Key Points: - All producers,
regardless of herd size, can use POSILAC® to increase the profitability
of their herd.
- Milk production will increase an average of 10 pounds
of milk per supplemented cow per day.
- POSILAC can extend the lactation
of cows.
The benefit of POSILAC is its ability to increase milk production
significantly and, in doing so, to lower farm fixed costs over units of milk produced.
As with all production-enhancing management practices, the objective of using
POSILAC is to provide increased profitability to the dairy producer. Research
has shown that, by following proper use instructions, milk production will increase
an average of 10 pounds of milk per supplemented cow per day. The economic benefit
of using POSILAC can be calculated by merely subtracting the additional incremental
costs associated with using POSILAC from the incremental income. Maximum
economic response is obtained by following the use instructions described in "POSILAC
- Milk Production and Management." Basically, beginning supplementation of ALL
healthy cows beginning in the ninth or tenth week of lactation and providing constant
availability of a ration designed to support the increased level of production
will result in maximum economic response. The concept is so simple that virtually
all producers can use POSILAC to increase the profitability of their herds. POSILAC
can help raise the profitability of cows as their lactation progresses.
Since use of POSILAC requires no capital investment, all fixed costs of producing
milk remain unchanged. Only the variable costs and returns need to be evaluated.
To calculate the daily return per cow with POSILAC, multiply the extra pounds
of milk produced each day times the mail box price of milk. Subtract the extra
costs of producing that amount of milk: the daily cost of POSILAC (price per unit/14)
plus the cost of the extra feed required. Refer to the tables below for some examples.
Economic benefit of POSILAC®
Table
1 - Prices | POSILAC | $6.60 | per
dose (used every 14 days) | Feed | $0.07 | per
lb (1 lb feed produces 2.5 lbs milk | Labor | $0.28 | per
injection |
Table
2 - Dairy Income from POSILAC Use with 10 lb daily
response |
| |
|
|
Profit
for 100-Cow with 70% Supplemented |
|
Daily
Revenue
/cow |
daily
cost
/cow |
per
cow /day |
per
dose |
per
herd /month |
per
herd /year |
$10.00 |
$1.00 |
$0.77 |
$0.23 |
$3.22 |
$490 |
$5,877 |
$11.00 |
$1.10 |
$0.77 |
$0.33 |
$4.62 |
$703 |
$8,432 |
$12.00 |
$1.20 |
$0.77 |
$0.43 |
$6.02 |
$916 |
$10,987 |
$13.00 |
$1.30 |
$0.77 |
$0.53 |
$7.42 |
$1,129 |
$13,542 |
$14.00 |
$1.40 |
$0.77 |
$0.63 |
$8.82 |
$1,342 |
$16,097 |
$15.00 |
$1.50 |
$0.77 |
$0.73 |
$10.22 |
$1,554 |
$18,652 |
The actual increased profits enjoyed by individual
dairy producers will depend on their mail box milk price, the price of POSILAC,
feed costs, and the actual response to POSILAC achieved on their farm. Another
example of how POSILAC bovine somatotropin provides economic benefit is its use
in extending the lactation of cows that would otherwise be culled due to inability
to breed or other health or age reasons. The economic benefit in this case depends
on factors that are highly variable from farm to farm, and relate to the level
of daily production required to break even. Generally speaking, each additional
day that a cow is kept in the production string rather than culled can mean an
extra $5.00 or more in income. Thus, keeping the cow in production an extra 30
to 100 days provides a significant, positive economic impact. POSILAC
can also be used to decrease the number of cows necessary to produce the same
amount of milk. This reduces the amount of manure produced per gallon of milk
produced, thus helping the environment. Since no capital expenditures
are required to incorporate POSILAC into a producer's dairy management regime,
the benefits are equally available to producers regardless of farm size or location.
POSILAC can provide economic advantages to virtually all dairy producers.
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