ARIZONA AND NEW MEXICO DAIRY NEWSLETTER COOPERATIVE EXTENSION The University of Arizona New Mexico State University FEBRUARY 2007 THIS MONTH’S ARTICLE: Is Organic Beef and Dairy Production a Responsible Use of Our Resources? Dr. Thomas E. Elam President, FarmEcon.com Adjunct Faculty, Department of Economics, IUPUI Adjunct Fellow, Center for Global Food Issues, A Project of the Hudson Institute (Reprinted from the 22nd Annual Southwest Nutrition & Management Conference Proceedings February 22-23, 2007, Tempe, Arizona) ~~~~ Dairy Day is coming! The 2007 Arizona Dairy Day will be held on Thursday, April 5 at the Paloma Dairy, 55310 S. Citrus Valley Road, in Gila Bend, Arizona. See the flyer and golf information inside this newsletter! ~~~ Make plans to be at Paloma Dairy 55310 S Citrus Valley Road Gila Bend, Arizona 85337 Thursday, April 5, 2007 10:00 a.m. to 2:00 p.m. Paloma Dairy Social to follow at 2:00 p.m. Map to Paloma Dairy Bring your family and enjoy the day with food and fun! Lunch provided by Exit 111 - Citrus Valley Road For more information contact Laura Rittenbach at (520) 626-9382 or via email at ljr22@ag.arizona.edu. ® D ai ay Dairy Day Golf Tournament Registration ry D Golf Friday, April 6, 2007 Club West Golf Course 16400 South 14th Avenue Phoenix, AZ Entry Fee: Shotgun Start: Contact Person: ® $85.00 per person 1:00 p.m. Laura Rittenbach PO Box 210038 - Dept of Animal Sciences Tucson, AZ 85721 (520) 626-9382 ljr22@ag.arizona.edu ----------------------------------Registration form. Please detach and return to address above. Individual Team Name(s)______________________________________________________ Organization________________________________________________ Address____________________________________________________ City/State/ZIP_______________________________________________ Phone______________________________________________________ Team Members: Number of players _________ ___________________________ x $85.00 ___________________________ Total amount due $__________ ___________________________ Please make check payable to UA Foundation Individuals will be assigned to a team. Mulligans will be available the day of the tournament. Neither the tournament fee nor mulligans are considered a tax-deductible donation. Is Organic Beef and Dairy Production a Responsible Use of Our Resources? Dr. Thomas E. Elam President, FarmEcon.com Adjunct Faculty, Department of Economics, IUPUI Adjunct Fellow, Center for Global Food Issues, A Project of the Hudson Institute Corresponding Author: strategic-directions@earthlink.net Introduction Land is by far the most significant natural resource used in agriculture. In the U.S., 937 million of our 2.96 billion acres (excluding Alaska) are utilized in one way or another to produce our own food supply and the food we export around the world.i Almost one-third of our total U.S. land base is currently needed to feed ourselves, and much of the remainder is in deserts, mountains, swamps, cities, roads or otherwise unavailable. On a global scale agriculture is by far the largest use of land. About 1.5 billion hectares are currently harvested every year to provide the world’s food and fiber supply.ii That area, large as it is, does not include pasture lands used by ruminants to produce meat and milk. Land used for agriculture represents both a monetary cost and a major alteration of our natural environment. There are significant trade-offs involved in the production practices we decide to use. Extensive agriculture uses land to substitute for technology, and results in lower yields. Intensive agriculture disturbs less land, but uses more inputs that have the potential to cause environmental issues. We have tended to opt for intensive systems because they are more cost-effective, but the fact is that intensive agriculture also conserves land for uses other than food and fiber production. In order to see what intensive agriculture has done for land conservation in the U.S., data needs to be looked in a slightly different way. When we look at the use of land we normally think about how productive the land is at producing crops. For feed crops the productivity of land is not the end of the story. We also need to look at how productive land is at producing the meat, dairy and poultry products that we actually consume. We also need to look at land in terms of not only how much feed it produces, by also how many people it can feed. In 1961 the U.S. population was about 184 million people. In 2006 we now number about 300 million, a 63% increase.iii If agriculture today was no more productive than it was in 1961 we would either need to expand land in farms by 63%, or our food supply per person would be 63% smaller. In 1961 it took 111.6 million acres of feed grains and soybeans to grow the major crops used for the U.S. feed supply. If, in 2005, that land was no more productive than it was in 1961, we produced as much per person, and our farm animals took as much feed per pound of production, we would need a least 63% increase, 70 million acres, in feed crop land use, an area the size of the entire state of Missouri. 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 66 Meat and poultry productivity increases reduce land use The long term trend in land resources used by U.S. meat and poultry producers is more complicated than such a simple calculation, and also shows an incredible record of land conservation. In fact, despite increasing population and meat production, the crop acres needed to raise our supply of livestock products have actually declined over time. It is fairly simple to calculate the acreage used for the feed grains and soybeans that are the major contributors to the U.S. livestock and poultry feed supply. Simply take the total tons of feed grains and soybean meal used for U.S. food animal feed and, using average yields, convert those tons back to acreage needed to produce the crops. The feed use estimates and yields are readily available from USDAiv. Figure 1 shows the results. Figure 1: Feed Grain (corn, sorghum, barley and oats) and Soybean Acres Used for Feed Production, 1960/61 to 2005/2006 Crop Years 140,000 120,000 000 Acres 100,000 80,000 60,000 40,000 20,000 2004/2005 2002/2003 2000/2001 1998/1999 1996/1997 1992/1993 1994/1995 1990/1991 1988/1989 1986/1987 1984/1985 1980/1981 1982/1983 1978/1979 1974/1975 1976/1977 1972/1973 1970/1971 1968/1969 1966/1967 1964/1965 1962/1963 1960/1961 - C ro p Y e a r Feed Grains So ybeans To tal Feed Grains & So ybeans The trends show a declining acreage of feed grains, increasing acreage of soybeans, and a decline in total acreage needed for feed crop production. Since 1960/61 the total acreage of these five key crops needed to produce our livestock, dairy and poultry feed has declined by 32.7 million acres. Soybean acreage increased in part because soybean yields have increased at a lower rate than those of feed grains. Also, we have raised the protein content of feed over time, increasing animal efficiency in the process, and reducing the acreage needed for feed grains. With the decline in total acreage of feed crops needed for our animal feeds, we have also seen a major decline in the percentage of plantings of those key crops that are used for U.S. feed production. In the 1960s it took about 80% of our harvested acres of these crops for our domestic feed production, in the last few years that percentage has been slightly over 50%, or a nearly 30 point decline (Figure 2). 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 67 While reducing land used for feed crop production may seem like quite an achievement, it is very far from the whole story. What is missing in Figures 1 and 2 is the fact that while we were reducing land used, we also saw the increases in both the U.S. population that were mentioned above and along with even larger percentage increases in total meat and poultry product production. Figure 2: Feed Grain and Soybean Acres Used for Feed Production as a Percent of Total Feed Grain and Soybean Acreage, 1960/61 to 2005/2006 Crop Years 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 2004/2005 2002/2003 2000/2001 1998/1999 1996/1997 1994/1995 1992/1993 1990/1991 1988/1989 1986/1987 1984/1985 1982/1983 1980/1981 1978/1979 1976/1977 1974/1975 1970/1971 1972/1973 1968/1969 1964/1965 1966/1967 1962/1963 1960/1961 0% It took an average of almost 0.6 acres per person to produce enough feed for our meat, dairy, and poultry production in 1961. In 2005 that statistic has dropped to about 0.27 acres. In other words, today it takes less than half as much land on a per person basis to produce our meat, dairy and poultry supply than was the case in 1960/61 (Figure 3). Again, this is not the total story. Figure 3: U.S. Feed Grain/Soybean Acres Used Per Person for Meat and Poultry Production 0.70 0.60 A cres Acres 0.50 0.40 0.30 0.20 0.10 2005 2003 2004/2005 2002/2003 2001 1999 2000/2001 1996/1997 1997 1998/1999 1995 1994/1995 1993 1992/1993 1991 1990/1991 1989 1987 1988/1989 1983 1984/1985 1985 1986/1987 1981 1982/1983 1980/1981 1979 1977 1978/1979 1974/1975 1975 1976/1977 1961 1960/1961 1963 1962/1963 1965 1964/1965 1967 1966/1967 1968/1969 1969 1970/1971 1971 1972/1973 1973 - Along with increases in population our U.S. production of meat and poultry has also increased, and even faster than the population. More of that production is exported now than was the case in 1960, and it is consumed elsewhere, but it is still consumed. Figure 4 shows an estimate of the average use of crop land to produce one ton of meat and poultry. In 2005 each ton of production took about one-third the land that was needed in the early 1960s. The decrease is a result of both increasing crop yields and 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 68 decreases in the average amount of feed needed to produce a given amount of meat and poultry. Figure 4: U.S. Feed Grain/Soybean Acres Used Per Ton of Meat and Poultry Production 7.00 6.00 Acres 5.00 4.00 3.00 2.00 1.00 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 1967 1965 1963 1961 0.00 Corrected for both population and meat production growth the land needed for our meat and poultry supply has shrunk dramatically over the past 45 years. Where did that land go? Much of it is used today for producing crops for export or ethanol. Some of it has gone back to nature. From 1990 to 2005 FAO reports that the total land in forests in the U.S. increased from 738 million to 749 million acresv. We also now have 36 million acres currently enrolled in a Conservation Reserve Program that did not exist in 1960. Increases in agricultural productivity are what make this possible. Resource use consequences of organic and natural production systems If we examine the organic food industry from the point of view of cost the higher overall resource use of organic production is abundantly obvious. In competitive markets, and agriculture is about as price competitive as it gets, prices reflect costs, and costs directly reflect total resource use. As the Organic Trade Association admits “While the retail price of organic meat is generally greater than conventional, to many consumers, the greater peace of mind is priceless.vi” How much is the value of the additional resources needed for this “priceless” system’s products worth in the niche organic market? The added cost, price and thus resource use numbers can be quite revealing. Genesee Valley Organic Beef, of Taylorsville CA, on December 29, 2006 was advertising organic beef tenderloin at $41.50 per pound, plus shipping and handlingvii. On the other end of their price scale, Genesee’s 90%-lean organic hamburger was priced at $7.00 per pound. Local grocery store prices for these same beef cuts were $9.99 and $3.44 (93% lean) on the same day. In this one instance the cost, and thus total resource use, of an organic beef production system is 4.2 to 2.0 times that of beef produced with the benefits of modern technology. Laura’s Lean beef tenderloin was $17.99 per pound at a local store on 12/29/06 and the store brand was $9.99. Other comparisons from a local grocery store, made on 12/29/06, show the same general price, and thus resource use, advantage for modern technology farming for a wide variety of meat, dairy, egg and vegetable products (Table 1). 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 69 Table 1: Selected Cost Comparisons for Organic vs. Modern Technology Food Items, December 29, 2006 Item Organic Cost Modern Technology Cost Cost Ratio ½ Gallon 2% Milk1 $3.39 $1.69 2.0:1 1 lb. Beef Tenderloin2 $41.50 $9.99 4.2:1 1 lb. Beef Tenderloin3 $17.993 $9.99 1.8:1 2 $7.00 $3.44 2.0:1 1 lb. 90% Ground Beef 1 doz. Large Eggs1 $3.29 $1.44 2.3:1 1 Pound Celery Hearts1 $3.49 $1.99 1.8:1 1 Head Iceberg Lettuce1 $2.99 $1.19 2.5:1 1 Bu. Yellow Corn4 $41.44 $3.50 11.8:1 1 Local chain grocery store, Indianapolis area Sources: http://www.geneseevalleyorganicbeef.com/; Local chain grocery store, Indianapolis area, 12/29/06 3 Laura’s Lean compared to store brand, Local chain grocery store, Indianapolis area, 12/29/06 4 Sources: http://www.sunorganicfarm.com; USDA, AMS, cash price, Northern Illinois elevators, 12/29/06 2 The last line of Table 1 also shows an incredible cost premium for organic yellow corn. The organic price was obtained from the web site of an organic foods retailer and the modern technology price from USDA. While the difference may reflect more than just cost of production and resource use, it does show the kind of extreme prices that may be needed by organic producers to cover all their costs. Figure 5 is taken from a recent USDA report on organic poultry, and shows roughly the same price premiums as in the table above. Again, from an economic efficiency viewpoint, as revealed by the price premiums needed for profitability, organic technology is incredibly resource intensive relative to conventional agricultural systems. Figure 5: First receiver prices and quarterly price premiums for organic whole broilers, 2004-06viii How Large is the Organic Beef and Dairy Industry? USDA compiles an annual summary of the number of certified beef and dairy organic operations and the number of livestock on them. Since 2000 we have seen significant growth in certified organic beef and dairy cowsix (Table 2). Despite the growth of the last 6 years, organic production is still a small share of animals, and a smaller share of total production due to the lower efficiency of organic producers. 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 70 Table 2: Cows on Certified Organic Beef and Dairy Operations Year Organic Beef Cows Total Beef Cows, 1/1 % Organic Organic Dairy Cows Total Dairy Cows, 1/1 % Organic 2000 13,829 33,569,000 0.04% 38,196 9,190,000 0.42% 2001 15,197 33,397,000 0.05% 48,677 9,183,000 0.53% 2002 23,384 33,118,000 0.07% 67,207 9,112,000 0.74% 2003 27,285 32,947,000 0.08% 74,435 9,152,000 0.81% 2004 71,058 32,861,000 0.22% 74,840 8,990,000 0.83% 2005 70,219 32,915,000 0.21% 86,032 9,005,000 0.96% Efficiency Increases in Beef and Dairy Production Have Conserved Resources Over the last 50 years, the cattle industry has raised an increasing proportion of the beef supply in feedlots rather than on pasture and range land. A major impact of agricultural technology has been on the amount of land needed to produce the feed required for cattle feedlots. Given the large increases in the fed beef supply since the 1950’s, most would assume that the amount of land needed to produce increased amounts of feedlot beef has increased, but, in fact, this is not the case. Through a combination of yield increases for feed crops and more efficient use of feed by feedlot cattle since 1955 we have actually increased beef produced in feedlots by almost 200% while slightly reducing the acreage of corn needed to produce that larger fed beef supply. What is really remarkable is that the corn content of rations also increased significantly since 1955. Acreage needed to produce roughage also decreased markedly. Table 3 contains estimates of the impact on the land used to produce the corn and roughage used for beef cattle feed. For purposes of this table, it was assumed that all grain used in feedlots is corn and a 50-50 hay/corn silage mixture is used for roughage. Milk producers have been down a similar path over the last 50 years. Technology has enabled producers to become significantly more productive. We are using fewer cows, fewer farms, fewer farmers, and less land, to produce a growing milk supply (Figures 6 and 7). 300,000 3,000 250,000 2,500 200,000 2,000 150,000 1,500 100,000 1,000 50,000 500 All Licensed '05 '03 99 '01 97 95 93 91 89 87 85 0 83 0 Pounds/farm 000 Farms w/cows Figure 6: Number of Farms with Dairy Cows and Milk Produced/Farm Milk/Farm (All) Note: “Licensed” data series begins in 2002 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 71 Figure 7: Overall Trends in Cow Numbers and Cow Productivity Table 3: Estimated Feedlot Beef Production and Land Used for Corn and Roughage,x 1955 8.0 62% 8.9 42 0.211 4.7 2005 6.2 88% 9.7 147 0.066 15.1 %Change -23% 42% 10% 250% -69% 218% % Roughage (50:50 silage/hay) in ration Pounds roughage needed/100 lb. fed beef Roughage yield - pounds/acre Acres roughage needed/100 lb. fed beef 100 lbs. fed beef production/acre roughage 36 288.0 6,581 0.04376 22.9 10 62.0 11,333 0.00547 182.8 -72% -78% 72% -87% 700% Fed cattle marketed, 000 Estimated average pounds gained in feedlot Feedlot LW pounds of beef produced, mill. 11,973 400 4,789 28,620 500 14,310 139% 25% 199% Bushels corn consumed by fed cattle, mill. Acres of corn required for all fed cattle, mill Price of corn per bushel Value of corn consumed by fed cattle, $mill. Value of corn used ($1982-84 mill.) 424 10.10 $1.35 $573 $2,137 1,394 9.48 $2.15 $2,997 $1,629 229% -6% 59% 423% -24% Tons of roughage consumed by fed cattle, mill. Acres of roughage required for all fed cattle, mill. Price of roughage per ton Value of roughage consumed by fed cattle $ mill. Value of roughage used ($1982-84 mill.) 6.90 2.10 $15.82 $109 $407 4.44 0.78 $53.04 $235 $128 -36% -63% 235% 116% -69% Total acres used for corn and roughage Value of corn and roughage used ($1982-84 mill.) 12.2 $2,544 10.3 $1,833 -16% -28% Feed Conversion Ratio % Corn in ration Bu. of corn needed/100 lb. fed beef Corn yield - bu./acre Acres corn needed/100 lb. fed beef 100 pounds of fed beef production/acre corn 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 72 Is Organic Milk Production More Profitable than Conventional? There are so few certified organic milk producers that it is difficult to compare costs and production efficiency with conventionally produced milk. A very recent study from the University of Wisconsin compares a small number of organic Wisconsin dairy farms to statewide averages and organic farms in New England and Quebecxi. The highlights include: 1. 2. 3. 4. 5. 6. 7. 8. Milk yields per cow on organic farms were about 70% of conventional farms Organic herds had higher costs per cwt of milk produced Organic farms enjoyed significant milk price premiums of 25-40% All of the higher prices were absorbed by higher costs Wisconsin organic dairies were competitive on total returns to labor, but not better than, conventional farms Organic dairy farms in New England were not competitive with either Wisconsin organic or conventional New England dairy farms The majority of the organic systems net returns differences were due to a combination of lower milk yields and differences in feed costs. Due to very high feed costs New England organic dairy farms need milk prices that are at least twice the prevailing market. The price premiums for organic milk reflect both lower yields and higher costs of grains and roughages. Organic corn, in bulk, costs about twice the price of conventional corn. This higher feed cost leads organic milk producers to use more pasture and less purchased feed per cow than conventional milk production systems. Organic production systems and global agricultural land availability If organic production systems were to ever become a major part of our meat and poultry production the increase in resources, including land, needed to produce our food supply would be staggering. Feed grain and soybean yields for organic grains are roughly half that of modern technologyxii. In addition, animals that do not have the benefit of modern production inputs convert feed less efficiently. As a result every acre needed for an organic meat production system produces at about same level of land resource use as was the case in 1960. In addition, labor requirements also increase due to the lack of use of modern weed and pest control on organic operations. It should therefore come as no surprise that total resource use, costs, and thus prices, are much higher for organic foods when compared to food produced using modern technology. If only 10% of our U.S. livestock, dairy and poultry production were to be converted to organic systems we would need to use about 16 million acres of feed grain and soybean land for that production rather than the 8 million it takes today (a net increase of another Ohio’s harvested corn and soybean acreage). In addition, we would also need more pasture and land for free range housing systems. What is true for the U.S. is also true globally. In 1961 each person on the planet had, on average, 1.03 acres of food crops harvested for their food supplyxiii. In 2006 we each had about 0.55 acres. By 2050 the average will be only about 0.4 acres per person, and that assumes that we can, in the face of urbanization, actually keep total acreage at current levels for the next 43 years (Figure 8). It’s very simple: Unless productivity increases offset fewer acres per person, food production per person is going to decline. If productivity does not keep pace with 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 73 (or perhaps due to increased demand even increase faster than) global population, the pressure will be to increase global food production acreage. The problem is that there no reserve of highly productive land that is available to be brought into production. Land that can be brought into agriculture is mostly in environmentally sensitive areas, and would be costly to farm. Figure 8: Global Food Production Acreage Available Per Person, 1961-2050 1.20 Harvested Acres Per Capita 1.00 0.80 0.60 0.40 Harvested area/capita for all grains, oilseeds, fiber crops, pulses, tubers, fruits, vegetables, and tree crops. 0.20 19 61 19 65 19 69 19 73 19 77 19 81 19 85 19 89 19 93 19 97 20 01 20 05 20 09 20 13 20 17 20 21 20 25 20 29 20 33 20 37 20 41 20 45 20 49 0.00 On a global basis we also must continue to increase the productivity of the animals we raise for the food supply. As stated by the FAO Animal Production and Health Division, “FAO and other institutions suggest that global production of animal products will rise impressively over the next 20 years. The growth in demand for livestock products suggests that there will be a consequent rise in demand for animal feed, not only of cereals but of other feeds and particularly proteins.xiv” “Improving productivity is the key to increasing livestock production in the developing world. This requires proper animal husbandry: feeding, housing, health and breeding practicesxv.” Simply put – in the U.S. and globally – without increasing production per acre AND improved animal efficiency we will need more acres in farms. Where would that land come from? Forests? Swamplands? Meadows? The Conservation Reserve Program? Unfarmed hillsides? Deserts? Biofuel production? Our parks and recreation areas? Admittedly, if consumers are willing to pay twice as much for organic food, and use twice the total resources in the process, they have the right to do so. However, we need to question the advisability of going down this path given increasing population pressures on our land base and environment. Conclusion As long as population and food demand are growing, and they will for at least the next 50 years, farmers and scientists will have to continue to look for ways to grow more food on each increasingly precious acre. Included in that efficiency calculation is the conversion of feed to animal-based products. We need to make sure that our farmers here in the U.S. and around the world have the tools, the incentives, and the freedoms to farm as productively as possible. 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 74 Modern agriculture and its supporting organizations need to think seriously about the response to those who, in the name of conservation, insist that we need to abandon the technology that has enabled us to affordably feed the world’s increasing population. Consumers of organic foods who think they are helping make a choice for more responsible use of agricultural resources need to be fully informed of the negative consequences of their purchases for resource use. Arguably, the consumption of organic food is of questionable benefit, and produced at a fraction of the land’s potential yield, it is a socially irresponsible decision. Organic production can be likened to driving a “fuel guzzling SUV” when a more efficient vehicle would do the same job. Unless agriculture is willing to proactively make its case for the use of high yield technology to feed the world those who favor resource conservation and efficiency run the risk of losing the battle for the hearts and minds of a large portion of the consuming public. To do so would result in less global food production per person, higher food costs, and a lower standard of living. Endnotes: i USDA. Agricultural Census. 2002. FAO. FAOSTAT Database. Accessed December 29, 2006 iii U.S. Department of Commerce. Bureau of the Census iv USDA, FAS. PS&D Database. Accessed December 29, 2006 v FAO Forestry Database. Found at http://www.fao.org/forestry/index.jsp, Accessed December 29, 2005 vi Found at http://www.prnewswire.com/cgibin/stories.pl?ACCT=104&STORY=/www/story/01-05-2004/0002083314. Accessed December 29, 2005. vii Found at http://www.geneseevalleyorganicbeef.com/. Accessed December 29, 2006 viii Lydia Oberholtzer, Catherine Greene, and Enrique Lopez. Organic Poultry and Eggs Capture High Price Premiums and Growing Share of Specialty Markets. USDA. ERS. LDPM-150-01. December, 2006. ix USDA. ERS. http://www.ers.usda.gov/data/organic/index.htm#tables. Accessed January 10, 2007 x Thomas Elam and Rodney Preston. Fifty Years of Pharmaceutical Technology and Its Impact on the Beef We Provide to Consumers. July, 2004 xi Tom Kriegl. Summary of Economic Studies of Organic Dairy Farming in Wisconsin, New England, and Quebec. University of Wisconsin. March 20, 2006. Found at http://cdp.wisc.edu/pdf/Organic%20Econ%20in%20N%20E,%20Q,%20&%20W1.pdf xii It is no accident that organic corn and soybean prices are roughly double that of high yield systems. In any given year corn and soybean yields in organic systems can approach those of modern technology. However, to achieve those yields organic systems use crop rotations in which corn and soybeans are only grown every second or third year, with the rotation crops being grown to mainly supply crop nutrients in place of chemical fertilizers. (This system may sound familiar – it is very similar to those used by farmers prior to the advent of modern fertilizers and crop protection products.) Thus, over the entire rotation cycle yields per acre of corn and soybeans are only a fraction of current levels on farms using modern technology. See: Kuepper, George. “Organic Soybean Production”, Appropriate Technology Transfer for Rural Areas. Fayetteville, AR. March, 2003. xiii FAO Agricultural Database. U.N. Medium Population Projections. 2006 xiv FAO. http://www.fao.org/ag/aga/AGAAN_en.asp. Accessed December 29, 2006 xv FAO. http://www.fao.org/ag/againfo/subjects/en/production.html. Accessed December 29, 2006 ii 22nd Annual Southwest Nutrition & Management Conference Ô February 22-23, 2007 Ô Tempe, AZ - 75 HIGH COW REPORT OCTOBER 2006 MILK Arizona Owner * Stotz Dairy * Stotz Dairy * Shamrock Farms * Mike Pylman * Shamrock Farms * Stotz Dairy * Danzeisen Dairy, LLC. * Stotz Dairy * Stotz Dairy * Stotz Dairy Barn# 19811 15914 6097 21466 6240 19831 4464 14452 20427 20555 Age 06-08 06-01 05-01 05-01 05-01 06-08 05-09 07-02 03-05 03-03 Milk 41,790 39,460 37,240 36,960 36,380 36,090 35,870 35,820 35,750 35,570 * Stotz Dairy * Danzeisen Dairy, LLC. * Danzeisen Dairy, LLC. * Stotz Dairy * Stotz Dairy * Stotz Dairy * Shamrock Farms * Stotz Dairy * Stotz Dairy * Stotz Dairy 19811 4463 4464 20536 20093 17405 5485 8453 16781 17849 06-08 05-09 05-09 03-04 03-10 05-00 05-04 03-02 05-06 04-09 2,074 1,537 1,508 1,436 1,415 1,388 1,380 1,374 1,364 1,360 * Stotz Dairy * Stotz Dairy * Stotz Dairy * Stotz Dairy * Stotz Dairy * Shamrock Farms * Stotz Dairy * Stotz Dairy * Danzeisen Dairy, LLC. * Stotz Dairy 15914 20686 19811 18118 18021 6097 20555 18213 4464 20427 06-01 03-03 06-08 04-06 04-07 05-01 03-03 04-04 05-09 03-05 1,137 1,090 1,083 1,069 1,063 1,061 1,060 1,047 1,036 1,026 New Mexico Owner * Providence Dairy * Providence Dairy * New Direction Dairy * Red Roof Dairy * Providence Dairy * S.A.S. Dairy * New Direction Dairy * New Direction Dairy * Providence Dairy * Providence Dairy Barn # 8833 8051 1918 4542 9535 4065 586 784 8157 6599 Age 06-00 --------06-10 05-09 08-10 ------------03-04 Milk 40,380 39,210 39,000 38,741 38,500 38,410 38,400 38,040 37,990 37,510 * McCatharn Dairy * Providence Dairy * New Direction Dairy * Goff Dairy Ii Dairy * New Direction Dairy * New Direction Dairy * Providence Dairy * McCatharn Dairy * Vaz Dairy * McCatharn Dairy 2416 404 1918 4965 784 586 8789 1763 1775 1925 05-01 05-04 ----05-06 --------06-05 08-00 06-02 03-11 1,465 1,452 1,451 1,450 1,426 1,418 1,415 1,392 1,385 1,377 1918 8833 784 586 6599 6670 4065 1356 5913 4542 ----06-00 --------03-04 05-01 08-10 07-00 06-01 06-10 1,260 1,242 1,234 1,225 1,206 1,184 1,143 1,141 1,121 1,115 FAT PROTEIN *all or part of lactation is 3X or 4X milking * New Direction Dairy * Providence Dairy * New Direction Dairy * New Direction Dairy * Providence Dairy * S.A.S. Dairy * S.A.S. Dairy * New Direction Dairy * S.A.S. Dairy * Red Roof Dairy ARIZONA - TOP 50% FOR F.C.M.b OCTOBER 2006 OWNERS NAME * Stotz Dairy West * Stotz Dairy East * Danzeisen Dairy, Inc. * Del Rio Dairy, Inc. * Zimmerman Dairy * Red River Dairy * Withrow Dairy * Mike Pylman Parker Dairy * Arizona Dairy Company * Shamrock Farm * Goldman Dairy * Bulter Dairy * Yettem * RG Dairy, LLC Lunts Dairy Number of Cows 2,275 1,025 1,486 1,386 1,219 8,417 5,362 7,700 4,185 5,443 8,688 2,184 598 3,641 1,236 584 MILK 26,761 24,996 23,784 24,294 23,569 25,138 23,906 23,634 22,728 23,416 23,868 22,819 22,416 19,083 22,017 21,262 FAT 970 920 861 833 839 788 815 817 837 804 776 799 778 859 778 785 3.5 FCM 27,295 25,721 24,241 24,008 23,791 23,643 23,548 23,463 23,395 23,158 22,899 22,819 22,304 22,176 22,132 21,919 CI 15.1 15.0 14.6 13.0 14.6 13.8 13.2 14.5 14.6 14.5 13.6 14.1 14.8 13.1 14.0 12.9 3.5 FCM 27,288 26,751 26,626 26,154 25,908 25,530 25,181 24,927 24,550 24,171 24,111 23,571 22,543 CI 13.7 13.9 13.4 13.0 13.6 14.0 14.0 14.2 14.0 13.5 13.5 14.1 13.6 NEW MEXICO - TOP 50% FOR F.C.M.b OCTOBER 2006 OWNERS NAME * Do-Rene * New Direction 2 * Providence * Hide Away * Pareo * Butterfield * Vaz * Milagro * Goff * Cross County * Flecha * Stark Everett * Goff 2 Number of Cows 2,379 2,147 2,880 2,469 1,563 2,024 1,924 3,439 4,291 3,495 2,196 2,845 1,124 MILK 26,994 25,864 26,363 26,620 25,676 25,777 24,558 24,046 23,999 23,685 23,359 22,784 19,319 FAT 963 960 939 903 913 887 898 896 874 859 864 846 875 * all or part of lactation is 3X or 4X milking b average milk and fat figure may be different from monthly herd summary; figures used are last day/month ARIZONA AND NEW MEXICO HERD IMPROVEMENT SUMMARY FOR OFFICIAL HERDS TESTED OCTOBER 2006 ARIZONA 1. Number of Herds NEW MEXICO 31 29 2. Total Cows in Herd 74,913 61,090 3. Average Herd Size 2,417 2,107 86 87 5. Average Days in Milk 212 202 6. Average Milk – All Cows Per Day 52.5 60.4 3.6 3.6 63,993 50,370 61.5 69.2 82 72 11. Average Days Open 170 141 12. Average Calving Interval 14.4 13.7 85 75 14. Percent Somatic Cell – Medium 9 15 15. Percent Somatic Cell – High 6 11 16. Average Previous Days Dry 61 63 17. Percent Cows Leaving Herd 29 30 4. Percent in Milk 7. Average Percent Fat – All Cows 8. Total Cows in Milk 9. Average Daily Milk for Milking Cows 10. Average Days in Milk 1st Breeding 13. Percent Somatic Cell – Low STATE AVERAGES Milk 22,196 23,349 Percent butterfat 3.60 3.57 Percent protein 2.90 3.11 Pounds butterfat 791 837 Pounds protein 658 712 HIGH COW REPORT NOVEMBER 2006 MILK Arizona Owner * Stotz Dairy * Stotz Dairy * Danzeisen Dairy, LLC. * Withrow Dairy * Stotz Dairy * DC Dairy, Llc * Zimmerman Dairy * Zimmerman Dairy * Rio Blanco Dairy * Goldman Dairy Barn# 20593 14949 4464 1288 21080 3988 575 5274 7176 3505 Age 03-04 06-11 05-09 06-07 03-00 05-01 05-02 08-03 03-01 07-11 Milk 36,920 35,940 35,870 35,750 35,210 34,710 34,660 34,290 34,210 34,060 * Stotz Dairy * Stotz Dairy * Danzeisen Dairy, LLC. * Stotz Dairy * Danzeisen Dairy, LLC. * D & I Holstein * Saddle Mountain Dairy * Shamrock Farms * Rio Blanco Dairy * Stotz Dairy 20522 18422 4463 21080 4464 7953 1756 4979 6381 20593 03-05 04-03 05-09 03-00 05-09 06-04 05-05 05-07 04-00 03-04 1,756 1,550 1,546 1,539 1,516 1,481 1,413 1,357 1,356 1,348 * Stotz Dairy * Danzeisen Dairy, Llc. * Stotz Dairy * D & I Holstein * Danzeisen Dairy, Llc. * D & I Holstein * Stotz Dairy * Rio Blanco Dairy * Goldman Dairy * Stotz Dairy 18245 4464 19918 7953 395 3930 18041 6381 7402 18599 04-05 05-09 04-04 06-04 04-03 02-10 04-08 04-00 05-02 04-03 1,064 1,036 1,023 1,020 1,011 1,005 998 998 993 992 New Mexico Owner Barn # * S.A.S. Dairy 2937 * Providence Dairy 6026 * Pareo Dairy 7761 * Wayne Palla Dairy 2559 * Pareo Dairy 3366 * Pareo Dairy 9692 * Tres Hermanos Dairy LLC 1383 * McCatharn Dairy 1884 * S.A.S. Dairy 7027 * S.A.S. Dairy 6425 Age 05-06 04-00 07-02 05-00 05-11 07-02 05-02 04-02 04-09 05-06 Milk 39,428 38,170 37,660 37,130 36,735 36,691 36,686 36,360 36,172 36,144 4333 5010 6026 2341 Y-1655 9307 3256 1040 9692 3366 05-01 05-10 04-00 04-03 06-04 04-03 04-00 06-06 07-02 05-11 1,514 1,433 1,401 1,389 1,383 1,379 1,377 1,375 1,356 1,343 2937 7027 6425 2559 2341 6026 1884 840 1954 9692 05-06 04-09 05-06 05-00 04-03 04-00 04-02 07-06 03-10 07-02 1,136 1,125 1,125 1,115 1,101 1,089 1,074 1,069 1,061 1,054 FAT * Pareo Dairy * Providence Dairy * Providence Dairy * Desperado Dairy * Vaz Dairy * Do-Rene Dairy * Vaz Dairy * Do-Rene Dairy * Pareo Dairy * Pareo Dairy PROTEIN *all or part of lactation is 3X or 4X milking * S.A.S. Dairy * S.A.S. Dairy * S.A.S. Dairy * Wayne Palla Dairy * Desperado Dairy * Providence Dairy * McCatharn Dairy * Butterfield Dairy * McCatharn Dairy * Pareo Dairy ARIZONA - TOP 50% FOR F.C.M.b NOVEMBER 2006 OWNERS NAME * Stotz Dairy West * Stotz Dairy East * Danzeisen Dairy, Inc. * Del Rio Dairy, Inc. * Zimmerman Dairy * Red River Dairy * Withrow Dairy * Mike Pylman Parker Dairy * Arizona Dairy Company * Shamrock Farm * Goldman Dairy * Bulter Dairy * RG Dairy, LLC * Yettem Lunts Dairy * DC Dairy, LLC Number of Cows 2,318 1,024 1,468 1,386 1,222 8,417 5,282 7,700 4,239 5,328 8,526 2,178 606 1,236 3,679 584 1,155 MILK 26,633 24,840 23,784 24,294 23,594 25,138 23,764 23,634 22,666 23,278 23,818 22,746 22,508 22,017 18,938 21,262 21,552 FAT 973 915 870 833 838 788 818 817 836 803 779 794 789 778 852 785 769 3.5 FCM 27,288 25,573 24,387 24,008 23,786 23,643 23,535 23,463 23,352 23,082 22,926 22,706 22,522 22,132 22,000 21,919 21,785 DO 222 175 169 133 167 146 155 198 179 187 156 168 194 172 118 135 158 3.5 FCM 27,328 26,751 26,735 26,519 26,195 25,908 25,603 25,184 25,064 25,020 24,906 24,303 DO 145 175 120 114 147 142 133 --152 --139 121 NEW MEXICO - TOP 50% FOR F.C.M.b NOVEMBER 2006 OWNERS NAME * Do-Rene * New Direction 2 * Providence * Hide Away * Rocky Mountain Dairy * Pareo * Butterfield * SAS * Vaz * MCatharn * Milagro * Cross Country Number of Cows 2,352 2,147 2,898 2,765 513 1,563 2,063 1,937 1,947 975 3,418 3,670 MILK 26,974 25,864 26,577 26,790 25,329 25,676 25,796 25,316 24,513 25,123 24,034 23,766 FAT 966 960 940 921 940 913 891 878 892 873 895 865 * all or part of lactation is 3X or 4X milking b average milk and fat figure may be different from monthly herd summary; figures used are last day/month ARIZONA AND NEW MEXICO HERD IMPROVEMENT SUMMARY FOR OFFICIAL HERDS TESTED NOVEMBER 2006 ARIZONA 1. Number of Herds NEW MEXICO 34 30 2. Total Cows in Herd 65,757 60,931 3. Average Herd Size 1,934 2,031 86 87 5. Average Days in Milk 205 192 6. Average Milk – All Cows Per Day 55.3 62.1 3.7 3.6 56,260 52,137 64.8 71.7 82 72 11. Average Days Open 167 137 12. Average Calving Interval 14.4 13.7 85 80 14. Percent Somatic Cell – Medium 9 14 15. Percent Somatic Cell – High 6 6 16. Average Previous Days Dry 61 64 17. Percent Cows Leaving Herd 30 32 4. Percent in Milk 7. Average Percent Fat – All Cows 8. Total Cows in Milk 9. Average Daily Milk for Milking Cows 10. Average Days in Milk 1st Breeding 13. Percent Somatic Cell – Low STATE AVERAGES Milk 22,104 23,184 Percent butterfat 3.59 3.55 Percent protein 2.88 3.06 Pounds butterfat 787 869 Pounds protein 647 707 HIGH COW REPORT DECEMBER 2006 MILK Arizona Owner * Mike Pylman * Stotz Dairy * Stotz Dairy * Stotz Dairy * Shamrock Farms * Withrow Dairy * Mike Pylman * Mike Pylman * Mike Pylman * Stotz Dairy Barn# 276 16943 18323 18027 6552 5065 2996 299 2335 20877 Age 06-03 05-06 04-05 04-09 05-04 06-02 05-07 05-03 05-05 03-03 Milk 49,430 37,270 35,370 35,150 35,120 34,830 34,590 34,580 34,480 34,360 * Stotz Dairy * Stotz Dairy * Mike Pylman * D & I Holstein * Stotz Dairy * Shamrock Farms * Shamrock Farms * Rio Blanco Dairy * Shamrock Farms * Stotz Dairy 17335 20124 276 862 16943 M265 9677 6279 5006 18323 05-03 03-11 06-03 03-03 05-06 09-08 04-03 04-05 05-08 04-05 1,513 1,474 1,462 1,327 1,324 1,322 1,315 1,314 1,313 1,305 * Mike Pylman * D & I Holstein * Stotz Dairy * Rio Blanco Dairy * Shamrock Farms * Mike Pylman * Mike Pylman * Stotz Dairy * Danzeisen Dairy, LLC. * Mike Pylman 276 1159 18027 6279 6552 633 309 21078 4568 667 06-03 06-01 04-09 04-05 05-04 03-10 06-03 03-01 05-09 03-09 1,297 1,098 1,042 1,038 1,027 1,026 1,016 1,004 990 989 New Mexico Owner * Providence Dairy * Providence Dairy * Providence Dairy * New Direction Dairy * Providence Dairy * Wayne Palla Dairy * New Direction Dairy * New Direction Dairy * Providence Dairy * Providence Dairy Barn # 905 858 5388 695 Hos 4827 16989 980 Hos 947 Hos 6980 6985 Age 04-11 04-10 05-02 ----06-02 05-10 --------03-01 03-01 Milk 37,820 37,760 37,420 37,350 37,000 36,890 36,640 36,640 36,480 36,430 * Providence Dairy * Providence Dairy * Pareo Dairy * New Direction Dairy * Providence Dairy * Breedyk Dairy * New Direction Dairy * New Direction Dairy * New Direction Dairy * Do-Rene Dairy 858 9548 4615 695 Hos 308 1344 980 Hos 947 Hos 131 Hos 1197 04-10 05-11 05-00 ----05-06 04-03 ------------06-06 1,555 1,477 1,419 1,386 1,378 1,369 1,363 1,362 1,356 1,347 947 Hos 695 Hos 97 Miss 809 Tx 980 Hos 131 Hos 16989 6980 9775 635 Hos ------------------------05-10 03-01 05-10 ----- 1,178 1,160 1,156 1,145 1,143 1,137 1,104 1,102 1,101 1,099 FAT PROTEIN *all or part of lactation is 3X or 4X milking * New Direction Dairy * New Direction Dairy * New Direction Dairy * New Direction Dairy * New Direction Dairy * New Direction Dairy * Wayne Palla Dairy * Providence Dairy * Providence Dairy * New Direction Dairy ARIZONA - TOP 50% FOR F.C.M.b DECEMBER 2006 OWNERS NAME * Stotz Dairy West * Stotz Dairy East * Danzeisen Dairy, Inc. * Del Rio Dairy, Inc. * Zimmerman Dairy * Red River Dairy * Withrow Dairy Parker Dairy * Mike Pylman * Arizona Dairy Company * Goldman Dairy * Shamrock Farm * Butler Dairy Number of Cows 2,172 1,108 1,508 1,386 1,200 8,417 5,247 4,268 7,484 5,328 2,142 8,660 609 MILK 26,484 24,728 23,948 24,294 23,637 25,138 23,639 22,625 23,372 23,278 23,145 23,719 22,576 FAT 970 909 880 833 841 788 821 839 810 803 804 788 796 3.5 FCM 27,175 25,427 24,620 24,008 23,853 23,643 23,530 23,383 23,236 23,082 23,041 23,030 22,665 DIM 251 228 220 182 223 180 206 216 231 227 219 213 216 3.5 FCM 27,341 26,587 26,519 26,464 26,162 26,089 25,603 25,184 25,064 25,020 24,841 24,354 DIM 193 196 179 236 206 188 192 198 198 184 197 178 NEW MEXICO - TOP 50% FOR F.C.M.b DECEMBER 2006 OWNERS NAME * Do-Rene * Providence * Hide Away * New Direction 2 * Rocky Mountain Dairy * Pareo * Butterfield * SAS * Vaz * MCatharn * Milagro * Cross Country Number of Cows 2,397 2,920 2,493 2,133 512 1,572 2,044 1,937 1,947 975 3,443 3,580 MILK 26,965 26,422 26,790 25,576 25,326 25,721 25,796 25,316 24,513 25,123 23,996 23,733 FAT 967 935 921 950 938 923 891 878 892 873 892 869 * all or part of lactation is 3X or 4X milking b average milk and fat figure may be different from monthly herd summary; figures used are last day/month ARIZONA AND NEW MEXICO HERD IMPROVEMENT SUMMARY FOR OFFICIAL HERDS TESTED DECEMBER 2006 ARIZONA 1. Number of Herds NEW MEXICO 25 23 22,740 44,483 910 1,934 86 87 5. Average Days in Milk 211 192 6. Average Milk – All Cows Per Day 57.7 61.7 3.7 3.6 49,620 39,938 67.2 71.2 83 70 11. Average Days Open 177 139 12. Average Calving Interval 14.9 13.9 80 78 9 14 15. Percent Somatic Cell – High 10 5 16. Average Previous Days Dry 60 62 17. Percent Cows Leaving Herd 33 31 2. Total Cows in Herd 3. Average Herd Size 4. Percent in Milk 7. Average Percent Fat – All Cows 8. Total Cows in Milk 9. Average Daily Milk for Milking Cows 10. Average Days in Milk 1st Breeding 13. Percent Somatic Cell – Low 14. Percent Somatic Cell – Medium STATE AVERAGES Milk 22,658 23,379 Percent butterfat 3.50 3.57 Percent protein 2.95 3.07 Pounds butterfat 797 890 Pounds protein 665 727 UPCOMING EVENTS: ARIZONA DAIRY DAY APRIL 5, 2007 PALOMA DAIRY - GILA BEND, AZ DAIRY DAY GOLF TOURNAMENT APRIL 6, 2007 CLUB WEST GOLF COURSE - PHOENIX, AZ Department of Animal Sciences PO Box 210038 Tucson, AZ 85721-0038 Phone: 520-626-9382 Fax: 520-621-9435 Email: ljr22@ag.arizona.edu