Development of an efficient milk production profile of the Irish dairy Industry

End of project reportFluctuation around milk price will be the biggest factor that the dairy industry will experience over the next number of years. This fluctuation is being driven by fluctuation on the world dairy markets. In the past, when intervention was a much bigger feature of the CAP regime, the fluctuation in world markets had little effect on the EU price. This was because the Intervention system bought product from the market when prices were depressed and placed products on the world market when the price rose. This in effect meant that the CAP regime was having a regulatory effect on the world market as well as the EU markets. An example of the type of fluctuation observed on the world market can be gleamed from the Fonterra milk price in 2006-2007 ($4.50/kg (MS) milk solid) versus 2007-2008 ($7.90/kg MS). This corresponds to a 76% increase in price in 1 year. For the Dairy Industry in Ireland to prosper under these conditions all sectors will be required to be as efficient as possible from the farm, processing and marketing sectors. This report deals with; (1) Milk payment (2) Optimum milk production systems and (3) Seasonality of milk supply. (1) Milk payment systems in Ireland currently do not adequately reward high solids quality milk. Virtually all milk payment systems include a positive constant which reward the production of volume rather than the production of protein and fat kilograms. The A+B-C system of milk payment would adequately reward the production of protein and fat while at the same time correcting for the volume related processing costs. (2) Optimum systems of milk production will be built around the maximization of grass utilization in the future. Grazed grass is the cheapest feed that can be fed to dairy cows. Stocking rates nationally are 1.74cows/Ha around the milking platform and therefore when dairy farms are expanding they should do so by increasing stocking rate. The inclusion of supplementary feeds will reduce profitability for the vast majority of dairy farmers and could only possibly lead to increases in profitability when coupled increases in stocking rate. (3) Grass based systems while substantially reducing costs at farm level result in a seasonal milk supply profile. This results in a reduced capacity utilization of the milk processing facilities as well as restricted product port folio. However the production of Winter milk will lead to significant cost increases at farm level and should only be encouraged if the specific product produced would be sufficient to cover the additional costs associated with over winter production. Within spring calving systems milk payment systems should be used to encourage an efficient milk supply profile with a mean compact calving date of mid February.Teagasc acknowledges with gratitude the support of Dairy Levy Funds and EU Structural Funds (FEOGA) in financing the research programme

Evaluation and development of animal breeding in Ireland

End of project reportThe primary objectives of this study were: 1) to annually evaluate the pertinence of the Irish dairy cattle breeding index, the Economic Breeding Index (EBI) and where necessary modify, 2) to evaluate the potential of do-it-yourself milk recording as an alternative to current supervised methods of milk recording, and 3) to estimate the level and rate of accumulation of inbreeding in Irish dairy and beef cattle, to quantify its effects on traits of economic importance, and to develop remedial measures to minimise the future accumulation of inbreeding in Ireland

Evaluation of on-farm labour saving strategies for optimisation of herd size that could be managed by one operator

End of project reportAlternative milking frequencies Once a day (OAD) milking throughout lactation of a herd (over 2 years, incorporating 24% heifers) resulted in loss in milk solids (MS) production of 17% per cow. Milking cows OAD in their 1st lactation does not adversely impact on milk production in the second lactation, when changed to twice a day (TAD) milking but may lead to a higher mastitis incidence. Changeover in milking frequency in mid lactation resulted in a similar yield of MS per cow for TAD milking for the full lactation (474 kg) and the TAD OAD group (TAD for the first 110 days and OAD for the remainder of the lactation) (469 kg). Thirteen times weekly milking in late lactation (omitting the Sunday evening milking) compared to twice daily milking every day had no effect on milk yield or composition and maximum SCC observed during the trial was 270x103 cells/ml. Once daily milking did not adversely affect the processability of milk. Once daily milking did not significantly increase milk SCC levels. Alternative calf rearing systems The improved efficiency increased herd size may be due to less use of buckets for calf feeding together with more frequent use of teat feeding from a container, automatic feeders and ad libitum feeding A study on OAD calf feeding (whole milk) demonstrated that calves can be reared with a OAD milk feeding system and weaned early (42 days) without adversely affecting performance There was no difference in the live-weight gain of calves on once daily feeding, twice daily feeding or once daily feeding going outdoors after 28 days Calf liveweight gain was greater with once daily feeding with milk replacer compared to once daily feeding with whole milk or once daily feeding with milk replacer going outdoors after 28 days Economic analysis of alternative milking systems When deciding on the type, size and level of technology in the milking parlour, the trade-off between labour requirement and cost and the initial capital investment requirement should be key in making the decision

Effect of exposure to Neospora caninum, Salmonella, and Leptospira interrogans serovar Hardjo on the economic performance of Irish dairy herds

peer-reviewedThe objective of the current study was to quantify the effects of exposure to Salmonella, Neospora caninum, and Leptospira interrogans serovar Hardjo (L. hardjo) on dairy farm profitability and to simulate the effect of vaccination for Salmonella and L. hardjo on dairy farm profitability. The production effects associated with exposure to each of these pathogens in study herds were defined under 3 categories: (1) milk production effects, (2) reproduction effects (including culling), and (3) mortality effects. The production effects associated with exposure to Salmonella, N. caninum, and L. hardjo were incorporated into the Moorepark Dairy Systems Model. In the analysis, herds negative for exposure to Salmonella, N. caninum, and L. hardjo were assumed baseline herds, with all results presented relative to this base. In simulations examining the effect of vaccination for Salmonella and L. hardjo on farm profitability, vaccinated herds (vaccination costs included) were considered as baseline herds and results were presented relative to this base. Total annual profits in unvaccinated herds were reduced by €77.31, €94.71, and €112.11 per cow at milk prices of €0.24, €0.29, and €0.34/L, respectively, as a result of exposure to Salmonella. In the current study, herds positive for exposure to Salmonella recorded a 316-kg reduction in milk yield, whereas no association was detected between exposure to N. caninum or L. hardjo and milk production. Exposure to both N. caninum and L. hardjo was associated with compromised reproductive performance. Herds positive for exposure to N. caninum and Salmonella had greater rates of adult cow mortality and calf mortality, respectively. Vaccination for both Salmonella and L. hardjo was associated with improved performance in study herds. Exposure to N. caninum resulted in a reduction in annual farm profits of €11.55, €12, and €12.44 per cow at each milk price, whereas exposure to L. hardjo resulted in a reduction in annual farm profits of €13.83, €13.78, and €13.72 per cow at each milk price. Herds that tested positive for exposure to Salmonella and L. hardjo were compared with herds vaccinated for the respective pathogens. Herds vaccinated for Salmonella generated €67.09, €84.48, and €101.89 per cow more profit at each milk price compared with herds positive for exposure. Similarly, herds vaccinated for L. hardjo generated €9.74, €9.69, and €9.63 per cow more profit compared with unvaccinated exposed herds. However, herds that tested negative for exposure to Salmonella and L. hardjo generated additional profits of €10.22 and €4.09 per cow, respectively, compared with vaccinated baseline herds

Seasonality in the Irish dairy processing industry

The dairy landscape in the Republic of Ireland is characterized by pastoral spring-calving systems and a bell-shaped milk production curve. This seasonality at producer level initiates various implications at processor level, such as poor utilization of plant capacity off-peak season, a requirement for seasonal labour management and limited product options in autumn and winter months due to the properties of late-lactation milk. An optimization model was developed to analyze the impact of production seasonality and quota removal on the Irish dairy processing industry in terms of maximum processor gross surplus, the optimum product mix and the marginal values of the milk solids fat, protein and lactose. Processor gross surplus was specified as a function of product sales revenue, less variable costs of collecting and processing raw milk and general overhead (fixed) costs. 5 scenarios with differing milk intake curves were examined whereby a flatter intake curve incurred less monthly variation in the marginal producer milk price, capacity utilization and product mix as well as a higher surplus as compared to more seasonal patterns. However, an isolated consideration of financial indicators at processor level disregards key characteristics of Irish grass-based seasonal milk production and producer-processor interdependencies. It was therefore concluded that a broader modelling approach integrating both the producer and the processor perspectives is desirable for more holistic analysis of sector-wide implications.Dairy processing, seasonality, milk quota abolition, processor profit, product mix, Farm Management, Livestock Production/Industries,

Application of data envelopment analysis to measure technical efficiency on a sample of Irish dairy farms

peer-reviewedThe aim of this study was to determine the levels of technical efficiency on a sample of Irish dairy farms utilizing Data Envelopment Analysis (DEA) and to identify key management and production factors that differ between producers indentified as efficient and inefficient. DEA was used in this study to generate technical efficiency scores under assumptions of both constant returns to scale (CRS) and variable returns to scale (VRS). The average technical efficiency score was 0.785 under CRS and 0.833 under VRS. Key production characteristics of efficient and inefficient producers were compared using an analysis of variance. More technically efficient producers used less input per unit of output, had higher production per cow and per hectare and had a longer grazing season, a higher milk quality standard, were more likely to have participated in milk recording and had greater land quality compared to the inefficient producers

The costs of seasonality and expansion in Ireland’s milk production and processing

peer-reviewedIreland’s milk production sector relies on grass-based spring-calving systems, which facilitates cost advantages in milk production but entails a high degree of supply seasonality. Among other implications, this supply seasonality involves extra costs in the processing sector including elevated plant capacities and varying levels of resource utilisation throughout the year. If both the national raw milk production increased substantially (e.g. post-milk quota) and a high degree of seasonality persisted, extra processing capacities would be required to cope with peak supplies. Alternatively, existing capacities could be used more efficiently by distributing the milk volume more evenly during the year. In this analysis, an optimisation model was applied to analyse the costs and economies arising to an average Irish milk-processing business due to changes to the monthly distribution of milk deliveries and/or the total annual milk pool. Of the situations examined, changing from a seasonal supply prior to expansion to a smoother pattern combined with an increased milk pool emerged as the most beneficial option to the processor because both the processor’s gross surplus and the marginal producer milk price increased. In practice, it may however be the case that the extra costs arising to the producer from smoothing the milk intake distribution exceed the processor’s benefit. The interlinkages between the stages of the dairy supply chain mean that nationally, the seasonality trade-offs are complex and equivocal. Moreover, the prospective financial implications of such strategies will be dependent on the evolving and uncertain nature of international dairy markets in the post-quota environment

Adding value to cull cow beef

End of project reportThis project addressed the prospects of increasing the value of cull cow beef and examined the potential of a number of different management and dietary strategies. In Ireland, the national cow herd contributes 350,000 animals to total beef production annually, which represents 22% of all cattle slaughtered (DAF, 2007). A dominant feature of beef production in Ireland is the disposal of cows from the dairy and beef industries, the time of year at which culling occurs influences the number of cows available for slaughter. Suitability of a cow for slaughter is generally not a consideration for dairy or beef farmers

Linkage between predictive transmitting ability of a genetic index, potential milk production, and a dynamic model

peer-reviewedWith the increased use of information and communication technology–based tools and devices across traditional desktop computers and smartphones, models and decision-support systems are becoming more accessible for farmers to improve the decision-making process at the farm level. However, despite the focus of research and industry providers to develop tools that are easy to adopt by the end user, milk-production prediction models require substantial parameterization information for accurate milk production simulations. For these models to be useful at an individual animal level, they require the potential milk yield of the individual animals (and possibly potential fat and protein yields) to be captured and parameterized within the model to allow accurate simulations of the interaction of the animal with the system. The focus of this study was to link 3 predicted transmitting ability (PTA) traits from the Economic Breeding Index (PTA for milk yield, fat, and protein) with potential index parameters for milk, fat, and protein required as inputs to a herd-based dynamic milk model. We compiled a data set of 1,904 lactations that included different experiments conducted at 2 closed sites during a 14-yr period (2003–2016). The treatments implied different stocking rates, concentrate supplementation levels, calving dates, and genetic potential. The first step, using 75% of the data randomly selected, was to link the milk, fat, and protein yields achieved within each lactation to their respective PTA value, stocking rate, parity, and concentrate supplementation level. The equations generated were transformed to correspond to inputs to the pasture-based herd dynamic milk model. The equations created were used in conjunction with the model to predict milk, fat, and protein production. Then, using the remaining 25% data of the data set, the simulations were compared against the actual milk produced during the experiments. When the model was tested, it was capable of predicting the lactation milk, fat, and protein yield with a relative prediction error of <10% at the herd level and <13% at the individual animal level

A national methodology to quantify the diet of grazing dairy cows

peer-reviewedThe unique rumen of dairy cows allows them to digest fibrous forages and feedstuffs. Surprisingly, to date few attempts have been made to develop national methods to gain an understanding on the make-up of a dairy cow's diet, despite the importance of milk production. Consumer interest is growing in purchasing milk based on the composition of the cows' diet and the time they spend grazing. The goal of this research was to develop such a methodology using the national farm survey of Ireland as a data source. The analysis was completed for a 3-yr period from 2013 to 2015 on a nationally representative sample of 275 to 318 dairy farms. Trained auditors carried out economic surveys on farms 3 to 4 times per annum. The auditors collected important additional information necessary to estimate the diet of cows including the length of the grazing season, monthly concentrate feeding, type of forage(s) conserved, and milk production. Annual cow intakes were calculated to meet net energy requirements for production, maintenance, activity, pregnancy, growth, and live weight change using survey data and published literature. Our analysis showed that the average annual cow feed intake on a fresh matter basis ranged from 22.7 t in 2013 to 24.8 t in 2015 and from 4.8 to 5 t on a dry matter basis for the same period. Forage, particularly pasture, was the largest component of the Irish cow diet, typically accounting for 96% of the diet on a fresh matter basis and 82% of dry matter intake over the 3 yr. Within the cows' forage diet, grazed pasture was the dominant component and on average contributed 74 to 77% to the average annual cow fresh matter diet over the period. The proportion of pasture in the annual cow diet as fed was also identified as a good indicator of the time cows spend grazing (e.g., coefficient of determination = 0.85). Monthly, forage was typically the main component of the cow diet, but the average contribution of concentrate was substantial for the early spring months of January and February (30 to 35% of dry matter intake). Grazed pasture was the dominant source of forage from March to October and usually contributed 95 to 97% of the diet as fed in the summer period. Overall, the national farm survey from 2013 to 2015 shows that Irish dairy farms are very reliant on forage, particularly pasture, regardless of whether it is reported on a dry matter basis or as fed. There is potential to replicate this methodology in any regions or nations where representative farm surveys are conducted