VOL 16 ISSUE 1 | S P R I N G 2014

A P E R I O D I C N E W S L E T T E R P R O D U C E D B Y G R A N D V A L L E Y F O R T I F I E R S L T D .

GRAND VALLEY FORTIFIERS LTD.PO Box 726 Cambridge ON N1R 5W6 1-800-567-4400 www.grandvalley.com

Ian Ross, President | Jim Ross, ChairmanClarke Walker, VP & COO Mark Bowman/Jeff Keunen, Ruminant NutritionistDavid Ross/Patti Bobier, Publishers

Dairy GristDairy Grist

Jim Ross, Chairman

Dear friends,

It was great to be able to attend the second annual Canadian Dairy Expo in Stratford in February. When, I awoke, on the first day of the show, I saw all the fresh snow I thought “what a disaster” it was going to be for all the time, money, and effort expended in planning and preparing for the show. How wrong I was! Obviously the dairy producers were looking forward to the show and a little extra snow wasn’t going to keep them away. Attendance figures provided proof of the overwhelming interest and support for the industry. Attendance went up from 11,600 people in 2013 to 13,900 people this year. We commend Jordon Underhill and his entire team for all their vision and hard work, and the exhibitors for making this world class dairy show such a success. All in all dairy farming has been quite a success story here in Canada. This very successful, prosperous industry has enabled family farms to grow and provide for strong prosperous farms across our country. This marketing plan has not only been good for the dairy producers but has also helped to support the businesses in hundreds of small towns and villages across our country. Our unique marketing system, although not perfect, has served our producers and country well and we have much for which to be proud and thankful. I hope you enjoy this issue of the Grand Valley Dairy Grist, Jim Ross

PROTEIN ALTERNATIVES – HOW TO OPTIMIZE PRODUCTION AND LOWER COSTby: MARK BOWMANSenior Ruminant Nutritionist, Grand Valley Fortifiers

We are now approaching five months into the feeding year after last fall’s harvest and the high protein costs that we experienced

last year remain with us and have even increased. Thankfully, the cost of energy is much lower since corn prices dropped last fall, which is good for dairy producers who need to purchase corn or complete feed. However, since the majority of Ontario dairy producers grow all or most of their own corn, the lower cost of energy is not reflected in their purchased feed costs. Protein remains, as usual, the largest contributor to purchased feed costs.

Purchased protein costs can be lowered by either of two ways: (1) feeding lower protein rations or (2) finding lower cost protein alternatives. However, this needs be accomplished while still maintaining optimum milk production or else the savings in feed cost may result in a larger loss of milk income, either in the short-run or in the future. Let’s look at some principles to keep in mind and some alternatives to consider for optimal milk production while keeping protein costs as low as possible.

Formulate Optimal Protein RationsRations should be balanced to meet, but not exceed, the protein required for milk production by the herd or the group. In doing so we must remember that dairy cows actually require metabolizable protein containing the right balance of essential amino acids, not crude protein as measured by lab assays and listed on feed labels. Metabolizable protein is the portion of the crude protein that is digestible and is absorbed by the cow. Amino acids are the building blocks that proteins are made of and the essential ones must be supplied in the diet for milk protein production.

Fully two-thirds of the metabolizable protein available to milking cows is supplied by the rumen bacteria. Therefore, we must always be sure to balance rations to meet the needs of the rumen bacteria to maximize their growth and production of protein. Rumen bacteria require both optimal supplies of energy from fermentable starch, sugars and digestible fibre and optimal supplies of nitrogen from urea or ammonia as well as rumen degradable proteins and amino acids. Failure to supply either adequate energy or adequate protein and nitrogen in the ration will reduce microbial growth in the rumen and result in less protein available to the cow for milk production.

Once we have met the needs of rumen bacteria for degradable protein and nitrogen, then we need to provide adequate rumen undegradable or bypass protein containing a good balance of essential amino acids to supply the remainder of the cow’s needs for milk production. This almost always requires the feeding of complimentary

protein sources to optimize the supply of essential amino acids and in some cases rumen protected amino acid sources may be beneficial.

Feed High Quality ForageHigh quality haylage and dry hay remain the lowest cost source of protein in milking cow diets and has the added benefit of higher digestibility and intake potential, resulting in more milk from your forages and lower concentrate requirements. Haylage and hay should contain 20–22 percent CP and be fed at up to 50 percent of the forage, with corn silage providing the remainder, to reduce purchased protein costs. However, keep in mind that feeding too much high protein haylage can provide excess rumen degradable protein and nitrogen, making it difficult to balance optimal protein rations.

Feed Brewers or Corn Distillers GrainsOntario has numerous breweries and ethanol plants that provide large supplies of wet brewers grains and wet or dry corn distillers grains. These co-products of barley and corn fermentation are very palatable to cows, they often enhance feed intake and are good sources of digestible fibre and fat in addition to protein. Wet brewers and wet distillers will also help to hold TMR mixes together and prevent sorting when forages are on the dry side.

Prices of these feeds are higher this year than previous, but they remain far and away the lowest cost alternatives among purchased protein ingredients. In many milking cow rations protein can be optimized by feeding approximately 10 percent of dry matter intake from either brewers grains or corn distillers grains or both. They normally cannot supply all of the required purchased protein and other protein ingredients are required to compliment them.

Optimize Soybean Meal, Canola Meal and Non-Protein Nitrogen SourcesSoybean meal, both 48 percent regular and higher bypass products such as Soy Plus, and canola meal are excellent quality protein sources. Research trials have shown that milk production is maximized when either soybean meal products or canola meal are fed in addition to brewers and distillers grains. We are more familiar with soybean meal in Ontario, but canola meal has repeatedly proven to result in equal or higher milk production when replacing soybean meal and when fed along with corn distillers grains. These ingredients should be fed to provide optimal levels of rumen degradable protein (to meet requirements of rumen bacteria) and rumen bypass protein and essential amino acids.

Soybean meal and canola meal may often be fed interchangeably depending upon availability and cost. During the past couple of years canola meal was often significantly lower in cost than soybean meal and purchased protein costs could be reduced by feeding it in place of soybean meal. However, the shortage of canola in Ontario this winter has resulted in much higher prices to the point where canola meal is now higher cost to feed than soybean meal in spite of the continuing high soybean meal prices.

Rumen bacteria do require non-protein nitrogen from urea or ammonia for optimal growth. The key here is to provide the right amount at the right time to match up with energy supplies. Feed grade urea contains 282 percent equivalent crude protein and is a lower cost source of nitrogen. It may be fed on a limited basis in milking cow rations containing primarily corn silage and grassy dry hay where the supply of nitrogen is limiting. However, in diets with haylage and alfalfa hay a rumen protected, slow release, urea product will be required

to maintain milk production. This has several advantages including: replacement of more expensive soybean or canola meal, provision of steady supply of nitrogen to meet rumen bacteria requirements throughout the day and creation of more space in the diet for corn silage or corn to provide additional energy.

Lower Protein When Over QuotaDuring the winter time and spring when milk production tends to be highest and there are no quota incentive days available many producers find it difficult to remain within quota. Therefore, optimal milk production may sometimes be lower than maximum milk production. In this case the optimal protein level in the ration may also be lower as producers can withstand the risk of milk dropping in the short-run if protein is lowered too much. Care should be taken not to lower protein and milk too far or this can result in lower long-term milk production and contribute to lower milk production when it is needed in summer and fall.

In conclusion, there is no one single way to lower protein costs and different opportunities will exist on different farms. There also is no magical single ingredient that can lower purchased protein costs – that will require soybean meal prices to drop like corn prices did this year. However, opportunities do exist to optimize protein formulations of dairy rations and take advantage of the most cost effective protein ingredients available. Be sure to review your program with your Grand Valley Fortifiers, Dairy Specialist or call one of our Dairy Nutritionists at Nutrition Direct. n

At a recent dairy producer meeting the main focus of the conversation centered on the

fact that we sure seem to have a very unique dairy industry here in Ontario. We spend all summer and fall trying to do all the right things to get lots of milk out of our dairy cows and will spend dollars on high value products and management techniques to fill all those fall incentives, usually until the first of December. By this time most of the new forages are well fermented, the temperature has dropped nicely, and along with culling out lots of the bottom end pro-ducers, average milk production tends to go way up. All of a sudden we have too much milk, too much butter fat and now what do we do?

In the next couple of paragraphs I would like to suggest a number of different strategies to think about over the next few months, fully realizing that not every idea is right for your farm.

Strategy #1 Cut back or in some cases remove altogether some of those expensive additives you put in your ration during the previous summer and fall. These would include products such as protected fat and yeast cultures. Care needs to be taken here not to remove additives that may result in lower reproduction or health in either the short-run or long-run.

Strategy #2 Cull out all low producers and high cell count cows. More importantly cull out those cows that will not be in peak milk flow by next summer. Beef prices are at an all time high and feed costs remain quite high.

THE ECONOMICS OF TOO MUCH WINTER MILKby: HENRY VERHOOG Senior Dairy Specialist, Grand Valley Fortifiers

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SPRING IS AROUND THE CORNER… WHAT SHOULD MY HAYLAGE MIXTURE BE? GRASS VS. ALFALFA?

Over the years there have been ongoing discussions to see whether we need to grow more grasses or alfalfa in our haylage mixtures. Grasses and alfalfa are both forages, and both can be turned into milk. They are from different families however; Alfalfa is a legume, and Grass which speaks for itself, is from the Grass family. They both perform differently based on various soil types and different agronomic conditions. Therefore, they have different benefits for the cows, for the soil and for your bottom line.

There is no question that they both can perform well. Soil type and drainage capacity are important factors. High yielding alfalfa prefers well drained soil, pH above 6.1 (ideally 6.8–7.0), adequate fertility and proper management at harvest. Alfalfa generally persists for 3–4 years and the quality of the forage is based on the maturity and time of harvest.

Pure stand and high ratios of alfalfa can work extremely well, and bring in high quality and quantities of protein. Alfalfa also fixes nitrogen for the next crop in the rotation and has an enormous ability to break up any hard pan (plow pan) in your field with its deep root structure.

Grasses are often used in combination with alfalfa but can easily be used in pure stands. Grasses do very well in soils that hold a lot of moisture and are moderately drained. They can be very productive with the proper fertility and variety selection and can be used to balance a great ration. It is critical to put adequate fertilizer on your grass stand to maintain a higher protein level in your grass silage.

All the above seems very obvious to many of you but let’s have a look at what it would cost to establish Grass vs. Alfalfa in pure stands just for comparison sake.

Alfalfa:Alfalfa is generally sown at 18–20 lbs per acre and seed cost at roughly $4.00/lb, therefore seed cost ranges from $72–80/acre. Depending on your soil test, at seeding it is recommended to add approximately 75 lbs/acre of a fertilizer mix with some nitrogen and a large amount of potash and some phosphate. To maintain a good stand of alfalfa the fertilizer on an average year would likely run between $150–200/acre depending on the type of fertilizer, soil texture and manure availability to achieve a 4–5 tonne dry matter per acre yield. In most cases if soil fertility is good there is no fertilizer needed except to get it started at planting but we have to compare apples to apples.

Grass:Grasses are generally sown at 35 lbs per acre and seed cost at roughly $3.5–4/lb, therefore seed cost will be between $122–140/acre. To establish a good stand you want to put down 100–150 lbs of actual nitrogen. After that, to ensure you have good yield, fertilizer requirements would roughly be $300/acre, which again depends on your type of fertilizer and if you are including any micro minerals. Remember, in order to get high protein and high yielding grasses you have to fertilize it to ensure we get a high quality forage. Grass yields run very similar to alfalfa; just remember that a grass stand does not need to be plowed down after 3–4 years. However, many people will no-till an annual grass such as Italian rye grass at 15–20 lbs into an older grass field to boost yield, this also works really well for fields with winterkill or to boost yield in an old alfalfa stand. NP

In conclusion a combination of alfalfa and grass always works well since they compliment each other well, less fertilizer is required, and weed control is enhanced due to better ground cover. The main thing is to select the right forage, ratio of alfalfa/grass and the variety that best fits your farm’s soil which is a key to ensure top yield quality. Remember its always best is to talk to your agronomist to make sure the right steps are taken to optimize every single acre on your operation. n

There is little downside to this strategy and should be one of the first ones employed in most cases.

Strategy #3Reduce purchased protein costs. With soybean meal prices well over $600 per tonne, reducing soybean meal by 0.5 kg per cow per day will save about $0.30 per cow. This will lower crude protein in ration by about 1% (16.5 to 15.5%). This decrease should have very minimal effect on overall production if you have lots of fresh cows in the herd and the ration is optimally balanced. For more on this strategy see the article in this edition of the Dairy Grist: Protein Alternatives – How to Optimize Production and Lower Cost.

Strategy #4 Reduce butterfat percentage. A lot of herds saw this recently as we lowered the protected fat levels and also added some bakery meal to rations that were a little low in starch content. Adding or increasing Monensin (Rumensin) in the ration to a high level can also be a very safe and economical way to help accomplish this goal.

Strategy #5 Keep all bull calves at the farm and put them on a high milk diet. These calves will easily gain 3.0 lb per day and are always saleable come summer time when you need the milk in the tank. This really only makes sense if you have extra space in one of your barns.

As I ponder over these various strategies only one common fact

remains and that is that come July 1st (if not earlier), the fall incentive program for 2014 will begin again. With a total of 11 days already announced for this upcoming season, this averages out to about 7.5% free quota for these 5 months. For a 100 cow dairy, this equates to just over $22,000 gross income. The challenge for each and every one of you is to do what is best for your operation both now and later this year.

Your GVF Dairy Specialist is here to help so give us a call today. 1-877-625-4400. n

SceneHerd&

by: ERIC ZIELEMANDairy Specialist, Grand Valley Fortifiers

Thought for the Day “As a group of amateur climbers scaled part of the Matterhorn near Zermatt, Switzerland, a vicious gust of wind came along at a narrow ledge. The guide quickly shouted, “Get down on your knees! You are safe only on your knees!” That’s good advice for all of us: The ledges of life are narrow, and the winds are strong. Only on our knees, seeking God relentlessly in our prayers, can we find safety and security.”

– David Jeremiah, Exert from Pathways, Sept. 15 meditation

Wishing you good farming,Sincerely, Jim Ross and staff of Grand Valley Fortifiers

COMMODITY OUTLOOKby: STEVE MCGUFFIN

Soybeans and soybean meal markets had been trading very strong due to continuing good export demand out of the U.S. along with continued

strong domestic demand. When we finally saw a large Chinese cancellation of U.S. soy purchases there was still a positive export sales number for the week. Continuing drought in parts of Brazil has reduced the projected size of their crop but final production will still be a record. USDA March S&D report projected a drop in soy ending stocks from 150 million bushels to 145 vs. an expected 141. Markets adjusted slightly lower following. More Chinese cancellations of U.S. soy purchases are expected and there’s rumours of cancellations of Brazil purchases as well so as I write this we’re seeing another adjustment lower in price. The backlog in rail movement of grain and canola to west coast ports has resulted in demurrage charges as ships await their cargos. Therefore, the focus will be on moving cars west likely delaying the movement to Ontario processors. Canola meal users may want to consider contracting their next couple of loads to ensure supply. DDGS prices are still trading firm as U.S. ethanol plants slowed production due to weather related transportation delays limiting DDGS supplies. Projecting ahead on your requirements is still recommended. If you are interested in receiving DSC’s commodity price indication updates, please contact stevemcguffin@grandvalley.com or call 1-877-743-4412. n

Thank you for all who took time to come by and visit with us at our stand at the 2014 Canadian Dairy Expo. We enjoyed two fantastic

days visiting with customers and prospects discussing Bionic® calf starters and Robolac® robotic milking nutrition products. Thank you to all who entered the e-mail contest for the chance to win a Grand Valley Fortifiers soft shell jacket. Congratulations to the four winners, Tammy Robert, Matthew Elgersma, Richard Boonstoppel and Draven Goodwin. If you haven’t signed up for Grand Valley Fortifiers’ e-mail updates, we encourage you to do so by visiting our web site at www.grandvalley.com and clicking on the sign up link on the bottom right corner of the front page. nANIMAL PRODUCTS IN DAIRY FEEDS

by: MARK BOWMANSenior Ruminant Nutritionist, Grand Valley Fortifiers

Feeding ruminant source animal products to dairy and beef cattle has not been allowed in North America since the BSE crisis in 2003.

However, byproducts of pork or poultry origin are allowed in dairy feeds and continue to be included in many dairy supplements and complete feeds in Ontario and elsewhere.

Back in 1996, seven full years before the first report of BSE (mad cow disease) in Canada, Grand Valley Fortifiers introduced our line of Eco Lac Dairy Supplements formulated without the use of any animal byproducts. By the time the BSE crisis hit in 2003 the vast majority of our customers were feeding only our Eco Lac Dairy Supplements. Since that time Grand Valley Fortifiers continues to not formulate with or offer for sale any dairy or beef products containing animal byproducts. Therefore, you can be certain that if you are feeding dairy premix, supplements or complete feeds from Grand Valley Fortifiers they do not contain any animal byproducts such as blood meal, meat & bone meal, feather meal or animal fats. n

CANADIAN DAIRY EXPO 2014

Q: I HAVE WAY TOO MUCH MILK AND MY PRODUCTION CREDITS ARE GONE. SHOULD WE JUST FEED THE COWS ‘OLD SCHOOL’, REDUCE THE BALANCE OF THE RATION AND DROP MILK?

A: This question can be heard down many laneways this winter. Cows are milking reasonably well, fat test is especially high in many herds, and producers have been hanging on to some extra milk expecting rumoured quota increases to come in January and February that have not materialised.

Should we go ‘old school’ as they say, and just reduce feed costs, lower the balance and cut back on milk production… absolutely not!

We have spent years building a strong genetic base within our dairy herds; the modern dairy cow has a great will and propensity to produce a large quantity of milk. By under-feeding this genetic potential, we will cause a cascade of problematic events. The genetic desire of that cow to produce milk will simply deplete her body condition reserves in an attempt to maintain her production. Once body condition is depleted, her biology will begin to make concessions on important things such as reproductive success.

Priority #1 should be to cull problem cows. Provincial beef prices are at all-time highs, creating a great opportunity to reduce SCC, remove cows in chronic disrepair, and improve the overall health of your herd. Also, additional milk can be reduced by drying cows off and selling fresh heifers.

You could certainly reduce some feed costs by removing some specialty additives. Granted palm fats are money well spent to fill quota with some great fringe benefits, however, they will be driving your fat test up and adding to your feed costs in an over-production scenario. Remember also that, simply feeding fewer cows through strategic culling will reduce your feed costs.

A healthy, well-fed rumen with great component output in the milk generally means a healthy cow. Keep ration balance at appropriate levels, challenging that great genetic bovine beast, and reduce quota usage through other measures. Your cows will thank you for it! n

QA&with JOHN WERRYDairy Specialist,Grand Valley Fortifiers

Years of Service: 7Hometown: Oshawa

Email: johnwerry@grandvalley.com

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