A popular subject in the USA today is how to survive this long 18 month period of very low milk prices. Many feed consultants and University professors are giving speeches to dairy producers. They are presenting their recommendations on how to control costs and increase income.

Dr. Terry Howard is a professor of Dairy Nutrition at the University of Wisconsin. He recently told dairymen that it is difficult to lower the fixed costs of producing 100 lbs of milk. There are only two basic ways to lower the fixed costs of producing milk and they are as follows:

The above two recommendations are absolutely the most important two recommendations that we can give to dairymen. These recommendations are true in times of low milk prices and even truer in times of high milk prices.

How can we boost milk production of individual cows? One way is to feed more energy. Our feed consultant at Hill Top Dairy recently asked us to add one pound of corn per cow per day to see if milk production increased. We plan to try this. Ground shelled corn costs $5 per hundred pounds in the USA. I know it is much higher in Japan but the milk to feed ratios may be similar. A pound of corn generates 2.5 pounds of milk. Milk sells for $10 to $12 per 100 pounds. This means 5 cents worth of corn will return 25 cents of milk income.

Another way to increase milk production is to make sure we are feeding adequate protein. One pound of soybean meal containing 44% protein will let a cow produce about five pounds of milk. One pound of protein costs 10 cents and can return 50 cents of milk income (less other feed costs).

The risk of losing milk income is greater than the risks of added feed costs. Think about that statement. It is very important to all dairymen. It is never wise to underfeed energy or protein to dairy cows.

Increasing cow numbers during long periods of low milk prices is difficult. It is hard to find the cash to purchase additional replacements. However, that is exactly what needs to be done to survive. We must be careful to only add enough extra cows so we do not hurt milk production of the original herd. So the name of the game is keeping the barn filled to maximum capacity. Large herds must always plan ahead with their cull rates and replacement animals. Each free stall costs nearly $4,000 in fixed costs. These stalls must be full and producing milk income. Watch your clients carefully. You will see that the best dairymen always have all barns full of cows and even have some overcrowding in some pens. It sounds easy but it is not. Culling rates change from month to month. Breeding problems and mastitis problems change month to month. The answer is to raise or purchase 10% more replacement animals than you think you will need. The extra costs for replacements will keep stalls full of higher producing cows and generate more milk income.

Dr. Howard asked the question, "What if you just do not have the money to feed all cows adequate protein?" Then dairymen should concentrate on feeding their fresh cows better. Remember, that a 5 pound loss in peak milk yield translates into a 1000 pound loss for the lactation. Restricting grain and protein during the last third of a lactation will damage profitability less than short changing cows at their peak of milk production.

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News Letter from Dr. Whitmore, February No.1-1 2003