DairyNet Podcast

Molds and Mycotoxins, Part I

Wed, 11 Nov 2009 00:00:00 CST

Dairy managers and corn growers share the same concern: a wet and late spring delayed planting, a lack of heat (degree day) slowed growth, and a record wet October with cold weather has a huge corn crop at risk with mold development. Moldy corn reduces bushel weight, corn quality, nutrient content, and increase the risk of mycotoxin formation. Mycotoxins are toxi c substances produced by fungi (molds) growing on grain or feed in the field or in storage. Mycotoxins associated with cool and wet conditions are deoxynivalenol (also called DON or vomitoxin), zearalenone, T-2 toxin, and fumonisin. Aflatoxin is another toxen, but is associated with hot weather and/or drought stress conditions.

Signs of mycotoxin in dairy cattle include immune suppression (cattle do not respond to disease challenges), rumen disorders and reduced microbial digestion, loose fecal discharges, reduced dry matter intake, decline in fertility, and hormonal-like changes (udder development and fertility).

Mycotoxin risk levels for dairy cattle are listed below (expressed on a total ration dry matter basis). Dilution with clean feed can reduce, but contaminated feed can vary greatly in concentration (note some toxins are listed as parts per billion; others are parts per million).

DON (vomitoxin) < 5 to 6 parts per million

Fumonisin < 25 ppm million

T-2 toxin < 100 to 200 parts per billion

Zearalenone < 300 parts per billion

Aflatoxin < 20 parts per billion

Molds and Mycotoxins, Part II

Wed, 11 Nov 2009 00:00:00 CST

If you are concerned that mold risks could be a problem, the following guidelines may be helpful.

Testing for mycotoxins can provide an estimation of risk. Tests can be expensive and sampling and feed variation can reduce the usefulness of the results.
Adding a mycotoxin binder can reduce the impact of toxins be reducing their impact in the digestive tract and/or not absorbed (binders include yeast cell wall extracts or MOS products and clay binders).
Drying wet corn below 15 percent moisture stops further toxin development.
High moisture corn could increase the risk of addition mold grow until the pH of the fermented corn drops.
Adding a grain inoculant to speed up fermentation and stabilize the wet corn is recommended.
Young animals and pregnant cattle are at higher risk while steers can tolerate higher levels.
Removing fines, damaged seeds, and cracked corn kernels can reduce toxin risk.
If you purchase corn screenings, higher levels of mycotoxin risk can be present.
Distillers grain produced from ethanol production can concentrate the level of toxins in the original corn used; know your sources of distillers grain.
Corn silage made late in the season with mold damage could have toxins, but the low pH will stop additional toxin production.
Adding propionic acid at the time of ensiling can reduce mold development in wet corn.

Plan to attend the Nov 18th webinar on "Wet Corn" at http://events.idtg.uiuc.edu/wet_corn

Frost Concerns With Livestock Feeding

Fri, 9 Oct 2009 00:00:00 CST

Weather forecast for this coming weekend calls for our first run of frosty conditions with temperatures predicted in the mid to low 30's throughout Illinois. Along with that report comes the questions from many livestock farmers on "what affects will the frost create for livestock feeds" says Dave Fischer, University of Illinois Extension Dairy Educator. Following frost, livestock producers should be cautious when grazing cattle on crops in the sorghum family. Grazing other grasses and legumes will not be a problem.

Grazing sudangrass, sorghum-sundangrass hybrids, grain/forage sorghum. These crops are members of the sorghum family and will produce a glucoside called dhurrin that breaks down to release a toxin called prussic acid. A crop stress, such as frost, causes the prussic acid to be released at a rapid rate and the intake of high levels may be lethal to cattle. Clinical signs of prussic acid poisoning include rapid pulse, labored breathing and eventual suffocation. Livestock producers should move cattle away from grazing these forages for several days following a frost. If the crop was safe to graze prior to frost it will again be safe to graze 3 to 5 days following the frost. Remember, sudangrass should be greater than 18 inches tall or sorghum-sudangrass greater than 24 inches before it is safe to graze under any conditions.

Baling or ensiling sudangrass, sorghum-sundangrass hybrids, and grain sorghum immediately following or shortly after a frost is safe because the prussic acid will breakdown and dissipate during the harvesting process. Therefore, waiting 7 - 10 days after harvesting those crops made into hay or silage will be safe to feed. However, allowing the feed to cure or ferment in the silo or bale for 2-3 weeks before feeding will give you an added safety factor. Certainly do not feed the material as green chop.

Grazing alfalfa, clover, and other perennial forages are not a concern following a frost because they do not produce toxins and can be grazed or baled and fed to livestock even after a frost. The only caution will perhaps be a slight chance for ruminants to bloat if grazing pure legume pastures and should be offered other feedstuffs to avoid over-eating the succulent pasture.

Harvesting alfalfa after a killing frost is acceptable only when the plant is going into dormancy. This killing/dormant frost occurs when temperatures reach 28 degrees Fahrenheit, or lower, over night (4 hours or more). If the plants are harvested pre-dormancy and regrowth occurs 1-2 weeks before going dormant, significant plant damage can occur during over wintering due to reduced food reserves in the plant to survive the cold temperatures. If the forage is not needed, it is advisable to leave the crop uncut for the winter.

Immature soybeans that are caught by the frost due to late plantings can be harvested for forage if the crop is free from applied pesticides. The soybean forage should be cut, wilted, and harvested at similar moisture levels as would be used for alfalfa or other legumes. It is best to begin harvest no later than the than when the bottom leaves turn yellow and begin to drop off. Since late fall drying conditions are very marginal, chopping as silage is preferred over baling.

Fall Forage Guidelines

Fri, 18 Sep 2009 00:00:00 CST

Illinois has experienced a challenging growing season with late planting of corn and soybeans due to excessive rain, delayed harvest of first cutting legume and grass, and a cool summer (slows plant growth). Several opportunities/challenges may occur this fall which are summarized below. Hopefully, livestock producers will not need these answers.

Question: If the corn crop does not mature, what alternatives are possible?

Answer: For livestock producers, corn silage is an excellent alternative for immature corn due to delaying spring plant due to rain and cool summer temperatures. Allow the corn crop to grow and mature until a killing frost has occurred. Depending on ear fill, the quality and quantity of the corn silage will vary. A key point is to harvest at 30 to 35 percent (bunker or bag storage) or 33 to 37 percent (tower silos) dry matter to achieve optimal fermentation and minimize seepage. If the corn plant is too wet to harvest, wait for a killing frost to allow the plant moisture content to drop to 65 to 70 percent water (may require 3 to 7 days). Adding an inoculant can improve forage quality, dry matter recovery, and fermentation profile. If the livestock producer is purchasing the immature corn as silage, be sure to adjust for moisture content (do not buy water) and quality (based on the level of starch and neutral detergent fiber or NDF content). Nitrate levels may increase in the frost damaged plants, but ensiling and fermenting the corn silage will reduce nitrate levels 50 percent or more (below 4500 parts per million or ppm). If nitrate content is a concern, test the silage after ensiling. Do not pasture immature corn after a killing frost as animals may consume new regrowth high in nitrate risk. Green chopping frosted corn can increase nitrate toxicity risks.

High moisture corn grain is another alternative if the corn grain is too wet and expensive to dry.

Harvest high moisture shelled corn can be harvested at 26 to 30 percent dry matter.
High moisture ear corn can harvested at 28 to 34 percent moisture.
Snaplage (ear, husk, and some plant material) can be harvested at 35 to 40 percent moisture.

Adding an inoculant is recommended when storing high moisture grain. If wet corn storage is in upright storage units, select the lower moisture level; bunkers or bags should be near the higher moisture range.

Question: Can immature soybeans be fed as forage?

Answer: Immature soybean plants will be similar in feed quality as alfalfa forage in protein, energy, and mineral content. The optimal stage of harvest is at pod formation and before leaves begins to drop to get an optimal quality and quantity (if the plant can reach this point). Cut and wilt the soybean plant to the same moisture level as haylage. Yields of dry matter will vary depending on plant density and maturity (typically 1 to 1.5 tons of dry matter per acre). Purchase the immature soybean forage based on similar alfalfa forage prices. If seeds are beginning to develop, the forage quality will be declining, but the green seed has added fat and feed value (avoid losing the seed when cutting and crimping). If a killing frost is predicted, cut the soybean to avoid leaf loss. If you are purchasing immature soybeans, base the price on tons of dry matter harvested and forage quality (run a forage test). Making hay will be difficult due to the high moisture content of the plant and poor drying conditions. Again, add a forage inoculants to enhance fermentation.

Question: Can I harvest legume/grass forage in November?

Answer: Wisconsin researchers recommend a "last" cutting of alfalfa can be done if the plant will not try to start regrowth reducing root reserves of nutrients. The University of Illinois South Dairy Farm has taken late cuttings in mid November. Alfalfa silage was stored in bags (the alfalfa silage was difficult to dry above 40 percent dry matter). Cutting height was higher with four inches of stubble to catch snow and reduce ice sheet risks. Higher soil fertility levels (especially potassium) can minimize winter kill risk. Silage harvested under cool to cold conditions may not ferment well and should be fed before warmer temperatures in spring. The silage may appear green in color (similar to fresh alfalfa).

Challenging Times for Dairy Managers

Thu, 4 Jun 2009 00:00:00 CST

With June Dairy Month arriving, dairy managers are recording huge financial losses; 2009 will not be a "kind" year for dairy farmers. Milk prices dropped nearly 40 percent starting in January reaching less than $12 per one hundred pounds (cwt) from $18 in December, 2008. To cover all production costs (feed, non-feed, and labor), Illinois dairy managers need $16 to $18 per cwt depending on herd size, debt load, labor efficiency, and feed costs. From February to June, 2009, the average Illinois dairy farm with 105 cows is losing over $10,000 a month (larger southwestern U.S. dairy farms lost over $300,000 a month).

Reasons for these huge losses include a decline in foreign exports (11 percent of U.S. dairy products were exported in 2008), stronger U.S. dollar (reduces export while raising costs), decline in the U.S. and world economy, and less dairy products being consumed with reduced incomes and job losses).

Illinois dairy managers have few alternatives to reduce daily losses on the farm. Feed costs represent 60 percent of the cost to produce milk. With a new forage crop year started, any and all ways to increase forage quality and quantity in dairy rations will be a plus. By-products feeds such as corn gluten feed, wet brewers grain, and distillers grain are "good" buys replacing soybean meal and corn as nutrient sources in rations while reducing feed costs. Illinois feeding guidelines include less than $6.50 per cwt of milk, target feed cost below nine cents per pound of dry matter, and raise feed efficiency over 1.6 (pounds of milk per pound of dry matter consumed). Carefully review feed additives included in ration; silage inoculants, monensin, buffers, yeast products, and organic trace minerals are excellent investments. Do not pull nutrients from the ration reducing milk yield, decreasing health and immunity, and/or lower fertility.

Several opinions are available for Illinois dairy farmers to reduce losses.

MILC (Milk income loss contract) is a government sponsored program that provides some relief for smaller dairy farms (less than 150 cows). If the dairy manager has enrolled in the program, she/he received $1.51 per one hundred pounds in February, $2.04 in March, and $1.49 in April.
Future milk prices (based on the Chicago Mercantile Exchange) are increasing in the summer with $15.00+ per cwt listed for October, November, and December (better, but below break even milk prices).
Cooperative Working Together (CWT) has launched another herd buy-out programs reducing cow numbers by paying some dairy farms to leave the dairy industry. This project is funded by dairy farmers using check off funds in an attempt to reduce cow numbers and milk supply (there is an excess of 300,000 dairy cows currently in the U.S. leading to surplus milk).
In some stores, the price of milk has dropped 50 cents a gallon while other dairy products remain constant. As consumers respond with more milk and dairy purchases due to lower prices, this helps to reduce surplus levels.

Other "wide card" factors will be the growing conditions in the summer dictating forage amounts and quality, price of corn and soybean meal in the fall related to ethanol production and yields, heat stress on dairy cattle which could reduce milk yield, world demand for dairy products and feed grains, and water restrictions in the western states (nearly 50 percent of the U.S. milk is produced in this region).

The 2008 report card for the Illinois dairy industry compared to 2007 is concerning as the average Illinois dairy cow produced 18,569 pound of milk annually (down 0.2 percent) while the U.S. average is 20,396 pounds per cow (up 1 percent). Illinois produced 1.89 billion pounds of milk (dropped 1.2 percent) while the U.S. dairy industry produced 289.9 billion pounds (up 2.3 percent). Illinois has 984 dairy farms (down 5.3 percent) compared to the total of 57,127 (down 3.4 percent). Illinois ranks 20^th in total milk yield, 21st in cow numbers, and 25th in milk yield per cow. Illinois dairy farms produces less than 30 percent of the milk and dry products consumed by Illinois consumers and continues to loss jobs and market share while having an abundance of feed and a huge consumer market base.

Take-home messages for Illinois dairy managers are to minimize equity losses, review feeding programs using economical feed ingredients, produce high quality milk leading to quality premiums, maintain high milk yields, and do not make "wrong" decisions in this summer (not getting cow pregnant or slow heifer growth for example) that results in long term negative impact in 2010. Dairy farming is a business; make smart business decisions and hang on as the dairy future looks favorable.

Consumers of Dairy Products

Wed, 3 Jun 2009 00:00:00 CST

June Dairy Month is here and consumers have good news! The cost of dairy products has dropped in many markets as the price paid dairy farmers has dropped 40 percent at the farm gate (50 cents a gallon). While dairy managers are facing huge losses ($10,000 a month with a herd of 100 cows), consumers can buy milk in the Midwest below $2.50 a gallon and butter below $2.50 a pound. June Dairy Month focuses on dairy products, new dairy product recipes, and exciting displays in the dairy case.

Dairy products remain popular as they contain high quality protein with all essential amino acids and whey proteins important in weight control and loss. Milk contains high levels of calcium, potassium, magnesium, and phosphorous. A calcium deficiency called osteoporosis (bone deterioration) continues to be challenge to older U.S. consumers; 73 percent of calcium in a balanced diet can be provided by milk and milk products. Daily U.S. dietary guidelines include two serving of dairy products for children from 1 to 8 years of age and three dairy servings for children over 9 years of age and adults.

If you were the average U.S. consumers in 2007 (last year of available data), you consumed 81.5 pounds of reduced or low fat milk, 54.8 pounds of whole milk, 37.8 fat-free milk, and 17.9 pounds of flavored milk (total of 20.7 gallons a year). You also ate 31.9 pounds of cheese, 21.2 pounds of ice cream, and 4.4 pounds of butter. Dairy product "winners" in 2007 included a 4.8 percent increase in yogurt, 3.9 percent increase in source cream and dips, and 2.6 percent increase in cheese. Dairy product "losers" included a decrease of 7.4 percent in eggnog consumption and 4.8 percent decline in whole milk. These trends indicate changes in dairy products reflect consumers wanting lower caloric products such as yogurt, but sour cream and dips reflect flavor and snack choices. The advantage of a wide variety of dairy products allows consumers to pick their favorite dairy product based on fat content, caloric intake, flavor, taste, cost, and food recipe alternatives.

Consumer dairy choices, controversy, and prices enter in the shopping cart selection process. Another choice is the method of milk production on the farm. The first quarter of 2009 national American Farm Bureau Association supermarket price summary reported organic milk cost $3.71 a half a gallon, rBST labeled milk (from cows not inject with bovine somatotropin) at $3.19 per half gallon, and conventional/"green" milk at $2.16 per half gallon. "Green" milk is produced by dairy farmers using all approved technology to produce milk leading to a lower carbon footprint and more efficiency (more milk per cow at a lower cost to produce the milk).

Currently dairy farmers receive $11 to $14 per one hundred pounds while the cost to product this milk will range from $15 to $18 per one hundred pounds depending on region in the U.S., feed costs, herd size, and investments needed to house and management cows.

Supermarkets continue to be the primary source of purchasing milk (72% of all milk sold) while drug stores sell 3 percent of all milk sales. Federal school programs utilize 5.6 percent of all U.S. sales. Italian cheese is the most popular type of cheese at 14 pounds (total 31.9 pounds). No dairy products were purchased in 2007 by the government milk price support program. Mexico was our largest foreign customer to import dairy products. The U.S. exported nearly 11 percent of all 2008 dairy production with record exports improving the U.S. balance of payment.

The 2008 U.S. dairy industry had 57,127 dairy farm operations (a decline of 4.4 percent compared to 2007) with 9.32 million cows (up 1.4 percent compared to 2007) producing 189.9 billion pounds of milk (up 2.3 percent compared to 2007) averaging 20,396 of milk per cow annually. In comparison, the European Union of 27 countries has 24.3 million dairy cows producing 12,015 pounds of milk per cow. The continued improvements in efficiency in the U.S. dairy industry reflect higher milk yield per cow resulting in lower priced milk and dairy products for U.S. consumers.

PEAQ 2009 - 052209

Fri, 22 May 2009 00:00:00 CST

This presentation is in conjunction with the PEAQ project.

PEAQ 2009 - 050709

Fri, 8 May 2009 00:00:00 CST

This presentation is in conjunction with the PEAQ project.

H1N1 Flu Virus and Dairy

Mon, 4 May 2009 00:00:00 CST

The dairy industry is closely monitoring the H1N1 flu virus and potential implications for the U.S. livestock community. Both the U.S. government and World Health Organization (WHO) have stopped using the term "swine flu" to avoid confusion over the link to pigs. The influenza subtype involved in the outbreak is unique and not previously recognized in either pigs or people. The H1N1 virus is not transmissible to cattle, and cattle are not reservoirs of the virus, as swine and birds can be.

The dairy industry has responded to inquiries about the impact of H1N1 on the dairy supply chain. Below are talking points to help you address any inquiries from industry contacts and dairy producers.

The dairy industry is closely monitoring the H1N1 flu outbreak.
- The dairy industry is working closely with our partners in government and agriculture to identify potential implications for the U.S. livestock community.
- The dairy industry is posting H1N1 situation updates at www.dairyresponse.com – a resource for dairy farmers on animal health/animal disease outbreaks.
- To date, no government recommendations have been directed toward dairy producers.
The dairy supply chain is safe.
- There is absolutely no link to cattle, either in Mexico or the United States.
- The virus is NOT transmissible to cattle, and cattle are not reservoirs of the virus, as swine and birds can be.
- Raw milk is stored and transferred in closed systems, and pasteurization would kill the virus if it ever came in contact with milk.
- Once pasteurized, milk is immediately packaged and is not subject to contamination.
The food supply remains safe.
- H1N1 flu is not transmitted via food, according to the U.S. Centers for Disease Control and Prevention and World Health Organization. This includes the meat from pigs or chickens, or dairy products from cows.
- This is not an animal health or food safety issue according to U.S. Department of Agriculture.

PEAQ 2009 - 043009

Thu, 30 Apr 2009 00:00:00 CST

This presentation is in conjunction with the PEAQ project.

PEAQ 2009 - Welcome

Wed, 29 Apr 2009 00:00:00 CST

This presentation is in conjunction with the PEAQ project.

Dairy Outlook and Webinar Training

Fri, 3 Apr 2009 00:00:00 CST

Milk Outlook

Milk prices continue to be a challenge, but the MILC program provides some assistance to smaller dairy managers as the February payment was $1.51 and March may be $1.93 to $2.06 per one hundred pounds (cwt). The Chicago Mercantile Exchange futures prices (class III) have also improved with May listed at $11.40, July at $13.37, September at $15.00, and November at $15.23 per cwt.

Continue culling unprofitable cows (under 45 pounds of milk) and fine tune input costs. Cull cow prices remain stable at 44 cents a pound as more cows go to market.

Another CWT herd buy-out program has also been announced with sign-up this spring until May 1st. A larger number of farmers are expected to submit bids deciding to leave the U.S. dairy industry. Dairy managers submit a price per 100 pounds of milk. If selected, they sell their herd of dairy cows as cull cows and can also sell replacement heifers. If the dairy manager enters the program, she/he can not re-enter dairy industry for one year.

Dairy Webinar 1: Managing the Dairy Replacement Herd

"Managing the Dairy Replacement Herd" webinar is designed to address the importance and renewed interest in heifer management. This heightened awareness is due to higher costs of raising heifers, the increased demand for higher milk production in younger cows, and the need to improve dairy cow longevity resulting in greater total productive life. The webinar will discuss the importance of quantity, quality and timing of colostrum intake, acquiring and monitoring suggested heifer growth rates, review of production costs, and improving the health and productivity of the replacement as a dairy cow. The profitability of dairy replacements can be significantly credited to the growth and health conditions in their first 22 to 24 months of life. The 40 minute webinar presentation will be conducted by Dave Fischer, Mike Hutjens and Dick Wallace, U of I Extension Dairy specialists.

Title: Managing the Dairy Replacement Herd

Date: Wednesday April 8, 2009

Time: 12:00 PM – 1:00 PM CDT

Dairy Webinar 2: Strategies for Cull Cow Management: Reducing your Risk of Antibiotic Residues.

The third University of Illinois Dairy Webinar is scheduled for May 1st from noon to 1 pm CDT. "Strategies for Cull Cow Management: Reducing Your Risk of Antibiotic Residues" is designed to address current issues in cull cow management. The heightened awareness of animal welfare issues with cows sent to slaughter and the potential for antibiotic residues in cull cows is driving this webinar. Following the National Milk Producer's Federation Top 10 Considerations for Culling and Transporting Dairy Animals to a Packing or Processing Facility will be discussed. Evaluating options for on-farm feeding of non-lactating market cows will be presented. The 40 minute webinar presentation will be conducted by Dick Wallace, Dave Fischer and Mike Hutjens, U of I Extension Dairy specialists.

Date: Friday, May 1, 2009

Time: 12:00 PM – 1:00 pm

Registration at: http://tinyurl.com/CullCowMgmt

Finding Five Dollars Per One Hundred Pounds of Milk Sold

Wed, 11 Feb 2009 00:00:00 CST

With the arrival of 2009, dairy managers will be facing significant economic challenges. Milk prices at the farm gate will decline over 30% or $5 to $6 per one hundred pounds (Nov, 2008 was $19/cwt; Feb, 2009 may be $13/cwt). Reasons for this decline include the recession in U.S. and world dairy economies, stronger U.S. dollar, decline in eating out, and less export of dairy products.

Strategies to consider include:

Lower feed costs may replace $1.50 per cwt
Explore the use of by-product feeds to reduce feed costs (target 9 cents per pound)
Maintain milk yield and milk components
Increase quality premiums
Sign up for the MILC (milk income loss contract) can provide $1.20 to $1.50 per cwt

Consumers may see a drop of 50 cents per gallon as dairy farmers receive 5 to 6 cents less per pound of milk (8.6 lb of milk in a gallon of milk). Cheese prices could also drop 50 cent a pound, butter could decline $1.00 per pound.

With today's current milk prices and imput costs, Illinois dairy managers could lose $100 a month per cow. The average Illinois herd size is 102 cows representing over $10,000 loss per month. It may be summer, 2009, before milk prices increase return to break even prices.

2009 Illinois Dairy Days

Thu, 18 Dec 2008 00:00:00 CST

The theme for the 2009 Illinois Dairy Days will be "Economic Expectations". Nine regional meetings will be held across Illinois to provide the latest research results and extension recommendations in a fast pace format. Titles and speakers are list below.

Feeding Challenges with Today's Milk Price—Mike Hutjens
Managing the Replacement Herd—Dave Fischer
Evaluating Economic Alternatives—Jim Endress
Economic Implications of Cull Dairy Cattle—Dick Wallace
Dairy Updates

Impact of Technology on the Dairy Carbon Footprint—Mike Hutjens
Manure—A Valuable By-Product—Dave Fischer
Livestock Gross Margin for Dairy—Jim Endress
Herd Health Update—Dick Wallace

Meetings start at 10 am (the Jerseyville meeting (Jerseyville meeting at 7:30 pm) and end at 2:30 pm with commercial booths. A registration fee and meal charge will be collected at the door. Copies of the 2009 Illinois Dairy Report will be provided free this year as industry companies have donated funds to support the publication. Visit the website at: http://www.livestocktrail.uiuc.edu/dairynet and click on calendar of events.

El Paso at the Community Center, Thursday, January 8
Arthur at the Yoder's Country Kitchen, Friday, Jan 9
Quincy at the Adams County Farm Bureau Building, Tuesday, Jan 13
Jerseyville at the Super 8 Motel, Tuesday night, Jan 13 (7:30 pm)
Okawville at the Community Club Building, Wednesday, Jan 14
Breese at the American Legion, Thursday, Jan 15
Elizabeth at the Community Center, Tuesday, Jan 20
Freeport at the Highland Community College, Wednesday, Jan 21
Harvard at the Stratford Inn, Thursday, Jan 22

Livestock Gross Margin Insurance for Dairy (LGM-Dairy)

The LGM-Dairy for Illinois dairy farms became available in August, 2008. It is a federally reinsured dairy insurance program run through the U.S. crop insurance program. It provides protection against unexpected declines in milk prices and increases in corn and soybean prices (defined as gross margin). No producer premium subsidy is available and dairy managers pay a premium. The allowable deduction amounts range from zero to $1.50 per one hundred pounds in 10 cent increments. Premiums depend on the amount of coverage selected, producers marketing plan, futures price, and price volatility. Advantages of the program include convenience to sign up, customization with flexibility on coverage, bundled options, no brokerage account, simple to enroll, guaranteed pricing, and availability in Illinois (32 states are eligible for this program). Dairy managers can study this program by going to these websites.

http://future.aae.wisc.edu.lgm_dairy.html (underline between lgm_dairy)
http://www.rma.usda.gov/livestock
http://www.uwex/ces/dairymgt/dairy.cfm

Marking Correct Feed Decisions

With milk prices dropping and feed prices changing weekly, dairy managers are making key decisions that impact profit margins. While "cheaper" feeding programs can be a plus, making correct decisions will be important. Three "golden rules" are listed below that apply when considering and/or making feed changes.

Golden Rule #1: Never give up milk yield as income will be reduced faster than expenses. At today's feed prices, one pound of ration dry matter may cost 9 to 11 cents. One pound of dry matter can support 2 to 2.5 pounds more milk for Holstein cows (one pound above maintenance or the last pound of dry matter removed or added). By not feeding one pound of dry matter results in 10 cents savings, but this decision results in losing 36 to 40 cents of milk income per day per cow.
Golden Rule #2: Maintain milk components, especially milk protein which is worth $3.27 a pound. Milk fat is valued at $1.82 a pound (September, 2008 prices). Low milk components can reflect changes in feeding program and/or reduced rumen function.
Golden Rule #3: Guard against feed changes that affect the dairy herd long term (for example reduced fertility, heifer growth, and herd health). While milk response can be response after correcting over several weeks, getting cow pregnant and reducing somatic cell counts can take months to improve.

Dairy Carbon Footprint

Tue, 28 Oct 2008 00:00:00 CST

The environmental impact of dairy cattle continue to be in the news as global warming concerns are raised due to methane production and carbon dioxide relationships. Dairy cows produce methane when digesting feed in the rumen which has 25 times more impact compared to carbon dioxide. While a wide range of claims have been made, 6 percent of the total carbon footprint is from agriculture with dairy responsible for 11 percent of the total 6 percent or 0.7% of the total is related to dairy production. The real story is the huge reducing in the dairy carbon foot print due to the improved efficiency in producing milk. Using 1944 as the base year of comparison (largest number of dairy cows in the U.S.), the number of dairy cows have dropped from 25.6 million cows to 9.2 million cows while milk production increased from 117 billion pounds of milk to 186 billion pounds of milk. Using pounds of carbon dioxide per gallon of milk as the carbon footprint value, it dropped from 31 lb in 1944 to 12 pounds per gallon in 2007. Thus, the dairy industry has become very "green". The National Academy of Science published a peer reviewed paper in 2008 reflecting two strategies in dairy production; the improving of milk production efficiency and impact of organic dairy production to convention production. One challenge is when technology is being denied that improved dairy efficiency (not using GMO application such as crop or rBST). For example if one million U.S. cows produce 10 lb more milk per day due to technology adoption, the following impacts could be expected.

Reduce 157,000 cows needed to produce the same level of milk
Reduce 219 fewer hectare of land for feed production
Reduce methane emission by 41 million kg annually
Reduce manure excretion by 2.8 million tons annually

Another application was comparing organic milk production to conventional milk production results in needing 25 percent more cows, 30 percent more land for feed production, 39 percent more nitrogen excretion, and 13 percent increase in global warming potential. What does the National Academy of Sciences peer reviewed research results mean to consumers, producers, and the environment.

For consumers, it requires careful analysis to determine if carbon foot print and global warning applications are more important than denying technology applications, especially when that technology does not change nutrient content of food or impact animal health.
For dairy managers, increasing milk production efficiency will reduce carbon foot print, nitrogen efficiency, and reduce global warming; these dairy managers are increasingly more "green".

For the environment, using fewer resources to produce food will improve the carbon footprint.

Milk Quality and China

Tue, 7 Oct 2008 00:00:00 CST

China is back in the news with the recall of milk products due to the addition of melamine, an industrial chemical used plastics and fertilizer production. The appearance of this product has created to crisis in China leading to the death of babies (contained in infant formula) and 340 children hospitalized with kidney disorders, and 54,000 infants exposed to the compound. Initially, Sanfu Group was the only milk company involved due to their relationship with Fonterra, New Zealand's largest export of milk and now has expanded two several more China milk processors. Milk has been pulled from stores and formal apologies extended by government and company officials.

Melamine contains nitrogen which increases the protein content in milk when tested. By adding this compound, milk appears to be higher in protein content and nutrient value. Part of the reason this occurred is limited quality control and higher feed prices resulting in cows receiving lower quality rations, especially in small family dairy farms. Chinese also want to increase their intake of milk from 15 grams to 150 grams a day with over 2 billion consumers increasing the demand for higher quality nutrients. The large industrial dairy herds have not added the compound to their milk supply. Currently, inspectors are located on farms monitoring milk quality.

The concern has spread around the world as Chinese milk products can be found in numerous food products such as candies, cakes, and bakery leading to recalls in the U.S. Earlier in the U.S. this product appeared in dog food leading to health problems and product recall.

The take home message for U.S, consumers is that the U.S. dairy supply is safe due to the constant testing and regulation for food safety. No antibiotics, pesticide, herbicides, or other chemicals can be added and are monitors regardless of type of milk (organic, natural, and wholesome milk sources).

The dairy managers also know the important of safe guarding milk quality and safety when feeding and managing dairy cows. The knowledge base is key for dairy farmers.

Finally, consumers will continue to ask where their food sources are coming from as these problems continue to occur in the food chain including vegetables, spinach, and lettuce.

Fall Forage Harvesting Alternatives and Strategies

Thu, 21 Aug 2008 00:00:00 CST

Situation One: Late corn silage

The main differences will be yield (tons of dry matter per acre) and starch content. Allowing the corn crop to try to reach optimal maturity is recommended (wait as long as the plant is growing). Growing degree days in the fall and a killing frost will be factors that determine how mature your corn is when harvested as corn silage. Target harvesting immature corn silage at 30 to 34 percent dry matter in bags, bunkers, and piles; drier silage (35 to 40 percent dry matter) in vertical structures depending on height and diameter to minimize seepage losses. Testing the immature corn silage for starch content, neutral detergent fiber (NDF), acid detergent fiber (ADF) or lignin, soluble nitrogen, and NDF digestibility (NDFD) will allow for optimal ration balancing. Sugar content and NDFD may be improved as the stalk will not contain as much indigestible fiber and sugars were not convert starch. The following corn silage related factors should be considered.

Situation Two: Available immature corn in the area

In some areas, immature corn silage may be available from crop farmers that do not have dairy or beef cattle. With high forage prices this fall, purchasing and harvesting this crop can be an excellent economic alterative for a dairy manager. Key factors will be the price to pay for the standing corn crop, harvesting costs (lower yields and wet conditions can be higher), and potential higher storage losses (seepage and fermentation losses). When pricing standing corn silage, estimate or weigh the dry matter harvested (weighing silage box or truck loads for example) and agree on price per ton ($45 a ton at 33% dry matter). If the silage is wetter (do not buy water) or lower in starch/nutrient content, the prices needs to be lowered

Situation Three: Immature soybeans

With late planting and flooded areas, some soybean fields will not reach maturity and may be available for purchasing fields in your area. Immature soybean forage will be similar to alfalfa/legume forage and should be harvested in a similar approach (cut, wilted, and harvested at similar moisture levels based on your storage unit—bag, bunker, or vertical silo). Baling will be difficult as dry conditions will be less favorable in the late fall. Harvesting soybeans at the pod formation stage will optimize yield (1 to 2 ton of dry matter per acre) and quality (18 percent crude protein and 0.55 to 0.60 Mcal per pound of dry matter). Harvesting earlier will reduce yield. Avoid leaf loss/dropping leading to lower protein content and dry matter yield. Inoculating soybean silage is recommended. Green soybean seed will feed similar to regular soybeans, but can lower in oil and nutrient content. Heat-treating wet and immature soybeans will require more heat and energy to improve rumen undegraded protein (RUP) levels. Check herbicide labels for restrictions if soybeans have been sprayed.

Challenges to U.S. Dairy Industry

Mon, 7 Jul 2008 00:00:00 CST

URBANA - As dairy consumers face higher prices in the stores, Illinois dairy farmers are being squeezed with higher feed costs, higher fuel prices, and higher input costs, said a University of Illinois Extension dairy specialist. "The price hikes in the dairy coolers aren't being shared by dairy producers," said Mike Hutjens, noting that corn now costs producers $6 per bushel, fuel $4 per gallon, and other energy, fertilizer, and transportation costs are also higher for dairy enterprises. Hutjens' remarks came as he reviewed the state's dairy industry on the eve of the annual June Dairy Month.

Last year, Illinois had 1,040 dairy farms averaging 99 cows. The average Illinois dairy cow produced 19,252 pounds of milk compared to the national average of 20,267. "In 2007, Illinois had 103,000 dairy cows, the same number as in 2006," he said. "Overall, the Illinois dairy industry remains stable while the U.S. dairy industry has increased 2 percent."

Illinois dairy producers, as he noted earlier, face a number of challenges. Milk prices have dropped $2 per one hundred pounds to the current price of $18 per hundredweight while feed costs have increased $2 per hundredweight. Futures milk prices in the next six months are increasing which will be important.

"The breakeven price to cover feed, variable, fixed, and labor costs is near $18 per hundredweight," he said. "Illinois dairy managers are barely breaking even." High milk prices in stores have consumer rethinking their purchase patterns, he added. "The feed outlook is challenging as wet weather has delayed corn planting which could result in shifting to soybeans--raising corn prices--and alfalfa yield is encouraging but is rapidly maturing reducing forage quality," he said. "The role of biofuels impacts all feed prices with 25 to 30 percent of the 2008 corn crop possibly being used for ethanol along with soy oil for biofuels."

Another problem is the loss of rBST (recombinant bovine somatotropin) technology that had been approved by the FDA will reduce profit on injected cows by 80 cents per cow per day or $195 per year. "About 33 percent of Illinois dairy farms used this technology which is no longer allowed by several milk producers," he explained.

The demand for dairy products in the world has resulted in over 9 percent of U.S. milk solids being exported, thereby raising U.S. domestic prices.
"But the European Union and Canada have increased their quotas allowing for more milk production," he said. "The Canadian border has opened for dairy cattle to move to the United States and over 20,000 heifers have moved south to the United States, increasing milk production. Dairying is truly an international industry." For the dairy manager using foreign labor sources, the Department of Homeland Security's "no match" Social Security program can impact the quality and availability of labor on larger dairy farms. Land values in the Midwest increased 16 percent last year--8 percent annually over the last four years--leading to higher cash rent and feed costs.
"Some dairy managers may elect to market feed directly without adding value by feeding livestock due to additional labor costs and reduced profit margins," he said.

The Illinois dairy industry has plenty of room to improve in order to compete in the world dairy environment, he noted. "Arizona dairy cows had the highest milk yield average at 23,260 pounds while New Mexico dairy farms averaged 2,012 cows. Only one herd in Illinois exceeds this average," he said. "The top Illinois Holstein herd in 2007 averaged 29,906 pounds."

Increasing the size of Illinois dairy herds has impacts beyond the farm. "The economic impact of adding 100 cows to a dairy herd is impressive," Hutjens said. "Those cows mean $270,000 added farm income and 1.2 new jobs. Those 100 cows consume 122 acres of corn and 62 acres of hay. They require $6,550 in additional veterinary and breeding services, contribute $5,760 in taxes, and pay out $34,300 in wages. Livestock farms can support rural revitalization and growth.

U.S. Dairy Products Safe and Economical

Tue, 27 May 2008 00:00:00 CST

U.S. consumers have the safest and most economical sources of dairy products in the world. Milk continues to be in the news today as food prices continue to increase. Consumers and dairy managers have a stake in purchase and policy decisions in this area and costs. Consumers have questions and alternatives.

Hutjens' comments came as he reviewed U.S. and world dairy consumption figures and policy matters on the eve of June Dairy Month.

The average U.S. consumer in 2006--the latest available data--consumed 201 pounds of milk products, representing 32 percent of all dairy product consumption. Cheese came in at 32.5 pounds, or 40 percent of consumption. Butter was at 4.7 pounds, 13.6 percent, and frozen dairy products were consumed at a rate of 21.2 pounds or 7.8 percent. Dairy products that increased in popularity were reduced fat milk (up 1.2 percent compared to 2005), cheese up 3.2 percent, fat-free milk up 2.9 percent, flavored milk up 2.5 percent, and yogurt up 6.7 percent. Losers in the dairy case included whole milk, down 2 percent; sour cream and dips, down 5.1 percent; and cottage cheese, down 3.7 percent.

Approximately 5.6 percent of milk is consumed in the federally sponsored school milk program. More milk is consumed as fast food outlets are offering single-serve milk as a beverage alternative in plastic containers with attractive advertising. Schools are also offering low-fat flavored milk as alternative beverages low in calories and rich in protein and minerals.

U.S. consumers prefer vanilla ice cream (30 percent), followed by chocolate (10 percent), and butter pecan (4 percent). A total of 45 flavors of ice cream are available to U.S. consumers.

When it comes to drinking milk, the Romanians consume 372 pounds per person compared to 201 pounds in the United States. New Zealanders consume 14 pounds of butter per person compared to 4.7 pounds in the United States.

Consumers approaching the dairy case face decisions.

An American Farm Bureau market basket survey in 2008 reported that a half gallon of regular milk costs $2.40, while milk from cows not injected with rBST (recominbinant bovine somatotrophin was listed at $3.30 per half gallon and organic milk at $3.63 per half gallon. No differences in nutrient content, wholesomeness, and quality occur among the three milk sources. But dairy managers do not receive $195 per cow per year as cows produce less milk when not using the FDA-approved technology. And consumers pay 90 cents more per half gallon for the same milk.

Interestingly, dairy managers received $18 per 100 pounds to produce the milk, while the retail store received $22 per 100 pounds when selling to consumers the milk that is labeled as coming from cows not injected with rBST. Labeling challenges have occurred as some retail companies list no antibiotics, but no milk can contain antibiotics," he said. "Other questionable practices include labeling no pesticides when it is illegal to sell milk with pesticides and no hormones when all milk, including human milk, contains hormones. Cows injected with rBST do not add additional hormones to their milk.

The sale of raw milk is allowed in some states--but not in Illinois. Hutjens said raw milk can be a risk as foodborne pathogens are found in the dairy environment. Several outbreaks of disease in humans have been traced to raw milk or raw cheese, and several bacteria may be found in raw milk, including listeria, campylobacter, and salmonella. No changes in nutrient quality occur when milk is pasteurized. Raw milk may taste richer as Holstein milk contains 3.7 to 4.2 percent milk fat compared to processed whole milk in stores which comes in at 3.25 percent milk fat.

The bottom line is that consumers in the United States have the safest and most economical sources of dairy products. Low-fat content milk, flavored milk, and various forms of dairy products--sour cream, yogurt, and cottage cheese--allow consumers to match cost, taste preferences, and dietary needs.

Crucial Dairy Decisions

Fri, 28 Mar 2008 00:00:00 CST

Although faced with daunting feed costs challenges, dairy producers need to be careful when responding. Some decisions, seemingly made for the best economic reasons, can turn out to be wrong, For instance, decisions that appear on the surface to make sense may make things worse. These include removing feed additives because they add to feed costs; dropping expensive fuzzy cottonseed; adding five pounds of straw to the ration to reduce forage levels; dropping hay from the ration; or simply assuming that the answer to high feed costs is to lower them.

Because of current milk prices and milk component values, it is a mistake to sacrifice milk production. By reducing feed intake by one pound of dry matter, for instance, you may save 10 cents but lose 36 to 40 cents a day in milk income. A similar situation can apply to yeast/yeast culture additives. Research indicates that yeast/yeast culture products have a benefit to cost return of 5:1. If the yeast product costs six cents, it can result in 30 cents return due to higher feed intake during the transition period, higher milk yield, improved rumen environment, and/or less metabolic problems.

While fuzzy cottonseed emerges as too expensive when put through breakeven prices software programs, it does provide other important factors that can't be measured by computers. These include functional fiber, slower release of unsaturated oil, and complementing high corn-silage based rations.

If too much straw is added to reduce forage levels, it will reduce total dry matter intake, reducing nutrient levels and milk yield. Before adding straw, evaluate the current ration levels and what the straw will add. Generally, add one-half pound of straw to the ration and monitor cow response--milk yield, milk components, and manure score--for one to two weeks. If the response is favorable, consider adding another half-pound of straw. But adding over two pounds of straw may be too high. Even though high hay prices are a tempting factor to trigger cutting its use, hay also can improve rumen digestion and microbial growth. Adding five pounds of high-quality hay could increase milk yield by three to five pounds. If milk is worth 18 cents a pound, each pound of hay is worth 11 to 18 cents a pound or $220 to $360 a ton.

Be sure to monitor milk price and feed cost changes as these two factors continue to shift due to spring planting intentions and consumer dairy product demand.

Building On Milk Protein

Thu, 7 Feb 2008 00:00:00 CST

The value of milk continues to remain high due to value of milk protein (over $4.30 cent a pound), consumer demand for cheese and milk protein, and world markets. This pod cast is a new approach which is a presentation at the 2008 IL Dairy Days with power points and a longer recording (27 minutes). Topic areas include the evaluating on-farm approaches to increase milk protein, reasons for low milk protein yield, use of amino acid ration balancing software to build rations, economic comparisons of protein-based feed ingredients, and the use milk urea nitrogen (MUN) as a management tool when evaluating protein status of a herd.

Building On Milk Protein-Slides

Thu, 7 Feb 2008 00:00:00 CST

Presentation slides for Building On Milk Protein podcast.

Look Back and Ahead in Dairy Industry

Fri, 21 Dec 2007 00:00:00 CST

The year 2007 has been a roller coaster for dairy industry.

For dairy producers, the price of milk has increased from $12 per cwt ($1.14 per gallon) in January to over $22 per cwt ($1.80 per gallon) in July. While this has been critical to return and profit margin, other factors have also occurred:

Price of hay and forage has jumped from $90 a ton to$160 a ton due to the Easter freeze (loss of first crop and winter wheat as a forage source).
Corn prices have remained high with corn prices reaching $4.20 a bushel in January.
Fuzzy cottonseed has increased from $135 to $265 a ton as acreage was shifted to corn production for ethanol.
Fuel and fertilizer prices have increased.

The bottom line is the break even price for IL milk producers has increased from $13 to $16 per cwt reducing profits and margins.

For consumers, the price of milk has increased 60 cents to over one dollar a gallon. Part of this cost increase is due to higher farm gate milk prices which represents about 60 cents a gallon. Consumers may be experiencing a new base milk price of $3.50 per gallon or higher compared to $2.80 a gallon. In Tennessee, a gallon of milk was $5.60 a gallon.

Looking ahead to 2008, several factors could impact the price of milk for both producers and consumers.

Restricted use of rBST will reduce milk yield 2 to 4% leading to higher milk prices for both producers and consumers. However, farmers using rBST will experience significant losses of over $1 per cow per day.
The number of milk cows in the U.S. is up 2 to 4 percent which could reduce milk prices.
World milk prices will depend on the value of the U.S. dollar and increased milk quotes on Canada and European Union. Continued increases in demand in China and Pacific Rim countries will be a factor.
Price of ethanol as it impacts corn demand and use.
Weather conditions during the growing season.

Both producers and consumers have an interest in the U.S. dairy industry.

An Update on rbST

Tue, 20 Nov 2007 00:00:00 CST

Illinois dairy producers are being asked to sign affidavits indicating they have stopped their use of rbST (recombinant bovine somatotrophin). The justification for this movement by dairy processors and retailers is that "consumers are demanding it". This initiative sets a dangerous precedent for U.S. and global agriculture. Scientific data indicate that milk from cows given rbST is a safe and effective management tool that can be used to benefit both the producer and consumer for the following reasons: bST is a protein and is present in milk of all cows, rbST in well-managed herds increases milk yield by 10 pounds, the nutrient composition of milk from cows given rbST is not different, bST is a protein broken into small peptides and amino acids in the digestive tract, rbST is species specific, rbST does not contaminate milk with antibiotics, and rbST has beneficial effects on utilization of resources and on the environment.

It has been approved as safe by the following U.S. and world-wide organizations: American Medical Association, American Dietetic Association, American Academy of Family Physicians Foundation, American Academy of Pediatrics, National Institutes of Health, Food and Drug Administration, and European Economic Community.

If dairy managers stop using rbST in 2008, several short and long term impacts can be expected: milk yields in late lactation cows may drop 20 to 30 percent, culling rates will increase, and more cows experience longer dry days and/or gain excessive body weight.

AFACT (American Farmers for the Advancement and Conservation of Technology) is a grassroots movement of producers and industry participants concerned about the future abilities for farmers and producers to choose technologies and practices for their operations.

The Pennsylvania Department of Agriculture has asked 16 dairy companies to correct their labels by January 1, 2008, because their claims can not be verified or imply that their product is safer through absence labeling (telling consumers what is not present rather than what is present).

Dairying Around the World

Thu, 1 Nov 2007 00:00:00 CST

In the last three months, I had the chance to visit three different countries and see part of their dairy industry. It was impressive to see the factors and conditions that drives each country?s dairy industry in Japan, Egypt, and Saudi Arabia.

Japan is the closer to the North American dairy industry with Holstein cows, imported corn and soybean meal, application of technology, and herd sizes similar to the U.S. Challenges included the static milk prices while feed prices increase, reducing inputs to save money currently, trend to exist the dairy business, and large corporations looking to expand in to dairying (other livestock organizations). Japanese consumers are very aware of food safety and quality. A popular milk contains 4.4% milk fat along with 3.75%, 2%, and low fat milk. Little cheese or butter are offered or consumed.

Egypt remains a small farm survival approach with water buffalo milk common (containing 8 to 9% fat). Farm sizes are small with 4 to 6 milking buffalo or dairy cows for family use and sales locally (source of income managed by females. Milk pooling stations are beginning to form. Milk cows are handled and fed individually and seen as a valuable resource keep in the same building as the family lives. A few large Holstein dairies are being developed with political challenges and concerns.

Saudi Arabia is very futuristic with major financial resources available and encouraged to be invested due to oil revenues. Most labor is foreign. The one farm I worked with had 7000 North American Holstein and adding 2500 more. Alfalfa and corn-soybean based diets are fed with excellent production (over 70 lb of milk a day with day temperatures over 120 degree F). A cultured milk drink is popular in the summer which is a challenging time to produce milk. Cow cooling with commercial water and air movement was developed in Saudi Arabia and results in excellent cow comfort and high quality milk. These large farms are selling milk in the Midwest region. Security is a high priority for farms and visitors.

Dairy is part of all three companies economies, Egypt is critical for family survival and income, Saudi Arabia is a profit center with tremendous potential, and Japan?s industry is challenged and changing.

Processor Decisions with rBST

Thu, 4 Oct 2007 00:00:00 CST

Since 2004, FDA approved the use of rBST to use in dairy cows to improve milk yield (typically 8 to 10 lb per cow). The effect of this technology has been to reduce the number of cows needed to produce the amount of milk need for U.S. consumers, lowered milk prices, and was environmentally friendly.

The economic impact of using this technology for dairy farmer is to add $1.10 more income per 100 pounds of milk produced (milk priced at 20 cents a pound, the injected rBST cost 55 cents, and the added feed costs are 35 cents per day, and 3 cents to inject the cow and added milk time).

Point of milk sales (such as Krogers )are requiring milk processors to not accept milk from cows injected with rBST (about 25% of the cows in the U.S.). This decision with no scientific reason and negative economic benefit to consumers will cost dairy managers and the dairy industry.

The long term concern is that safe technology may be denied in livestock and agricultural production which can impact food prices and quality such as new genetic corn traits, use of total mix rations, sexed semen, and vaccine programs.

Consumer and producers have a stake in these decisions.

Illinois Corn Situation for Dairy Managers

Mon, 10 Sep 2007 00:00:00 CST

As the fall weather returns, dairy managers in Illinois face three different situations and alternatives with their corn crop.

Situation 1?Northern Illinois: An excellent corn crop was developing when areas received 4 to 15 inches of rain resulting in corn submerged in 5 feet of ?dirty water? as creeks and river bottom went under water, corn is standing in water for several days, and corn in the upright position trapped water in the husk. The end results include delayed harvest, mold and mycotoxin formation in the grain, rotting of the corn plant, risk of lodging, dirt contamination on and in the corn plant, and the germination of corn on the cob. The strategies include harvest when possible at the optimal dry matter content for silage or grain, monitor formation of mycotoxins, and store silage that is convenient to discard if the resulting forage is not wholesome.

Situation 2?Southern Illinois: Rains stopped in June with some areas not receiving significant moisture in July and August. The corn crop is burn up and dead ranging from three feet in height, no corn due to pollination and heat stress, and variable grain fill in pollinated cobs (size of the kernel and number of kernels). Dairy manager alternatives include corn silage chopped in early August and purchase stress corn as a forage extender. Drought-stressed corn silage can be a good economic decision as hay prices exceed $150 a ton. Double crop soybeans can be another economic forage source if this crop has not setting pods under heat and moisture stress.

Situation 3?Central Illinois: Conditions are right for a huge crop with yields over 200 bushels per acre and 25 plus tons of corn silage per acre possible. Starch content in corn silage could exceed 30 percent of the dry matter. Forage quality and quantity are excellent.

Milk Price Impacts on Consumers, Processors, and Dairy Farmers

Mon, 6 Aug 2007 00:00:00 CST

Milk prices have increased-impacting consumers, processors and dairy farmers. For consumers, milk prices have increased 50 cents to over $1.20 per gallon. On the east coast, milk has reached $5 a gallon, while $4 is a common milk price. However, in the last week in July, two stores in central IL were selling two gallons of milk for $5. Organic milk prices may decline as excess supply in the market due to new herds meeting federal guidelines. Consumers can look ahead to lower milk prices with August futures forecasted at 19 cents a pound, down about 3 cents (translates in a 25 cent drop per gallon) and another 3 cent drop in the fall. But will consumers see a drop of 50 cents a gallon of milk near the holiday season?

Milk processors also feel the impact as pizza prices are increasing. Hershey and Deans report lower profits, and Starbucks has increased their milk/coffee beverage price by 9 cents.

Dairy farmers will need to monitor profit margins and costs as fertilizer, feed and fuel costs are increasing. After three solid months (June, July and August), farm gate milk values will be dropping. The impact of less rBST use (less milk), record number of replacement heifers (more milk), less culling (more milk), increased export of milk solids (higher milk prices), opening of the Canadian border to dairy heifers (more milk), price of corn lower (more milk), expensive hay (less milk) and mild weather in July (more milk) will impact future milk prices and profits.

Using Corn By-Products by Dairy Managers

Mon, 23 Jul 2007 00:00:00 CST

A survey of 9400 livestock producers in 12 midwest states in February, 2007, provided insight on how dairy managers have used corn and other by-product feeds in their feeding programs.

38% of dairy producers are using ethanol co-products while 40% indicate they are not considering it.
Of those dairy managers using co-products, 45% used distillers dried grain, 22% corn gluten feed, 10% brewers grain, 6% wet distillers grain, and 3% corn distillers solubles.
The reported price for distillers dried grain was $130 a ton (breakeven price is over $200 a ton) while corn gluten was listed at $104 a ton (breakeven is over $130 a ton). Breakeven prices reflect the value of the nutrients in the by-product feed (a price below breakeven reflects a ?good buy? for dairy managers).
63% did not prefer indicate a choice for light colored ethanol by-product (dark color may reflect heat damage or lower quality).
Dairy managers rated price and quality of product as key characteristics when buying a by-product feed.
26% of dairy managers reported the primary reason not to use by-product feeds was availability with handling as the second reason.

In summary, by-product feeds should be considered by more dairy managers as a way to reduce feed costs and improve profitability on their farms. Additional information and training are needed to increase their use of corn by-products and other sources.

Crop Status and Impact for Producers and Consumers

Mon, 9 Jul 2007 00:00:00 CST

Based on the June 29th USDA planting summaries, consumers and producers can see the future direction of the U.S. corn, soybean, and hay acreage will have on their operations or food costs. The following values were reported:

Corn acreage up 15 million to 92.8 million acres (IL has 13 million acres of corn, up 2 million acres)
Soybean acreage down 11 million acres to 64.1 million (IL down 2 million acres)
Hay acreage is up 1 million acres to 61.8 million acres (IL down 20,000 acres)

With a yield of 152 bushels per acre, the total corn crop could reach 13 billion bushels with a carry over of 3.5 billion bushels on June 1, 2007.

Corn price futures have dropped about 40 cents a bushel to $3.30 in July, 2007; 3.62 in March, 2008, and $3.82 in July, 2008.

For livestock producers, this reflects lower corn prices while forage costs will remain high due to the spring freeze damage at Easter. For consumers, the potential corn crop may allow the U.S. corn growers to meet corn needs for food, ethanol, and feed for livestock. Weather conditions in the next 6 to 8 weeks will be important.

Updates on Dairy Pricing for Consumers, Processors and Farmers

Fri, 22 Jun 2007 00:00:00 CST

What's happening in the dairy industry?

June has been a busy month with dairy products and strategies in the news. Consumers have seen milk prices increase by one dollar a gallon with increases in cheese, butter, and ice cream. The increase in milk prices in the store is partially related to higher milk prices in dairy farmers (represent half of the store shelf increase).

Dairy processors (such as Kraft, Deans, and Starbucks) are also feeling the impact of higher dairy input costs that are being passed along to consumers. But, independent and local processors are adding marketing pressure as their prices remain lower than national name-branded dairy products. Some pizza companies are adding a ?topping? change for cheese and the amount added could decline.

Dairy farmers will receive record-high milk prices in July, 2007, receiving over $22 per one hundred pounds (cwt) for their milk (this represents an increase of 8 cents a pound compared to winter 2007 prices with a gallon of milk containing 8.6 pounds of milk). Milk production remains tight as more cows have been sold, heat stress is lower milk yield, and world demands for dairy products remain high. Dairy managers face high hay prices (up 40% due to drought and the spring Easter freeze), higher fuel and energy costs, and high corn prices due to a lack of rain and continued growth in ethanol plant numbers.

Consumers and Dairy Products

Fri, 15 Jun 2007 00:00:00 CST

Consumers can expect the price of milk to increase 30 to 40 cents a gallon, 40 to 60 cents per pound for cheese, and 80 cents to $1.20 per pound for butter throughout 2007, said a University of Illinois Extension dairy specialist.

"This is due to increases in the prices of corn and feed for dairy cattle, shifting to ethanol production, energy costs, and a shortage of dairy products in the world market," said Mike Hutjens. "These will increase farm prices by four to six cents per pound of milk."

Hutjens' comments came as he reviewed consumer use of dairy products with the approach of June Dairy Month.

The average consumption of all dairy products in the United States in 2005 (the latest year for which statistics are available) was 33 percent as fluid milk, 40 percent as cheese, 13 percent as butter, and 8 percent as frozen dairy product.

Consumption patterns for the average American in 2005 included 32 pounds of cheese, 8.6 pounds of yogurt, 27 pounds of fat-free milk, 81 pounds of reduced-fat milk, 57 pounds of whole milk, 4.4 pounds of sour cream/dips, 14.5 pounds of flavored milk, 26 pounds of ice cream, and 2.6 pounds of cottage cheese.

"Losers among dairy products in 2005 were yogurt, down 6.6 percent; whole milk, down 4.4 percent; and cottage cheese, down 3.7 percent," said Hutjens.

"In 2005, the average consumer spent $371 on dairy products out of a total of $5,781 in food purchases--$3,347 for food at home and $2,434 for food away from home."

Hispanics invest the most in dairy products at $425 per person/per capita, he added. The Northeast region of the United States invests the most at $417 per person.

"School milk consumption was up 6 percent and could increase as more school districts remove soda as a beverage choice," Hutjens said.

Organic milk makes up 1.9 percent of dairy product consumption.

Romania is the world's leader in milk consumption at 365 pounds per person compared to 204 pounds per person in the United States. New Zealanders consume 14 pounds of butter per person compared to 4.6 pounds for U.S. consumers.

"However, the United States leads in cheese consumption at 32 pounds of cheese per person with the European Union second at 29 pounds," he said.

The United States exported $1.5 billion in dairy products last year, up 11 percent from the pervious year, to Mexico, Canada, and Japan as whey proteins and milk powder. The United States imported $2.6 billion in dairy products last year, up 12 percent from the previous year, primarily as specialty cheese and butter.

Challenges to U.S. Dairy Industry

Fri, 15 Jun 2007 00:00:00 CST

Higher feed and fuel prices will probably take half the $4 to $6 per hundredweight price increase Illinois dairy farmers can expect for their product in 2007, said a University of Illinois Extension dairy specialist.

"2007 appears to be an economically positive year for Illinois dairy farmers with milk prices up $4 to $6 per hundredweight compared to 2006 when milk was below breakeven prices," said Mike Hutjens as he reviewed the state's dairy industry on the eve of June Dairy Month.

"In addition to higher feed and fuel prices, Illinois producers will face other challenges this year. These include the impact of heat stress this summer on dairy cattle with the potential to reduce milk yield and fertility; culling of cows, forage production and quality; impact of less BST use; and changes in world supply and demand."

Even as ethanol production continues to drive up the cost of feed, Hutjens said it has a potential benefit for dairy producers.

"Distillers grain, a byproduct of ethanol production, continues to be an economically available feed resource," he said. "Distillers grains have increased in price and will change in composition as new ethanol plants extract oil from the products. Farmers should be feeding 10 to 15 percent of their rations as corn distillers grain."

Illinois continues to trail the nation's leaders in average milk yield per cow.

"The average Illinois dairy cow produced 19,204 pounds of milk compared to the U.S. average of 19,756," he said. "Colorado cows took the lead at 23,155 pounds per cow."

Illinois has 1,105 dairy farms with the average herd size 94 cows. The U.S. average herd size is 147 and the top state is New Mexico with 1,929 cows per farm. Illinois produced 1.98 billion pounds of U.S. total production of 181 billion pounds.

"Our state has 15 herds over 500 cows producing 15 percent of Illinois's total milk yield," said Hutjens. "In the United Sates, there are 3,143 herds with over 500 cows that are producing 51 percent of our total milk supply."

Hutjens also outlined some other challenges ahead for Illinois and U.S. dairy producers.

"There will be different milk sources in the market that may confuse consumers," he said. "Among these are conventional milk (includes fat free, 1 and 2 percent milk, whole milk at 3.25 percent fat), flavored milk, and milk for lactose intolerant consumers. These products will average $2.50 to $3 per gallon.

"Organic milk accounts for 1.9 percent of the market but the price is 2.5 times higher at $7 per gallon. Soy-based milk is three times higher in price at $8 per gallon and is made from genetically-modified soybeans in most casts. Grass-based milk comes from cows fed primarily in pasture. And, milk from cows not injected with BST (recombinant bovine somatotrophin or rBST) is appearing on some grocery shelves."

Fall 2006 Milk Pricing Forecast

Fri, 15 Sep 2006 00:00:00 CST

In this episode, Dr. Hutjens talks about milk pricing in the upcoming months and issues affecting producers and consumers. Prices are expected to go up as a result of cattle deaths in California, a tough July in Illinois, and on a more positive note, increased demand from consumers and increased offerings at fast food restaurants. Dr. Hutjens also discusses feed issues and the impact they may have on milk prices.

Welcome to the DairyNet Podcast!

Fri, 19 May 2006 00:00:00 CST

DairyNet is a web page developed by the Animal Systems Team in cooperation with the Department of Animal Sciences and University of Illinois Extension. The purpose of Illini DairyNet is to provide a wide array of dairy related topics for dairy producers, agri-business personnel, educators, and consumers. Public and private databases are listed and can be added to provide a "one stop" information resource.