Dairy replacement heifer economics

Abstract

The cost of replacements for dairy operations is a major expense in the production of milk. Thus, efforts to understand and manage this expense are important to remain competitive in the industry. A first step is to simply identify how many heifers are needed and then make semen selection and breeding choices targeting that number. Additionally, knowing what the costs of raising a heifer are and how various factors impact this cost is critical. Once producers have a target for replacement heifers needed and an understanding of what it costs to produce them, they will be able to better manage this part of their operation. The exact number of replacements needed in the distant future is never known with certainty; therefore, from a risk management perspective it may be prudent to produce slightly more heifers than anticipated needs. As the number of heifers produced and future replacement needs are known with better certainty, excess heifers can be culled at various stages in the production process. Basing culling decisions on early growth metrics and genetic potential of heifers, relative to their herd mates, appears to have merit in identifying first-lactation performance.