1. The Cost of Raising Replacement Dairy Heifers
Brian Lang, OMAFRA, Woodstock
Bill Grexton, CanWest DHI, Guelph

2. Average Age at First Calving with 20 and 80 Percentiles
The average age at first calving in Ontario has remained between 26.6 and 27.0 months

3. Age at First Calving
63% of heifers
41% of heifers calved at 27 months of age or older
CanWest DHI (212,435 heifers)

4. Comparison of Age at First Calving and Productive Life
Productive life in a dairy herd is similar across all ages with a range of less than 4 months
Heifers calving at months have the longest herd life
CanWest DHI

5. Age at First Calving and Lifetime Milk Production
Highest lifetime production is from heifers calving at 23 to 25 months of age
CanWest DHI

6. Heifers required to supply replacements for 100-cow herd
15% allowance for culling, non-breeders and death loss

7. Replacements Required
If calving interval is 14 months for both farms and 15% allowance for culling
Farm 1 has 12 heifers to sell each year
Farm 2 must buy 5 heifers each year

8. Wisconsin 2007 (US$) Feed $ 112 684 796 Labour $ 153 244 397
Preweaned
(n=40)
Wean
to Calving (n=44)
Total
Feed $
112
684
796
Labour $
153
244
397
Other variable $ 49
233
282
Fixed Costs $ 12
162
174 $
326
1,323
1,649
Ave. weaning age 7 weeks; age at first calving 24.1 months

9. Preweaned calves have the highest daily cost.
The effect of body weight and age on costs of raising one heifer in Wisconsin
Approximate
Total Cost
$/head/day
Weight (lbs)
Age (months)
Preweaned
5.42
215
2.5
1.75
309
4.0
1.66
398
5.5
1.71
514
8.0
1.62
618
10.0
705
11.5
1.88
815
13.5
2.33
896
15.0
2.46
1,016
18.0
2.38
1,114
19.5
2.26
1,209
21.5
2.60
Preweaned calves have the highest daily cost.
After weaning, costs are fairly flat until breeding then rise again in late pregnancy.
Zwald et al, 2007

10. Tie Stall vs. Free Stall - Wisconsin
Tie Stall Free stall
Preweaned cost
Wean to calving cost 1, ,362
Total $US ,677
Zwald et al, 2007

11. Tie Stall vs. Free Stall – Wisconsin 2007
Tie Stall Free stall
Preweaned
Wean to calving
Total $
Biggest expense difference was labour
Labour (ave hours) hr hr
paid $
unpaid $ $

12. New York 2007 Feed 885 Labour 234 Bedding 63 Health 40 Breeding 47
Mach. & Building
Operating Expenses
Deprec/Taxes/Insur
Manure Spreading & Storage
Interest
Other Expenses
Total $ US 1734
17 farms
ave. 865 heifers
22.9 months @ first calving
18.2 hrs. labour/heifer

13. Age at First Calving and Net Farm Income Ontario 2006
/ Cow
Lowest 35
24.3
$ 1,571
Middle 35
26.5
$ ,440
Highest 35
29.1
$ ,283
All 105
26.6
$ ,431
$288 difference
105 Ontario Dairy Farms - OFMAP 2006

14. Ontario Dairy Farm Analysis Project 2010
Purchased Feed $ 275
Crop Production Input Costs
Vet, Medicine & Breeding
Other Animal Costs
Building & Land Repair & Maint
Machinery & Equip Repair & Maint
Fuel and Lubricants
Custom Work
Property Tax & Insurance
Hydro & Telephone
Hired Labour
Other Cash Expenses
Interest
Total Cash Costs $ ,483

15. Ontario Dairy Farm Analysis Project 2010
Total Cash Costs $ ,483
Machinery/Building Depreciation
Unpaid Labour & Management
(30.4 hours)
@ $ ($365)
@ $17.00 ($517)
@ $22.00 ($669)
@ $26.60 ($809)
Total Cost to Raise Replacement $2,252

16. Hours of Labour to Required to Raise a Heifer from Birth to Calving 2000-2010
In recent years, the labour required to raise a heifer has ranged from 35 to 48 hours
(includes family and employee labour)
Ontario Dairy Farm Accounting Project

17. Profit Profiler Replacement Costs 2010 11% of milk revenue
46 farms, averaged 218 cows, 9,681 kg
11% of milk revenue
Range 9-13% (25 to 75 percentile range)
Average cost $900 / per 12 months
~ $1,995/heifer
+ interest and depreciation costs

18. How to Measure Impact
COP of heifer may not be the best indicator of success
1st Lactation Production compared to herd average is needed to see other side
Most herds = 89%
Range % (25 to 75 percentile range)
Some herds as low as 80% = program is not working
You need a good indicator to know if your heifer program is working

19. Impact of Calving
2 groups of herds based on 1st Calving (24 and 28 mo)
Low Age Group …
Produced 1400 kg milk more per cow ($885) with higher % margin
Spent .9% of milk cheque LESS to raise a heifer
Spent $14 more per heifer per year but…
Spent $281 LESS overall to bring heifer into milking line
1st lactation production was 1,170 kg higher
Good overall management dictates that in addition to getting economical high milk production, you need to get higher production heifers into the milking line sooner - it can be done!

20. $2,000 - $2,500 Summary Remember overhead costs Unpaid labour
average cost to raise a replacement heifer
Remember overhead costs
Unpaid labour
Plus value of calf

21. Summary
Herds that calve earlier get higher 1st lactation and lifetime production
There is a wide range of costs between farms to raise heifers.
There is no advantage to delaying the age to 1st calving.
Herds with good management can raise heifers which perform better than those who do not.
Herds that combine good management with wise cost of production decisions not only have good results but also add considerably the overall profit of the business.
The difference in cost can be in excess of $25,000 per year for the heifer program and $60,000 in the overall farm profit for a herd size of 100 cows.

22. Thank you