Dairy November 1998 Managed Breeding of Dairy Cows Dr. John W. Fuquay Professor, Animal and Dairy Sciences, Mississippi State University The goal of any dairy herd manager should be to maintain an average calving interval of 12 to 13 months in his or her herd. To achieve this goal, fewer than 10% of the herd should be classified as a reproductive problem. Problem cows are those that have 1) an abnormal discharge after 60 days postpartum, 2) have not settled to three or more services, or 3) are open for more than 100 days postpartum. It may be surprising to many, but the primary reason that dairy cows are open more than 100 days is inefficiency in detection of estrus (heat). Studies in Missouri a few years back showed that dairy managers were detecting estrus in only about 50% of the cycles in their dairy herds. Further, one in five cows (20%) was being inseminated when not in estrus which means they would not conceive to that service. Managed breeding programs are designed to make detection of estrus more efficient or insure that cows are inseminated at an appropriate time in relation to ovulation. In one managed breeding program, cows that are least 60 days postpartum and cleared for breeding otherwise are injected with PGF2a (LutalyseR) on a designated day (e.g., Monday). They are observed for estrus intensively for the next five days and inseminated if estrus is detected. Fourteen days later those not seen in estrus are injected again plus new cows that have been cleared for breeding. This procedure continues every 14 days throughout the breeding season. If cows recycle after insemination, they should be reinseminated or, if diagnosed open by palpation, they should be added to the next injection group. This type of managed breeding program is being used in the dairy herd at Mississippi State University. Its primary advantage is that groups of cows are in estrus at the same time. This results in more mounting activity which reduces the chance that cows will be missed. Another advantage is that it reduces the time for intensive observations for estrus to 5 days for each 14-day period. This is an advantage in time management because otherwise intensive observations for estrus are needed every day. Use of mount detectors, to include marking the tailhead with a livestock marking crayon or paint, will further improve detection efficiency. Another managed breeding program that has been reported is called synchronized ovulation. It includes hormone treatments followed by timed insemination (no observation for estrus). This program starts with an injection of GnRH (CystorelinR or FactrelR) in a group of cows cleared for breeding. Seven days later, PGF2a is injected followed by GnRH again 36 hours after PGF2a. Cows are inseminated 16 to 24 hours after the last injection. This procedure has worked well in mature cows but not heifers. Its primary advantage is that semen is deposited into cows a few hours before ovulation. Fertility in cows that are inseminated is not improved over cows inseminated at detection of estrus. However, more cows are likely to become pregnant because otherwise cows not detected in estrus would not be inseminated and could not become pregnant. This method is best used as a single effort to get as many cows as possible pregnant at one time. For example, it might be used on a group of cows in late spring as a last effort to get cows pregnant before summer or in the summer when it is difficult to detect estrus. When used, you cannot do anything else to a cow until she cycles again (18-24 d) or she is palpated and determined to be open (35-50 d) because injection of PGF2a into a pregnant cow will cause abortion. With programmed breeding, you continue the program every 14 days. Recent research at Mississippi State University has demonstrated that induced early cycling of cows after calving is advantageous. Induced early cycling was accomplished by injecting GnRH on about day 15 postpartum followed by PGF2a 10 days later. With this treatment, average days to first estrus was 27 days as compared to 36 days for cows not treated. Uterine recovery after calving was speeded in cows that were treated. Their uterine tone was excellent by day 45 whereas untreated cows had good but not excellent tone. Average services per conception was 1.4 for the treated cows and 2.4 for those not treated. Therefore, induced early cycling should be an advantage in any breeding system that is utilized. If you have questions, please call me at Animal and Dairy Sciences, Mississippi State University Ninth Annual Mississippi/Louisiana Dairy Management Conference November 12, 1998 Percy Quin State Park Convention Center McComb, Mississippi (Six miles South of McComb, Exit 13 off I-55) 9:00 AM Registration and View Commercial Exhibits 9:30 AM Program An Overview of the Draft Unified National Strategy for Animal Feeding Operations   Dr. Tim Burcham, Agricultural and Biological Engineering Mississippi State University Dr. Burcham will explain the potential waste management implications associated with the Unified Animal Feeding Operation Strategy and the Clean Water Action Plan. The proposed plan will be implemented beginning in 1999 and could potentially effect every animal feeding operation including dairy farms. Economics of Spring versus Fall Calving in Louisiana and Mississippi Dr. Reuben Moore, Animal and Dairy Sciences Mississippi State University Dr. Reuben Moore will speak on the economics of strategically planned calving patterns on Louisiana and Mississippi dairy farms. He will be presenting research, production and economic data to compare Fall versus Spring calving patterns. Managing Labor on Dairy Farms Dr. Charles (Chuck) L. Moore, Sr., Agriculture and Resource Economics North Carolina State University Producer Response Panel Mr. Herman Slade, Kentwood, LA Mr. Max Stinson, Tylertown, MS Mr. Bill Gill, Edwards, MS Dr. Chuck Moore is nationally recognized for his work with labor management. As dairy herds get larger, the need for personnel management skills is becoming more important. He will also serve as a facilitator for the producer panel of dairy farm owners/managers who manage people on a daily basis. Please make plans to attend. Lunch will be served at the conclusion of the program, sponsored be the commercial exhibi-tors and sponsors of the conference. For further information, contact Wesley Farmer at (601) 835-3460 or Dr. Reuben Moore at (601) 325-2852.   SEPTEMBER 1998 HONOR ROLL HERDS* Dairy County No. Cows Lbs ECM** 2X/3X RHA Milk RHA Fat RHA Prot DOT DIXIE DAIRY SALES CARROLL 539 53.0 2X 21479 831 691 09/19/98 KNIGHTS DAIRY FARM JONES 139 49.80 2X 19947 694 642 09/21/98 MS.STATE UNIVERSITY OKTIBBEHA 162 49.3 2X 20937 883 680 08/31/98 J & L DAIRY WALTHALL 195 49.2 2X 21616 756 698 09/15/98 ROWZEE JERSEY FARM NEWTON 142 48.3 2X 16344 753 633 09/15/98 STEWARD FARM INC TATE 370 47.1 2X 22011 749 703 09/23/98 CAL MAINE FOODS DAIRY HINDS 1668 46.3 3X 19169 702 615 09/05/98 THOMPSON BROTHERS MARSHALL 143 45.8 2X 19368 692 625 09/07/98 SPEAKS & SON WALTHALL 374 45.1 2X 18241 728 602 09/07/98 A L BOYD JR WALTHALL 81 45.0 2X 20666 626 656 09/17/98 BRAD BEAN AMITE 231 43.7 2X 21828 821 695 09/08/98 FREEMAN DAIRY PIKE 146 43.7 2X 18849 617 617 09/09/98 JOHN E. MAGEE WALTHALL 108 43.3 2X 16306 611 528 09/20/98 COASTAL PLAIN EXP STA NEWTON 173 42.9 2X 22066 818 735 09/14/98 GRAHAM DAIRY PONTOTOC 96 42.8 2X 17588 530 560 09/07/98 JERRY N HOLMES WALTHALL 98 42.6 2X 16644 577 523 09/16/98 NORTH MISS BR EXP STATION MARSHALL 95 41.9 2X 19107 702 623 09/08/98 ELWAYNE MAST NOXUBEE 169 40.4 2X 17465 0 0 09/17/98 DAVID ROBINSON & SONS RANKIN 129 39.6 2X 18512 770 578 09/21/98 TODD & JERRY BULLOCK PIKE 103 39.3 2X 17411 604 561 09/12/98 G & B DAIRY LINCOLN 67 38.6 2X 17168 687 622 09/16/98 MAX & TAMMY STINSON WALTHALL 307 37.4 2X 16319 596 534 08/31/98 QUIN'S DAIRY PIKE 79 36.8 2X 14698 516 472 09/03/98 JIMMY TUCKER & SONS PIKE 233 36.5 2X 16403 619 515 08/31/98 JEFCOAT & WILLIAMS DAIRY JONES 61 36.3 2X 20729 705 666 09/09/98 MAX & TAMMY STINSON WALTHALL 295 35.9 2X 16174 594 527 09/23/98 LOUIS SKINNER NESHOBA 64 34.9 2X 16010 573 0 09/01/98 ABE MILLS SCOTT 274 34.7 2X 15216 582 499 09/26/98 FERNWOOD FARM PIKE 260 34.4 2X 11572 534 426 09/20/98 W E & CRAIG JACKSON COPIAH 159 34.4 2X 12103 524 441 09/14/98 * Top 30 herds enrolled on supervised DHIA testing programs by test day energy corrected milk. ** ECM = (.3246 x test day milk) + (12.86 x test day lbs fat) + (7.04 x test day lbs protein) From now until December 31, 1998, Mississippi DHIA will be offering two cost saving promotions for herds not currently enrolled in the DHIA program and some herds already enrolled. Both promotions should offer dairy producers significant cost savings on DHIA services. The first promotion concerns the recruitment of new herds to enroll in the DHIA program. Any new herd that joins the program between now and December 31, 1998 will have their processing fees waived by DRMS as well as their state fees waived by Mississippi DHIA. These fee waivers could potentially reduce a new herd's cost of DHIA services by as much as 10 percent during the promotion period which ends December 31, 1998. Supervisor fees, laboratory processing costs, DRMS special management options and local association fees are not included in this offer. The second promotion is associated with the DHIA herd management software program called PCDART, which was developed by DRMS and is distributed through Mississippi DHIA. The initial setup fee for new PCDART herds is $150.00. This initial setup fee will be waived for any DHIA herds, current or new, who sign up for the PCDART software program. This offer does not include the monthly user fees associated with PCDART. For more information about these offers or the DHIA program please contact Dr. Reuben Moore at (601) 325-2851 or Wesley Farmer at (601) 835-3460. ******************************************* October 1998 BFP Price Dr. C.W. "Bill" Herndon Dairy Economist, MSU Small Increase in the BFP Disappoints Industry, Again The September Basic Formula Price, or BFP, frustrated the dairy industry for the second month in a row in its failure to increase as much as was expected when the USDA reported its value at $15.10 per hundredweight. This sluggishness in the BFP is attributed to the fact that during August manufacturing plants in Minnesota and Wisconsin paid an average of 30 cents per cwt. less than the August BFP. The September increase of 11 cents per cwt. indicates that the BFP has increased a total of $4.22 (or 38.8%) since June and has continued to respond to all-time record high prices for both butter and cheese products recorded during August and September. The seemingly endless summer of 1998 appears to have finally come to an end in early October but the lingering effects of the extremely hot temperatures are still depressing milk production, especially in the South. Milk production is being described as "mixed" across the U.S., with the Southwest and Pacific Northwest reporting nearly ideal milk production conditions while the Northeast and Midwest are "steady to lower" milk output. The Southeast persist in reporting lower milk production with the torrential rains and hot temperatures brought by Hurricanes Georges still impacting most areas along the Gulf Coast. Thus, processors/handlers in the South are scrambling to locate enough milk just to meet bottling needs and are experiencing difficulties finding milk, as well as, the trucks and drivers to haul these raw milk supplies from as far away as Wisconsin, New Mexico, and California. For instance during the second week of October, 172 loads of milk were imported into Florida but handlers still needed an additional 90 loads to satisfy bottling requirements. Several plants across the Southeast reported being about 8% short of needs and were forced to cut back bottling schedules. Dairy farmers must be prepared for a dramatic turnaround in these record high dairy product prices because most of the industry expects milk production to increase significantly over the next 3 to 6 months. Moderate feed costs, good availability of forages, and improved profitability are all encouraging increased milk production. The September BFP was reported at $15.10 per cwt. which represents an INCREASE of $0.11 cwt. (up 0.7%) ABOVE the August BFP of $14.99. September 1998's BFP is $2.31 per cwt. (or 18%) HIGHER than the September 1997 BFP price of $12.79. Dairy producers need to remember that the September BFP will be used as the base price to calculate the November 1998 Class I and Class II milk prices and the September 1998 Class III milk price. Because more than 80 percent of Mississippi milk is utilized as Class I and Class II products, farmers will not notice the majority of this 11 cent increase in the September BFP until they receive their December checks as payment for milk sold in November. The weather continues to dominate all discussions about milk production and how the persistent summer-like weather has depressed milk production in most areas of the country, particularly in the South. For early October, the USDA reported that milk production was mixed across the U.S. with California, Middle Atlantic, Midwest, and South still suffering from unseasonably warm weather while New Mexico and Washington have experienced almost perfect temperatures. These warm weather patterns continue to cause milk output to decline and spur demand for ice creams and other dairy products. This has resulted in a shortage of milk supplies and driven dairy product prices to record levels during the summer and fall of 1998. The availability of milk supplies for bottlers in Florida and other southeastern states has been so "short" during the first two weeks of October that it was rumored that several processors were forced to close their plants for several days. Handlers simply were unable to locate and deliver enough milk to keep their plant operating and, thus; could not ship enough bottled milk to satisfy their customer's needs. About 500 to 600 loads per week were imported into southeastern states with several bottlers paying as much as $6.00 - $7.00 per cwt. in "give-up" charges to obtain these imported supplies. But, Mississippi and other southeastern states have finally experienced a very welcomed respite from these relentless hot temperatures during the first weeks of October. Other milk producing areas were also reporting milder weather patterns that usually lead to increase milk production and should ease this very "tight" milk supply situation. Cheddar cheese prices continue to demonstrate amazing strength through the first half of October but there appears to have been a break in butter prices. Dairy product prices have been strong because of "tight" milk supplies brought about by the weakened production and robust demand market situation. While butter prices have declined during October, cheese prices remain in unchartered territory with all-time record highs recorded for block and barrel cheese products almost every day on the Chicago Mercantile Exchange (CME). Grade AA butter prices have decreased 46.00 cents per pound (-16.4%) since September 18 and processors are now delaying production and buying schedules in anticipation of further price declines. After reaching the almost inconceivable level of $3.00 per pound, CME Grade AA butter prices have gone down from the all-time record high of $2.8100 on September 18 to $2.3500 on October 9. Cheese prices on the CME for 40# blocks were recorded at $1.7475 per pound on September 18 compared to $1.8100 on October 14 -- which represents a 6.25 cent (or +3.6%) increase for this four-week period. Barrel prices have shown a similar pattern but rising only 3.00 cents (or +1.7%) from $1.7475 to $1.7775 per pound over this same time period. Nonfat dry milk (NDM) prices have been stable during these four weeks despite the fact that the USDA has been selling back CCC stocks into the cash market. In fact, the USDA/CCC has sold more than 2 million pounds of NDM back to the trade. This has resulted in the market tone being described as "steady but unsettled" and NDM prices are remaining well above the price support level. The improving outlook for milk production is weakening the recent positive price outlook for NDM, but prices remained in the $1.1000 to $1.1400 per pound range during the week of October 9. The dairy market appears to holding its collective breath waiting for the anticipated increase in milk production which is expected to cause a free fall in dairy product prices and the BFP during the winter of 1998/99. Despite record high cheese and butter prices, the sluggishness of the BFP displayed in the smaller than anticipated increases in the BFP during August and September should indicate that caution has dominated the dairy industry and will keep on influencing prices and production schedules during the next 4 to 8 weeks. With favorable profitability brought about by lower feed costs and higher milk prices, milder fall weather will encourage a substantial increase in milk output from dairy farmers across the nation. With this predicted flood of milk, most of the industry is preparing for a dramatic and rapid turnaround in dairy prices and caution will become the predominate principle practiced by producers and processors. The majority of market analysts now believe that the BFP has already reached or is near its peak for 1998. The prospect of exceeding the previous record of $15.37 for the BFP now appears to be waning despite the fact that cheese prices have exceeded the $1.80 per pound level. The current cheese and BFP relationship violates a rule of thumb used for a number of years that states: "multiply the 40# block cheese price by 10 and subtract $1.00 - $1.25 to estimate an approximate BFP." Obviously, this estimation method is currently not doing a very good job because this procedure would have predicted a September BFP in excess of $16.00, instead of the reported $15.10. Current forecasts indicate that the BFP could increase as much as 20 or 30 cents in October and November, but the probability of setting a new record and approaching the $15.50 level in 1998 is growing smaller. The BFP is expected to start declining as early as November and continue to fall during remainder of 1998 and through the first 3 or 4 months of 1999. Ultimately, the BFP could plunge as low as $12.00 - $12.50 by next March or April. President Clinton Vetoes Agricultural Appropriations Bill During the last days of September, the House-Senate Conference Committee debated a number of dairy-related issues during their discussions to rectify the differences in the two chambers versions of the Agricultural Appropriations Bill. The primary dairy-related issues were: (1) a six-month extension of the deadline to complete the Federal Milk Marketing Order (FMMO) reform process; (2) a six-month extension of the existence and operation of the Northeast Dairy Compact; (3) a six-month extension of the time allowed for California to join the FMMO system; and, (4) create a program to provide dairy farmers producing less than 1.5 million pounds per year with market adjustment payments (transition payments). On September 29th, the Conference Committee agreed to include all three items related to the time extensions (until October 1, 1999) but failed add the transition payment program to the Appropriations Bill and sent this legislation to the full House and Senate for vote by the members of both chambers. On October 2, the House passed the Conference Committee's version of the Agriculture Appropriations Bill by a wide margin of 333 yeas to 53 nays. Then, the Senate passed this same version of the Bill on October 6 with the vote totals of 55 yeas and 43 nays. This measure was then sent to the President for his consideration. On October 7, the President vetoed the Agriculture Appropriations Bill because this measure contained only $4.2 billion in disaster relief payments for farmers instead of the $7.2 billion requested by the Clinton Administration. This measure will probably not be taken up again by Congress until after the fall elections, so the status of this legislation remains in question. However, most political observers believe that the dairy-related issues agreed to by the Conference Committee will remain intact when this Bill finally becomes law. Southeast F.O. #7 "Blend" Price Surges Again to $17.52 in September The Southeast Federal Order Milk Market Administrator reported the September 1998 "blend" or uniform prices for milk delivered in Federal Order (FO) #7 at $17.52 per cwt. (for 3.5% Butterfat milk) in Zone 7, see the Mississippi map for zones (Zone 5 minus $0.25, Zone 6 minus $0.10, Zone 8 plus $0.10, Zone 9 plus $0.20, Zone 10 plus $0.32, Zone 11 plus $0.50, and Zone 12 plus $0.57 per cwt.). The September "blend" price of $17.52 for Zone 7 of FO #7 represents a INCREASE of $1.66 per cwt. compared to the August price of $15.86. The September 1998 blend price is $3.88 (or 28.4%) ABOVE the September 1997 blend price of $13.64. This substantial increase in the September blend price occurred because of significant increases in both the Class I and Class milk prices in conjunction with an increase in the Class I utilization rate (and corresponding decreases in both the Class II and Class III utilization rates). This $1.66 rise in the September blend price is attributed to sizeable increases in both the Class I and Class II milk price of $1.67 per cwt. Class I utilization rose 2.6% (from 83.0% in August to 85.6% in September), while Class II utilization fell by 1.0% (from 9.7% in August to 8.7% in September) and Class III utilization decline by 1.6% (from 7.4 in August to 5.8% in September). The September Zone 7 "blend" price was calculated using: (1) the July BFP price of $14.77 plus the $3.08 Zone 7 Class I differential for a Class I price of $17.85; (2) the July BFP price of $14.77 plus the 30 cents per cwt. Class II differential for a Class II price of $15.07; and, (3) the September Class III price of $15.10 (which is the BFP). Please consult the map in this newsletter to determine which Zone the plant you sell your milk to is located in FO #7. A dairy producer's uniform price and the amount of his milk check is affected by where the plant that processes his milk is located in the Southeast FO. NIFORM or "BLEND" PRICE FOR SEPTEMBER 1998   ZONE 5: $17.27 ZONE 6: $17.42 ZONE 7: $17.52 ZONE 8: $17.62 ZONE 9: $17.72 ZONE 10: $17.84 ZONE 11: $18.02   CLASS I PRICE FOR NOVEMBER 1998 (using the September 1998 BFP)   ZONE 5: $17.93 ZONE 6: $18.08 ZONE 7: $18.18 ZONE 8: $18.28 ZONE 9: $18.38 ZONE 10: $18.50 ZONE 11: $18.68

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