A starving grad student’s BLT shock

Away at college, working on a master’s degree, many of my daughter’s calls and e-mails now include personal insights into the financial "joy" of being a grown-up.

“One day you’ll appreciate the starving grad student experience and how it made you tough,” I often say, trying not to laugh. She shared her newest revelation today; it was about meat prices of all things.

“So, what’s the deal with bacon?” she asked. “I’ve had an urge for BLTs lately, so I went to the market. It’s been a while, but most of the packages were double what I remember the last time! Has something happened in the pork industry to explain these prices?”

Ah, innocence.

“Yes honey, something has happened. Remember 2008-09? That’s right, that’s when corn prices went stupid. A lot of farmers went out of business and everyone else pretty much lost their rump. Less farmers means fewer little piggies are going to market these days. In fact, USDA announced in June that total U.S. meat inventories, other than poultry, were at their lowest levels in several years.

“On top of that, foreign demand for U.S. beef and pork is way up this year which is making the situation even worse. It all adds up to more demand than supply, and I think prices are going to stay high all year long.”

“Darn,” she answered. “I guess I’ll have to wait until I come home then.”

Isn’t a kid’s love for her parents beautiful – even if part of it is because of their bacon?

June milk production up sharply

aking the nation as a whole, milk production was up 2.4 in June compared to a year earlier. In the top 23 states, milk output was up 2.7 percent. Milk production has been on the rise since February, but the size of June's jump was unexpected.

The growth is coming in higher milk production per cow. The average cow in the U.S. produced 3.7 percent more milk in June than a year ago. There were 108,000 (1.2 percent) fewer cows in the nation this June. But there were 40,000 more cows on U.S. dairy farms in June than there were in December. The U.S. dairy herd now has 9.122 million cows, the most since August 2009.

Industry observers are looking at several factors that could be contributing to the strength in per-cow milk production. The summer of 2009 was mild in the Upper Midwest, home to a lot of cows, and there could be some carryover effect. Also, many people cut back on vitamins, minerals, and other feed additives last year when they were losing money. They found out that the cows did not milk as well; nor were they as healthy or as easy to get bred so they put some of those ingredients back in the ration. Also, many problem cows were culled rather than doctored during the toughest times, and cull cow prices have been better recently. Those who started using sexed semen two or three years ago have more first-calf heifers freshening now so they can sell off more older cows. As a result, the U.S. dairy herd generally is more healthy and younger.

June milk production was up 3.5 percent in California. There was a 6.6 percent rise in milk per cow. Milk per cow jumped 4.7 percent in Wisconsin. With 5,000 more cows (+0.4 percent), Wisconsin milk output was up 5.1 percent in June. New York was up 0.2 percent. Idaho cow numbers were up 10,000 (1.8 percent), and milk production was up 3.5 percent. Michigan was a big gainer being up 4.7 percent with a big jump in milk per cow. Missouri experienced an 8 percent (9,000 head) drop in cow numbers and was down 5.4 percent in milk production.

Despite the milk production report last Monday, cheese prices on the Chicago Merc edged upward. On Tuesday, blocks added 2-1/4 cents a pound to move up to $1.60. Then blocks added another 1/4 cent yesterday.

Meanwhile, the average July through December Class III futures price went from $14.66 on Monday, before the announcement, to $14.63 on Tuesday to $14.64 yesterday. These are lower futures prices than any of us would like to see, but they did not react much to the June milk production report.

Wisconsin Secretary of Agriculture dies unexpectedly

Wisconsin agriculture lost a dedicated leader and advocate on Wednesday, July 21, when Rod Nilsestuen, the state's ag secretary, passed away unexpectedly. Nilsestuen drowned in Lake Superior while in Marquette, Mich., during a vacation trip to volunteer with his church for Habitat for Humanity. Rod and his wife, Carol, lived in De Forest, Wis., where for the past 13 years they led interdenominational Habitat for Humanity teams and were active in a number of youth, church, and school programs.

During the past eight years as Wisconsin's Secretary of Ag, Nilsestuen was instrumental in working with other government leaders to have the Wisconsin legislature pass investment credits which led to major reinvestment in Wisconsin's dairy industry. The state's dairy farms are now producing the most milk in state history, and cheese plants are likewise producing the most cheese in recorded history.

Additionally, Nilsestuen was instrumental in working with and helping pass the Livestock Siting Legislation which gave the state's dairy farmers predictability when working with zoning officials and other government agencies. Long-term, his lasting legacy might be the unfolding story with the Working Lands Initiative which is protecting Wisconsin's best farmland for future generations.

Prior to joining state government, Nilsestuen was president and CEO of the former Wisconsin Federation of Cooperatives which is a statewide association for more than 700 rural and urban cooperatives. In 1985, he led the creation of the Wisconsin Development Council, a first of its kind entity dedicated to providing technical assistance for cooperative growth. This led to the formation of the Rural Cooperative Development Task Force, a nationwide advocacy effort which Rod served as founding chairman. In the end, the Task Force spearheaded the creation of the Cooperative Grants program at USDA, the first major new federal reinvestment in co-op development in over two decades.

Nilsestuen also was instrumental in the creation of the Wisconsin Milk Marketing Board and served as its initial general manager during its first six months of operation. He helped organize the Wisconsin Corn Promotion Board and the Wisconsin Soybean Marketing Board.

So simple, but not easy

The job of the milker to keep teats clean and dry to prevent infection is a daily battle on every farm; yet the task is simple in thought. Today at the Hoard’s Dairyman Farm, a Hispanic milker training was held to relay that message in a way attendees could understand thoroughly. The event was organized by Vita Plus. Veterinarian Doug Braun of Pfizer shared with the group the basics of how and where milk is produced, the causes of mastitis, as well as proper procedures. Braun spoke in duo with a translator from Vi-Cor who relayed his entire message in Spanish.
Keeping teats clean was repeated over and over to the event’s attendees. “It is so simple, but it isn’t easy,” Braun said. Using a white rubbing alcohol swab at the bottom of teats, Braun explained how easily dirt can accumulate on teats and get into the udder. “Bacteria isn’t a runner, isn’t a walker, but it is a great swimmer,” he said regarding the ideal environment inside the udder for bacteria to grow and flourish once it has entered the teat. He also shared the importance of preparation to milking speed. “Just placing the milker on without prepping the teats can slow down milking by as much as 25 percent,” said Braun.

The highlight of the meeting for many was likely the dissection of two udders. Braun sliced teats lengthwise to illustrate the size and thickness of teats and the streak canal. He also demonstrated how dry cow tubes should be administered. One common misconception that Braun shared with the group was the depth at which dry cow tubes should be inserted. While most tubes come with a roughly 1.5-inch end, it is only necessary to insert the tip of the tube roughly .25 inche into the teat to dispense the treatment.After cutting the teat completely off, attendees could view just how many large blood vessels are directed towards the teat end. Then cutting into the udder tissue itself, we could see where milk-producing alveoli cells are found (see photo).

Canadian dairy producers set a world record

Dairy Farmers of Canada, partnering with Canadian processors from across the country, announced it officially set a new world record. On July 8, 2010, they broke the Guinness World Record for the world’s largest smoothie at the Bust-a-Record Dairy Day celebration held in Toronto, Canada.

The 264-gallon smoothie was made from all Canadian ingredients. It consisted of 145.5 gallons of 100 percent Canadian milk, 660 pounds of frozen blueberries, 39 gallons of vanilla yogurt, and 9.2 gallons of honey. The mixture was blended in a 317-gallon stainless steel bolt tank by a team of leading Canadian dairy producers.

President of Dairy Farmers of Canada, Jacques Laforge, noted, “Setting a new Guinness World Record with the All-Canadian Blueberry Smoothie is a wonderful way to celebrate our Canadian dairy producers and the purity, high quality, and great taste of dairy products made from 100 percent Canadian milk.”

Booster Juice in London, Ontario, with a 179-gallon smoothie, held the previous record. The Dairy Farmers of Canada bested this by approximately 90 gallons.

For more information and the All-Canadian Blueberry Smoothie recipe, visit www.asourceofpride.ca.

Reading the latest CWT tea leaves

Now that the dust is settling a week after results of the 10th and most recent Cooperatives Working Together (CWT) Herd Retirement were announced, let’s look at what they might say about dairy producers and the state of dairying.

Of 209 bids submitted, 194 were accepted. They accounted for 34,442 cows and 653.9 million pounds of milk production per year, which is equal to about one-third of the total output in Illinois.

One thing that sticks out is the relatively low participation rate. One hundred and ninety-four herds is the fewest in all but three previous retirement rounds. This may be due as much to the $3.75 per hundredweight maximum bid limit imposed, as to the return to modest profitability that most dairies are enjoying in 2010.

Along with the low participation rate were commensurately low removal totals for both cows and milk production. Only the CWT removals held in early 2008 and in 2003 were smaller.

Sifting through the tea leaves reveals that cows taken in the latest herd retirement were mediocre for milk production. In 2009, average production for all cows in the U.S. was 20,576 pounds. By comparison, average production for all cows accepted into CWT round 10 averaged just 18,986 pounds.

One possibility is that herds submitted were not highly efficient, or were unable to maintain production during the financial meltdown in 2009. They were, however, of roughly average size at 178 head. Average U.S. herd size in 2009 was 170.

Last direct Hoard relative to work for the company passes away

For over 40 years, Mark "Bud" Kerschensteiner diligently worked for the company that his great grandfather, Governor William Dempster Hoard, founded in 1870. With his passing, an era comes to a close, as Kerschensteiner was the last direct relative to work for Hoard's Dairyman and the W.D. Hoard and Sons Company. Shown in the photo are: Mark "Bud" Kerschensteiner (right) with Verna and Jim Baird (retired Hoard's Dairyman art director) at the 2006 open house following National Dairy Shrine's latest renovation.

Kerschensteiner's career with W.D. Hoard and Sons Company began on December 1, 1945, after two years of service in the U.S. Marine Corps where he was deployed to the Pacific Theatre during World War II and was stationed in Guam and Okinawa. His employment with the company began with his service as advertising manager for the Jefferson County Union. In June 1953, Kerschensteiner became an advertising representative for Hoard's Dairyman and a decade later he was promoted to advertising manager. It was a position he held until his retirement in 1986 when Gary Vorpahl succeeded him in that role. At the time of Kerschensteiner's retirement, he also was senior vice-president and director of the American Agriculturalist, Inc., a Hoard company affiliate in Ithaca, N.Y. During his career, he led the application effort to have the historic Hoard's Dairyman Farm placed on the National Register of Historic Places by the United States Department of Interior.

Born in 1921, Kerschensteiner was the only child of Mark and Shirley Hoard Kerschensteiner and the lone grandchild of Frank and Luella Hoard, whose former home now houses the Hoard Historical Museum which is also home to National Dairy Shrine. He graduated from the University of Wisconsin-Madison College of Journalism. Kerschensteiner served as the Fort Atkinson chairman of the UW-Madison Capital Gifts Campaign and was a member of the Bascom Hill Society. Kerschensteiner was a die-hard Badger fan and a generous donor to many University of Wisconsin initiatives.

In his local community, Kerschensteiner was the prime mover in the formation of the Fort Atkinson Community Foundation, Inc., founded in 1973. The foundation which began with Kerschensteiner's vision and a $25,000 gift from the late Mary C. Hoard, has grown to current assets of $18.6 million. Kerschensteiner led the group as the first board president for eight years. At the time of its inception, the Fort Atkinson Community Foundation was only the fourth one of its kind in the state with Milwaukee, Racine, and Oshkosh, all considerably larger than Fort Atkinson, having already established foundations.

It finished with a poem

Several hundred friends came out to pay their respects to the late Dr. David Dickson on July 14. Some great tributes and stories were told by those attending the event. At the conclusion of the memorial service, Dickson's sister, Linda Sorstokke, shared a poem that hung on his wall discussing those who judged dairy shows. It is believed that Dickson wrote it himself.

It goes like this . . .

The judge stood at the pearly gates
His head was bent and low
He meekly asked the man in white
The way that he should go.

St. Peter said, "What have you done on earth,
That you should come up here?
I was a judge of dairy cattle
For many and many a year

St. Peter opened wide the gates
And gently pressed the bell
Step inside and choose your harp
You've served your time in hell.

National Dairy Council helps build breakfast programs in U.S. schools

Parents have always stressed the importance of eating a good breakfast each morning before heading off to school. Research shows that eating breakfast is one of the best ways to fuel both the body and mind. Students who eat breakfast also perform better in school.

General Mills Foodservice has committed $100,000 to helps schools with students in grades K-12 build their breakfast programs. This is being done in conjunction with the National Dairy Council’s Child Nutrition and Fitness Initiative Breakfast Grant program.

Eligible schools can apply to receive up to $3,000 in funding for their breakfast program. To qualify the school must have the support from the school’s principal, district school nutrition director and school nutrition manager, have school enrollment of at least 500 students and demonstrate an opportunity to raise their breakfast participation. Schools must also be enrolled in the National Dairy Council’s “Fuel up to Play 60” program for the 2010- 2011 school year.

If your local schools meet the criteria outlined above, encourage them to apply. The deadline for applications is August 15, 2010, with applicants being notified by August 31, 2010.

For more information and to access the grant application, visit www.fueluptoplay60.com.

Recent reports bumps up milk and corn price forecasts

Forecast milk production for 2010 and 2011 is raised slightly from last month in USDA Supply and Demand Estimates released late last week. Cow numbers have remained higher than expected, and milk per cow is expected to increase more rapidly than previously forecast.

The Class III price forecast for 2010 is reduced on a lower cheese price forecast, but the Class IV price forecast is raised as the price forecast for butter is raised, more than offsetting a reduction in the NDM price. The 2011 Class III and Class IV price forecasts are raised. The All Milk Price is forecast to average $15.80 to $16.10 for 2010 and $15.90 to $16.90 for 2011.

Projected U.S. feed grain supplies for 2010/11 are lowered with reduced carryin and lower projected production. Beginning stocks for corn are projected 125 million bushels lower, reflecting higher use in 2009/10. With forecast harvested area down, corn production is lowered 125 million bushels, leaving supplies down 250 million bushels and 60 million below the 2009/10 record. The season-average farm price for corn is projected 15 cents higher on both ends of the range to $3.45 to $4.05 per bushel.

Global coarse grain supplies for 2010/11 are projected 14.9 million tons lower with nearly half of the decline driven by reductions in carryin and production in the United States. Global coarse grain production is lowered 10.8 million tons with barley, corn, and oats production lowered 6.9 million tons, 3.4 million tons, and 0.9 million tons, respectively. Partly offsetting, is a 0.6-million-ton increase in EU-27 mixed grain production. Outside the United States, the biggest reductions are for Russia, Canada, EU-27, and Kazakhstan.

Global coarse grain imports and exports are nearly unchanged for 2010/11. Corn imports are lowered for Mexico with exports increased for Ukraine, partly offsetting the U.S. export reduction.

U.S. oilseed production for 2010/11 is projected at 100.8 million tons, up 1.7 million tons from last month, with increased soybean production accounting for most of the change. Soybean production is projected at 3.345 billion bushels, up 35 million due to increased harvested area. Harvested area is estimated at a record 78 million acres in the June 30 Acreage report, 0.9 million above the June projection. The soybean yield is projected at 42.9 bushels per acre, unchanged from last month.

The U.S. season-average soybean price for 2010/11 is projected at $8.10 to $9.60 per bushel, up 10 cents on both ends of the range. Soybean meal prices are projected at $240 to $280 per short ton, up 10 dollars on both ends. Soybean oil prices are projected at 34 to 38 cents per pound, unchanged from last month.

Global oilseed production for 2010/11 is increased 0.5 million tons to a record 440.7 million tons. Foreign oilseed production is projected down 1.2 million tons to 340 million mostly due to lower rapeseed production. Global soybean production is projected at a record 251.3 million tons, up 1.4 million due mostly to higher production in the United States. Soybean production is also raised for Canada based on higher planted area reported by Statistics Canada. Rapeseed production is sharply reduced for Canada due to lower harvested area. Despite a record planted area estimate reported by Statistics Canada based on producer surveys conducted in late May and early June, significant crop area in the provinces of Saskatchewan and Manitoba did not get planted due to excessive rainfall through late June. As a result, the Canada rapeseed crop is projected at 10.2 million tons, down 1.8 million from last month. Other changes include reduced rapeseed production for China and EU-27 and increased cottonseed production for the United States, Brazil, and Uzbekistan.

U.S. soybean exports for 2009/10 are projected at a record 1.46 billion bushels, up 5 million from last month in part reflecting additional sales to China. Crush is increased 5 million bushels to 1.745 billion due to stronger-than-expected domestic disappearance for soybean meal. Soybean ending stocks for 2009/10 are projected at 175 million bushels, down 10 million.

Cow slaughter remains relatively high, boosting beef production in 2010. Higher forecast mid-year cattle placements are also expected to boost steer and heifer slaughter later in the year and into early 2011.

Cattle and hog price forecasts for 2010 are reduced from last month as demand remains relatively weak in the face of higher production.

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Accomplished dairy judging coach, David Dickson, passes away

One of the foremost authorities on dairy cattle judging passed away Friday, July 9, in Madison, Wis., after a courageous battle against cancer. During his distinguished career, David Dickson judged more shows (13 total) at World Dairy Expo than any other official. In addition, he placed dairy cattle in over 20 countries and served on the All American selection committees for all seven recognized Purebred Dairy Cattle Association breeds. He was the first American to judge the European Championship Holstein Show and the New Zealand Royal Agricultural Holstein Show. He has led judging conferences throughout the U.S. and in Australia, Belgium, Canada, Italy, Japan and Spain. During his career as the University of Wisconsin-Madison dairy cattle judging coach which officially began in 1968, Dickson led teams to seven national championships at the National Intercollegiate Dairy Cattle Judging Contest. Perhaps more impressive, his teams won 18 team reasons titles at the national contest.

David P. Dickson was born in Everson, Wash., on February 26, 1939, and graduated from Meridian High School as class valedictorian. He went on to earn a bachelor's degree in dairy science from Washington State University. In 1960, Dickson became the second person (a fete that was later matched by one other person) in the U.S. to earn high individuals honors at both the National 4-H Dairy Cattle Judging Contest and at the Intercollegiate Dairy Cattle Judging Contest. It was that second honor, high individual at the college contest, that earned Dickson National Dairy Shrine’s famed Kildee scholarship. He used that money to further his dairy education at the University of Wisconsin-Madison where he went on to earn both a Master’s and a PhD.

After graduation, Dickson joined the University of Wisconsin-Madison Dairy Science Department where he served as professor for over three decades. As his career unfolded, he was chosen by his peers to chair the department from 1984 to 1990. Dickson served on the World Dairy Expo board of directors and also was a Holstein Foundation trustee. He was the founding advisor to UW-Madison's Badger Dairy club. Dickson was a long-time chapter advisor for UW-Madison's Alpha Gamma Rho Fraternity and a long-time advocate and supporter of Madison's Association of Women in Agriculture (AWA) . . . both agricultural professional-social organizations for young men and women. AWA has awarded him Honorary Membership. Additionally, he served as advisor to the Midwest and National student affiliate divisions of the American Dairy Science Association.

His ability to teach students was recognized by the American Dairy Science Association in 1996 when he won the Purina Mills Teaching Award in the first year he was nominated. In 2005, Dickson was honored as an Alpha Gamma Rho "Brother of the Century" during the Fraternity's 100th anniversary celebration and has won the Distinguished Service Award from multiple organizations. Always an educator, Dickson was the Kickoff Inspirational Speaker at the National 4-H Dairy Conference for ten consecutive years. During his tenure, he helped to produce over 20 videos on oral reasons that were shared with others across the country. Additionally, his dairy cattle judging brochure, “Dairy Cattle Judging Made Easy,” has been translated into Italian and Spanish. Later on, that publication was made into an effective interactive teaching tool available on CD. Many dairy producers also may remember Dickson's Christmastime poems deeply rooted in dairy tradition.

Bovine TB continues to pop up

Efforts to rid the U.S. cow population of tuberculosis have been underway since 1917, when scientists developed the first accurate early detection test. After nearly a century of increasingly more diligent scrutiny and culling programs, total eradication remains elusive.

Six new infected animals have been identified in recent months by animal health officials in Colorado and Kentucky – a seemingly inconsequential number, but an extremely serious reminder that more work remains to be done.

In late May, a Pennsylvania slaughter plant identified a single beef cow as being infected. A subsequent test of its entire herd in northern Kentucky found one additional positive animal. Both were slaughtered and neither entered the human food supply. Kentucky has been certified TB-free by the U.S. Department of Agriculture since 1987. It will remain so as long as another TB-infected animal is not found during the next six months.

In late June, a dairy cow in southern Colorado was identified when she went to slaughter. Subsequent testing of her entire 500-cow herd found three more positive animals. All were slaughtered and none of the meat entered the human food supply. All milk that is sold commercially is pasteurized, which kills the TB bacteria.

Eradication of infected animals and pasteurization of milk are two of the key steps taken by state and federal health officials to protect human health from tuberculosis. Prior to their adoption, TB ranked as one of the leading causes of death in the U.S.

As of July 1 a total of 46 states were certified TB-free. The only exceptions were California, Michigan, Minnesota, and New Mexico. TB is naturally present in deer, elk, bison and other wild animal populations, and is perhaps the biggest obstacle to its total eradication.

CWT accepts 194 herd retirement bids

Cooperatives Working Together announced yesterday that it has tentatively accepted 194 bids as part of its latest (tenth) herd retirement. A total of 209 operations had submitted bids. The bids accepted represented 34,442 cows and 653,893,409 million pounds of milk.

Under provisions of this herd retirement round, bids were accepted up to a maximum of $3.75 per hundredweight of milk. For a cow producing 22,000 pounds of milk per year, the maximum payment would have been $825, in addition to the slaughter market value of the cow.

Starting next week, CWT farm auditors will begin visiting the farms whose bids were accepted, checking their milk production records, counting cows, and then tagging each cow for processing. All farmers will be notified no later than July 30 as to whether their bid was among those accepted in this herd retirement round, the tenth that CWT has conducted since 2003.

Once CWT auditors approve the herds accepted during the bid process, farmers have 15 days in which to send their animals to a processing plant. Producers whose bids are accepted in this herd retirement will be paid in two installments: 90 percent of the amount bid times the producer’s 12 months of milk production when it is verified that all cows have gone to slaughter, and the remaining 10 percent plus interest at the end of 12 months following the farm audit, if both the producer and his dairy facility – whether owned or leased – do not become involved in the commercial production and marketing of milk during that period.

In CWT’s three herd retirements conducted in 2009, the program removed a total of 200,000 cows and 4 billion pounds of milk. Since CWT's inception in 2003, the 10 herd retirement programs have involved 510,472 cows in 2,928 herds that produced the equivalent of 10 billion of pounds per year. Average size of participating herds over the 10 herd retirements has been 174 cows . . . close to the national average herd size of about 165 cows.

Do you love dairy? Prove it.

Okay, so the title may sound like a bit of a second grade playground dare. But, we do want you to take this as a challenge. Dairy Management, Inc. (check-off organization) along with its social media guide and website, myDairy, have launched the Why I Love Dairy Video Contest. The contest hopes to get the creative and humorous juices of the dairy industry flowing to create a viral video to be used as a promotional piece for the dairy industry.

Packed into just two minutes, the videos will tell your story why you love milk and dairy products, being a dairy farmer, life on the farm, showing/caring for cows, working with dairy farmers/being part of the dairy business, and/or producing nutrient-rich food. While cramming all that information (or what you can) into two minutes, they also encourage you to be funny, unique, quirky, and engaging. If you aren't sure what that means, check out some of YouTube's most watched videos, and you'll get the picture.

The check-off organization hopes that video creators will tell the dairy industry's story while reinforcing key messages regarding dairy product quality, safety and nutrition, animal care and well-being, sustainability/environmental stewardship, and dairy’s contributions to the economy and local communities. If you want to know more about these messages, click here.

To enter, you must register as a member of the myDairy website. (Don't worry, it's easy, and you won't get a ton of e-mails for signing up). You must also be actively engaged in the dairy industry as a dairy producer or dairy family, dairy association or business, college student or dairy club, or a youth member or club involved in 4-H, FFA, or breed organization.

A winner in each of those categories will be selected to receive a $200 Target gift card in addition to its video being utilized for online dairy promotion. We'll post them on our blog, too, as soon as we find out who wins! Winners will be announced on the last day of World Dairy Expo 2010 — Sunday, October 3, 2010. Entries are due by 5 p.m. CST, August 31, 2010. To register, submit your video, or for more information visit myDairy's video contest page.

Hoard Farm pregnancy rate improves by leaps and bounds

“In the summer of 2009, the Hoard Farm was on the verge of single-digit pregnancy rates,” noted Jason Yurs, Hoard’s Dairyman farm manager. Prior to the 2009 World Dairy Expo, the farm was sitting at a 10 percent pregnancy rate.

Realizing the need to improve this situation, the farm set up a consultation with Ray Nebel, a reproductive specialist, to try and troubleshoot their reproduction problems. After this meeting, the farm, with the aid of herd vet Dr. Rick Halvorson, made changes to synch protocols and breeding philosophy.

During the winter, the Hoard farm saw gradual improvements to preg rates. In January, Jason's team held a meeting with Paul Fricke, a reproductive specialist from the University of Wisconsin-Madison, to go through our records and evaluate progress. At this point, the farm also decided to change the way they code and record breedings in DairyComp to improve the efficiency record analysis.

Currently, the Guernsey herd is sitting at a 19 percent preg rate, an improvement of 9 percent in less than a year. With the Jersey herd included, the current preg rate for the farm is 21 percent. Today, 55 percent of cows are bred from visually detected heats, with the remaining 45 percent bred using synch programs. Yurs attributes part of this success to the dry cow barn that was remodled last year. The facility has reduced the incidence of retained placentas and metritis and increased transition period success for the herd.

The Hoard Farm has also just completed a Guernsey ov synch study that was funded by the U.S. Guernsey Association. This study was done to determine if significant differences exist in the ovulation time between Holsteins and Guernseys which would impact the utilization of an on-farm ov synch program.

Genomics garners much attention at Holstein Convention

Tom Lawlor, Holstein USA's geneticist, spoke before a near capacity crowd at the 125th gathering of the nation's Holstein breeders. Based on the crowd size, it was clear breeders still have many questions following April's genetic evaluations.

During Lawlor's presentation, he told Holstein breeders that there were 1,471 cows that had imputed proofs this April . . . proofs derived from genomic test information from over five offspring. Since then, that number has risen to 2,004 cows as more animals enter the genomic database. Lawlor estimates that breeders saved some $500,000 in testing costs due in part to the imputed genomic proofs.

When it came to two hotly debated issues from the April evaluations, Lawlor told those in attendance that 98 percent of indexes went down when genomic evaluations were rescaled to more closely reflect bull evaluations. Meanwhile, when evaluations were imputed, 56 percent of indexes went up while 44 percent went down. It was the combination of these two events which caused all the turmoil. When rescaled evaluations and imputed proofs were added together, 83 percent of cow indexes dropped with only 17 percent going up.

Lawlor went on to tell breeders about two new genomic tests that were coming soon involving the 3K and 860K chips which will be in addition to the current 52K test. Lastly, Lawlor said that the rescaled indexes should be back on the same base by April 2011 as USDA geneticists hope to have all genomically tested cows on the same base as females with traditional evaluations.

Beef supply at 5-year low

In addition to milk, dairies are also constant producers of beef. This is a huge reason why USDA’s latest monthly Cold Storage report should factor into their summer management plans.

The June report issued last week said that, as of May 31, beef and pork supplies were at their lowest levels in 5 and 2+ years, respectively. In addition, this spring the number of beef cattle on feed was pegged at its lowest level in six years.

The only thing preventing this situation from being a financial windfall for livestock owners is poultry. The Cold Storage report also said chicken supplies were up 9 percent from a year ago.

Even so, strong international demand for meat, combined with lower U.S. production, presents opportunity for dairy producers for at least the next several months. With milk prices still relatively weak, culling lists mean more than just income. They also represent herd improvement potential in several ways:

• Reproduction. Now is an ideal time to “cash out” problem breeders and low quality animals that drag down a herd’s overall genetics.

• Milk quality. Mastitis and staph cows have never been worth more to send down down the road. Culling a load of them could have a huge impact on overall herd somatic cell count.

• Herd health, especially if Johne’s disease is in your operation. Odds are that you do because, according to the 2007 National Animal Health Monitoring System (NAHMS) study, 68.1 percent of all U.S. dairies have it. Testing and culling is the best and fastest way to eliminate Johne’s.

• Overcrowding. At some point, adding more cows to a group reduces production per cow. This means more than just wasted feed; research is increasingly showing it also causes lower reproduction, more lameness, and more health problems.

Financials: better but not good

Last winter, things were looking up milk price wise, but rising milk production, sluggish demand, and climbing dairy product inventories caught up with us. Now, it looks like 2010 is going to be better financially for many operations but still is not going to be good.

We just received first-quarter financials for a sizable group of large dairies served by the accounting firm Nietzke & Faupel based at Pigeon, Mich. Compared to the first quarter of last year, the numbers looked much better. During the first quarter this year, a group of herds that averaged just more than 900 cows had net losses of 53 cents per hundredweight or 35 cents per cow per day. That compared to losses of $5.63 per hundredweight or $3.40 per cow per day during January, February, and March of 2009.

Looking at expense items, there was a big drop in cull cow (or replacement) costs from $3.48 per hundredweight during the first quarter last year to $2.79 this year. This reflected higher cull cow values and lower replacement prices. First-quarter feed costs dropped from $8.29 per hundredweight last year to $7.68 this year. This likely is a result of slightly lower feed values and fine-tuning of rations to eliminate extra expense.

Wages per hundredweight actually went up by 20 cents from $1 to $1.20. Breeding costs dropped from 17 cents per hundredweight to 10 cents. Supplies slipped from 56 cents per hundredweight to 45 cents. Total operating costs and expenses were $18.48 per hundredweight during the first quarter of this year compared to $20.18 last year.

The big difference was milk price. Average price received per hundredweight during the first quarter of last year for the dairies was $13.39. This year, the average was $16.62.

However, milk prices were pretty good during January and February. The average U.S. All-Milk Price during those months was $16.50 and $15.90. During the first 10 months of 2009, the nation's All-Milk Price averaged $12.20. Then it jumped to $15.40 and $16.50 in November and December. The average for all of 2009 was $12.83.

By March of this year, the All-Milk Price was back down to $14.80, and it was $14.60 in April. It did bounce up to $15.80 for May. Still, the point is that even though costs are down this year and milk prices will be up some, margins still will not be healthy for many dairy operations.