A quantitative case study assessment of biophysical and economic effects from altering season of calving in temperate pasture-based dairy systems.

In theory, a late winter-early spring calving date in temperate grazing systems best matches pasture supply and herd demand, thereby minimizing the need for nonpasture feeds and maximizing profitability. We used a quantitative case study approach to define the effects of season of calving on biophysical and financial performance in a grazing system without the confounding effects of imported feeds (i.e., milk production directly from grazed pasture). A 2-yr production system experiment was established to quantify the effects of changing onset of seasonal calving (i.e., planned start of calving; PSC) from winter (July in the Southern Hemisphere) to spring (October), summer, (January), or autumn (April) on pasture and animal production and profitability. Eighty Holstein-Friesian cows were randomly allocated to 1 of 4 PSC treatments, each of which had a different PSC [mean calving date of January 10 (JAN), April 10 (APR), July 10 (JUL), or October 10 (OCT)]. Data were analyzed for consistency of treatment response over years using ANOVA procedures with year, PSC treatment, and year × PSC treatment interactions as fixed effects. Collated biological data and financial data extracted from a national economic database were used as fixed variables to model the financial performance for the different treatments. A stochastic risk analysis was undertaken, where historical pasture growth and milk price data were used to estimate the probability distributions for stochastic input variables. Gross farm revenue and operating profit per hectare were modeled under 2 scenarios: (A) milk price did not include a premium for milk supplied during the winter, and (B) milk price included a realistic premium for milk supplied in winter. Annual and seasonal pasture growth did not differ between treatments, but the pasture growth (kg of dry matter/ha) and profile of the JUL treatment best matched the lactation nutrient demand profile. In comparison, profiles for JAN, APR, and OCT calving treatments had periods of greater surplus and deficit due to the time of calving and herd demand relative to the pasture growth profile. As a result, the JAN and OCT treatments conserved more pasture as silage and cows consumed a larger proportion of their annual diet as silage. Although the amount of silage conserved and consumed did not differ between the JUL and APR calving treatments, the timing of the silage consumption was different, with silage making up a greater proportion of the diets in the APR treatment 1 to 90 and 91 to 180 d postcalving and being offered to the JUL calving treatment only 271 to 365 d postcalving. As a result of differences in the quantity and proportion of pasture and pasture silage in the lactating diet, the JUL treatment herd tended to produce greater milk, 4% fat-corrected milk, fat, protein, and lactose yields (kg/cow) than the other PSC treatments, which did not differ from each other. Operating expenses per hectare did not differ materially between calving date scenarios, but operating expenses per kilogram of fat-corrected milk and kilogram of fat and protein were 15 to 20% less in the JUL treatment. With or without a realistic winter milk premium, gross farm revenue and operating profit per hectare were greater in the JUL treatment than in the APR treatment, which had greater revenue and profitability than the remaining 2 calving date treatments. In summary, our results indicate that a PSC in late winter is most profitable in a grazing system not importing feed, with or without a realistic price incentive scheme.

Dairy cow breed interacts with stocking rate in temperate pasture-based dairy production systems.

Economic optimum stocking rates for grazing dairy systems have been defined by accounting for the pasture production potential of the farm [t of dry matter (DM)/ha], the amount of feed imported from outside the farm (t of DM/ha), and the size of the cow (kg). These variables were combined into the comparative stocking rate [CSR; kg of body weight (BW)/t of feed DM available] measure. However, CSR assumes no effect of cow genetics beyond BW, and there is increasing evidence of within-breed differences in residual feed intake and between-breed differences in the gross efficiency with which cows use metabolizable energy for milk production. A multiyear production system experiment was established to determine whether Jersey (J) and Holstein-Friesian (HF) breeds performed similarly at the same CSR. Fifty-nine J cows and 51 HF cows were randomly allocated to 1 of 2 CSR in a 2 × 2 factorial arrangement; systems were designed to have a CSR of either 80 or 100 kg of BW/t of feed DM (J-CSR80, J-CSR100, HF-CSR80, and HF-CSR100 treatment groups). Data were analyzed for consistency of farmlet response over years using ANOVA procedures, with year and farmlet as fixed effects and the interaction of farmlet with year as a random effect. The collated biological data and financial data extracted from a national economic database were used to model the financial performance for the different breed and CSR treatments. On average, annual and individual season pasture DM production was greater for the J farmlets and was less in the CSR100 treatment; however, the effect of CSR was primarily driven by a large decline in pasture DM production in the HF-CSR100 treatment (breed × CSR interaction). This interaction in feed availability resulted in a breed × CSR interaction for the per-cow and per-hectare milk production variables, with HF cows producing more milk and milk components per cow in the CSR80 treatment but the same amount as the J cows in the CSR100 treatment. On a per-hectare basis, HF cows produced the same amount of 4% fat-corrected milk and lactose as J cows in the CSR80 treatment, but less fat; at CSR100, J cows produced more 4% fat-corrected milk, fat, and protein per hectare than HF cows. Our results support a greater gross efficiency for use of metabolizable energy by the J cow; 11% less total metabolizable energy was required to produce 1 kg of fat and protein at a system level. Economic modeling indicated that profitability of both breeds was less at CSR100, but the decline in profitability with increasing stocking rate was much greater in the HF breed. Holstein-Friesian cows were more profitable at CSR80 but were less profitable at CSR100.

Production and economic responses to intensification of pasture-based dairy production systems.

Production from pasture-based dairy farms can be increased through using N fertilizer to increase pasture grown, increasing stocking rate, importing feeds from off farm (i.e., supplementary feeds, such as cereal silages, grains, or co-product feeds), or through a combination of these strategies. Increased production can improve profitability, provided the marginal cost of the additional milk produced is less than the milk price received. A multiyear production system experiment was established to investigate the biological and economic responses to intensification on pasture-based dairy farms; 7 experimental farmlets were established and managed independently for 3 yr. Paddocks and cows were randomly allocated to farmlet, such that 3 farmlets had stocking rates of 3.35 cows/ha (LSR) and 4 farmlets had stocking rates of 4.41 cows/ha (HSR). Of the LSR farmlets, 1 treatment received no N fertilizer, whereas the other 2 received either 200 or 400 kg of N/ha per year (200N and 400N, respectively). No feed was imported from off-farm for the LSR farmlets. Of the 4 HSR farmlets, 3 treatments received 200N and the fourth treatment received 400N; cows on 2 of the HSR-200N farmlet treatments also received 1.3 or 1.1 t of DM/cow per year of either cracked corn grain or corn silage, respectively. Data were analyzed for consistency of farmlet response over years using mixed models, with year and farmlet as fixed effects and the interaction of farmlet with year as a random effect. The biological data and financial data extracted from a national economic database were used to model the statement of financial performance for the farmlets and determine the economic implications of increasing milk production/cow and per ha (i.e., farm intensification). Applying 200N or 400N increased pasture grown per hectare and milk production per cow and per hectare, whereas increasing stocking rate did not affect pasture grown or milk production per hectare, but reduced milk production per cow. Importing feed in the HSR farmlets increased milk production per cow and per hectare. Marginal milk production responses to additional feed (i.e., either pasture or imported supplementary feed) were between 0.8 and 1.2 kg of milk/kg of DM offered (73 to 97 g of fat and protein/kg of feed DM) and marginal response differences between feeds were explained by metabolizable energy content differences (0.08 kg of milk/MJ of metabolizable energy offered). The marginal milk production response to additional feed was quadratic, with the greatest milk production generated from the initial investment in feed; 119, 99, and 55 g of fat and protein were produced per kilogram of feed DM by reducing the annual feed deficit from 1.6 to 1.0, 1.0 to 0.5, and 0.5 to 0 t of DM, respectively. Economic modeling indicated that the marginal cost of milk produced from pasture resulting from applied N fertilizer was less than the milk price; therefore, strategic use of N fertilizer to increase pasture grown increased farm operating profit per hectare. In comparison, operating profit declined with purchased feed, despite high marginal milk production responses. The results have implications for the strategic direction of grazing dairy farms, particularly in export-oriented industries, where the prices of milk and feed inputs are subject to the considerable volatility of commodity markets.

Short communication: Effect of stocking rate on the economics of pasture-based dairy farms.

Data from a multiyear farm systems study evaluating the effect of stocking rate (SR) on pasture production and utilization, milk production per cow and per hectare, reproduction, and cow health were used to determine the economic implications of altering SR. The effect of SR was also evaluated relative to cow size and total feed available (comparative stocking rate; CSR), to account for differences in cow size and feed supplement availability. Milk production, gross revenue, operating expenses, and operating profit per cow all declined with increasing SR and CSR. In comparison, milk production, gross revenue, and operating expenses per hectare increased with increasing SR and CSR. These effects were irrespective of milk price. The effect of SR on operating profit and return on assets, however, was dependent on milk payment system. When payment was based on the economic value of milk fat and protein, operating profit and return on assets were quadratically associated with both SR and CSR, declining at an SR greater or less than 3.3 cows/ha and a CSR greater or less than 77 kg of body weight/t of feed dry matter available. In comparison, when milk payment was based on a fluid milk pricing system, profit per hectare increased linearly with increasing SR and CSR, but return on assets was not affected by SR or CSR.

Evaluation of a whole-farm model for pasture-based dairy systems.

In the temperate climate of New Zealand, animals can be grazed outdoors all year round. The pasture is supplemented with conserved feed, with the amount being determined by seasonal pasture growth, genetics of the herd, and stocking rate. The large number of factors that affect production makes it impractical and expensive to use field trials to explore all the farm system options. A model of an in situ-grazed pasture system has been developed to provide a tool for developing and testing novel farm systems; for example, different levels of bought-in supplements and different levels of nitrogen fertilizer application, to maintain sustainability or environmental integrity and profitability. It consists of a software framework that links climate information, on a daily basis, with dynamic, mechanistic component-models for pasture growth and animal metabolism, as well as management policies. A unique feature is that the component models were developed and published by other groups, and are retained in their original software language. The aim of this study was to compare the model, called the whole-farm model (WFM) with a farm trial that was conducted over 3 yr and in which data were collected specifically for evaluating the WFM. Data were used from the first year to develop the WFM and data from the second and third year to evaluate the model. The model predicted annual pasture production, end-of-season cow liveweight, cow body condition score, and pasture cover across season with relative prediction error <20%. Milk yield and milksolids (fat + protein) were overpredicted by approximately 30% even though both annual and monthly pasture and supplement intake were predicted with acceptable accuracy, suggesting that the metabolic conversion of feed to fat, protein, and lactose in the mammary gland needs to be refined. Because feed growth and intake predictions were acceptable, economic predictions can be made using the WFM, with an adjustment for milk yield, to test different management policies, alterations in climate, or the use of genetically improved animals, pastures, or crops.

Effect of stocking rate on pasture production, milk production, and reproduction of dairy cows in pasture-based systems.

Ninety-four cows were randomly allocated to 1 of 5 stocking rates (2.2, 2.7, 3.1, 3.7, and 4.3 cows/ha) in a completely randomized design for 3 years. Herds were seasonal calving, with only minor differences in grazing management to optimize the profitability of each stocking rate (SR). Pasture production and quality data, milk and milk component data, and reproduction data were collected, averaged for SR treatment, and linear and quadratic contrasts on SR were evaluated. In addition, the Wilmink exponential model (y(t) = a + b x e((-0.05t) )+ c x t) was fitted to milk yield within lactation, and the parameters were averaged by SR treatment and analyzed as above. The median variation explained by the function for individual lactations was 84%. The amount of pasture grown tended to increase, and the quality of the pasture on offer increased linearly with increasing SR, reducing some of the negative impact of SR on the availability of pasture per cow. Milk production per cow declined linearly with increasing SR, although there was a tendency for most production variables to decline quadratically, with the negative effect of SR declining with increasing SR. The effect on milk production per cow was primarily because of a lower peak milk yield and a greater post-peak decline (less persistent milk profile), although a decline in lactation length with increasing SR was responsible for 24% of the effect of SR on milk yield. Milk production per hectare increased linearly with increasing SR, and there was only a small difference (approximately 3%/cow per ha) in the efficiency of converting feed dry matter into milk energy. Stocking rate did not affect reproductive success. The data are consistent with the need for a more robust measure of SR than cows per hectare because farms will differ in the genetic merit of their cows and in the potential to produce pasture. We introduce the concept of a comparative SR, whereby the carrying capacity of the farm is defined by the BW of the cows, the potential of the land to produce pasture, and the amount of supplement purchased (kg of BW/t of feed dry matter). The adoption of such a measure would facilitate the extrapolation and transfer of research findings among systems.

A comparison of three strains of holstein-friesian grazed on pasture and managed under different feed allowances.

This experiment compared Holstein-Friesian (HF) cows of New Zealand (NZ) origin representative of genetics present in the 1970s (NZ70; n = 45) and 1990s (NZ90; n = 60), and a group of HF cows of North American origin with 1990s genetics (NA90; n = 60), which were managed in grazing systems with a range of feeding allowances (4.5 to 7.0 t/cow per yr) over 3 yr. The NZ70 cows had the lowest Breeding Worth genetic index and the lowest breeding values for yields of fat, protein, and milk volume; the NZ90 and NA90 cows were selected to have similar breeding values for milk traits and were representative of cows of high genetic merit in the 1990s. The NZ90 cows had a higher milk protein concentration (3.71%) than either the NA90 (3.43%) or the NZ70 cows (3.41%), and a higher milk fat concentration (4.86%) than the NA90 cows (4.26%) with a level similar to the NZ70 cows (4.65%). The NZ90 cows produced significantly greater yields of fat, protein, and lactose than the NA90 and NZ70 cows. The NZ70 cows had the lowest mean annual body weight (473 kg) but the highest body condition score (BCS; 5.06). Days in milk were the same for the 2 NZ strains (286 d in milk), both of which were greater than the NA90 cows (252 d in milk). There was no genotype x environment interaction for combined milk fat and protein yield (milksolids), with NZ90 producing 52 kg/cow more than the NA90 at all feeding levels. The NZ70 strain had the highest seasonal average BCS (5.06), followed by the NZ90 (4.51) and the NA90 (4.13) strains on a 1 to 10 scale. Body condition score increased with higher feeding levels in the 2 NZ strains, but not in the NA strain. The first-parity cows commenced luteal activity 11 d later than older cows (parities 2 and 3), and the NA90 cows commenced luteal activity 4 and 10 d earlier than the NZ70 and NZ90 cows. Earlier estrus activity did not result in a higher in-calf rate. The NZ70 and NZ90 cows had similar in-calf rates (pregnancy diagnosed to 6 wk; 69%), which were higher than those achieved by NA90 cows (54%). Results showed that the NA90 strain used in this experiment was not suitable for traditional NZ grazing systems. Grazing systems need to be modified if the NA90 strain is to be successfully farmed in NZ. The data reported here show that the NA90 cows require large amounts of feed, but this will not prevent them from having a lower BCS than the NZ strains. Combined with poor reproductive performance, this means that NA90 cows are less productive than NZ HF in pasture-based seasonal calving systems with low levels of supplementation.

A comparison of three strains of Holstein-Friesian cows grazed on pasture: growth, development, and puberty.

With the introduction of a protein milk payment system in New Zealand in 1988, there was an influx of North American (NA) Holstein-Friesian (HF) genetics into New Zealand (NZ) dairy herds, leading to an increase in the average percentage of NA genetics in NZ HF cows--from 2% in 1980 to 38% in 1999. Of interest has been the effect this change has had on farm profitability and on the management required for these animals, as well as the phenotypic changes that have occurred within the national herd under the breeding programs operated in NZ from 1970 to 1990. The objective of this study was to quantify differences in body dimensions, body weights, and puberty-related parameters among 3 strains of HF, representing animals of NZ origin representative of the genetics present in 1970 and 1990 and of NA origin with 1990s genetics. A total of 172 animals born in 1999 were compared. The strains were 1) NZ70, a strain of NZ Friesian (average 7% NA genetics) equivalent to high-genetic-merit (high Breeding Worth) cows farmed in the 1970s; 2) NZ90, a strain of HF of NZ origin (average 24% NA genetics) typical of the animals present in the 1990s; and 3) NA90, a strain of HF of NA origin (average of 91% NA genetics) typical of animals present in the 1990s. The differences in BW among all strains were significant at 6 and 12 mo of age. At 15 and 24 mo, the 2 NZ strains were significantly lighter than the NA90 animals. At 24 mo of age (i.e., prior to first calving), the NA90 strain animals (BW = 515 kg) were 22 and 34 kg heavier than the NZ90 and NZ70 strains. The body length of the NA90 strain was greater than either of the 2 NZ strains; the differences among the NA90 strain and the 2 NZ strains varied from 2 to 6 cm, with the differences generally being greater at older ages. The trend in heart girth difference among strains was similar to that observed for body length. The wither height of the NA90 animals was greater than that of the NZ strains by 1 to 7 cm, although there was no significant difference between the NA90 and NZ90 strains at birth. At puberty the NA90 heifers were 20 d older and 20 kg heavier than the NZ90 heifers, which in turn were 25 kg and 25 d older than the NZ70 heifers. The NA90 strain had a heavier mature body weight, and their older age at puberty suggested either that they mature later or that, under pastoral conditions, their growth rate is limited by their inability to consume sufficient metabolizable energy as grazed pasture, with a consequent delay in puberty. Results from this study will be useful in revising target BW in growing heifers of different germplasm.