Future Possibilities for Dairy Herd Improvemen t State, Regional & Nationa l. Daniel W. Webb

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1 Future Possibilities for Dairy Herd Improvemen t State, Regional & Nationa l by Daniel W. Webb Many changes are going on in the DHIA system. Much of the change is related to evolution o f the national dairy industry as measured by the items listed in table 1. U.S. Dairy Industry Table 1 Cow numbers Production per cow Number and size of herd s Percent of herds by size Percent of milk produced by herd size s Regional share of milk production Milk price trends Major changes in cow numbers and herd size are shown in graph 1. Table 2 illustrates the projected changes in cow numbers. Number and Size of U.S. Herds, Estimate for 2 2 Table 2 Year No. Of Herds Average Size (Cows) 195 3,648, ,792, , , , , ,

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3 Graph 2 shows milk production by herd size category. Milk prices have stabilized since major increases in the 197's and 8's (Graph 3). The national DHI system is characterized by change. Table 3 lists some of the aspect s undergoing modification. Table 3 The National DHI System Operational organization Cow and herd participation Various testing plans DHI records processing centers Structural changes Philosophical chanage s Progrress has been great in the 92-year history of the DHI program. DHI Progress 195 First cow testing association 1925 Testing rules developed 1926 Change from cow testers day test droppe d 1951 Mainframe computers 1957 Milk meters approve d 1964 Infrared analyzers introduce d 1964 USDA-DHIA cow inde x 197 AM/PM developed 1976 Somatic cell counts introduced 1977 On-farm computing appear s 1992 Test plans 31, 33 & 34 made officia l 1992 Florida is first 1% on-farm entry 1993 Innovative testing plans began 1993 State lines removed 1994 Laptops near 1 percent 1997 Records standards introduced 13

4 -o + a1 Co CD w A Percent of Mil k ta i

5 U.S. Farm Level Milk Prices Average All Milk Price $/Cwt _1 1 I 1 I I 1 I 1 I I 1 1 I I I I I I 75 8 Year 85, 9 95

6 Tables 4 & 5 show change in DHI enrollment since Table 4 Cow and Herd Participation in NCDHIP Plans Cows 4,576,521 4,693,45 7 Percent of total cows Herds 56,798 5,649 Average Herd Size Percent change in cows +2.6% Percent change in herds -1.8% Table 5 Participation in Various Testing Plan s DHI 36.3% 23.8% DHIR DHI-APC DHI-AP DHI-OS

7 Table 6 indicates a consolidation of DRPC's since Table 6 DHI Enrollment by DRPC est. Agri-Tech (Calif) 414, , , Mid-States (Iowa) 45, ,893 Michigan 154, , , Minnesota 339, ,23 9 Cornell 493, ,71 7 Raleigh 773, ,75 1,7, Pennsylvania 35, ,25 27, Provo (Utah) 795, ,88 75, AgSource (Wisconsin) 818, ,924 7, DHI has a number of assets as listed below : High market share - 9% of tested cows & 48% of all cow s Name recognition Institutional support - universities, studs, breeds, government, publication s Exclusive supplier of records for genetic evaluations The national DHI system has a "franchise" in several ways. NDHIA, DHIA, DHI are copyrighted trademarks of National DHI A Only members of NDHIA can us e Membership agreements are contracts which define the terms National DHIA conducts a Quality Certification Program as summarized below : NDHIA Quality Cerftication On-site inspection - field service - meter centers - laboratories - affiliate operations DRPC's 1 7

8 Records transfer prodecure s Surveys of customer satisfaction Objectives of Quality Certification Protects the DHI image Establishes uniform national - standards - procedures - definitions - quality New record processing and management tools are being developed and utilized as listed below : More technology on farm s Processing and report generation will get closer to the fram while data retention and storage will be further centralized Continued development of dairy management software for use by producesrs, DH I technicians, and industry consultants Distribution and processing systems will get bette r More processing on farms Better computers Laser printing and on-line services More on-farm computers A number of structural changes are underway in DHI, nationally. Fewer but larger herds Declining overall cow numbers Greater milk productivit y Continued tough economics on dairy farm s Changing demographics of cow population Increasing DHI competition on a national leve l DHIA consolidation and/or forming alliances or special relationship s The purpose of the changes is to provide better service and more closely satisfy the needs o f dairymen. Examples include : Farmers closely watching dollars Increased demand for specialized services Increasing need for member loyalty Less intrusive procedures on test day Cow-side testing and new types of testing plan s Better trained and educated field technician s 18