Real Herds Real Heifers

Transcription

1 Real Herds Real Heifers The Cost of Raising Dairy Calves Developed & Presented by: Tina Kohlman & Abby Huibregtse UW-Extension Sheboygan County & Oconto County Dairy Calf and Heifer Association s Calf & Heifer Profit Seminar January 29 & 31, 2008 Sioux Falls, SD & Lansing, MI Contributions by: Steve Huntzicker, Scott Gunderson, Annette Zwald, and Pat Hoffman University of Wisconsin-Extension 2008 by the Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension

2 UW-Extension Dairy Team Collaborators Maria Bendixen Adam Hady Lee Milligan Greg Blonde Mark Hagedorn Zen Miller Bob Cropp Abby Huibregtse Aerica Opatik Aliesha Crowe Steve Huntzicker Mahlon Peterson Paul Dyk David Kammel 1,2 Ryan Sterry Ronda Gildersleeve Tina Kohlman Sandy Stuttgen Matt Glewen Tom Kriegl 1 Jon Zander Scott Gunderson Matt Lippert 1 Center for Dairy Profitability, University of Wisconsin-Madison 2 Biological Systems Engineering, University of Wisconsin-Madison

3 Heifers An Investment in the Future Dairy Herd Provide high quality replacements for improving genetic progress. Heifer raising is the second largest expenditure on the dairy farm.

4 Intuitive Cost of Production Analysis (ICPA) An analysis system that calculates producer-specific costs and labor efficiencies associated with raising dairy replacements Evaluates cost and labor efficiencies Provides an economic and labor efficiency benchmark for dairy herd replacements

5 Calculating the Costs UW-Extension research 1998-ICPA project $2.78 per calf per day from birth until moved to group housing $1.61 per heifer per day in group housing Due to inflation and economic dynamics in the dairy industry, these numbers are now obsolete.

6 Cost Comparisons Price of: Fertilizer: 28% Urea Ammonia $0.21 $0.20 $0.12 $0.63 $0.55 $0.45 Corn: $1.85 $4.03 Milk: $14.90 $20.10 Fuel: Gas Diesel $1.11 $1.10 $2.99 $3.37

7 2007 ICPA Project 49 Wisconsin operations Tiestall operations Freestall operations Custom calf and/or heifer grower operations 21 different counties Two enterprises Calf Heifer

8 Calf Enterprise Calf-an animal raised from birth until she is moved to group housing 40 operations evaluated 15 tiestall operations 21 freestall operations 4 custom calf growers Feeding, management, housing and labor collected

9 About the operations Number of calves raised per year Minimum Maximum Average Tiestall Freestall Custom grower 80 9, % Death Loss

10 Key Assumptions Item Assumption Calf value $500 per calf Labor (paid and unpaid) $12 per hour Management (paid and unpaid) $20 per hour Interest rate 8 percent Replacement value of calf housing Homemade calf hutch $200 Purchased calf hutch $300 Greenhouse barn $10 per square foot Postframe calf barn $12 per square foot Bedded pack barn $15 per square foot

11 Cost of Raising a Calf in Wisconsin* Average Lowest Operation Highest Operation Total Cost $ $76.39 $ Daily Cost $5.42 $2.72 $10.88 Days on Feed Weaning Age (weeks) *Does not include $500 calf value 2008 by the Board of Regents of the University of Wisconsin System, doing business as the division of Cooperative Extension of the University of Wisconsin-Extension

12 Cost to raise a calf* Cost per calf $400 $350 $300 $250 $200 $150 $100 $50 $0 All Operations Tiestall Freestall Custom Grower *Does not include $500 calf value

13 Daily Calf Raising Costs* $6.00 Cost per calf per day $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 All Tiestall Freestall Grower Operation *Does not include $500 calf value

14 Management Areas Feed Costs Labor and Management Other Variable Costs Bedding Veterinary Death loss Interest Fixed Costs Buildings Equipment

15 Cost centers 15% 4% 34% 47% Feed Cost Other Variable Costs Labor & Management Fixed Costs

16 Total Cost to Raise a Calf $160 $140 $120 Cost per calf $100 $80 $60 $40 $20 $0 Feed Cost Labor & Management Other Variable Costs Fixed Costs

17 Daily Cost to Raise a Calf $3 Cost per calf per day $2 $2 $1 $1 $0 Feed Cost Labor & Management Other Variable Costs Fixed Costs

18 Total Cost to Raise a Calf by Operation $250 Cost per calf $200 $150 $100 $50 $0 All Operations Tiestall Freestall Custom Grower Feed Cost Other Variable Costs Labor & Management Fixed Costs

19 Daily Calf Raising Costs by Operation Cost per calf per day $3.00 $2.75 $2.50 $2.25 $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 All Operations Tie-Stall Free-Stall Custom Grower Feed Variable Labor & Management Fixed

20 Cost Per Day To Raise A Calf Calf Cost per Day* Tie-Stall Free-Stall Grower All Feed Costs $1.79 $2.05 $1.39 $1.88 Labor & Management Other Variable Costs $2.92 $2.51 $0.95 $0.88 $0.86 $0.41 $2.51 $0.83 Fixed Costs $0.19 $0.17 $0.41 $0.20 Total Cost $5.78 $5.59 $3.16 $5.42 *Does not include $500 calf value

21 Total Calf Feed Costs $ $80.00 $60.00 $40.00 $20.00 $0.00 All Operations Tiestall Freestall Custom grower Liquid Feed Calf Starter Forage

22 Daily Calf Feeding Costs $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 All Operations Tiestall Freestall Custom grower Liquid Feed Calf Starter Forage

23 The Effect of Management on Feed Costs 70 Days on Feed (until moved to group housing) Number of days All Operations Tiestall Freestall Custom grower Weaning age 7.5 Number of weeks All Operations Tiestall Freestall Custom Grower

24 Labor & Management Paid and unpaid labor and management considered Established values: Labor Management Labor Daily Weekly Monthly $12 per hour $20 per hour Management Weekly Monthly Yearly

25 Labor Cost & Efficiencies Associated with Raising a Calf Item Unit Average Labor & Management $ per calf $153 Labor & Management Labor Efficiency Minutes per calf per day Hours per calf Calves per person per hour Calves per person per day* *Eight-hour work day

26 Determine Your Labor Efficiency Example: 100 cow/100 heifer operation Hours per day Your farm Labor requirements Daily 3.0 hours x 1 day =3.0 hours Weekly 1.0 hours per week/7 days per week =1.4 hours Monthly 2.0 hours per month/30 days per month =0.07 hour Management Requirements Weekly 1.0 hour per week/7 days per week =0.14 hour Monthly 1.0 hour per month/30 days per month =0.03 hour Yearly 2 hours per year/365 days per year =0.1 hour Time to haul heifer manure Total 5 hours per year/365 days per year =0.1 hour =3.4 hours per day or 1,241 hours per year

27 The Cost Benefit of Efficiency? Farmer 1: 2.3 Calves/Hour = 26 Minutes/Calf $12 an hour for labor It costs $5.21 calf/hour!! 18.7 $5.21/calf/hour=$97.43/day Farmer 2: 26.8 Calves/Hour = 2.2 Minutes/Calf $12 an hour for labor It costs $0.45 calf/hour! $0.45/calf/hour=$96.57/day Cost Difference= $4.76 calf/hour and calves per day!

28 Labor Saving Ideas for Calves Bulk liquid delivery system In-line bucket systems Batch milk re-placer mixers Automated bottle-filling systems Calf starter feeding bottles Ergonomic calf pens or hutches Liquid-feed mixing room Power mixers to mix milk replacers Dedicated calf equipment and feed mixing facility Motorized carts to deliver liquid feeds, starter, water Hand carts to carry supplies Location of calf housing Easy gate access to pens Dishwasher Automated bottle filling equipment All in all out calf housing Water and electric utilities located close to calves Carts to carry and transport calves Locate bedding close to calves Bedding delivery carts Rear access to calf pens or hutches Front fence buckets or bottle holders Source: Compiled by P.C. Hoffman, University of Wisconsin, 2003 Raising Dairy Replacements

29 Other Variable Costs $0.35 Cost per calf per day $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 All Herds Tiestall Freestall Custom grower Bedding Veterinary Death Loss Interest

30 Fixed Costs Cost per calf per day $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 All Herds Tiestall Freestall Custom grower Housing Equipment

31 Comparison of Total Costs* 1998 versus 2007 $350 $300 Cost per calf $250 $200 $150 $100 $50 $ *Does not include $500 calf value

32 Comparison of Daily Calf Raising Costs* $6.00 Cost per calf per day $5.00 $4.00 $3.00 $2.00 $1.00 $ *Does not include $500 calf value

33 Comparison of Calf Raising Costs 1998 versus 2007 $160 $140 $120 Cost per calf $100 $80 $60 $40 $ $0 Feed Variable Labor & Management Cost Area Fixed

34 Changes in Costs Associated with Raising Calves Cost per calf % Change Variable Fixed Liquid Feed $35.51 $ Calf Starter $21.00 $ Forage $1.97 $ Bedding $5.57 $ Veterinary $8.43 $ Death Loss $4.54 $ Interest $3.40 $ Labor (Paid & Unpaid) 1 $60.38 $ Management (Paid & Unpaid) 1 $7.04 $ Calf Housing $11.23 $ Calf Equipment $1.19 $ Total Cost 2 $ $ Labor & Management Costs were $7 and $12 per hour, respectively in 1998 and $12 and $20 per hour, respectively in Does not include the value of the calf ($100 in 1998 and $500 in 2007).

35 Changes in Management Weaning Age (weeks) % Change Days on Feed

36 Changes in Labor Costs & Efficiency % Change Labor & Management 1 $ per calf $67.41 $ Hours per calf Labor Efficiency Calves per person per hour Calves per person per day Labor & Management Costs were $7 and $12 per hour, respectively in 1998 and $12 and $20 per hour, respectively in Photo credit: Hoard s Dairyman Magazine

37 Five ways to reduce calf costs Minimize risk of disease Colostrum management Feed management Labor efficiency New technologies

38 Minimize Risk of Disease- Calf Health Starts at Birth Single-use maternity pen Isolation Long clean straw Clean cows Remove calf immediately!

39 Time with Cow Increases Mortality Time with dam after # herds % Mortality birth 2-6 hrs hrs hrs hrs hrs Source: Hugh Chester-Jones, University of MN, 2003

40 Minimizing Transmission of Infectious Disease On Farm Sources Feeding waste milk Contaminated calving pens Contact between healthy and sick cows Farm personnel work practices Feed contaminated with manure

41 Keep all equipment clean Sanitation is critical to breaking the disease cycle! Sanitation breaks Disinfect Choose the right disinfectant for the job Thoroughly clean boots before applying disinfectant Read and follow the label (c) 2005 Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension.

42 Isolate calf with perfect bedding Holstein Calf Recumbency Patterns Percent of Day, % Day Night

43 Health Checks Use your eyes Clear bright eyes Slightly erect ears Moist nose Slow and even breathing Dry and comfortable Stretches when rising and remains stable when standing Eats vigorously and suckles for more Use your nose Use your ears Quiet and content after feeding Coughing?

44 Colostrum the key to calf health Be prepared to feed colostrum 24 hours per day, 365 days per year Use Fresh Colostrum Have Colostrum Replacer Available Have Frozen Colostrum Available Have Refrigerated Colostrum Available Treat colostrum like gold! (c)2007 Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension.

45 Quickly Lose 5% of immunoglobulin absorption every hour 0% absorption by 24 hours

46 Quantity Amount of Colostrum Fed # herds % Mortality 1 to 2 qts to 4 qts to 5 qts Source: Hugh Chester-Jones, University of MN, 2003

47 Quality Good > 50 g/l Moderate g/l Poor < 20 g/l (c) 2005 Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension.

48 Feed high quality fresh feeds Milk replacer versus pasteurized milk Calf Starter Clean buckets Monitor intakes Fresh starter Free choice water Critical 2 hours post milk feeding (c) 2005 Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension.

49 If you are willing to eat & drink from the buckets so will your calves! (c) 2007 Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension.

50 Importance of Water Liquid in the rumen provides an environment for rapid bacterial growth. Milk does not provide sufficient amounts of liquid because it bypasses the rumen. However, even small amounts of liquid entering the rumen promote bacterial growth.

51 Labor Efficiency Maximize the number of calves you work with, without sacrificing calf growth and health

52 New Technology is Controversial We must not meddle with nature. This process changes the properties of the food-possibly dangerous substances could be formed. This process may be done carelessly accidents could happen. This will diminish the nutritive value of the food. This will only increase the price of the food.

53 New Technology is Controversial We must not meddle with nature. This process changes the properties of the food-possibly dangerous substances could be formed. This process may be done carelessly accidents could happen. This will diminish the nutritive value of the food. This will only increase the price of the food.

54 Dairy Technologies 1860 s Pasteurization 1920 s USDA Extension Service 1930 s Sire Records 1950 s Artificial Insemination 1980 s Total Mixed Rations (TMR) 1990 s BST and Cloning 2000 s Robotic Milking

55 Adopt New Technologies Sexed semen F 1 crossbreeding programs Precision feeding systems Intensified calf feeding systems Pasteurization Passive transfer screening Full heifer record systems Complete growth monitoring system All in-all out calf housing

56 What defines a successful calf raising program? Calves are alive Calves are healthy Calves are growing well (c)2008 Board of Regents of the University of Wisconsin System, doing business as the Division of Cooperative Extension of the University of Wisconsin-Extension.

57 Building Better Heifers Pneumonia Scours Days on milk Death Failures Colostrum Sanitation Isolation Environment Nutrition Immunization Medication Live Calf Healthy Growing Successes

58 Avoid Pitfalls in Preweaned Calf Care Not enough clean, dry bedding Not enough to eat Not enough coccidiostat consumed Too slow colostrum cooling for stored colostrum Incorrect rinse and wash temperatures for equipment sanitation

59 Meeting the Challenges of Raising Heifers Continuous task with critical control points Different issues for different farms Complex issues between the heifer, environment and people Lots of conflicting advice We know what works The small things do count!

60 Online Resources UW-Extension Heifer Management ex/heifmgmt UMN Extension Calf Management u/dairy/management/calves.h tm

61 Online Resources Dairy Herd Management Calf & Heifer Resource Center : Dairy Calf & Heifer Association: Calving Ease by Sam Leadly: gease.htm Calf Notes by Jim Quigley:

62 Print Material Economic Costs and Labor Efficiencies Associated with Raising Dairy Herd Replacements on Wisconsin Dairy Farms and Custom Heifer Raising Operations Available at Raising Dairy Replacements Cooperative Extension-UW, UMN, ISU and UL. Available through Midwest Plan Services: Calf Care, Coleen Jones & Jud Heirichs. Available through Hoard s Dairyman: Dairy Workers Training-Calf Management Skills, UW-Extension Dairy Team. Available through UW-Extension: rstraining

63 Thank You For more information please contact: Tina Kohlman, Dairy and Livestock Agent Sheboygan County UW-Extension (920) Abby Huibregtse, Agriculture Agent UW-Extension Oconto County (920) Annette Zwald, UW-Madison Dairy Science Student (608) Pat Hoffman, Dairy Heifer Management Specialist UW-Extension & UW Department of Dairy Science (715)