk, $/cwt. $13 $15 $17 $19 $ lb 87% 1.76 lb 86% 1.93 lb 85% 1.93 lb Break-even milk 85% Probability of success Break-Even Milk Response 1.39 lb 88% 1.47 lb 88% 1.56 lb 87% 1.19 lb 1.25 lb 1.31 lb 1.04 lb 1.08 lb 1.13 lb 0.92 lb 90% 0.95 lb 90% 0.99 lb Break-even milk Probability of success Break-even milk Probability of success Break-even milk Probability of success Using a more conservative economic view, $13/cwt for milk and $0.14/lb DM cost of feed, the break even response would be just 1.93 lb/day with a probability of 85%. This is a very conservative estimate for two reasons. 1) This calculation does not include potential benefits from reduced metabolic disorders (beyond additional milk) when feeding ReaShure. REASHURE PRECISION RELEASE CHOLINE 2) Total milk production response is included for just the first 90 days of lactation. Any change that causes peak milk production to increase has a carryover effect for the entire lactation.

6 Table 4 illustrates the missed opportunity cost when not including ReaShure in the ration. If the price of milk is $13/cwt and feed cost is $0.14/lb DM, then the missed opportunity (Type II error) if you do not have ReaShure in the ration is $0.25/cow/day. $0.25 Lost revenue per day when not using ReaShure Table 4 Lost Revenue When Not Using ReaShure EVALUATING ECONOMIC RETURN Cost of feed, $/lb DM Summary Value of milk, $/cwt. $13 $15 $17 $19 $21 $0.10 $0.31 $0.40 $0.49 $0.57 $0.66 $0.12 $0.28 $0.37 $0.46 $0.54 $0.63 $0.14 $0.25 $0.34 $0.43 $0.52 $0.60 If the price of milk is $21/cwt and feed cost is only $0.10/lb DM, the decision to not feed ReaShure would mean lost revenue of $0.66/cow/day. ReaShure is backed by extensive controlled and on-farm studies so you can be confident when adding it to your transition cow diets. Though many products promise increased milk production or a positive returnon-investment, ReaShure delivers. By meeting your transition cow s dietary choline requirement during the critical transition period, ReaShure can help support fat metabolism, reduce metabolic disorders and increase milk production and milk fat synthesis. No matter how you look at it, adding ReaShure Precision Release Choline to your transition cow diets is a good decision. Contact Information $0.66 Lost revenue per day when not using ReaShure Balchem ANH Americas Region Balchem Corporation 52 Sunrise Park Road New Hampton, NY Tel: or Fax: Balchem ANH EMEA Region Balchem Italia Via del Porto Snc Marano Ticino (NO) Italy anh@balchem.com Websites: anh.balchem.com Balchem Corporation. All rights reserved