Enfoque general de la situación socio-económica en la Zona

Thus far in this unit you will notice we have treated livestock management in general terms. This section and subsequent ones will treat factors affecting profit ability of specific aspects like milk production, egg production and pig production. These will serve as examples and you are expected to be able to pick any other type of livestock and identify the factors by yourself.

Figure 1 below shows the factors affecting profitability of milk production.

Per Cow

Quantity Yield

Milk Calving Sales Index

Price Quality

Net Replace- Seasonality

ment Costs

Gross Output Cull value, Calf value

Per Hectare - Gross output/cow Ave. herd life of cow

Less Hectare per cow rage

Cost of replacements Concentrates

Variable Costs Other purchased feeds

(=Gross Margin=) Veterinary Costs and medicines Dairy Sundries

Less Forage costs

Rent and interest rates

Fixed Costs Buildings

Machinery

Net margin or Labour

enterprise profit Overheads

Gross output of milk per cow depends on i) Yield

Quantity sold ii) Calving Index

a) Milk sales Quality

Price obtained Seasonality

The value of the milk sold per cow per year is the result of a number of factors:

Quantity of milk sold

Quantity of milk sold per cow per year is a function of i) yield per cow per lactation and ii) calving index.

i) Yield per cow per lactation

Lactation yield is subject to the influence of many factors. The most important of these are health, management, level of feeding and environment.

Breed of cows has an important influence upon yield as the following figures show:

Influence of breed of cow on milk yield Breed Lactation

yield (gallons)

Annual yield (gallons)

Fresian 998 982

Ayrshire 905 862

Guernsey 763 732

Jersey 725 691

Shorthorn 868 832

Red Poll 793 767

Of equal importance is the strain of the breed and the level of genetic improvement within the herd.

ii) Calving Index

Calving Index is the interval in days between calving. This ideally should be 365 i.e. one lactation per cow per year which is made up as follows:

Cow calves

4 days - interval between calving and commencement of milk recording 305 days - recorded lactation

56 days - dry period 365 days -

However, the ideal calving index is seldom achieved in practice the average calving index is about 395 days.

Therefore the milk sold per cow per year will be:

Lactation yield x 365 395

An approximate relationship exists between the percentage dry cows in a herd, the average lactation length and the average number of days in a year when a cow is dry.

These can be expressed by these formulae:

1. Percentage dry cows in herd days dry in ‘cycle’ x 100 ÷ calving index e.g. at the ideal calving index of 365

Percentage dry cows in herd 56

= 365 x 100 = 16 approx.

2. Lactation length = calving index – days dry

3. Lactation output = output per cow per year x Calving index 365

Therefore if sufficient information is available it is possible to calculate a number of factors relating to breeding efficiency and frequency. This can be an extremely useful exercise in pinpointing management weaknesses within than output per cow per year, then the calving index must be greater than 365.

If percentage dry cow is high, i.e. more than 16, then this will be due to either i) poor calving index ii) short lactation.

Price per gallon.

Price received per gallon (in developed nation depends upon) a) Quality of milk produced.

b) Seasonality of production.

c) Bonuses for which the producer is eligible.

The quality of the milk depends on the compositional quality and hygienic quality.

The milk sold to the Milk Marketing Board is paid on a set of scale according to its analysis for total solids. The scale is set out and the basic price is paid for milk containing 12.0 – 12.1 percent total solids. Above this level the price per gallon increases and below this level, the price is reduced. A scheme is operated to ensure that hygienic quality of milk reaches very high standards.

Milk prices paid to the producer may vary from month to month as a direct result of supply and demand. Production of milk is at highest level during the rainy season and consequently prices are at their lowest. During the dry season when foodstuff is dear and water availability is low, the production goes down.

In order to encourage farmers to cooperate in bulk handling of milk, a bonus is given on a gallon depending on the quantity and frequency of collection.

Net herd replacement cost – is the difference between the cost of replacement of animals brought into the herd and any livestock sales in the form of calves and culls from the dairy herd. This depends on

i) the rate of replacement

ii) value of livestock sales from the herd iii) cost of replacement animals

iv) difference in opening and closing valuation for the herd.

Variable Costs

Concentrates whether purchased or home grown, are usually the principal item of variable cost incurred in milk production. The most economic level of concentrate feeding will depend upon the quality of their bulk diet, upon their genetic potential and upon the level of yield already being obtained.

There is no universal answer as to the optimum level of feeding because it will not be the same for any two herds. The overall economy of concentrate feeding will in the final analysis depend upon the cowman’s knowledge of his individual animals, upon knowing each cow’s individual response and then feeding to it.

Bulk foods may also have to be purchased and if used wisely can be a means of improving the profitability of a dairy enterprise.

Miscellaneous variable costs include items like veterinary and medicine, service and recording fees, dairy stores, etc.

Forage costs – these include annual variable costs of grassland and forage crops such as seeds, fertilizers, sprays.

Principles of Culling

The basic purpose of culling is to remove animals which are uneconomic in order to maintain the productivity of the herd.

Certain basic principles must be borne in mind when culling stock:

1. A rigorous system of culling will increase the depreciation rate of the herd and must be justified by increased productivity.

2. Removal of animals will not result in a reduction of fixed costs if culling leaves a smaller number of animals, then each must carry a larger share of fixed costs.

3. When replacing an animal always replace with something better.

Factors Affecting Rate of Replacement Husbandry Factors:

1. Diseases e.g. mastitis, brucellosis 2. Infertility.

3. Incapacity e.g. legs, feet.

4. Injury of cut teats etc.

5. Temperament e.g. slow milkers, kickers.

6. Genetic quality.

Economic Factors:

1. The level of fixed and overhead costs incurred by the farm where fixed costs are high, then high yields are essential to maintain a margin.

2. The amount of capital available. Replacement stock will require working capital. If this is limited, it may be better to cull lightly.

3. The cost of making the replacement which depends on:

a. Cull value of the animal replaced. This depends on the age, condition, breed of the animal, method of sale and time of the year.

b. Sale value of calves. This depends on age, condition, breed, sex of animal and the time of the year.

c. Cost of replacement heifer.