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Fall is the Time to Plan Winter Feeding Programs for Dairy Cattle
Wayne Kellogg, Professor

As soon as all the hay bales are stored for winter feeding, it is a good practice to sample each crop for nutritional analyses. During hard times, some will want to cut corners and guess at hay quality. No, you cannot guess accurately by looking at hay! I recall many times being fooled by ‘good looking’ hay that was very low in protein. Remember that feed costs are usually more than one-half of the total costs on a dairy farm. The quality of forage governs how much grain and supplements are needed by the milking cow. Overfeeding cows is much more expensive than knowing what forages supply and accurately providing supplements.

Can you skip this year’s analyses and estimate from the data of last year? Perhaps, but each year is different. If a crop is cut later in the growth period than the year before, the hay will have reduced protein and higher fiber composition. Additionally, rain damages the quality of hay, especially if the crop was nearly ready to bale.

A complicated analysis may be helpful, but it is not absolutely necessary. How ever, each producer needs to know the percentages of crude protein and fiber (preferably neutral detergent fiber and acid detergent fiber). An analysis of calcium and phosphorus would also be very helpful, and it does not cost very much.

Check with your county extension agent if you need assistance with sampling or nutritional analyses of your hay. That information will permit you to more accurately feed cows. Improved efficiency can help save money and lead to greater milk production. Both possibilities are especially important in critical times.

Upcoming Events

September 29 to October 3: World Dairy Expo in Madison, Wisconsin.

October 9 to 18: Arkansas State Fair in Little Rock. Judging of the Junior and Open Shows for dairy cattle is scheduled for Sunday, October 11. For dairy goats, judging of Junior Show is planned for Friday morning and the Open Show follows on Saturday morning. For more details see the web site: http://www.arkansasstatefair.com/livestock/2009/StateFair/J-SCHEDULE.pdf.

Tough Times and the Milk Price
Wayne Kellogg, Professor

Is there a competitive disadvantage to having a small dairy farm compared to larger farms? Well, there are the obvious items like discounts that might be realized by purchasing huge volumes of feed and supplies. There are also less obvious disadvantages of having to meet the same quality standards, or in some instances the same environmental standards, with fewer cows or gross income to spread a set cost. Producers can realize premiums on the value of milk sold from the farm by increasing the fat content (and protein percentage in some parts of the country) and by improving the quality of the milk sold.

But, the pay check is probably lower per hundredweight of milk because of hauling charges from a small farm to the marketplace compared to a large farm. Smaller farms are at a dis advantage when the milk truck has to make several stops to gather a load as opposed to stopping only once to fill the 5,000gallon tank, and in some cases the additional costs are charged back to the farm. Even with those items, the small producers may have an advantage during tough times because costs can be controlled easier.

Overall, the pricing system for milk is a complicated issue. The Federal Milk Marketing Order uses formulas to determine the prices paid to the milk producer. It is a complicated system, but it was designed to set a fair price for milk based on the use of the milk. Fluid milk com mands the highest price, while the price for milk used in other products – such as butter, cheese, ice cream and dried skim milk – varies with the raw materials used and the costs to make the specific product.

Ultimately, the price varies with the demand for products. If the demand is high and pur chasers are bidding for milk in short supply, then prices paid to the milk producer will increase. Unfortunately, the opposite condition adversely affects the prices paid by customers. Milk spoils, so it must be sold quickly. The alternative is to manufacture products that are stable, but it is also expensive to store excess product. Therefore, a relatively small amount of excess milk has a disastrous negative con sequence on the price. Once the surplus is resolved, the price of milk may rebound quickly. For that reason, retailers hate to reduce prices in the store because it is difficult to maintain sales when the prices increase rapidly. (Obviously, it also hurts profits in a business that historically operates on a small margin.) It may be appropriate to encourage retailers to drop prices hoping that sales will be stimulated. However, it is not appropriate to ‘throw rocks’ at the people who purchase and sell the products we produce. They provide a valuable service.

Milk producers have been hurt by the world’s economic problems – perhaps more than any other sector. For awhile, milk prices were better than usual, but expenses for feed and fuel escalated at the same time. When the demand dropped, the farm price decreased dramatically.

It is a tough time. The situation has improved slightly, and each producer will need to develop a strategy for their business. Hopefully, good times are ahead.

Announcements

• Wayne Kellogg, Professor of Animal Science, assumed responsibilities for extension education programs to the dairy industry on August 5, 2009.
   
• Steve Jones, Associate Professor of Animal Science, will be in charge of all the 4-H livestock programs (effective September 1, 2009).
   
• The 2009 Mid-South Fair will no longer be at the fairgrounds in Memphis. The location this year is the DeSoto Civic Center. Due to lack of space for animals and exhibitors, there will be no livestock shows during the 2009 Mid-South Fair. Fair officials announced last year that a 150-acre site along U.S. Highway 61 in Tunica Resorts would become the Mid-South Fair’s permanent home, but the Tunica site will not be ready until 2010. For specific information, call 901/274-8800 or check the web site at http://midsouthfair.org.

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