Shur-Gain Quebec - English
Transcription
Shur-Gain Quebec - English
Spring 2016 Free copy your Optimize profitability Testimonials: Ferme Berni Ferme Yves Croteau et fils Ferme B.M. Cotnoir et fils Hatfield Farms LLC Richard Lizotte, T.P. Ruminant Business Manager Shur-Gain East Canada Region Focus on the Bottom Line I’m very excited about the content of this issue of At A Glance magazine. The main focus is on economics and the effect of key decisions on your bottom line. This is a critical point of discussion because, while many dairy producers worldwide are struggling with “thinner” profit margins, the same scenario is also occurring in Canada. We have seen a significant reduction in the gross milk price over the year, but an increase in demand for milk components. What are the key parameters and opportunities that you need to examine to ensure a strong bottom line? Dr. Rick Grant, from the Miner Institute in Chazy, New York, examines some great opportunities for improving cow comfort to increase milk production. Dr. Alex Bach, Director of the Department of Ruminant Production of IRTA (Spain), classifies this as marginal milk. Marginal milk refers to milk that cows can produce through their genetic potential once a limiting constraint (feed, management, environment) is removed. This milk presents the greatest opportunity for increased profitability. Our own Dr. Bryan Van Gorp explores an area that Shur-Gain is very passionate about: income over feed costs. In Shur-Gain, we have calculated hundreds of IOFC calculations with our L-16 tool with our customers to ensure that, as a key partner, we are on the right track for optimum profitability; we are always proud to be a part of these critical discussions. We hope you enjoy this issue of At a Glance, which contains some great information that focuses on your bottom line! To subscribe, fill out this coupon and mail it to the following address: 4780, Martineau Street, Saint-Hyacinthe (Quebec) J2R 1V1 or write to us at the following address [email protected] Last Name: First Name: Address:Apt.: City: Province: E-mail: I wish to receive a paper copy. 2 I wish to receive an electronic copy. Postal Code: IN THIS ISSUE ✁ 2 Editorial 3 Cow comfort economics 6 Using Income Over Feed Cost to Evaluate Nutrition’s Contribution to Profitability 9 Understanding Replacement or Turnover Costs Testimonials: 10 Ferme Berni 12 Ferme Yves Croteau et fils 14 Ferme B.M. Cotnoir et fils 16 Hatfield Farms LLC 18 Our clients shine Rick Grant, Ph. D. President Wiliam H. Miner Agricultural Research Institute Chazy, N.Y. USA COW COMFORT ECONOMICS Predictable Economic Benefits Quality of on-farm management explains over half the variation among farms in milk production. Top-end producers realize that modest investments in housing, or changes in their cow management routines, can pay large dividends in better cow health, reproduction, and performance. As we look to the future and continuing volatility in feed and milk prices, we need to sharpen our focus on the consistent economic benefits of improved cow comfort - information we can literally “take to the bank” for barn renovation or construction projects. Poor Management = Lower Milk Yield The impact of the management environment was measured by Bach et al. (2008. J. Dairy Sci. 91:3259) on 47 dairy farms with similar genetics and fed the same total mixed ration. Mean daily milk yield across these dairy farms was 29.5 kg/cow (65 lb/cow) with a range of 20.5 to 33.6 kg/cow (45.2 to 74.1 lb/cow). Non-dietary factors (i.e. management) explained 56% of the variation in milk yield not attributable to diet. The most important management factors included presence or absence of feed refusals, whether feed was pushed up or not, and number of free stalls per cow. Herds that ensured adequate feed availability averaged 1.6 to 4.0 kg/d (3.5 to 8.8 lb/d)more milk. Stall stocking density alone explained approximately 32% of the variation in milk yield among these farms. Herd milk yield was unaffected between 80 and 120% stocking density, but herds lost an average of 5 kg/d (11 lb/d) above 120%. Research at Miner Institute has shown that overstocking the feed bunk and stalls cuts into lying time, encourages slug feeding, reduces rumen pH, and lowers milk fat output. Overcrowding is also an overlooked contributor to reduced reproductive performance: as bunk space decreases from 60 to 30 cm/cow, % of cows pregnant by 150 days in milk decreases from 70 to 35% along with cow fertility (Caraviello et al., 2006. J. Dairy Sci. 89:4723). Time is Money for the Cow The 24-h time budget represents the net behavioral response of a cow to her social and physical environment and provides the foundation of her well-being. Dairy cows at 100% stocking 3 density in free-stall housing spend 3 to 5 h/d eating, consuming 9 to 14 meals per day. They ruminate 8 to 9 h/d, spend approximately 30 min/d drinking, 2.5 to 3.5 h/d outside the pen for milking and other management practices, and require approximately 10 to 12 h/d of lying time (Grant and Albright, 2001. J. Dairy Sci. 84: E156). If cows are outside their pen for more than about 3.5 h/d, they usually sacrifice resting and/or eating time. Recent on-farm data collected for high-producing cows from 40 herds in the northeastern US and 39 herds in the western US found a range of 2.3 to 7.7 hours per day outside the pen – so clearly there is room for herds to improve! Minimal time outside the pen is the cornerstone for successful time budgeting by dairy cows. reluctant to remodel existing facilities or to build new facilities with larger stall dimensions. Why? It is likely related to the fact that the costs are known, but the potential cow response on any given farm is not. Virtually no controlled research has examined stall design and productive responses. But, observed benefits of stall improvement in several well-controlled case studies were: greater milk (1.4 to 6.4 kg/cow/day (3.1 to 14.1 lb/cow/day)), lower turnover rates (-6 to -13%), lower somatic cell count (-37,000 to -102,000), and less lameness (-15 to -20%; Cook, 2006. Proc. of the VitaPlus Dairy Summit, Lansing MI). We ignore these consistently positive responses at our own economic peril. Does time budgeting have any measureable economic impact for the dairy? Matzke and Grant (2002. J. Dairy Sci. 85:372) observed the effect of 3 versus 6 h/d outside the free-stall pen. Multiparous cows gained over 2 h/d of rest and nearly 2.3 kg/d (5.1 lb/d) milk when they were outside the pen for only 3 versus 6 h/d. Incredibly, first-calf heifers gained 4 h/d of rest and 3.6 kg/d (7.9 lb/d) more milk. When cows were away from their pen for more than 3.7 h/d, no farm was able to reach the recommended herd median lying time of 12 h/d (Charlton et al., 2014 J. Dairy Sci. 97:2694). Failure to meet time budget needs may also affect longer term health status of the cow, such as lameness. Espejo and Endres (2007. J. Dairy Sci. 90:306) found that prevalence of lameness in high-producing pens was most highly associated with greater time outside the pen. So, poor time budgeting is a double economic whammy for the herd: lost milk up-front and lameness later on. Inadequate Rest = Lost Performance and Profit The dairy cow has an over-riding behavioral need for adequate rest. Dairy cattle are highly motivated to lie down with an inelastic demand for about 12-13 h/d of rest (Jensen et al. 2005. Appl. Anim. Behav. Sci. 90:207). Lying behavior takes precedence over eating and social behavior when opportunities to perform these behaviors are restricted (Munksgaard et al., 2005. Appl. Anim. Behav. Sci. 92:3). Physiological function, health, and productivity are impaired when the resting requirement is not met and it is critical to cow well-being. Van Eerdenburg et al. (2013. pp 36-38 in 16th Internat. Soc. Anim. Hygiene Congress, Nanjing, China) found a significant positive correlation between free stall comfort and milk yield, with greater comfort being associated with higher milk production. For every additional hour of resting time that a cow achieves beyond 7 h/d, there is a milk response of approximately 0.9 to 1.7 kg/d (2 to 3.7 lb/d) (Grant, 2004. pp 65-76 in Proc. Cornell Nutr. Conf.). Cost of Stall Renovation… Cost of Not Renovating? Despite the accumulating data demonstrating a positive relationship between cow comfort, productivity and health, farmers are often 4 Heifers Need Their Space There are numerous natural differences between primi- and multiparous cows. Heifers take smaller bites, eat more slowly, and spend more time feeding. They are also typically less dominant and more easily displaced from the feed manger, stalls, or water tank. Work at Miner Institute indicates that heifers that are forced to lie in a stall known to be preferred by a dominant cow will actually ruminate up to 40% less than a heifer lying in a less preferred stall. Lactating primiparous cows may benefit from separate grouping (Grant and Albright, 2001; Østergaard et al., 2010. J. Dairy Sci. 93:3533). They have greater growth requirements, smaller body size, greater persistency of lactation, and frequently a lower position in the group’s dominance hierarchy. Phelps (1992. Feedstuffs. May 11:11) reported that separately grouped primiparous cows produced 729 kg (1,607.2 lb) more milk per lactation than heifers that had to compete with older cows in commingled groups. Grant and Albright (2001) reviewed the research on grouping dairy cattle by parity and concluded that when first-calf heifers were separated from mature cows: eating time increased by 11.4%, silage intake increased by 11.8%, lying time increased by 8.8%, and milk yield increased by 9%. More recently, Bach et al. (2006. J. Dairy Sci. 89:337) assessed primi- versus multiparous cows housed together and found that primiparous cows experienced greater loss of bodyweight and lower efficiency of fat-corrected milk production during the critical first 30 days in milk. With a predictable loss of about 10% in milk production – plus less quantitated effects on health – the economic benefits of proper grouping is clear. Cow-Human Interaction The most important factor in cow comfort and well-being is the human-cattle interaction (Berry, 2001. J. Amer. Vet. Med. Assoc. 219:1382). Considerable research has shown productive benefits of more gentle handling and vocalizations when cows are being milked in terms of more milk production or less residual milk. Seabrook (1984. The Vet. Rec. 115:84) observed that cows produced 13% more milk with gentle compared with aversive handling in the parlor. Later, dePassillé and Rushen (1999. pp 347-360 in Advances in Dairy Technology. Vol. 11) found that just the presence in the parlor of someone who had previously treated the cows aversively (i.e. not the milker) was associated with a 47% increase in residual milk. Interestingly, Hanna et al. (2006. Animal. 3:5, p.737) found a 3.6% increase in milk yield when the milking team had greater positive vocal and physical contact with the cows – both appeared to be important. Gentle treatment of cows, especially while in the parlor, results in 3.5 to 13 percent greater milk yield and is associated with up to 900 kg/yr (1,984.2 lb/yr) greater milk production. Gentle handling approaches do not cost any more than aversive handling! Perspectives on Cow Comfort Economics Optimal cow well-being and farm profitability are not an either/ or choice. In fact, herds that ensure good cow well-being almost always enjoy greater farm profitability. There are very real economic consequences associated with improvement (or neglect) of cow comfort. Research makes it clear that there is a predictable link between management, cow behavioral responses, productivity, and health. We need to take advantage of what we know about improving cow comfort to predictably improve the farm’s bottom line. 5 Bryan Van Gorp, D.V.M. Technical Services Manager Shur-Gain Central Region Using Income Over to Evaluate Nutrition’ to Feed cost, turnover cost and labor cost are the three big contributors to the cost of producing milk. Together, these three costs account for 2/3-3/4 of production costs. Feed is the single largest cost. However, turnover and labor are often more variable and may provide a better opportunity to decrease production costs. Feed programs are evaluated in many different ways by various producers. Examples of different measures are: 1. Price per ton of feed, but this fails to consider milk production, components, and feeding rates. 2.Feed cost per cow per day, but this fails to consider milk production and components. 3.Feed cost per liter or cwt of milk produced, but this number could be the same at different production levels, and profitability will generally be higher with increased production or components. 4.Feed efficiency, but this does not consider milk production, components, or feed costs. Below is an example of results from 130 herds in Quebec over the last year with the L-16 tool. Milk $/c/d Milk/c/d BF % Feed $/c/d Feed $/HL IOFC IOFC/year Average $24.25 29.7 L 4.06 $7.18 $24 $17.09 $6,237.85 Top 20% $27.37 33.6 L 4.04 $7.56 $22 $19.80 $7,227.00 Bottom 20% $20.67 25.5 L 4.03 $6.79 $26 $13.86 $5,058.90 Everything else being equal, the difference in income from the top 20% to the bottom 20% would be $2,168 per cow being milked per year. That is real money. This illustrates the benefit of IOFC compared to feed cost/c/d. The bottom 20% have the lowest feed cost but also lower income generated from milk sales, so a lower IOFC. None of these measures take all the variables listed below into consideration, but IOFC does. Therefore, these are not as useful in evaluating a nutritional program’s impact on profitability. The variables considered in IOFC are: 1. Milk production 2.Components 3. Dry matter intake 4. Feeding rates 5. Costs of feed ingredients 6 It is clear that a higher cost per ton, higher feed cost per cow per day, and even a higher feed cost per liter/cwt of milk produced or a lower feed efficiency could all result in higher profit if all the variables are considered. IOFC is simply the milk income per cow per day minus the total feed cost being fed per cow per day. It is what is left from the milk check after all lactating feed costs are paid for. (See table on next page). As you can see, the higher price per ton resulted in lower feed costs per cow per day. Higher feed cost per cow per day had a higher IOFC. Feed efficiency was also not correlated with IOFC in the example. Feed cost per cwt for Farm A was $21.27 and for Farm B was $23.13, which is almost the same, but higher cost per cwt resulted in higher IOFC. This example uses the same ration except for the supplement and the same milk price to make an apples-to-apples comparison. For this number to have meaning and to be able to be compared across farms, the IOFC calculation must be done in a standardized way. Feed Cost s n o i t u b i Contr y t i l i b a t i f Pro $/ton Rate $/c/d Feed efficiency Prod. (Litre) IOFC IOFC/year Farm A $700 2.72 kg (6 lb) $7.55 1.4 32.9 L $16.13 $5,887.45 Farm B $500 4.54 kg (10.01 lb) $8.12 1.4 35.2 L $17.19 $6,274.35 IOFC calculation IOFC is actually quite simple to calculate with the L-16 tool. First, milk income per cow per day must be determined. This is done by simply taking the milk pay for the month and dividing by the number of days in the month and then dividing by the average number of cows milked in the month. This number corrects for variation in components, production per cow, and premiums or deductions. It is the milk income per cow per day. Next, feed costs per cow per day must be calculated. Feed costs must include forage costs and any other on-farm feeds. The preconceived idea that these feeds are free or do not have a cost is simply not correct. These feeds include land cost, seed cost, machinery costs, fertilizer and chemical costs, and labor. If this feed was not fed to the cows, it could be sold at market value, or another crop that could be sold could have been raised. For example, if corn was not harvested as silage or high-moisture corn, it could have been harvested as dry corn and sold. This represents the opportunity cost or what the crop is worth on the market if it was not fed. There are two potential ways of defining the cost of home-grown feeds. The first is to use the cost to raise those feeds. The problem with this method is that almost no one really knows that cost and it will result in a long debate on how to calculate that number. Even if it were known, it does not represent the real value of that feed. Some producers will grow feeds at above-market price and others will grow them at below-market price. This represents success or failure of the crop enterprise and does not reflect the success of the dairy enterprise. In these cases, either the dairy is subsidizing the crop enterprise or the crop enterprise is subsidizing the dairy. vv 7 vv It also prevents a meaningful comparison across farms because now we are measuring agronomic practices, soil quality, and growing conditions rather than the quality of the nutritional program and how the dairy is performing. The second method is to use market value at the time of harvest. The reason for using market value at harvest time rather than feeding time is that once the decision to harvest forages or HMC is made, it is no longer available as a marketable crop and the value is determined. It also avoids the need to constantly change the value with market fluctuations. To simplify this, we can price all home-grown feeds at one time each fall at harvest time. Using the same price on all farms also allows for an across-farm comparison. All crops should be converted to 100% dry matter basis to eliminate the variation in various moisture levels in the feeds. There are standard approaches to pricing silages. For example, a ton of corn silage at 33.3% DM is worth 10 times the price of a bushel of corn. So, if corn is worth $4 per bushel, then corn silage is worth $40 dollars per ton at 33.3% DM or $100 per ton on a DM basis. This number would then apply for a whole year for an entire area or province. That is what the producer would have made or lost had he harvested the crop as corn and sold it at harvest. A similar operation can be done with hay. In a given geographic area, hay will have a certain price in the fall. Say it is $140 per ton on an as-fed basis for hay; that equals $165 per ton on a DM basis. Based on this, haylage at 40% DM would be worth $66 per ton. HMC can simply be corrected for moisture. All purchased feeds or commodities are priced at the on-farm delivered price. This would include purchased hay or any other forage. As such, when Newton® is being loaded, we simply enter the price as defined above for each feed ingredient. By doing this, the Newton® ration will actually give us a feed cost per cow per day. For feed costs, we must use the number of cows mixed for rather than the number of cows in the pen. For example, there may be 100 cows in pen but the feeder may be delivering feed for 110 cows; therefore, the cost must be corrected by taking the feed cost from Newton® and multiplying it by 110 and then dividing by 100 to get the price of the feed actually delivered per cow per day. We then subtract that number from the milk income per cow per day to get the IOFC on a per cow per day basis. This number is then comparable across farms and within a farm over time. Obviously, this number will fluctuate over time depending on milk price, milk production, feed prices, and forage quality. The real value of this number comes in comparing it to a larger data set. For example, if a farm is in the top 10% for IOFC, it can feel pretty good about having a solid nutritional program and good feeding management. On the other hand, if it is below average, it should be looked at this as an opportunity. 8 Some people will not want to do this thinking it may be off a penny here or there. Don’t let the fact that we might be off by a few pennies prevent you from knowing this valuable information. There will be several dollars’ difference between farms in the same area selling at the same milk price. Focus on the dollars, not the pennies. Doing this on a monthly basis is simple and requires a minimum of math. You need: 1 . The milk check for the month, 2. Ration cost from Newton® using proper inputs for feed ingredients, 3. Number of cows milked on average for the month and the number of cows fed for on average for the month—just three numbers. Example using the forage costs above: A 100-cow dairy has a milk check of $69,300 for a month containing 30 days. The milk income is $23.10 per cow per day. $69,300/100 cows/30 days The ration consists of 24.5 kg (54 lb) DMI, 6.8 kg (15 lb) DM corn silage, 6.8 kg (15 lb) DM haylage, 6.8 kg (15 lb) DM corn, and 4.1 kg (9 lb) DM supplement ($852 per ton as fed). The producer is feeding on the feed chart. (6.8 kg (15 lb) corn silage at $100 Total feed costs per ton or 11 cents per kg (5 cents per lb) is $0.75) (6.8 kg (15 lb) of haylage at $165 per ton or 18.2 cents per kg (8.25 cents per lb) or $1.24) (6.8 kg (15 lb) of corn at $4 per bushel as fed or 18,1 cents per kg (8.21 cents per lb) DM or $1.23) (4.1 kg (9 lb) supplement at $852 per ton as fed or 76.1 cents per kg (34.5 cents per lb) DM or $3.85) $7.07 feed cost per cow per day. feed cost of $7.07 Milk income of $23.10 IOFC of $16.03 per cow per day or $5,850.95 per cow per year. Again, the value lies in the comparison to a larger data base to see how the farm is doing relative to the industry at large. This is also useful in evaluating management changes to see whether or not they actually improved IOFC. Bryan Van Gorp, D.V.M. Technical Services Manager Shur-Gain Central Region Understanding Replacement or Turnover Costs Next to feed cost, the second largest expense on your dairy is the herd replacement program. Herd replacements are necessary to maintain your current herd size or to increase your herd if you are expanding. Either way, having the correct number of replacements can significantly impact your profitability. Replacement cost is not simply the cost of raising the animal from birth to calving. Replacement cost and “turnover cost” are different terms for the same thing and are defined as the cost of replacing animals that die or are culled. It is impacted by: 1. The turnover rate, 2. The cost of raising replacements, and 3. The value of animals that leave. The turnover rate is impacted primarily by the need for involuntary culling. Of course, all death loss is involuntary culling. Improvement in the herd or in efficiency is only made when culling is voluntary. Voluntary culling decisions are based on profit. This consists of substituting a cow with a replacement on the basis that the new animal is expected to be more profitable and not because the cow is not profitable and must be replaced. The cost of raising replacements varies significantly. For example, in the U.S., the most efficient producers are raising replacements for around $2,000 USD each, while the cost can be as high as $3,500 USD for some producers. There are many variables to consider but certainly age at first calving is considered as one of the most important. Example of turnover cost of two 100-cow dairies with the same milk production. Both are realistic scenarios and not extreme. Farm A Turnover rate Farm B 35% 45% Cost to raise heifer $1,800 $2,400 Age at calving 23 mo. 25 mo. 5% 10% Price of sold cows (thin cows) $1,120 $840 Total cull cow income $33,600 $29,400 Cost of replacements $63,000 $108,000 Total turnover cost $29,400 $78,600 $294 $786 Cow death loss Replacement cost per cow With everything else being equal, this illustrates a $492 difference in profit per cow per year or $1.35/c/d. No reduction in feed cost can have this much impact. In addition, it is unlikely that you can increase production enough to net the same level of profit. This is a large and frequently ignored opportunity on many farms. To optimize your dairy’s profitability, you need to raise the appropriate number of replacements for your dairy and minimizing involuntary culls and maximizing their salvage price. The value of animals that leave is also quite variable but critical in determining your replacement costs. The value for dead animals is zero but could be greater than $1,000 USD for some animals in good condition. Broken or thin animals not only weigh less but also bring in less per pound. According to Alex Bach, the primary contributors to the cost of producing milk are: 1. Feed cost at 53%, 2. Replacement at 17%, and 3. Labor at 9%. As you can see, these three items alone account for about 80% of the cost of production and so the rest is not all that important. Of course, these costs will vary significantly from farm to farm, and the opportunity to impact or improve them will also vary greatly. 9 Ferme Berni TESTIMONIAL Optimizing production to maximize profitability! Every detail counts The story of Ferme Berni began in 1960, when Michel and Denise Bernier owned just eight Holstein cows and 45 acres of land. In 1986, they handed over the operation—40 Holstein cows and 245 acres—to their sons, Jacques and Germain. The business subsequently expanded following a series of acquisitions. Another major change in 1998 involved introducing a free-stall set-up with a rotary milking parlour, and in 2013, the brothers purchased four milking robots. Today, Michel and Denise’s sons, Jacques and Germain, run the farm and are very grateful for their parents’ hard work. “Our parents were very important to us at the beginning. When we first started working for the farm, they involved us in decisions from the very start, even before we were owners,” the brothers said. Despite their already above-average production, Jacques, Germain, and Shany (Germain’s son) had been faced with stagnant results for the past few years, which is what prompted them, with support from their Shur-Gain Dairy Nutrition Advisor at Meunerie Ducharme, to implement an action plan to improve their herd’s profitability. “We were thrilled to see results sooner than expected. It takes time to get results on a dairy farm, which is why you must have a clear plan that you need to apply rigorously. It’s also important to be surrounded by good people. Today, we’re very happy with the improvements and the increase in our profitability,” the owners state. Improvements from 2013 to 2015 Measurements 2013 Today Improvement Average production/cow 10,000 kg (22,046 lb) 12,075 kg (26,621 lb) + 2,075 kg (+4,575 lb) 20% 29% + 9% 175,000 150,000 - 25,000 Gestation rate Leukocyte count A few elements of the action plan that led to good results Heifer rearing: A crucial step For Jacques and Shany, rearing young animals is a crucial step in developing their future “top” producers. No detail is too small, and they rigorously apply the Optivia® program in order to boost 10 their animals’ full potential. Key factors in Ferme Berni’s success include choosing an acidified milk replacer to ensure better health and optimal development in the first weeks of life, followed by a Rumimax® ration, a simple concept that translates into heifers that are better developed and prepared for first calving. The owners have achieved an average daily weight gain of 1.2 kg (2.6 lb). As such, the average age at first calving for the herd is 23 months compared to the Quebec average of around 26 months. Assuming that it costs $3.42 per day to rear a heifer, that translates to a savings of $307.80 per heifer compared to the Quebec average. Cow nutrition and management: key factors The introduction of milking robots has definitely played a role in achieving these results, among others, allowing for better measurement of the various aspects of production and management. The adaptation and transition period was carefully managed with the help of their advisor. However, the results came about as a result of all improvements combined. The nutrition strategy allows the cows to optimize their production, regardless of stage of lactation. This is combined with the use of value-added products, feed supplements, and the use of robots, all of which contribute to achieving Ferme Berni’s average of 37 kg/day per cow (81.6 lb/day per cow). Other important factors Cow comfort, transition to calving, and forage quality are three other key factors in Ferme Berni’s success—non-nutritional factors that have a major impact on results! Sand bedding helped to improve the cows’ productivity, udder health, and milk quality. Fresh cows also have very few metabolic problems at calving, which helps with the results. A profitable action plan Remarkably, production has increased by an average of 2,075 kg/cow (4,574.5 lb/cow), for an average production of 12,075 kg/cow (26,620.8 lb/cow), in addition to achieving an average of 1.5 kg (3.3 lb) of fat/cow/day. The strategies implemented by Jacques and Germain are definitely paying off, especially since the profit margin per cow after feeding costs was around $7,874.19 in 2014! “In 2015, we’re expecting to see a decrease of $300-$400 due to the drop in milk prices,” the owners say. These numbers prove that the quantity of milk produced is the main factor in a dairy farm’s profitability. Ferme Berni Top photo: Jacques, Germain and Shany Bernier. Bottom photo (left to right): David Allaire Maillot, Benoît Allaire, Michel Bernier (Jacques and Germain’s father), Yan Gauthier and Germain Bernier. Absent: Alexandra Béliveau. One vision, one team “We can’t achieve these kinds of results alone—they’re the result of teamwork with the best professionals in the area. We’ve been working closely with Meunerie Ducharme since 1960. The advice and support that we receive allow us to perform at our best every day!,” the owners of Ferme Berni state. The next generation at Ferme Berni: a long-term success factor While the owners obtain good results on-farm, there’s no question of them being content with the status quo; objectives for the coming years include making improvements in reproduction, genetics, and production. Germain’s children, Shany and Meggie, share their father’s passion and are poised to take over the farm. The future looks bright with these two skilled individuals at the helm. Company profile Shany is passionate about dairy production and shows a keen interest in genetics. Since he became involved in the farm, considerable progress has been made in animal genetics. Notably, they have been able to improve their classification through the purchase of specific animals, embryo transfers, bull selection, and genomic testing. Before Shany’s involvement With Shany’s involvement GP 61% 82% VG 8% 36% Meggie is studying animal production and will graduate in two years’ time. She has worked on the farm since childhood. Her goal for 2016 is to further her knowledge of crop production. The future looks bright for Ferme Berni! Ferme Berni Ste-Élizabeth-de-Warwick (Bois-Francs), QC Owners: Jacques and Germain Bernier Cows in milk: 155 Quota: 233 kg (513.7 lb) Area of land: 1,860 acres Service centre: Meunerie Ducharme Dairy Nutrition Advisor: Simon Martel, T.P. “It’s a privilege to act as advisor for Ferme Berni. Jacques, Germain, and Shany are innovative, professional producers. Their results and successes are no coincidence—they deserve full credit for their accomplishments. They are true managers. And, with the qualified and talented next generation poised to take over, the future looks very bright for Ferme Berni.” Simon Martel, T.P. 11 Ferme Yves Croteau et fils TESTIMONIAL A model of determination Company history The owners of Ferme Yves Croteau et fils are a remarkable example of determination. The company, based in Upton, in the Montérégie region of Quebec, went from 50 cows in milk in 1992 to 129 cows in 2016. However, the owners suffered a setback in 2009, when a fire tore through the farm, resulting in their buildings and herd having to be rebuilt from scratch. So, it was with a slightly less genetically strong herd that Yves Croteau’s sons, Danny and Patrick Croteau, took up the reins at the farm and to the challenge of growing the business. “We are passionate people and there was no other option than to continue what our father had already started,” the owners state. Of course, it wasn’t easy to start all over again after the 2009 fire. However, the Croteau brothers decided to spare no expense in rebuilding. “In this industry, you need to invest if you want to stay on top of your game,” Danny says. Important aspects in dairy production The Croteau brothers focused on specific areas for improvement in order to achieve the goal of optimizing the performance of their dairy farm: 1. Cow comfort Cow comfort is perhaps the area in which the most improvement can be seen in recent years at the farm. Patrick views optimizing the animals’ well-being as an investment. “When we care about the animals’ comfort, we see results in terms of productivity and performance.” In recent years, they have purchased a manure press, which allows them to recycle the manure by drying it for bedding. This means that the cows spend more time lying down. “It’s not uncommon for us to walk into the barn and see every single cow lying down!,” Patrick says. 2. Herd nutrition Nutrition is very important at Ferme Croteau. Even though this represents a major expense for the farm, the owners know that cutting back on feed costs is not what will ultimately boost their bottom line. They compare feeding their herd to feeding themselves. “During hard times, should food really be the first thing that I cut back on? Of course not, and the same applies for my cows,” Danny says. They have always trusted Shur-Gain and its research and development program to feed their herd, with very good results. The Croteau brothers feel it is important to stay on top of new developments in animal nutrition. “We follows our advisor’s recommendations and we know we’ll see a good return on investment by using their products,” Danny says. 3. Management and health of fresh cows The feeding strategy for fresh cows has also been revised in recent years, with conclusive results. The owners have seen an increase at peak milk production of 4 L for cows and 5 L for heifers. In addition to the feeding strategy, the comfort of transition cows was also improved by reorganizing the stalls to maximize the available space in order to avoid metabolic problems and ensure a good start to lactation. Improvements in genetics also played an important role in obtaining these superior results at the start of lactation. These are profitable changes considering that for each heifer, a 5-L increase at peak production represents an additional $615.60 per year, and a 4-L increase for each cow represents $365.76. Today, peak production is 36 L for heifers and 47 L for cows. 4.Reproduction Another key aspect of the farm’s success is reproduction, which is managed very closely, allowing them to achieve good results. The herd average is currently 164 DIM, compared to the Quebec average of 180 DIM. This represents close to $36,600* more in annual income, based on a benchmark price of $72/HL for the entire herd. *Shur-Gain CD tool with benchmark price of $72/HL 24-hour breakdown of a cow’s time 0.5; 2% 1.1; 5% 0.3; 1% 2.5; 10% Elite cow (10% higher) Hours; % 6% 9% 14.1; 59% Average cow 5.5; 23% % 49% 2% 11% 23% 12 Standing in stall Aisles Drinking Milking Eating Lying down Grant and Matzke, 2003 Ferme Yves Croteau et fils Danny and Patrick Croteau The representative’s role According to Danny and Patrick, their Shur-Gain representative’s experience, enthusiasm, and dedication were pivotal for them in achieving these results. Shur-Gain’s vision, the support given to Ferme Croteau, and the owners’ involvement enabled them to excel and obtain profitable results. “There’s a whole team behind us. It’s this synergy, and the full range of services and advice that we receive that have allowed us to excel as producers. It’s all about teamwork!,” the brothers exclaim. Results that speak for themselves Company profile All of this hard work has paid off, with Ferme Croteau currently posting $6,830 per cow in profits, made possible through the attention they give to nutrition, comfort and environment, cow health, forage, and the quality of the milk they produce. All of these factors allow them to be profitable at a profession they are passionate about. The Croteau brothers see a very promising future ahead for their farm. They are already passing on their passion to their children (Patrick’s four and Danny’s two) to make sure the next generation is ready to take over the family farm! “We are passionate people and there was no other option than to continue what our father had already started,” the owners state. Ferme Yves Croteau et fils Upton (Montérégie), QC Owners: Danny and Patrick Croteau Cows in milk: 129 Quota: 172.41 kg (380.1 lb) including margin (plus additional days) Current fat/cow: 1.33 kg (2.9 lb) Service centre: Willie Dorais Dairy Nutrition Advisor: Geneviève Gauthier, T.P. “Danny and Patrick are enthusiastic, hardworking guys, who are great to work with. They’re open to new things and are always willing to try a new technology or method that could increase their farm’s profitability. They trust me and Shur-Gain to get the job done, and I’m thrilled to play a role in their success.” Geneviève Gauthier, T.P. 13 Ferme B.M. Cotnoir et fils TESTIMONIAL A company in constant evolution Company history The main success factors Ferme B.M. Cotnoir et fils, located in Saint-Herménégilde, in the Eastern Townships area of Quebec, is a highly successful family farm. In operation since 1929, the business has steadily grown throughout four generations of the Cotnoir ownership. Today, the farm continues to thrive under the direction of Robin Cotnoir, his wife, Marie-Andrée, and his father, Benoît Cotnoir. It is also important to mention the contribution of Michel Cotnoir, Benoît’s brother and former co-owner, who continues to pitch in even after having sold off his share in the family business. Benoît’s wife, Jeanne, who has a background in dairy production, always has valuable advice for the family. The farm also has two employees: Guillaume, who works full time, and Sébastien, who works part time. Teamwork is a central value at The Cotnoir farm and contributes to a better quality of life by freeing up more time to spend with family. Ferme Cotnoir entrusts its animal nutrition needs to Shur-Gain and, along with representative Maxime Lepage from Meunerie HL Boisvert, they set herd management strategies to achieve consistently better results day after day. Here are the main aspects that contribute to their positive results: Provincial average Current results 9,223 kg* (20,333.2 lb*) 12,100 kg (26,675.9 lb) Gestation rate at 60 DIM 18%** 32% Gestation rate at 60 DIM 2.34* 1.94 Average production/ cow *Valacta 2014 annual report **Gestation rate (DS@HR 2011) 14 1. Cow comfort Cow comfort is without a doubt the most important factor for the owners. In recent years, they have invested strategically in this area, knowing full well they would see a return on their investment, even if it’s not in the short term. “Every decision we make needs to be based on return-on-investment. As for the comfort of my cows, there’s no doubt in my mind that I’ll get my money’s worth,” Robin says. Several changes have been made in the past few years, specifically in the choice of bedding and bedding guards, water bowls, the harness bar, and ventilation. 2.Heifer rearing In the area of dairy production, results aren’t achieved after a few days or even a few weeks. It’s a long process that requires a clear vision of the objectives combined with a rigorous approach. With this in mind, a cow’s production is shaped from the first day of its life, which is why Robin concentrates in having a good strategy for rearing his heifers to calving, starting with the use of an acidified milk replacer at a young age. Lastly, the owners built a new building to improve the comfort of their heifers aged 6-10 months, and 14 months to calving. Proof that the strategy works is the age at first calving, which is 22 months compared to the provincial average of 26 months. 3.Nutrition Cows need the best possible feed to be able to produce to their full potential. The use of value-added products combined with a custom feed strategy developed with input from their Shur-Gain representative and using Shur-Gain tools contributes to achieving the animals’ full production potential. A balanced feed ration leads to healthy, fit animals, which results in optimal, more consistent milk production. “Cutting back on rations is definitely not a way to save money,” Robin confirms. Marie-Andrée, Robin and Benoît Ferme B.M. Cotnoir et fils From left to right. Top: Benoît, Marie-Andrée, Olivier, Sandrine and Marie-Soleil. Bottom: Robin, Marianne, Sébastien and Guillaume. The representative’s role “A good relationship with my representative is crucial to helping me achieve my objectives. The relationship needs to be based on trust and honesty. I expect my representative to challenge me to reach new heights and to recommend ways to improve on our current methods,” Robin states. The Ferme B.M. Cotnoir et fils has been dealing with Shur-Gain and Meunerie HL Boisvert for close to 50 years. From the service provided by the representative and the mill to the hard work by the Shur-Gain team, no stone is left unturned in helping Robin to achieve his objectives. More milk = more profits Company profile With an average of 12,100 kg/cow/year (26,675.9 lb/cow/year), it is clear to see that the improvements made in recent years are paying off. Specifically, the profit margin per cow in 2015 is $6,676.33, despite a milk-to-feed ratio of 2.89. This clearly shows that it’s the quantity of milk that has the most impact on the profit margin in the end. “Measuring results is not something to be overlooked. Having the numbers in front of us allows us to identify areas that need improvement and determine the impact of our decisions. The ultimate goal is to implement strategies that will make us more money,” Robin says. Future objectives The future looks bright for Ferme Cotnoir. Marie-Andrée just gave birth to the couple’s third child, Olivier, two months ago; he joins his big sisters, Sandrine, 3, and Marianne, 4. One of Robin and Marie-Andrée’s goals is in fact to produce good results in order to enjoy family life to the fullest. Achieving a good work-life balance is very important to them. Maintaining reproduction and herd longevity, and obtaining an average classification of 85 points in addition to 2 kg fat/cow (4.4 lb fat/cow) are just a few of their goals for continuing to increase the company’s profitability in the short and long term! Ferme B.M. Cotnoir et fils Coaticook (Eastern Townships), Quebec Owners: Robin Cotnoir, Benoît Cotnoir and Marie-Andrée Morin Cows in milk: 62 Quota: 0 kg (198.42 lb) 9 10% margin included Classification: 7 VG – 36 GP – 19 G Service centre: Meunerie HL Boisvert Dairy Nutrition Advisor: Maxime Lepage, Agr. “I enjoy working with Robin for many reasons, one of which is his desire to see concrete results. It’s refreshing to work with someone who shares my passion for continuous improvements. Robin can definitely be called an innovator because he’s not afraid to make the changes required to achieve his herd’s full potential. I also admire his philosophy that being successful means enjoying what you do, and his dedication to spending time with his family every day.” Maxime Lepage, Agr. 15 Hatfield Farms LLC TESTIMONIAL Two owners coming together for one goal: to maximize success through profits “I can still remember that day, November 4, 2009, when we switched to milking cows in robots,” recalls Marcia Hatfield from Hatfield Farms LLC. “We used to milk 85 cows in a double-4 stall herringbone with computer feeders in the parlor and a fully automated feeding system that brought the feed on conveyers from the silo to the mixer and finally to the cow. Robots were very attractive to us because we wanted to manage cows, equipment and technology versus people,” says Marcia Hatfield. Now Hatfield farms milks about 235 Holsteins in four Lely A3 robots. On January 1, 2014, Steve Patt, owner of neighboring farm Visionquest Dairy, in Lansing, NY, joined the team at Hatfield Farms LLC. “It was an opportunity that became available, and I had always liked the idea of managing several farms. Hatfield seemed like a good fit as it was relatively close to my home farm,” says Steve. Making changes for the better “Since I started working with Hatfield Farms in 2014, we’ve made a lot of changes—both in management and to the barns—that have resulted in high returns,” says Mary Murray, their Dairy Nutrition Advisor. The dry cows, bred heifers, and pre-fresh cows are housed in the old milking barn. Stalls were redone and better sized to fit the cows, the mattress stalls were remodeled for deep-bedded sand stalls, and a hoof bath was added. “The stall renovations were a huge benefit; cows are cleaner and they lay down more,” notes Mary. The cows used to be fed through the conveyer system, where feed took some time to reach the cow. With the remodeling, the barn has been turned into a drive-through barn, making it very efficient. The other major change made in 2014 was making sure the stalls in the dairy barn were not only full, but full with profitable cows—something they are continuing to do. A way to ensure profitable cows fill the robot is through reproduction. Hatfield Farms averaged a 30% pregnancy rate in 2015, which allowed them to consistently have fresh cows with low/no metabolics. They are able to achieve this high pregnancy rate thanks to a good herdsman, heat detection collars, and the intermittent use of a presynch/ovsynch program. 16 The importance of support “In 2014, I spent most of my time learning the robots and what they are capable of. It was a real reality check,” remembers Steve. Conversations like this one with Steve and with the other robotic farms that Mary works with led her to start a robot discussion group consisting of about 10 farms, with discussions focusing on financial management and cow management in robots. “The group Mary started has helped me to better understand where other robot herds are at in terms of financial and production benchmarks. This allows us to set achievable goals each year,” says Steve. “I really enjoy going to these meetings,” Marcia states, “It’s nice knowing that other producers with robots go through the same struggles as you do, and hearing how they’ve overcome them is something I really appreciate.” In 2015, Hatfield Farms continued to make changes that helped them ship 2 million more pounds of milk than in 2013. They expanded the milk cow barn to make room for calving packs and free stalls for the close-up cows. “This was a huge benefit,” explains Mary. “Before, the pre-fresh cows where in the old barn where they also calved. Not having someone constantly down there proved to be a challenge. Now that the cows are in the milk cow barn, there are very few hours that someone isn’t around.” A profitable balancing act Also, in 2015, Hatfield Farms started fully integrating and taking advantage of having both a parlor at Visionquest Dairy and a robot at Hatfield. In October 2015, many of the heifers at the end of their lactation were sent to Visionquest, where they have stayed, and fresh mature cows have moved into Hatfield. As heifers continue to go dry, they are moved to Visionquest, and fresh mature cows have filled Hatfield’s robots. This allows each robot to really maximize output. “We have to control our cost in order to be competitive in this milk market. And there are two ways to do that: 1. Lower the cost of production, and 2. Increase production. At Hatfield, we’ve been able to do both while not setting back Visionquest,”says Steve. “I’ve been really fortunate in terms of how hands-on I can be at Hatfield, and I owe a lot of that to my team at the home farm. Some of my crew has been with me at Visionquest for over eight years and, without that, I think our success in achieving a balance between the two farms would have been hindered.” Hatfield Farms LLC Feed blade was added when the barn was extended in 2015 Marcia Hatfield and Steve Patt Another huge key to success, particularly in controlling robot costs for Hatfield, has been hiring a full-time mechanic, who does a lot of preventative maintenance on the robots as well as trouble-shooting. Having two dairies with a total of about 700 milking cows allows them not only to share cows but also share the cost of this mechanic, who has helped control robot repair costs immensely. Long term, both Steve and Marcia are considering building another robot barn and increasing their cow numbers. “We need to walk before we run,” says Steve. “There are still things I think we need to improve before we expand, and based on the progress we’ve made, I think we’re heading in the right direction.” Hatfield LLC goals 2016 written on barn office wall Company profile “Since I started working with Hatfield Farms in 2014, we’ve made a lot of changes— both in management and to the barns—that have resulted in high returns,” says Mary Murray Hatfield Farms LLC, Scipio Center, NY Owners: Steve Patt and Marcia Hatfield 235 milking in four A3 robots 30 dry cows Avg. production: 43 kg (95.01 lb) of milk avg/day, 3.5% fat, 3.0% true protein Breeds: Holstein Acres: 470 tillable Service centre: Strykersville, N.Y. Dairy Nutrition Advisor: Mary Murray “Annual goal setting, holding each other accountable, and taking a team approach to achieve these goals is something I’ve really appreciated Steve and Marcia allowing me to be involved in. Together, we make decisions on areas outside of what the cows eat and it’s been really rewarding,” says Mary Murray. Mary Murray 17 Our clients shine Congratulations to all the breeders who stood out during the 2015 show season, at local, regional, provincial, national, and international shows alike. This page presents the highlights from the major shows in fall 2015. World Dairy Expo, Madison, WI Jacobs Goldwyn Valana Ferme Jacobs Inc. Cap-Santé Champion Bred & Owned and Reserve Grand Champion Ferme Jacobs Inc. Cap-Santé 1st Breeder’s Herd Ferme Jacobs Inc. Cap-Santé Breeder Banner Supreme Dairy Show, Saint-Hyacinthe HOLSTEIN Malic Mr Aussie Maya Ferme Malic, Loubel Holstein Inc. Lévis/Saint-Boniface Junior Champion RF Goldwyn Hailey Gen-Com Holstein Ltée Notre-Dame-du-Bon-Conseil 1st 60,000 kg and + Lifetime Production and Reserve Grand Champion Jacobs Atwood Vedette Ferme Jacobs Inc. Cap-Santé Champion Bred & Owned Ferme Jacobs Inc. Cap-Santé 1st Breeder’s Herd Ferme Jacobs Inc. Cap-Santé Breeder and Exhibitor Banners ROUGE ET BLANC Deslacs Talent Alyana Red Ferme Deslacs Holstein/ Ferme Gilaro Victoriaville Reserve Intermediate Champion Ferme Deslacs Holstein Victoriaville 1st Breeder’s Herd JERSEY Ferme Etel Wotton 1st Junior Breeder’s Herd Rencie Amaretto Terriso Ferme Rencie Inc. Inverness Honourable Mention Intermediate Champion JL Vincent Sapphira Yvon Sicard and Pierre Boulet Saint-Justin Honourable Mention Grand Champion AYRSHIRE Lagace BB Modestar-ET Ferme Lagacé et Fils Saint-Hyacinthe Reserve Grand Champion Ferme Lagacé et Fils Saint-Hyacinthe Exhibitor Banner CANADIENNE 18 Bisson Polka Soucy Ferme Beauvoie and Gaétan Tourigny Saint-Valérien Intermediate Champion and Grand Champion Beauvoie Cansey Marcella Ferme Beauvoie Saint-Valérien Reserve Intermediate Champion Montbriant Champion Choupette Ferme Beauvoie Saint-Valérien Reserve Grand Champion Ferme Beauvoie Saint-Valérien 1st Breeder’s Herd Ferme Beauvoie Saint-Valérien Junior Breeder Banner and Senior Breeder and Exhibitor Banners Shur-Gain congratulates you! Royal Agricultural Winter Fair, Toronto HOLSTEIN Desnette Beautiful Shadow Desnette Holstein Warwick Champion Bred & Owned Ferme Jacobs Inc. Cap-Santé 1st Breeder’s Herd RED AND WHITE Etel Lili Heztry Red Deslacs Talent Alyana-Red Ferme Etel Wotton 1st Junior Breeder’s Herd Ferme Etel Wotton Junior Champion Ferme Deslacs Holstein Victoriaville 1st Breeder’s Herd Ferme Deslacs Holstein/ Ferme Gilaro Victoriaville Grand Champion Bred & Owned JERSEY JL Vincent Saphira Yvon Sicard and Pierre Boulet 1 Honourable Mention Grand Champion Saint-Justin 2 4 3 5 8 6 9 1. Jacobs Goldwyn Valana 2. RF Goldwyn Hailey 3. Jacobs Atwood Vedette 4. Malic Mr Aussie Maya 5. Deslacs Talent Alyana Red 6. JL Vincent Sapphira 7. Lagace BB Modestar 8. Bisson Polka Soucy 9. Desnette Beautiful Shadow 10. Etel Lili Heztry Red 7 10 19 Our clients shine 70 years of passion for agriculture at Alfred Couture Ltée! On Saturday, November 7, at La Cache à Maxime in Scott, Quebec, the Couture family, along with over 450 guests, including clients, employees, suppliers, friends, and dignitaries, raised their glasses to toast the 70th anniversary of Alfred Couture Ltée. Seventy years after it was first founded, the family business, today run by Bernard and Laurence Couture, son and daughter of Irénée and Thérèse, still relies on Shur-Gain’s expert knowledge and technologies to ensure the success of its clients and of its own herds. The company operates in the dairy, pork, grain, broiler chicken, turkey, and egg production sectors in the Bellechasse, Beauce, Quebec City, and Charlevoix regions. It owes its success to the leadership of Laurence and Bernard, who have helped to make the company what it is today, making them respected visionaries within the industry. The pride of the province and of Quebec industry The HACCP-certified Meunerie Trans-Canada Inc. plant, one of the most modern in North America, is a model of innovation and a point of pride for the agrifood industry. Bernard, Irenée and Laurence Congratulations to Laurence and Bernard Couture, Congratulations to the Master Breeders Deliska Gen-i-beq Name of farm: Deliska Holstein Municipality: Les Éboulements Owners: Déliska Dufour-Boivin, Gilles and Francis Boivin Herd fed by: Lactech Name of farm: Syndicat Gen-I-Beq Municipality: Saint-Patrice Owners: Germain Lehoux, Robert Chabot, Jacques Chabot and Armand Leclerc Herd fed by: Lactech Photo: Émilie Desgagnés Gilles Boivin, Déliska Dufour-Boivin, Francis Boivin, and his fiancée, Mary-Josée Maltais, in front of the family farm in Les Éboulements. Jacques Chabot, Armand Leclerc, Germain Lehoux and Robert Chabot RETURN ALL MAIL THAT CANNOT BE DELIVERED IN CANADA TO: Shur-Gain Communications Department, 4780 Martineau Street, Saint-Hyacinthe (Quebec) J2R 1V1 SG151937 Copyright: Bibliothèque nationale du Québec, 2002. National Library of Canada, 2002. and to their entire team, on 70 years of enterprise, vision, determination, and passion for agriculture!