FORAGE &ECONOMIC CONSIDERATIONS FOR PASTURE-BASED DAIRIES Dr. Curt Lacy, Extension...
-
Upload
austin-holmes -
Category
Documents
-
view
224 -
download
1
Transcript of FORAGE &ECONOMIC CONSIDERATIONS FOR PASTURE-BASED DAIRIES Dr. Curt Lacy, Extension...
FORAGE &ECONOMIC CONSIDERATIONS FOR PASTURE-BASED DAIRIESDr. Curt Lacy, Extension Economist-Livestock
University of Georgia
Rye
Ryegr
ass
Rye+Rye
gras
s
Whe
at+ry
egra
ss
Oat+ry
egra
ss
Rye+ar
rowle
af
Ryegr
ass+
arro
wle
af
Ryegr
ass+
arro
wle
af+cr
imso
n
Rye+ry
egra
ss+ar
rowle
af+cr
imso
n $-
$100.00
$200.00
Broadcast Conventional Drill No-till drill
Estimated cost of various forage systems ($/acre), Georgia 2010
Something else to worry about Southeast Climate Consortium indicates
strengthening La Nina pattern. Much of Southeastern US in the
beginning of a drought. Expected to continue till at least next
spring or summer. Major hope is active hurricane season for
late season moisture for fall forages.
Something else to worry about
Forages and Hay Summary
Slightly higher winter pasture costs.
Larger hay stocks headed into fall.
Expectations are for drier and warmer fall and winter.
Should have enough hay supplies to get us through the year.
Prices will be higher but should not get out of hand.
Economics of Pasture Supplementation
Economics of Pasture Supplementation
Despite claims, can’t graze year-round even in the Southeastern US; 9-10 months more realistic.
Regardless of your production system, still get paid for pounds of milk. Trick is producing lbs. at lowest cost per cwt.
Production Cost vs. Value of Production
Economics of supplementation depends on three things: Response of cows to supplementation
(function of forage quality and quantity). Cost of supplementation. Price of milk.
Most pasture supplementation work done for cool-season grasses.
Very little on warm-season grasses perhaps one of largest research needs.
Pasture Supplementation on Winter Annuals
Bernard and Carlisle, 1999. Professional Animal Scientist. Volume 15, pages 164-168.
Two-year trial conducted in West Tennessee. Dairy cows grazed on Marshall Ryegrass and
Crimson Clover. Four levels of grain supplementation based on
milk production 0 1:7 1:5 1:3
)Lbs.Grain x (0.001- Grain) of Lbs. x 1.60 ( 44.98 YieldMilk 3
Economic Considerations
MVP = Marginal Value of the Product (the value of the extra production) Price of the product Input-Output response
MFC = Marginal Factor Cost (the cost of the additional input) Price of the input Level of the input
Keep adding the input until just before the additional cost exceed the additional value
MVP=MFC
In other words
Milk Response to Grain Supplementation
0 2 4 6 8
10
12
14
16
18
20
22
2430.000
35.000
40.000
45.000
50.000
55.000
60.000
65.000
70.000
75.000
Pounds of Milk Produced at Various Levels of Grain Supplementation
Milk Prod...
Lb
s.
of
Milk
Lbs. of grain supplementation
)Lbs.Grain x (0.001- Grain) of Lbs. x 1.60 ( 44.98 YieldMilk 3
Milk Response to Grain Supplementation
1 3 5 7 9
11
13
15
17
19
21
23
25
-0.500
0.000
0.500
1.000
1.500
2.000
Pounds of Additional Milk Produced at Various Levels of Grain Supplementation
Additional Production (Marginal Physical ...
Lb
s.
of
Ad
dit
ion
al M
ilk
Lbs. of grain supplementation
)Lbs.Grain x (0.001- Grain) of Lbs. x 1.60 ( 44.98 YieldMilk 3
As we were saying,
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
$(0.20)
$(0.10)
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Profit Maximizing Levels of Corn Supplementation on Cool Season Annuals at Various Milk and Corn Prices
$12 milk$16 milk$20/ milk$24 milk$30 milk
$/lbs.
of
gra
in o
r m
ilk
Pounds of grain
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
$(0.14)
$(0.09)
$(0.04)
$0.01
$0.06
$0.11
$0.16
Profit Maximizing Levels of Corn Supplementation on Cool Season Annuals at Various Milk and Corn Prices
$12 milk$16 milk$20/ milk$24 milk$30 milk
$/lbs.
of
gra
in o
r m
ilk
Pounds of grain
$3.50 corn
At $3.50 corn can feed from 17.5 to 20.5 lbs. of grain depending on milk price
)Lbs.Grain x (0.001- Grain) of Lbs. x 1.60 ( 44.98 YieldMilk 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
$(0.14)
$(0.09)
$(0.04)
$0.01
$0.06
$0.11
$0.16
Profit Maximizing Levels of Corn Supplementation on Cool Season Annuals at Various Milk and Corn Prices
$12 milk$16 milk$20/ milk$24 milk$30 milk
$/lbs.
of
gra
in o
r m
ilk
Pounds of grain
$6.15 corn
At $6.15 optimal grain feeding de-clines to 13.75 to 19.0 lbs. of grain depending on milk price
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
$(0.14)
$(0.09)
$(0.04)
$0.01
$0.06
$0.11
$0.16
Profit Maximizing Levels of Corn Supplementation on Cool Season Annuals at Various Milk and Corn Prices
$12 milk$16 milk$20/ milk$24 milk$30 milk
$/lbs.
of
gra
in o
r m
ilk
Pounds of grain
$8.00 Corn
At $8.00 optimal grain supplemental declines to 8.50 to 17.50 lbs. of grain depending on milk prices
So what?
Milk Price ($/CWT.)
Corn Price ($/bushel)
$3.50 $6.15 $8.00
$12 17.75 13.50 8.50
$16 19.00 16.00 13.00
$20 19.50 17.00 15.25
$24 19.00 17.00 15.25
$30 20.50 18.75 17.50
Caveats/Key assumptions
Your grass (quantity and quality) is similar to that in this study.
Does this input-output relationship hold up for you?
Assumes grain and milk prices are always KNOWN.
Can you tune your feeding system this fine?
Major Implications
Economics of pasture supplementation depend on forage quality, quantity, input-output response, price of milk and price of the supplement.
It appear that even at $12 milk some level of supplementation is economical.
At lower feed costs differences in optimal amount are small ranging from 17.75 lbs. of grain to 20.50 depending on the price of milk.
At higher feed costs the differences in optimal amounts increase with a range of 8.50 to 17.50 depending on the price of milk.
Questions? Recently purchased grazing dairy in Florida, Uruguay. Spring 2010