Dairy

June 1999
BRUSH UP ON YOUR SUMMER MANAGEMENT

Minimizing the Summer Slump in Milk Production

Dr. John Fuquay, Professor
Animal & Dairy Sciences, MSU

Dairy cows produce milk most efficiently when the ambient temperature is roughly between 35 and 65 degrees F. This has been identified as their "comfort" or "thermoneutral" zone. During Mississippi summers when we sometimes go for weeks with the nighttime temperature never dropping into this zone, dairy cows show marked stress responses. These responses include elevated rectal temperature, reduced appetite, reduced milk production and loss of body condition. In addition, if cows need to be inseminated, our ability to detect them in estrus is reduced. If detected in estrus and inseminated, fertility will be low. There are some practical management consideration that will help reduce these undesirable stress responses.

Appetite. The primary cause of lower milk production during the summer is loss of appetite. Therefore, you need to cater to the whims of the cow on feeding preference. If given the opportunity, our research indicates they will do most of their eating at night. They should be given free access to the best forages at night, whether it be summer annual grazing, greenchop, or silage, and freshness is a consideration. They should be fed in late afternoon rather than in the morning. Even when feeding your best forages at night, our research indicates that most of the reduction in intake as the air temperature goes up will be from forage rather than from concentrate. Therefore, increasing the level of concentrate feeding will be helpful in insuring higher energy intake and lessening the summer slump.

Drinking Water. Chilled drinking (50 to 60 degrees F) will reduce rectal temperatures and respiration rate while increasing feed intake and milk production in lactating dairy cows. However, cows prefer to drink warmer water (80 to 90 degrees F.) If you are to receive maximum benefits from chilled water, it must be the cow's only source. Water can be chilled practically by putting a block of ice in the watering vat a couple of times a day. If using self-waterer bowl, a refrigeration unit would be needed to chill the water, which would limit the cost effectiveness of this method. It is critical that cows have easy access to an ample quantity of fresh water for drinking.

Environmental Modifications. Research in Florida and other locations indicates that cows with access to shades during the day will produce more milk than unshaded cows. Natural shades (large trees) or constructed shades (freestall barns) should be provided. If using a constructed shade such as a freestall barn, it should be open on the sides to permit free cross-ventilation. A vented roof with a layer of insulation on the underside will improve its efficiency as a radiation shield. Use of fans or sprinklers and fans will keep cows cooler and improve production efficiency. If sprinklers are used, the spray should be coarse enough to wet the skin of the cows and be used intermittently (e.g., 15 minutes on and 15 minutes off) to permit evaporation of water from the skin surface. Fans should be run continuously.

At night, cows cool down more quickly under an open sky. If kept in a freestall barn or in a small lot outside the barn, continuous use of fans will speed the cooling process. Remember that our nighttime temperatures in summer are usually above the cow's comfort zone and natural air movement subsides at night. In our research, cows in a freestall barn and under fans 24 hours per day had lower rectal temperatures, maintained better body condition, and had more persistent milk production with less negative fluctuation during heat waves than similar cows in a freestall barn with no fans.

Summer Reproductive Function. From our research, we have observed that lactating Jerseys and Holsteins that are not pregnant will continue to cycle throughout the summer. However, we detected estrus in only 35 to 40% of all cycles even though we made observations for estrus at 6-hour intervals for the entire summer. Research from a number of locations indicates that conception rates of 10 to 30% can be expected for cows inseminated with high quality semen during the summer which compares to 50 to 70% expected during cooler seasons.

In our research on use of fan cooling in the summer for lactating Holsteins, we have approximately doubled the percentage of cows seen in estrus if cows were under fans for a cycle (21 days) before observations began as compared to cows not under fans or cows under fans for only a few days before observations started. Cows detected in estrus have potential for pregnancy; others do not have that potential. While we have not had the animal resources available for a fertility trial during the summer, the combination of lower rectal temperatures and better body condition provides potential for higher conception rates. Further, we have observed higher progesterone after estrus in cows under fans. Progesterone is the hormone needed for maintenance of pregnancy.

In conclusion, management strategies are available to help minimize the summer slump in milk production. Those strategies that lower rectal temperatures and provide for maintenance of better body condition, provide for higher reproductive efficiency, also.


SUMMER AND MASTITIS


Dr. Alan Rathwell
Assoc. Clinical Professor, CVM

The hot and humid days in summer cause a decrease in milk production; a decrease in breeding efficiency, and usually an increase in clinical cases of mastitis as well as an increase in somatic cell counts. There is no magic formula for keeping dairy cows cool in the summer in Mississippi, but this article will attempt to outline some of the steps producers can take to help keep somatic cell counts and clinical cases of mastitis to an acceptable level. The following steps are important and are not ranked in order of importance. It is necessary to implement all the following steps.

Step 1: One of the major components for preventing mastitis is to have clean cows. Hot, humid weather serves as an ideal breeding environment for bacteria. If cows are kept in freestalls it is critically important to keep the stalls clean, and dry. If the cows are on pasture, ponds and muddy areas must be fenced off so cows don't lie in them.

Step 2: The milking of clean dry teats is critically important to prevent environmental bacteria from gaining access to the udder. Time spent on udder prep prior to attaching the milkers is invaluable. Pre-dipping the teats during this routine and having adequate contact time with the pre-dip is extremely important.

Step 3: Certain vaccines such as J5 have been shown to reduce not only the severity of E. coli mastitis but also the number of new cases. Heading into the summer months, it is critical that your vaccination program against these organisms be current.

Step 4: Feeding a balanced ration with adequate energy and protein levels is important. However, just as important is to pay attention to the levels of vitamins and trace minerals in this ration. Research suggests that adequate levels of Vitamin E and selenium in the diet will lower the new infection rate and also decrease the severity of clinical disease. Check with your nutritionist to make sure you have adequate levels of vitamin E, selenium, and other trace minerals in your ration.

Step 5: Post-teat dipping helps to stop the spread of contagious organisms. However, when cows first leave the parlor, the teat end is still open and organisms can invade the udder. Adequate post-teat dipping will help prevent the bacteria from growing on the teat end and invading until the teat is sealed. In extreme cases where cows are exposed to a dirty environment one should consider using barrier teat dips.

Step 6: Having fresh feed and water available to cows as they leave the milking parlor is important. Cows show extreme thirst after milking. Therefore, having plenty of clean water available is a necessity. Having fresh fed, water will stimulate the cows to remain standing and thus stop the exposure of the teat end to a dirty environment until it has time to seal. It takes between 30 minutes and an hour after the milking unit is removed for the teat end to seal.

Step 7: Having your milking equipment checked to verify that all the components are working at or above standard requirements is imperative.

Step 8: Just as important as milking equipment, the technique used in applying and removing the units is also critical. Lessening the squawking and liner slips during milking will help avoid impacts which is one of the major causes of environmental mastitis.

Step 9: Routine bulk tank cultures to monitor the type of bacteria present in the udder of cows is also important. The results of these cultures can sometimes pinpoint areas of management that need to be checked when investigating a rise in somatic cell counts or an increase in clinical cases.

Following all the above steps will not guarantee low somatic cell counts or clinical cases during the hot summer months. However, following all these steps should keep these increases to acceptable levels.


UPCOMING EVENTS

June 4, 7:00 p.m.

All Breed Dairy Hiefer Sale
McComb, MS

June 5, 12:00 Noon

All Breed Dairy Hiefer Sale
Pontotoc, MS


MAY 1999 HONOR ROLL HERDS*

Dairy

County

No. Cows

Lbs ECM**

2X/3X

RHA Milk

RHA Fat

RHA Prot

DOT

MACTOC FARM

OKTIBBEHA

211

85.6

2X

25446

957

817

04/08/99

G & B DAIRY

LINCOLN

38

76.9

2X

16957

666

616

03/29/99

MELVIN NICHOLSON

NEWTON

129

76.2

2X

22856

797

728

04/04/99

KNIGHTS DAIRY FARM

Jones

135

75.1

2X

19808

687

641

04/14/99

STEWARD FARM INC

Tate

385

71.8

2X

22750

814

725

04/19/99

DAVID ROBINSON & SONS

Rankin

132

71.4

2X

20124

715

621

04/19/99

TIM WEEKS

Copiah

64

69.5

2X

0

0

0

04/01/99

COASTAL PLAIN EXP STA

NEWTON

154

69.4

2X

21034

779

672

04/07/99

DIXIE DAIRY SALES

Carroll

465

67.3

2X

20115

770

643

04/03/99

SUMMERS DAIRY

Marion

53

66.3

2X

18608

671

578

03/31/99

FREEMAN DAIRY

Pike

131

65.3

2X

19354

639

648

04/02/99

JEFCOAT & WILLIAMS DAIRY

Jones

67

64.9

2X

20645

699

646

04/19/99

J & J JERSEY

Jones

10

64.7

2X

16711

712

620

04/19/99

ROWZEE JERSEY FARM

NEWTON

148

64.5

2X

16868

767

639

04/18/99

CLEMMER AND HILL DAIRY

TIPPAH

182

64.2

2X

19434

669

608

04/21/99

CAL MAINE FOODS DAIRY

HINDS

1610

63.5

3X

19686

716

630

04/17/99

TURNIPSEED DAIRY

MONROE

462

62.5

2X

19523

721

618

04/03/99

THOMPSON BROTHERS

MARSHALL

128

62.3

2X

19500

698

624

04/05/99

NORTH MISS BR EXP STATION

MARSHALL

87

61.7

2X

19913

725

655

04/13/99

BRAD BEAN

AMITE

234

61.2

2X

20968

788

675

04/07/99

WILLA DEAN GURNEY

AMITE

235

60.9

2X

18464

694

603

04/22/99

RONALD H CLARK

LINCOLN

85

60.9

2X

19710

682

640

04/26/99

JODY DEBLANC

PIKE

39

59.8

2X

0

0

0

04/29/99

JAY PAUL HOOVER

NOXUBEE

167

59.7

2X

17428

0

0

04/14/99

CHEEKS DAIRY

JONES

129

59.3

2X

17049

611

555

04/26/99

* 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)


May 1999 BFP PRICE


Dr. C. W. Bill Herndon
Assoc. Clinical Professor, CVM

April BFP Increases to $11.81
The Basic Formula Price, or BFP, increased for the second month in a row after the disastrous $6.00 per hundredweight (cwt.) plummet recorded in the February price report. The dairy industry is of the opinion that the $1.54 increase (+15%) in the BFP reported during March and April has been "market correction" subsequent to the "overreaction" that occurred with the February price plunge. Despite this bit of good news, the dairy market is currently being burdened by an over-supply of milk as the spring flush period moves to the northern states and as demand begins to decline with the onset of school recesses for the summer. Milk production is at its annual peak in the middle and western states and is expected to reach at peak in the Northeast and Upper Midwest in late-May. But warmer weather has already caused milk output to drop appreciably in Louisiana, Mississippi, and Georgia indicating that the spring flush period is concluded in the Southeast. Milder Temperatures and recent rains in Florida have sustained production through mid-May and milk was still being exported out of the state for manufacturing purposes -- but, these Florida exports are expected to end by late-May with imported milk supplies required sometime in June. May and June are usually the months with the lowest BFP due to the facts that the spring flush is in full swing and fluid milk demand is at its annual low. But for this year, current market prices indicate that the industry believes that the BFP will remain above the $10.27 BFP reported in February. Dairy farmers are already reeling when they suffered a 30 to 40% reduction in monthly revenues between their April 13 and May 13 "settlement" milk checks that was caused by the previously described $6.00 per cwt. decline in milk prices. The April BFP was reported at $11.81 per cwt. which represents an INCREASE of 19 cents per cwt. (+1.6%) ABOVE the March BFP of $11.62. This year's April BFP is 20 cents per cwt. (or -1.7%) LOWER than the April 1998 BFP price of $12.01. Dairy producers need to remember that the April BFP will be used as the base price to calculate the June Class I and Class II milk prices and the April Class III milk price. Because about 80 percent of Mississippi milk is utilized as Class I and Class II products, farmers will not realize any additional revenues from this 19 cent rise in the April BFP until they receive their "settlement" checks in mid-July as payment for milk sold in June.

Milk Production.
Milk output continues to respond to the record high prices experienced during late 1998 and the recent favorable weather conditions with substantial increases in dairy production reported in each and every month of 1999. The USDA reports that April milk production was 3.4% higher than April 1998 and dairy farmers have produced in excess of 1.8 billion pounds (+3.5%) more during the first four months of 1999 compared to the same period of last year. Mild temperatures and high-quality forages continue to enhance milk output per cow that has increased more than 50 pounds between April 1998 and April 1999 which has increased total production despite the fact that there was 40,000 fewer cows being milked on U.S. dairy farms. Comparing April 1999 to April 1998 for the 20 states which the USDA reports monthly milk production statistics, the states recording the largest percentage increases were California (+11.5%), Arizona (+11.4%), Idaho and New Mexico (both +8.1%), and Florida (+6.3%). Of the 20 reporting states, the largest percentage decreases in output were reported for Kentucky (-8.8%), Illinois (-7.8%), Missouri (-7.1%), Ohio (-5.4%), Indiana (-5.1%), and Virginia (-3.1%). Again, this data confirms the current 10-year trend of milk production increasing in the West states while output has been declining in the Ohio Valley and Southeast. One notable exception found in April was that Florida increased milk production by 14 million pounds while milking 2,000 fewer cows that produced an additional 105 pounds of milk per cow. However, these data indicate that the area of the country that is growing more and more dependent on milk imports from the Upper Midwest and West are getting larger and larger over the past decades. Dairy consumers in this area of growing milk deficits may be forced to pay much higher prices for dairy products in the future.

Dairy Product Prices
These growing supplies of excess milk being produced during this year's spring flush have weakened dairy product prices during late April and early May. But, there is a silver lining in this dark cloud of excess milk supplies as demonstrated by a substantial increase in butter prices and, more recently, a slight upturn in cheddar cheese prices. While butter prices continue to be very unstable, the cheese market is stabilizing as the spread between block and barrel cheese prices has returned to a more normal difference of three to four cents per pound during mid-May. Cheese prices on the Chicago Mercantile Exchange (CME) declined steadily during this four-week period with 40# block prices falling more than the corresponding barrel prices which have reduced the price spread between these two product categories.

On the CME, 40# block prices were reported at $1.3300 per pound on April 23 compared to $1.2300 on May 21-- indicating a 10-cent (-7.5%) drop over this period while barrel prices fell 6.00 cents from $1.2500 on April 23 to $1.1900 on May 21. More important, both block and barrel prices increased (2.5 and 1.0 cents, respectively) during the week of May 21. During this same four-week period, CME butter prices have been very erratic; first, falling to a low of 96 cents per pound on April 28; then, increasing significantly to $1.3250 on May 21. Over this time period, butter prices have spiraled up by 30.50 cents per pound (+29.9%) from $1.0200 on April 23 to $1.3250 on May 213. The butter market is "firm but unsettled" with buyers still reluctant to purchase large quantities because spring flush milk supplies are expected to cause substantial decreases in future butter prices.

Nonfat dry milk (NDM) prices on the CME have remained flat because the current market prices are at the government price support level, as illustrated by the fact that Grade A NDM prices have been reported at $1.0500 since February 19 (for 14 straight weeks). However, the USDA's Commodity Credit Corporation (CCC) continues to increase the amount of weekly purchases to eight to ten million pounds and has purchased almost 32 million pounds of non fortified NDM between April 23 and May 21. The NDM market is "very weak" with market prices propped up by the government purchases and increasing volumes of excess milk supplies being processed into milk powder products.

Near-term Market Outlook.
The outlook for the dairy market over the next several months is not positive nor negative with the industry expecting dairy prices to remain steady to slightly lower over the next several months. But, the flood of "spring flush" milk is still troubling the industry and a prolonged period of favorable weather conditions may spur even more excess milk supplies that could cause milk prices to fall in the $10.00 per cwt. range. Most market analysts believe that the $1.54 increase recorded in the March and April BFP "corrected" the February BFP's over reaction and more closely represents the demand and supply situation in the current dairy market. Therefore, the May BFP is expected to be $11.30 to $11.40 and bottom-out somewhere near $11.00 in June and then rebound to the $13.00 range by September and October. On May 21, BFP futures contracts settlement prices were reported at $11.33 for the May contract, $11.38 for June, $12.10 for July and $13.05 for August. However, the recent very large BFP movements illustrate AGAIN the extreme price and income volatility that have plagued the dairy industry since 1988 and demonstrates that dairy farmers continue to suffer great financial hardships.

Current Status of Federal Order Reform
The USDA's plans for Federal Milk Market Order (FMMO) reform, which is being referred to as the "Final Rule" has received much criticism from most of the dairy farmers around the country expressing displeasure. Efforts are proceeding in Washington, D.C. with Congressional hearings being held to discuss the various Class I price differential schemes being described and Option 1A, 1B, or the Final Rule's pricing "surface." These hearings are considering evidence that may determine whether the Senate and House should force the USDA to adopt a Class I price differential scheme ñ called Option 1A -- that is similar to the "pricing surface" currently used in Federal Orders.

Evidence has been given at these hearings that National Milk Producers Federation claims that the Final Rule Class I pricing scheme will cause producer income to decline by almost $150 million per year while the USDA says that dairy farmer incomes will fall by only $2.8 million per year. The number of members of Congress co-signing and signifying their support for this legislation to mandate Option 1A is growing, but the outcome is still uncertain. Efforts are also proceeding with attempting to gain Congressional authorization for the continued existence of the Northeast Dairy Compact and the creation of a Southern Dairy Compact.

The number of states that have passed the state-level authorization continues to increase with Georgia, Missouri and Kansas recently passing this enabling legislation. However, Texas did fail to get this Compact legislation out of committee and the issue is dead until 2001 when the Texas legislature reconvenes. Most dairy industry personnel agree that the operation of a dairy compact would be very difficult and costly to producers without the existence of an underlying FMMO in the state and region. If a Federal Order (FO) did not exist, many of the auditing and surveillance activities now being conducted by the USDA's Dairy Division would have to be performed and paid for by the Compact. Thus, reducing the financial benefits that could be derived from an "over-order" premium mandated by a Class I Compact milk price.

The USDA has announced that producer referendums have been scheduled for this coming August and a two-thirds majority will be required to approve the operation of an FMMO in a particular geographic area. Each FMMO area will vote separately and the existence of an FO in a given area will NOT be dependent on the existence of an FO in any other geographic area. Producers will have to vote either YES or NO and not be able to approve some parts and disapprove other provisions of the FMMO. There are several very significant factors that each producer must consider before voting and each dairy farmer should be attempting decision of how to vote on an FMMO.

Southeast F.O. #7 "Blend" Price Plunges to $13.00 in April.
The Southeast Federal Order Milk Market Administrator reported the April 1999 "blend" or uniform prices for milk delivered in Federal Order (FO) #7 at $13.00 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 April "blend" price of $13.00 for Zone 7 of FO #7 represents a DECREASE OF $5.19 per cwt. (-28.5% compared to the March price of $18.19. The April 1999 blend price is $2.54 (or 16.3%) BELOW the April 1998 blend price of $15.54. This tremendous decrease in the April blend price occurred because both the Class I and Class II milk prices fell by $6.00 per cwt. and despite a slight increase in the Class I utilization rate (and corresponding minor changes in the Class III utilization rates). Class I utilization rose 2.0% (from 78.8% in March to 80.8% in March ), while Class II utilization fell 0.3% (from 6.9% in March to 6.6% in April) and Class III utilization decreased by 1.7% (from 14.2% in March to 12.5% in April). The April Zone 7 "blend" price was calculated using: (1) the February BFP price of $10.27 plus the $3.08 Zone 7 Class I differential for a Class I price of $13.35; (2) the February BFP price of $16.27 plus the 30 cents per cwt. Class II differential for a Class II price of $10.57; and (3) the April Class III price of $11.81 (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 and NOT by where the milk was produced on the dairy farm.


UNIFORM or "BLEND" PRICE FOR APRIL 1999

ZONE 5:

$12.75

ZONE 9:

$13.20

ZONE 6:

$12.90

ZONE 10:

$12.90

ZONE 7:

$13.00

ZONE 11:

$13.00

ZONE 8:

$13.10


CLASS 1 PRICE FOR JUNE 1999 (using April 1999 BFP)

ZONE 5:

$14.64

ZONE 9:

$15.09

ZONE 6:

$14.79

ZONE 10:

$15.21

ZONE 7:

$14.89

ZONE 11:

$15.39

ZONE 8:

$14.99

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