1. Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

2. Number of Dairy Cows, U.S The Number of Dairy Cows Reached a Low of About 9.01 Million in 2004 Since Then the Number of Cows Has Risen to About 9.31 Million—Nearly as High as 1996 What Do Think the Impact of this Change Will Be? What Can or Should Be Done to Change This Trend?

3. Number of Dairy Cows, Iowa Source: NASS, USDA, on-line database, 3/23/09

4. Number of Dairy Cows, Selected States Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

5. Dairy Farms by Herd Size Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

6. Dairy Farms by Herd Size Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

7. Dairy Farms by Herd Size Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

8. Dairy Farms by Herd Size Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

9. Average Number of Cows Per Farm, U.S. Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

10. Average Number of Cows Per Farm in Iowa Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

11. Average Number of Cows Per Farm, Selected States Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

12. Production Per Cow, U.S. Source: NASS, USDA, on-line database, 3.23.09

13. Production Per Cow in Iowa Source: NASS, USDA, on-line database, 3/21/09

14. Production Per Cow, Selected States Source: NASS, USDA, on-line database, 3/21/09

15. USDA, Federal Milk Market Administrator, Tulsa, 2/2005

16. USDA, Federal Milk Market Administrator, Tulsa, 2/2009

17. Number of Cows & Production Per Cow, U.S. Source: NASS, USDA, on-line database, 3/21/09

18. U.S.DAIRY PRODUCTION-- SUPPLY The Production “Plant” – Production Systems used – Producer Size Vs. Production Share Geographic Distribution of Production – Increases – Decreases

19. GENERAL PRODUCTION SYSTEMS  Tie stall or stanchion  Traditional  Modern (humid and arid )  Modern (dry lot)  Rotational grazing

20. DAIRY PRODUCTION METHODS AND FACILITIES Tie stall (stanchion) barn system – Cows tethered, milked, bedded in stall – Milking unit moved stall-to-stall – Pipeline system through barn – Feed brought to cow – Loft and silo for feed – Smaller operations (less 100 cows)

21. DAIRY PRODUCTION METHODS AND FACILITIES Advantages to Tie Stall System – Suited to cold weather – Cow comfort in winter – Aesthetics for many – Existing system On many farms

22. DAIRY PRODUCTION METHODS AND FACILTIES Problems With Tie Stall System – Labor intensive – High cost - $7,000-$10,000/cow (with land and cows) – Expansion is difficult – Purchasing and handling ingredients in volume can be difficult

23. DAIRY PRODUCTION METHODS AND FACILITIES Tie stall (stanchion) barn system – Cows tethered, milked, bedded in stall – Milking unit moved stall-to-stall – Pipeline system through barn – Feed brought to cow – Loft and silo for feed – Smaller operations (less 100 cows)

33. DAIRY PRODUCTION METHODS AND FACILITIES “Traditional” system – Milking and housing are separated – Housing in some type of confinement system Concrete corrals “Utah” stalls (open with roof over head) Free stall housing (dry stalls)

34. DAIRY PRODUCTION METHODS AND FACILITIES Feeding down middle and/or on sides Feed pelleted concentrate in parlor and forage is fed outside OR total mixed ration of concentrate and forage is fed Parlor milking of cows – Flat barn – Four on a side end-to-end – Herringbone

35. DAIRY PRODUCTION METHODS AND FACILITIES Advantages—Traditional System – Adaptable to climate variability – Adapted to home production of forages/grains – Adaptable to diversified family farm Problems – Labor requirements – Cost $4,000-$7,000/cow (with land and cows) – Smaller size and input purchasing levels

36. DAIRY PRODUCTION METHODS AND FACILITIES “Modern” free stall system --- Humid Areas – Free stall housing – Lagoon Manure Storage – Modern parlors – Free stall in humid areas Ventilation Flush systems for waste in parlor Flushing in concrete walkways and free stalls

37. DAIRY PRODUCTION METHODS AND FACILITIES “Modern” free stall system—Arid – Similar Free stall housing With larger parlors – Reuse water 2 or 3 times – Free stall in arid areas Open sides Fans during hot months Flush systems for waste in parlor Flushing in concrete walkways and free stalls

45. DAIRY PRODUCTION METHODS AND FACILITIES Milking Parlors – High Capacity – Many use 3X milking schedule – Operate more or less continuously 24/7 – Large bulk tank capacity geared to tanker pickup

59. DAIRY PRODUCTION METHODS AND FACILITIES Manure Handling in “Modern” Free Stall Operations in the Arid Areas – More Water is used than in drylot – Water May Be Used Multiple Times – Flush Water Has to be Managed To Meet Environmental Regs.

61. Questions?