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Enhancing the Economic Competitiveness
of Missouri's Dairy Heifer Industry

Project completed by University of Missouri Commercial Agriculture Dairy Focus Team
July 2007

Current Situation: A review of DHIA data on Missouri's dairy herds versus U.S. dairy herds is listed in the table below. The data supports the common belief that many Missouri herds calve dairy heifers too late and/or too small. This presents the opportunity for dairymen to realize lower costs of developing their own heifers by managing differently or to lower costs by outsourcing their heifer development to a contract heifer grower.

2007 Benchmarks of Missouri DHIA Dairy Herds versus U.S. DHI Herds
Age at
Freshening
All States Missouri All States Missouri All States Missouri
% of all herds % of first calf
heifers culled
%of first calf
heifers died
< 23 months 7.6% 4.2% 17 34 3 4
24-25 38.3% 31.4% 18 21 3 4
26-27 30.4% 28.6% 20 18 3 4
28-30 17.6% 27.7% 19 22 3 4
31-34 5.2% 7.6% 17 15 4 2
             
Total or average     19 21 3 4

Dairyman's Money Left on the Table Estimator:
Our work with Missouri dairymen reveals that they tolerate economic losses from calving older or smaller heifers because of two commonly accepted beliefs:

  1. Older heifers have fewer problems entering the herd.
  2. Heifers can be developed more inexpensively at home using feedstuffs with low opportunity costs.

For the dairyman, this simple spreadsheet tool can be used to estimate the lost opportunity costs of raising dairy heifers under their farm's current management regime.
Spreadsheet Download

Contract Grower Cost Estimator Tool:
Feedback from Missouri contract heifer growers revealed that the simple spreadsheet tool was needed that could:

  1. Allow a user to quickly update hay and commodity prices to re-price services.
  2. Allow rations to vary seasonally to accurately price heifers arriving at different times of the year.
  3. Allow a user to vary expected average daily gain by stage of production and breed.
  4. Allow incoming price and weights to vary.

For the custom dairy heifer grower, this spreadsheet allows the user to estimate the cost of raising batches of heifers under different feed cost scenarios and various weight, ADG and contract specifications.
Spreadsheet Download

This project was funded by MDGC and completed in July 2007.


For more information or to make comments and suggestions, please contact:
Missouri Dairy Growth Council
1954 Summer Ridge Court * Chesterfield, MO 63017
Phone: (636) 519-9300 * Fax: (636) 519-1403
E-mail: dairystl@aol.com