When milk prices are low we are all temped to cut costs wherever we can. When margins per pound or kilogram of milk turn negative, we tend to forget the simple things and we move to “survival mode.” Despite the market roller coaster, it’s important to keep our minds sharp, work smart, and keep these 17 pointers in mind.
1. Think positive
Always try to keep a positive mindset, even in a down market. The milk price will go up again and the best thing to do is prepare for that moment.
2. Think long-term
Especially in a volatile market, it’s important to remember to manage your dairy not only for today, or for this year, but over a longer period of time.
3. Educate yourself
When the going gets tough, the tough get going! Tough times are when it’s most important to invest in yourself and your education to continue managing your dairy in the best possible way. Continued education will help you improve your knowledge and skills today. Your dairy needs it!
4. Choose margins over cost
When making decisions choose options that provide the highest margin, rather than simply the lowest cost. Also keep this in mind when calculating IOFC (income over feed cost) on a monthly basis.
5. Aim for more milk per cow
Maximize feed intake, and milk production per cow will follow. The last kg of milk has a value of at least 2.5 times the cost of the extra feed needed to produce this kg. This will lower your feed cost per kg milk. If you must cut costs, avoid cuts in areas that will lower your milk production.
6. Feed one ration
Feed your high cow ration not only to your high producers, but to your low production group as well, to further build on the goal of more production per cow.
7. Maintain high forage quality
Quality matters, and that applies to forage as much as any single thing on a dairy. Ensure high quality forage to maximize production, maintain cow health, lower feed cost and increase feed efficiency.
8. Keep calm
Avoid stress around the cows. Calm, happy cows more easily yield the production levels you desire.
9. Minimize fresh cow problems
Only those cows that get off to a healthy start during the first 60 days after calving will be most profitable. Cows with problems early in lactation will likely yield less milk and have reproductive troubles later in the lactation, so ensure fresh cows are treated with the utmost TLC.
10. Create more pregnancies
Ensure your reproductive program is tweaked with the goal of creating the most pregnancies. More pregnant cows in a timely manner minimizes average days open, which also improves feed efficiency.
11. Make each pregnancy count
Keep using the best quality semen to meet your farm’s goals. Your genetic investment today will pay big dividends three to four years from now when milk prices could be much different.
12. Cull strategically
Never milk cows that don’t earn their keep.
13. Don’t skimp on cow health
Use appropriate treatment for all cows that need it and cull as needed to avoid dead cow or low cull prices.
14. Remember the young stock
Assure the best calf and heifer rearing. Aim for the lowest cost per pound or kg of growth, instead of just the lowest cost per rearing day.
15. Focus on your heifer repro
Your heifers should calve by 305 days after your set VWP. Ninety percent should be bred in the first 21 days after entering the breeding pen, and a 40% pregnancy rate on heifers is achievable. These benchmarks will ensure your heifers calve in on time, limiting their days on feed while not producing.
16. Go for operational excellence
Only the best will survive, so don’t let average be your goal for feed quality, nutrition, labor, transition, heifer rearing, repro, milking and housing. Average results are not good enough!
17. Don’t forget…
A dairy as a way of life is a poor business, a dairy as a business is a great way of life.
Source: Alta Genetics
