Developing Dairy Producer Peer
Groups in Kansas
Kristen Schulte
Kevin Dhuyvetter
Mike Brouk
Rich Llewelyn
Kansas State University
Kansas Dairy Industry
• 2010
– 17th U.S. Milk Production
• 0.4% increase in milk production since 2009
• 9th in 3-year annual milk production growth
– 11th Milk pounds/cow/day
• 21,000 rolling herd average
– 13th average herd size
• 305 cows (119,000 total cows)
– 390 licensed herds
Progressive Dairyman, 2010 U.S. Dairy Statistics &
USDA, National Agricultural Statistics Service
Opportunities
• Variable dairy enterprise returns due to increase of
volatility in milk and feed prices
• Structurally diverse dairy operation types between
regions in Kansas
• Limited individual farm benchmark comparison for
all types of dairies
• Risk management education to reduce financial risk
Objectives
1. Provide benchmark measures so producers can
evaluate their own operations and make plans to
change their operations based on this information
2. Assist producers in analyzing strengths and weaknesses
of their operations
3. Evaluate how milk revenue relates to inputs in order to
manage the financial and production related risks
4. Educate and provide peer-learning opportunities
related to marketing, and herd, feed, and employee
management
Peer Group Meeting
Quarterly meetings comprised of two sections:
• Benchmarking
– report results for key production and financial
measures such as price, production, reproduction rates,
culling rates, and feed prices.
– Individual and group statistical measures are reported
allowing producers to benchmark their farm over time
and to the group’s measures.
• General education
– Topic chosen by the group such as marketing, new
aspects of production and technology, and feed
management.
Timeline
DAIRY PRODUCER PEER GROUP TIMELINE
YEAR
2010
2011
2012
QUARTER
January - March
April - June
July - September
October - December
January - March
April - June
July - September
October - December
1
maintain
maintain
maintain
maintain
maintain
maintain
maintain
maintain
maintain
Peer Group
2
3
announce
begin
maintain
maintain
maintain
maintain
maintain
annouce
begin
maintain
maintain
maintain
maintain
maintain
4
announce
begin
maintain
Current Participation
• 8-11 dairy operations per group
• 3 producer peer groups
– 29 total operations
– 1 group with 6 quarters of data
– 2 groups with 2 quarters of data
• Farm size range: ~100 – 700 cows
• Industry support from local financial institution,
feed supplier, and veterinarian
• Utilize Excel and Word to collect data via e-mail
correspondence with producers
Meeting Outline
• 10:30
Welcome
• 10:45 – 12:15
Educational session
(topics picked jointly by producers and KSU)
• 12:30 – 1:00
Lunch
• 1:15 – 2:30
Analysis of benchmark data and
DHIA records
• 2:30
Farm tour
Meeting Preparation Outline
• Pre Meeting
– Finalize quarterly meeting plans
– E-mail reminder for meeting and submission of farm
benchmark input data
– Collect, compile, and analyze farm benchmark data
– Prepare benchmark reports for group and individual farms
• Post Meeting
– Update farm data with changes highlighted in meeting
– Prepare and send next quarters’ input data sheets
– Follow-up with producers from prior meeting
Benchmark Data – Milk Production
• Record:
– Entry comes directly from milk check
– Lbs milk sold and used on farm
– Milk price received (producer premiums and deductions)
• Output:
–
–
–
–
–
Milk shipped/cow/day
Milk income/cow/day
Component levels
Hauling cost/cwt milk
Milk price received
Producers enter milk check data into a spreadsheet each
quarter (blue values are inputs, other values are calculated).
Benchmark Data – Herd Inventory
• Record:
–
–
–
–
Total cow and heifer inventory
Number of cull animals
Transition cow complication frequency
Veterinary cost
• Output
– Heifer-to-cow ratio
– Cull rates (Cows: <60 and >60 DIM; abortion; stillborn;
Heifers:<2, 3-8, and >9 months)
– Veterinary cost per head
– Rate of transition cow complication
Producers enter monthly cow inventory data into a spreadsheet
each quarter (blue values are inputs, other values are calculated).
Benchmark Data - Feed
• Lactating, dry, and transition cows
• Record for each feed ingredient:
– Value/ton
– Dry matter percentage
– Total pounds fed per group
• Output:
–
–
–
–
–
Pounds fed/cow, DM basis
Feed cost/cow/day
Feed cost/cwt shipped/day
Major feed component cost comparison
Income over feed cost
Producers enter monthly feed prices and quantities into a spreadsheet
each quarter (blue values are inputs, other values are calculated) for each
diet (up to four lactating diets, one transition cow diet, and one dry cow diet).
Benchmark Data - Reproduction
• Record:
– Breeding rate per given 21-day interval
– Pregnancy rate per given 21-day interval
– Conception rate, number monthly services and successes
• Output (6 month average):
– Breeding rate
– Pregnancy rate
– Conception rate per lactation and number of services
Producers enter monthly data regarding number of services
and number of successful conceptions into a spreadsheet
each quarter (blue values are inputs, other values are calculated).
Benchmark Data - Output
• Statistical Analysis (group)
– Average, maximum, minimum
• Farm Data
–
–
–
–
Current quarter
Prior quarter
Current quarter, historical year
Rolling year average
Benchmark Output
Benchmark Graph
Benchmark Graph
Benchmark Graph
Additional Education
• Feed inventory, shrink analysis
• Cost of production – corn silage
• Labor - hours per task category
• Educational sessions
–
–
–
–
–
Commodity markets and marketing options
Utilizing DHIA records in transition cow management
Vaccination protocols
SCC and udder health
Foot care roundtable
Concluding Thoughts
• Continuous learning and development of materials
• Producers are still learning
(approximate two quarter learning curve)
• Feedback has been positive
• Time commitment bigger than anticipated
(haven’t been able to get producers to provide leadership)
• Excel and email capabilities essential
• Informal networking / camaraderie might be as
important as formal topics presented
THANK YOU
Kristen Schulte, schulte@ksu.edu
Kevin Dhuyvetter, kcd@ksu.edu