Buckeye Dairy News: VOLUME 23, ISSUE 3

  1. Milk Prices, Costs of Nutrients, Margins and Comparison of Feedstuffs Prices

    April F. White, Graduate Student, Department of Animal Sciences, The Ohio State University

    Milk prices

    In the last issue, the Class III futures for March and April were at $16.18/cwt and $17.20/cwt, respectively. Class III closed at $17.67/cwt in March, with protein continuing to decline slowly in price and butterfat climbing toward $2/lb ($1.95/lb in April). The Class III future for May is $18.93/cwt, followed by a decrease to $17.63/cwt in June.

    Nutrient prices

    It can be helpful to compare the prices in Table 1 to the 5-year averages. The price of metabolizable (MP) and physically effective neutral detergent fiber (peNDF) are about 33 and 64% higher compared to the 5-year averages ($0.39/lb and $0.08/lb, respectively). Net energy for lactation (NEL) is about 16% higher than the 5-year average ($0.08/Mcal), and closer to the price reported in January ($0.10/Mcal) after the decrease in the March issue. The price of MP is decreased compared to the March issue ($0.67/lb) but remains high alongside the cost of soy products and canola meal.

    To estimate profitability at these nutrient prices, the Cow-Jones Index was used for average US cows weighing 1500 lb and producing milk with 3.9% fat and 3.2% protein. For January’s issue, the income over nutrient cost (IONC) for cows milking 70 lb/day and 85 lb/day was about $9.57 and $10.13/cwt, respectively. Both estimates exceed those in the previous issue by $1.00 or more and are likely to be profitable. As a word of caution, these estimates of IONC do not account for the cost of replacements or dry cows, or for profitability changes related to culling cows.

    Table 1. Prices of dairy nutrients for Ohio dairy farms, May 25, 2021.

    Economic Value of Feeds

    Results of the Sesame analysis for central Ohio on May 25, 2021 are presented in Table 2. Detailed results for all 26 feed commodities are reported. The lower and upper limits mark the 75% confidence range for the predicted (break-even) prices. Feeds in the “Appraisal Set” were those for which we didn’t have a price or were adjusted to reflect their true (“Corrected”) value in a lactating diet. One must remember that SESAME™ compares all commodities at one specific point in time. Thus, the results do not imply that the bargain feeds are cheap on a historical basis. Feeds for which a price was not reported were added to the appraisal set in this issue.

    Table 2. Actual, breakeven (predicted) and 75% confidence limits of 26 feed commodities used on Ohio dairy farms, May 25, 2021.


    For convenience, Table 3 summarizes the economic classification of feeds according to their outcome in the SESAME™ analysis. Feedstuffs that have gone up in price based on current nutrient values or in other words moved a column to the right since the last issue are in bold. Conversely, feedstuffs that have moved to the left (i.e., decreased in value) are underlined. These shifts (i.e., feeds moving columns to the left or right) in price are only temporary changes relative to other feedstuffs within the last two months and do not reflect historical prices. Feeds added to the appraisal set were removed from this table.

    Table 3. Partitioning of feedstuffs in Ohio, May 25, 2021.

    Bargains At Breakeven Overpriced
    Gluten meal Whole cottonseed Mechanically extracted canola meal
    Corn, ground, dry   41% Cottonseed meal
    Corn silage Soybean hulls Soybean meal - expeller
    Distillers dried grains Whole, roasted soybeans Blood meal
    Feather meal 44% Soybean meal Solvent extracted canola meal
    Gluten feed Alfalfa hay - 40% NDF Molasses
    48% Soybean meal Hominy  
      Wheat middlings  
      Meat meal  

    As coined by Dr. St-Pierre, I must remind the readers that these results do not mean that you can formulate a balanced diet using only feeds in the “bargains” column. Feeds in the “bargains” column offer a savings opportunity, and their usage should be maximized within the limits of a properly balanced diet. In addition, prices within a commodity type can vary considerably because of quality differences as well as non-nutritional value added by some suppliers in the form of nutritional services, blending, terms of credit, etc. Also, there are reasons that a feed might be a very good fit in your feeding program while not appearing in the “bargains” column. For example, your nutritionist might be using some molasses in your rations for reasons other than its NEL and MP contents.

    Appendix

    For those of you who use the 5-nutrient group values (i.e., replace metabolizable protein by rumen degradable protein and digestible rumen undegradable protein), see Table 4.

    Table 4. Prices of dairy nutrients using the 5-nutrient solution for Ohio dairy farms, May 25, 2021.  

     

  2. Heat Stress in 2021: Will it be Intense?

    Mr. Jason Hartschuh, Extension Educator, Crawford County, Agriculture and Natural Resources, Ohio State University Extension, and Dr. Aaron Wilson, Climate Research Specialist, Ohio State University Extension

    Heat stress can lead to major challenges for lactating cows during peak milk production and dry cows during the transition period. It can even cause challenges for calves before and after birth. In the U.S., heat stress is estimated to generate between $1.69 and $2.36 billion in total annual loss to the livestock industry.

    While the upper limit of the thermal neutral zone for dairy cows is 68°F and for calves at one month of age is 77°F, heat stress includes more than just temperature. Heat stress factors in the humidity as well. For this reason, we utilize a temperature-humidity index (THI). While cooling should begin as soon as we leave the thermal neutral zone, heat stress for cows begins around a THI of 72, with 72 to 79 causing mild stress. At 79 to 88 THI, cows enter moderate heat stress which occurs at 80°F and 90% relative humidity (RH) or 85°F and 60% RH. Low end mild heat stress results in a milk production loss of 2.5 lb/cow/day, while the upper end of mild to moderate heat stress leads to 6 lb/cow/day of lost production. Figure one can be a useful tool for operating your cooling system. In the Stress Threshold (tan zone), fans should be operating. As the stress increases, more heat mitigation practices are needed. Besides monitoring environmental conditions, signs of heat stress can include increased breaths per minute, which should be between 40 to 60 under normal conditions. While not convenient, rectal temperature may also be used, which under normal conditions is between 101.2 to 102.5°F. If over 5 to 10% of your herd exceeds 105°F, your herd is in the emergency level of heat stress and additional cooling is definitely needed.


    Figure 1. Temperature Humidity Index (THI) for cattle. Lactating dairy cows are at greater risk for heat stress when the THI exceeds 68.

    The latest summer outlooks from the Climate Prediction Center call for an elevated probability of above average temperatures in Ohio for the month of June, as well as the June-August period (Figure 2). There are also indications that precipitation is likely to be above average throughout the period as well. While predicting THI for individual days is not possible this far in advance, the outlooks suggest a tendency toward higher values (warm temperatures and more moisture), especially during the first half of the summer.

    To mitigate heat stress, cattle respond in a few natural ways and we can assist in these efforts. First, providing shade cloth will assist cattle as they naturally seek shade, especially for calves living in hutches. Second, cattle increase their sweating. This can lead to dehydration even as it provides evaporative cooling. We can supplement this response with a well-designed soaker system. They will also increase water intake by 1.2 to 2 times normal rates, leading to water needs per cow of up to 52 gal/day. Frequent checking to ensure adequate available water is critical, including drinking space, well-capacity, and water flow rates to keep your cows cool this year. Also, work with your nutritionist to make plans for ration adjustments before heat stress sets in, not after the effects are felt in your bulk tank. Lastly, walk your barns on a regular basis to check fan performance. The ideal wind speed in your barn should be around 5 mph.


    Figure 2. Probabilistic temperature (left) and precipitation (right) outlooks from the NOAA Climate Prediction Center. Colors represent the probability of above, below, and near normal conditions for June-August 2021.

  3. Roseler and Weiss Inducted into the Ohio State Dairy Hall of Service

    Dr. Maurice Eastridge, Professor and Extension Dairy Specialist, Department of Animal Sciences The Ohio State University

    The Dairy Science Hall of Service was initiated in 1952 to recognize worthy men and women who have made a substantial and noteworthy contribution toward the improvement of the dairy industry of Ohio, elevated the stature of dairy farmers, or inspired students enrolled at the Ohio State University. The 2021 inductees were recognized on April 22 at the Department of Animal Sciences ‘Celebration of Excellence’ held virtually.


                                                     Dr. Dwight Roseler

    Dwight Roseler grew up in Wellington, OH and has dedicated his career to assisting dairy farmers and those that work in the dairy industry. He graduated from The Ohio State University with his degree in dairy science in 1981. After graduation, Dwight worked as a field dairy nutritionist for local cooperatives in north central Ohio for seven years before continuing his education. Dwight earned a Master of Science degree in Ruminant Nutrition and Business Management in 1990 and a Ph.D. in 1994 in ruminant nutrition, both from Cornell University. After completing his graduate studies, he worked for a short stint in Indiana and then moved back to Ohio in 1996. For the past 25 years, Dwight has supported the Ohio dairy industry in his role as a Technical Dairy Specialist for Land O’ Lakes Purina Feed. In this role, he supports a dairy nutrition team of Purina employees and a much larger group of dairy nutritionists that work in the cooperative system in Ohio, Indiana, and Illinois. He has trained hundreds of future dairy specialists that work on with Ohio dairy farmers. Over the years, he has conducted many training sessions for producers to help improve their operations and participated in many programs for veterinarians. In addition, Dwight has served as the primary Dairy Nutritionist on numerous farms helping achieve success within their operation. In the past 3 years, Dwight has added the role of Dairy Tech Specialist for Bidco LLC in Kenya. In this role, he provides dairy technical training to a team that provides nutrition help to Kenyan dairy farmers. He was instrumental in the formation of the Midwest Chapter of the American Registry of Professional Animal Scientists, a professional organization for professional providing advice to dairy farmers. Dwight also is an adjunct faculty member in the Department of Animal Sciences at Ohio States. Over the years, he has participated in many Extension program, served on the Board of Directors for the Tri-State Dairy Nutrition Conference, served as a speaker in courses and seminars for undergraduate and graduate students, and supported the research for several OSU faculty. Dwight resides in Wooster, Ohio with his wife Vickie.Their four children are grown and have started families of their own. Dwight is passionate about the dairy industry and is dedicated to seeing dairymen everywhere succeed. “Dwight is a passionate and tireless contributor to all segments of the Ohio dairy industry”, wrote one of the nominators. The recognition provided as a recipient of the Dairy Hall of Service acknowledges Dwight for his commitment to the advancement of the dairy industry by supporting dairy farmers, nutrition advisors, veterinarians, students, and researchers in countless endeavors.

       
                                                      Dr. William (Bill) P. Weiss

    ​​​​​​Dr. Bill Weiss, Professor in the Department of Animal Sciences at The Ohio State University, retired in January, 2021 after 33 years of being on the faculty. He grew up in Indiana and received his BS (1980) and MS (1981; dairy nutrition) degrees from Purdue University. Then, he enrolled in the graduate program at Ohio State in dairy nutrition and completed his PhD in 1985. He was a postdoctoral researcher at Ohio State prior to being on the faculty at North Dakota State University from April 1986 through December 1987, after which he returned to Ohio State as an assistant professor. Bill’s passion for the dairy industry started as a young man while working on a neighbor’s dairy farm. He is one of the rare faculty members who is equally an expert when walking on a dairy farm as when speaking, teaching, or writing. Throughout his career, his research has focused on forage utilization, energy values of feeds, feed management, and vitamin and mineral requirements. He has served as major professor to 29 MS and 5 PhD students, and served as a committee member to an additional 18 MS and 26 PhD graduate students. Bill has authored or co-authored 11 book chapters, 142 peer-reviewed articles, 102 abstracts, and 270 papers for an applied audience. His papers have been cited over 7500 times; moreover, he has 20 papers that have been cited ≥ 50 times, particularly documenting his renowned expertise in energy, vitamin E, and selenium nutrition. He has delivered over 216 national and 103 international presentations. He spoke at the first Tri-State Dairy Nutrition Conference in 1992 and has been a speaker at 22 of the 29 annual conferences, contributing to its growth from a regional to a national and international conference. The American Dairy Science Association (ADSA) recognized Dr. Weiss in April, 2019 for authoring or co-authoring 100 or more papers in the Journal of Dairy Science. He has received many awards based on national and international excellence, including 3 research awards from ADSA culminating in the 4th as a Fellow in 2015. In addition, he received both the junior and senior distinguished researcher awards granted annually by the Ohio Agricultural Research and Development Center at Ohio State. He has co-taught graduate level courses and served as guest lecturer in many undergraduate and veterinary student courses. He served as interim Department Chair for one year during 2016-2017. Bill developed a world-renown research program, but he never lost sight of sharing his research with local stakeholders, whether that be farmers, nutrition advisors, or veterinarians. The recognition provided as a recipient of the Dairy Hall of Service acknowledges Bill’s commitment to the advancement of the dairy industry by supporting dairy farmers, nutrition advisors, veterinarians, students, and researchers in countless endeavors.

  4. Ohio State Students Take First Place at the 2021 North American Intercollegiate Dairy Challenge

    Dr. Maurice Eastridge, Professor and Extension Dairy Specialist, Department of Animal Sciences The Ohio State University

    The North American Intercollegiate Dairy Challenge (NAIDC) program began in 2002 (https://www.dairychallenge.org/) and the first regional program began in the northeast in 2003. Since that time, Midwest, southern, and western regional dairy challenges have been organized. In addition, Ohio State hosts a local dairy challenge each fall semester to provide training for students in the dairy herd management course and other college students. Students from the Agricultural Technical Institute also have participated for several years, and during the past two years, students from Wilmington College have participated.

    Dairy Challenge provides the opportunity for students to experience the process of evaluating management practices on a dairy farm and to interact with representatives in the dairy industry. The program is held in a contest format for undergraduate students whereby they are grouped into teams of three to four individuals. Locally, veterinary and graduate students are invited to attend the farm visit and participate in a meeting later in the evening with the contest judges to discuss observations on the farm. A farm in central Ohio is selected and records from the farm are made available to students. Typically, students are taken to the farm for a visit to interview the owner and to observe the facilities for about two hours. Then the teams of students return to campus to finalize their assessment into a presentation for the following day. The students present their findings to a panel of judges consisting of individuals from the University and from allied industries.

    Midwest Regional Dairy Challenge

    The 2021 Midwest Regional Dairy Challenge was hosted by Ohio State, Michigan State and Purdue universities. We were planning to host the event in Ft. Wayne, IN, but due to the pandemic, the event had to be held virtually. With the virtual nature of the program, the structure was changed whereby it was held February 16 through March 2. Dr. Roger Thomson at Michigan State worked feverishly in gathering records and videos of a herd in MI to use for the program. Given the virtual nature of the program and the difficulty in students working remotely with students from other universities, the teams this year were organized by schools for which they attend. The two following teams from Ohio State participated: Team 4 - Paul Bensman, Deanna Langenkamp, Sarah Lehner, and Robert Vance; Team 11 - Brietta Latham, Amanda Schmitmeyer, Ashley Stroud, and Laura Tavera. Team 4 placed second among the teams in their grouping.

    National NAIDC

    Due to the onset of the COVID-19, the 2020 National NAIDC program scheduled for March 26-28 in Green Bay, WI was cancelled. With the ongoing pandemic, the 2021 National NAIDC program was held virtually during April 14-16 and was hosted by the NAIDC Board with the gracious offerings by a herd in WI. The Ohio State contest team consisted of Paul Bensman, Brietta Latham, Sarah Lehner, and Caleb Rykaczewski. They took first place among the teams in their judging panel. Paul graduated this semester and is seeking employment in the feed industry; Brietta has been accepted into a graduate program at Washington State University; Caleb will be pursuing a MS degree in the OSU Department of Animal Sciences; and Sarah will be a senior during this next academic year with dual majors in Animal Sciences and Agribusiness and Applied Economics. The coaches for the Columbus based campus students are Dr. Maurice Eastridge and Dr. Benjamin Wenner.

    Ohio State Dairy Challenge Team
    Ohio State University Team, 2021 NAIDC Virtual Contest, received a First Place (Left to Right): Paul Bensman, Brietta Latham, Caleb Rykaczewski, and Sarah Lehner.

  5. Milk Production of Ohio Dairy Herds (2016 through 2020)

    Dr. Maurice L. Eastridge, Professor and Extension Dairy Specialist, Department of Animal Sciences, The Ohio State University

    It is always important to monitor the yield of milk and the composition of milk, especially for the individual farmer, because the income of the dairy farm depends on this source of revenue. The yields of fat and protein are the primary determinants of the price received by farmers. The proportions of fat and protein are useful in monitoring cow health and feeding practices within a farm. The income over feed costs (IOFC) and feed costs per hundred of milk are important monitors of costs of milk production.

    The average production of milk, fat, and protein by breed for Ohio dairy herds during 2016 through 2020 using the Dairy Herd Improvement (DHI; http://www.dhiohio.com) program are provided in Table 1. Not all herds on DHI are included in the table below because of the different testing options offered by DHI, some herds opt for no release of records, lack of sufficient number of test dates, and given that some of the herds consist of other breeds than the ones shown. In comparison, the average of milk yields from USDA data for all cows in Ohio during 2020 are provided.

    The average production per cow increases about 2% annually and the most populated breeds, Holstein and Jersey, increased in milk yield by about 2.8% from 2019 to 2020. During this same time period, milk fat percentage increased about 2.6% for Holstein and 1% for Jersey and milk protein percentage remained the same. Using energy-corrected milk (accounting for the lactose, fat, and protein in milk), Holstein cows increased from 27,496 to 28,629 (4.1%) and Jersey cows increased from 21,855 to 22,596 lb/cow/year from 2019 to 2020. As noted earlier, milk fat and protein are the primary drivers of milk price for dairy farmers. Since fall 2019, protein has been priced higher than fat (Figure 1) and although the gap has closed, protein still remains at a higher price than for fat to date. Optimizing management, genetics, and feeding to maximize yields of fat and protein are very important for dairy farmers to impact profitability.

    Table 1. Number of herds, milk yield, milk fat, and milk protein by breed for Ohio herds on DHI during 2016 through 2020.


    Breed

    Year
    Number of 
    Herds
    Milk
    (lb/lactation)

    Milk fat (%)

    Milk protein (%)
    Ayrshire 2016 9 16,919 3.83 3.25
      2017 6 16,145 4.00 3.25
      2018 4 16,346 4.29 3.25
      2019 3 16,225 4.53 3.22
      2020 5 15,431 4.01 3.21
    Brown Swiss 2016 17 20,216 4.22 3.45
      2017 16 19,840 4.25 3.49
      2018 13 19,817 4.21 3.46
      2019 10 19,989 4.24 3.52
      2020 15 21,162 4.22 3.46
    Guernsey 2016 6 17,606 4.73 3.41
      2017 5 17,063 4.76 3.45
      2018 5 15,800 4.60 3.39
      2019 5 14,787 4.52 3.37
      2020 7 15,932 4.54 3.36
    Holstein 2016 272 25,202 3.69 3.08
      2017 245 25,625 3.87 3.18
      2018 198 25,506 3.79 3.09
      2019 171 25,843 3.85 3.11
      2020 198 26,588 3.95 3.11
    Jersey 2016 62 17,600 4.85 3.65
      2017 62 17,865 4.82 3.58
      2018 44 17,438 5.04 3.65
      2019 37 17,673 4.88 3.64
      2020 50 18,164 4.93 3.64
    Mixed 2016 24 23,481 3.90 3.21
      2017 21 24,441 4.02 3.22
      2018 17 22,852 4.21 3.31
      2019 15 24,233 4.19 3.40
      2020 29 22,292 4.56 3.41
    Ohio1 2016 2,512 20,875 --- ---
      2017 2,337 21,284 --- ---
      2018 2,220 21,359 --- ---
      2019 1,868 21,614 --- ---
      2020 1,745 22,118 --- ---

    1Data available from United States Department of Agriculture, National Agricultural Statistics Service.


    Figure 1. Price ($/lb) for milk fat and protein during 2019 to current (graph courtesy of Dianne Shoemaker; FMMO = Federal Milk Marketing Order).