beefing up your dairy herd - vita plus · beefing up your herd 1 2 3 cows 1340 2345 202 preg cows...
TRANSCRIPT
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Beefing Up Your Dairy
Herd
Heifer Inventory
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Heifer Inventory Today
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DRMS
Heifer Inventory
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Heifer Inventory Today – Sexed Semen
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Heifer Inventory
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Heifer Inventory Today
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USDA Cattle Inventory Estimates
35%
38%
41%
44%
47%
50%
53%
56%
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Mill
ion
He
ad
Milk Cows Dairy Hfrs >500 lb %
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Heifer Inventory
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Heifer Inventory
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Heifer Inventory
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
SS Births
Survival
Rep Rate
% Lact1
Herd Size
Heifer Inventory
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Heifer Inventory
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Cost to Raise Heifers
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Cost to Raise Heifers
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Cost to Raise Heifers
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Cost to Raise Heifers
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Cost to Raise Heifers
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Cost to Raise Heifers
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Heifer Inventory
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Heifer Inventory
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CDN, Lactanet
Beefing Up Your Herd
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Beefing Up Your Herd
Beefing Up Your Herd
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Beefing Up Your Herd
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Beefing Up Your Herd
$1.50/cwt!!
Beefing Up Your Herd
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Beefing Up Your Herd
1 2 3
Cows 1340 2345 202
Preg Cows 658 1191 106
Preg Rate 33% 27% 29%
Proj Repl Rate 47% 49% 49%
% Bred to Beef 53% 32% 14%
% Bred to SS 47% 18% 0%
Beefing Up Your Herd
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Beefing Up Your Dairy
Herd
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The Circle of Life
Holsteins and Crossbreds
• Holstein Steers• By-product of the dairy industry
• Roughly 10-12% of all fed cattle are Holsteins (1.15-1.4 million hd)
• Big player in the fed cattle complex
• Packers• JBS-Green Bay, WI/Plainwell, MI/ Souderton, PA
• Green Bay Dressed Beef-Green Bay, WI
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Holsteins and Crossbreds
• Packers…cont.• Contracts available
• Basis relative to native cattle (currently $12-16/cwt back of board)
• Grid based contract (quality, yield, weight)
• Need to sell far-out
• Cash Market• Basis relative to native cattle ($20-25cwt)
• No security
Holsteins and Crossbreds
• Crossbred Steers• By-product of the dairy industry
• Dairy Cow crossed with beef breed
• Angus, Limousin, Simmental, Gelbvieh
• Been around 6-7 years…resurfacing now
• Semen companies seem to be big driver
• Way for Dairy to add value ($50-200)
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Performance Considerations
• Holstein performance• Reasonably consistent
• Moderate Gains 2.7-3.2 ADG
• Feed:Gain 7-8.5:1
• Finish Weight 1400-1475
• Carcass Parameters
• DP 58-61.5%
• 60-90% Choice & Prime
Performance Considerations
• Crossbred performance• Reasonably consistent
• Moderate Gains 3.1-3.6 ADG
• Feed:Gain 6.5-7.5:1
• Finish Weight 1325-1425
• Carcass Parameters
• DP 62-64%
• 80-90% Choice & Prime
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Economic Considerations
• Advantage crossbred• $.05-$.10 cost per pound of gain advantage
• Quality premium
• Choice/Select spread currently $20/cwt
• About $17 premium for grade
• Most in Midwest are live-sellers
Economic Considerations
• Factors Driving profitability• Feed
• Performance
• Growth promoting technologies
• Health/Meds
• Yardage
• Interest
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Economic Considerations
• BIGGEST FACTOR Driving profitability
•Relationship of how you buy vs. how you sell
Economic Considerations
X-bred Holstein
Purchase Weight 500 500
Finish Weight 1375 1425
Purchase Price (total) $575.00 $425.00
Finish Price (total) $1375.00 $1353.75
Cost of gain (total) $612.50 $740.00
Profit $187.50 $188.75
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Current Landscape
• Current Cattle Inventory• 11.831 million head
• Ample supply of native cattle, Holsteins…cull cows
• Relatively known commodity
Packer perspective
• Want a “known” commodity• Where will primals be going?
• Retail/restaurant/food-service, etc.
• Recognize what the cattle are worth and how they fit.
• Midwest plants- “Premium Plants”
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Packer perspective
• Enter the crossbred• Relatively unknown commodity…inconsistent
• How will genetics interact?
• Beef and Dairy
• What phenotype will manifest?
• Packers turned away altogether or Holstein price
• Recapturing premium can be risky if at all
Holsteins and Crossbreds
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Feeder perspective
• Holstein feeders know what to expect from feeding Holstein calves.
• Genetics, ration programs, performance, end market have reasonable predictability.
Genetics Perspective•
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Genetics Perspective•
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What does all of this mean for
you?• Critical time in the industry for this type of animal
• Make or break
• Another by-product commodity (Dirty Holstein)??
• Or industry accepted?
• Early adopters reaped rewards
• Price softness more recently
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What does all of this mean for
you?• How do you get paid?
• Trickle down effect
• End-user defines price-point
• What’s left for the rest of the touch points?
• Work with feeders or reputable distributors/buyers
• If done right…it will fit the industry
Thank You!!