Dairy Industry & Profitable Dairy Farm PDF

 Milk is the physiological secretion from the mammary gland of mammals.  The dairy cow is often called a "milk factory" or a "milk making machine".  Dairy cow must be milked at regular intervals; two or three times per day, seven days per week. 1. The dairy cow is a highly efficient ani...

 Milk is the physiological secretion from the mammary gland of mammals.  The dairy cow is often called a "milk factory" or a "milk making machine".  Dairy cow must be milked at regular intervals; two or three times per day, seven days per week. 1. The dairy cow is a highly efficient animal in converting feed protein and energy. Efficiency of various classes of domestic livestock in converting feed nutrients to edible products (Table 1). Efficiency of conversion of indicated nutrient % Class of Livestock Crude protein Energy Non ruminants Broilers Turkeys 23 11 Hens (eggs) 22 9 26 18 Ruminants Dairy cattlea 25 17 Beef cattleb 4 3 Lambs 4 - a (Total lifetime production x (100)/Total lifetime input); e.g. for milk protein the calculation is as a follows: (protein in all milk produced + protein in inedible cuts of carcass) x (100)/(Total crude protein input in the feed). b Includes only protein and energy in edible cuts. Therefore, if tallow (beef or mutton fats) (not included here) were also included, the energy efficiency would be higher. Protein efficiency would be increased further if offal (include head, tail, kidneys, heart, liver, etc.) were included. 2. Dairy cows are ruminants. Being ruminants, they have the ability to eat large amounts of forages (roughages). As much as 70 % of her total feed intake from non-human food sources (forages and non-protein nitrogen)-, and by the action of the rumen and regurgitating and chewing the cud, are able to digest these long fibered materials and produce a nutritious and wholesome human food; milk. 3. Because of her ability to produce a huge amount of milk production, the dairy cow has earned the title "Foster mother of the human race". A Holstein cow (Mark Jinx) in western Colorado, USA, in 1995, produced 34,175 kg of milk, 880 kg butter fat, and 855 kg protein in 365 days. 4. Dairy cows are polyestrus, meaning that they come into estrus (heat) each 21 days throughout the year. Thus, it is possible to have calves born at any time of the year. Because of the gestation period is from 270 to 280 days, the cow will usually have just one calf each year. 5. The average age of the dairy cow in most herds is nearly five years. Some cows will remain in the herd over 10 years; however, most cows in the herd will be younger. Unprofitable cows are removed from the herd annually. In large commercial dairy operations, cull rates exceed 30 % each year. During each year of her life, a good dairy cow should produce a calf and be in milk production for 305-days. The female calves she produces are used for replacement, while the male calves are used for production veal or finished out as beef. Therefore, dairy cows supply beef as a by- product. Since surplus calves, dairy steers, and cull cows are slaughtered for meat.  Standard lactation length Dry period (305 days) (45-60 day) Calving interval (12.5-13 months) Days open Gestation length (85-110 day) (280 days) 1. Age at first breeding (15 months – 350 kgs). 2. Age at first calving (24 months). 3. Calving intervals (12.5 – 13 months). 4. Standard lactation length ( 305 days). 5. Maximum amount of milk yield. 6. Dry period ( 45 – 60 days). 7. Breeding after calving ( 60 – 90 days). 8. Days open ( 85 – 110 days). 9. Gestation period ( 9–9.5 mths – 283 days). 10. Calf per year. Milk is nature's most perfect food, because it is an excellent source of protein, calcium phosphorus, and vitamins. Milk is nutritious, tasty, and versatile. Because milk is nutritious, it will continue to be an important food, especially in the diets of babies, children, teenagers, pregnant women, and nursing mothers. One of the most important healthful qualities of milk is the amount of calcium it contains. Milk is the leading source of calcium. Unless milk and milk products are consumed regularly, there may be a deficiency of calcium in the diet. Some milk products available to the consumer are butter, cheese, powder dry milk, evaporated and condensed milk, eggnog (a drink compounded of eggs beaten up), powdered cream,, ice cream, cottage cheese (cream cheese), yoghurt, and sour cream. When you are 13 to 15 years old a. Dairying is a stable business without the great income fluctuations found in some farming enterprises. b. Dairying produces a steady income. c. Dairying involves steady employment throughout the year. d. Dairying has a well-established role in diversified (multiform) farm. e. Labour demands are somewhat uniform throughout the year. f. Forage, the major feed for cattle, can be produced on land where grain crops do not grow well. a. Dairying is a full-time, demanding job. b. Dairying requires a large initial investment and a large amount of capital for normal operation. c. Dairying requires considerable training and experience before routine decisions can be easily made. d. The dairy farmers must deals constantly with pollution and sanitation laws. e. Substitutes for dairy foods are becoming more common, which may affect future milk prices. 1. It pays all operating expenses. 2. It pays interest on all capital invested. 3. It maintains productivity. 4. It earns a reasonable return for the operator. Profit is one of the goals of most dairy farms. It may be defined broadly as the difference between gross income and production expenses. Increased profit can be achieved by: 1. Increasing income: The sale of milk accounts for approximately 90 % of the gross income in average dairy operations. Therefore, income can be increased significantly by: (a) increasing milk production per cow (b) milking more cows, and (c) receiving a higher price per unit of milk sold. The remaining gross income from most dairy operations results from the sale of bull calves, cull cows, breeding stock, and extra income enterprises. Significant increases in gross income can result from maximizing income from these sources. 2. Decreasing production expenses: Feed expense, including both home-grown and purchased feed, is the largest production expense on moist dairy farms. It usually accounts for 45 to 60% of the total. Increasing production per cow by maximizing intake of high-quality forage can lower production expenses significantly. Labour (10-25%), Buildings and equipment annual expenses (10- 25%), Taxes, interest, supplies, livestock expenses, utilities, etc., account for the remaining production expenses. Careful management can also decrease these production expenses per unit of milk produced. Or 3. Increasing income and decreasing production expenses concurrently. 1. A breeding program that results in cattle with the genetic ability for high performance. 2. A rigid culling program that weeds out unprofitable producers. 3. A replacement program that results in an adequate supply of healthy, well-grown, high-genetic-potential replacements ready to take their place in the herd at 25 to 26 months of age. 4. A feeding program that encourages maximum economical production. 5. A feed-production program that maximizes use of available land resources and results in ample quantities of high-quality forage. 6. A milking program that results in maximum let-down of high-quality milk with minimum damage to the udder. 7. Economical, yet durable, labor-efficient buildings and equipment. 8. A preventive health-care program that results in minimal non genetic culling and high reproductive efficiency. 9. Cowmanship - interest in and concern for cattle by those who work with the cattle. 10. A market with a high class (I) usage and in a strong competitive position for the future. 1. To earn a reasonable profit for the owner, one that will enable him to meet the financial needs of his family. 2. To gain personal satisfaction and enjoyment from his occupation. The plan should include: 1. Realistic estimates of the amount and cost of resources needed to establish the desired type of dairy enterprise. 2. A herd management plan that is conducive to a continuing high and profitable level of production, and 3. Financial planning, including realistic operating budgets to determine the financial feasibility of the plan. The decision to establish a dairy enterprise is a long term one, that is, once it is established it is difficult to change for many years without serious consequences. The requirements for successful dairy can be discussed in the following: 1. Personal characteristics of successful manager 2. Sources of capital 3. The correct type of soil, water and land 4. Type of feeding production 5. Facilities and equipment to house and handle the cattle 6. High-producing cows and choosing a breed 7. Size of herd 8. Stable marketing privileges 9. Careful management Dairy farming is a 365-days-a-year job. Some of the personal characteristics of successful mangers are the followings: a. Interest in dairying, accompanied by a positive and confident but realistic attitude. b. A high degree of motivation, preservance, and willingness to make personal sacrifices is essential, especially during the first few years. c. Through, up-to-date knowledge of all aspects of dairying and the desire and ability to continue learning. d. Practical experience. Knowledge is important, but equally important is the ability to apply this knowledge. e. The ability and willingness to work hard, both physically and mentally, is essential to success. f. The ability to manage cattle, land, money, and people. g. The desire, determination, courage (guts), physical and mental ability, and deposition to accept, even welcome, the challenges and risks involved in establishing and operating a dairy enterprise. Obtaining sufficient capital to purchase needed resources has long been a major challenge for aspiring dairymen. Depending on the location, type of facilities, type of cattle, many other factors, capital needed to purchase all the needed resources may carry from country to country. The banker and the dairy owner should work together in developing a sound financial plan that benefits both parties. Well-kept farm records are necessary for any kind of accurate financial plan. Some basic principles of money management for beginners in the dairy business are the following: a. The amount of borrowed capital and the interest rate on that capital are important, but not so important as the actual or potential earning power of that capital. b. When capital is limited, proper investment priorities must be established and followed. c. Negotiate for favorable interest rates and repayment conditions. There are several soil, water, and land factors which can affect the profitability of farm. Some of these are: a. The price of the land and its suitability for growing crops. b. The suitability of the soil for manure lagoons and feed lots. c. The soil fertility, topography, and drainage, which affect the yield and quality of forage produced. Climate, cost and availability of land, and cost and availability of food for purchase are the primary determining factors in regard to choice of feeding program. 1. Raising all or most of the forage and a part of the concentrates needed. 2. Purchased feed. 1. Raising all or most of the forage and a part of the concentrates needed: 1. Better assurance of high-quality forage and 2. More economical feed costs. 1. Larger initial investments needed to purchase land and cropping machines, 2. Larger initial operating capital needs, 3. Additional management skills and labor required, and 4. Needed land resources may not be available at reasonable cost.  Renting land resources may provide temporary relief but is risky unless long- term lease conditions can be arranged. 2. Purchased feed: Lower initial investment and More time available to devote to acquiring and using herd-management skills. The major components of the barn system are: 1. The milking center, 2. Weather protection, 3. The feeding center, and 4. Facilities for manure collection, removal, and disposal. High-producing cows are essential to a really profitable dairy operation. A cow that is twice as productive as another is often about four times more profitable. This is because both cows receive about the same amount of attention, barn space, and feed when they are dry. After somewhat higher milking and feed expenses, the extra milk that the high- producing cow yield might be considered pure profit. Good management is the key to high milk production. Every herd should have a planned breeding program that increases the genetic level of the herd for production. In addition, every herd should have a feeding program designed to help cows produce at maximum genetic ability. High-producing cows can be of any breed. The most common dairy breeds are Holstein, Jersey, Guernsey, Ayrshire, Brown Swiss, and Milking Shorthorn. One question most frequently asked to Departments of Dairy Husbandry by breeder is: The answer to that question can not be made intelligently until all the facts regarding to choose a breed that meets: Present and future market, The climatic conditions, Systems of management, and Local surroundings are available. Various factors should be considered before making a final choice of dairy breed: a. Characteristics of the major dairy breeds i.e. breed production potential and profitability. b. Choose a breed that meets present and future market conditions. Market conditions in most areas favor breeds that produce the largest volume of milk, however, in some areas; special milk markets have been developed. c. Adaptation to climate and environment. Climate may play an important role, depending on the area of the country. The Jersey and Brown Swiss are better acclimated to the hot weather than are the other breeds, especially the Holstien. Within recent years, however, the Holstein has reared in hot weather, but it has required good feeding and management for economical production. d. Personal preference or satisfaction e. Availability of good breeding stock or community preference. Breeder prefers to choose the predominant breed in the community, as it makes it easier to secure foundation animals or to sell surplus animals. The transportation has been so greatly improved in recent years that distance from established herds is not the limitation in selecting a breed. f. Grazing ability is important in areas in which the cow must harvest most of her own forages, but it is not an important consideration in areas where there the feed is hauled to the cow. g. Vigor of the calves, which is party related to size at birth, and the ages of maturity of the heifers. Smaller calves are somewhat more difficult to raise larger calves. h. Beef value of surplus calves, dairy steers, and culls cows (cows sold from dairy herds for slaughter because of low milk production, health problems, reproductive problems, or old age). i. Fat and protein contents of the milk produced as it relates to market demands. Because each farm differs, it is extremely difficult to determine the best size for a particular farm. The size of a dairy farm may be measured by several factors: The area that the farm covers, The number of cows on the farm, The amount of milk produced on the farm, The number of workers employed on the farm, and The income (gross or net), of the dairy owners. Generally, the farm must be large enough to produce a cash flow that will pay expenses and provide for necessary family income. 1. Require a greater capital investment, 2. A higher degree of management skill than smaller ones. Offer a greater opportunity of total profit if profit margin per cow can be maintained at the same level as in smaller herds. a. Require a lower total initial investment, b. A greater degree of financial flexibility because labor expenses are chiefly non-cash, and c. Offer the owner the opportunity to gain experience, management skills, and equity growth with less financial risk. The best markets for milk are: bottled and sold Gets a higher price. Land prices and taxes. Milk is usually converted to butter, cheese, and other dairy products. Because the price of milk is usually lower in such areas, economy in production in important. Farmers in these areas usually try to: Raise their own feed, and Use family labor to keep costs at a minimum. Good road systems are important in these market areas to keep transportation expenses low. Management refers to the decisions farmers make concerning their business. Good managers know: What has to be done and see that it gets done at the right time. They plan all daily activities as efficiently as possible. They take time to observe the overall performance of the business and are ready to make decisions when necessary. Careful managers are very aware of practices which affect profits. a. Keeping good production and breeding records. b. Making sure those cows produce calves regular intervals. c. Producing high-quality milk products by observing strict sanitations. d. Feeding young animal's adequately to grow healthy, high producing heifers. e. Taking necessary steps to prevent disease. f. Culling cows when they are unprofitable.