The standard measure of dairy cow productivity is milk production per cow. But for the purposes of both farm management and larger dairy economic analysis, perhaps a better measure is milk solids production per cow.

Peter Vitaliano, Ph.D, Chief Economist for the National Milk Producers Federation explains, “The liquid component of raw milk determines product yield for only a small proportion of total dairy production. Milk solids production per cow has been growing faster than milk production per cow in recent years, as average milk solids composition of milk has grown.”

Read the full article by Dairy Herd here.

Vitaliano presented the seminar “Dairy Cow Productivity: More Important to the Profitability of Your Dairy Operation Than You Think” during the 2021 World Dairy Expo in Madison, WI. The session was sponsored by the National Milk Producers Federation and is available for viewing here.

The 2021 climate of high feed costs and tepid milk prices are creating a tenuous financial scenario for most U.S. dairy farms.

Penn State Dairy Extension specialist Virginia Ishler said current conditions are mimicking those of 2012, when feed prices soared to unprecedented highs. “Using farm financial data from 2020 and projecting costs into 2021, most operations will be extremely vulnerable to maintaining a positive cash flow, especially if high feed prices continue,” she stated in a Penn State Dairy Extension bulletin.

Ishler and her team have developed a cash-flow analysis comparing a range of breakeven cost of production to cash flow from milk revenue. “Operations with cost of production exceeding $19.00/cwt. will have an uphill challenge in keeping feed costs below their projected maximum,” said Ishler.

Drilling down to the per-cow level can help keep a tighter handle on overall cost of production. Ishler said even using cost numbers for home-raised forages, most operations exceed $5.50/milk cow/day during periods of “normal” feed costs.

Read the full article by Dairy Herd Management here.