If you’re a dairy farmer, you know that components — butterfat and protein — are what drive milk checks today.
In fact, a recent report co-authored by Corey Geiger, lead dairy economist for CoBank, showed that herds in the top decile for milk components earned $101 to $352 more per cow per year at average production levels, with that advantage rising to $136 to $474 per cow at higher production levels.
“I would say the rolling herd average needs to have a tombstone erected on it,” Geiger said at World Dairy Expo. “Milk tank average probably needs to have a tombstone on it.”
In a panel discussion he led on dairy components and future milk production, Geiger said he’s bullish on consumer preference for high-protein dairy products. In New York state, for example, processors are investing $2.8 billion in new plants to help feed the demand for high-protein beverages and yogurt, especially Greek yogurt.
It’s showing up in milk checks as protein prices per pound have eclipsed butterfat across the board, according to Federal Milk Marketing Order data.
The ability of farmers to take advantage of the current component bonanza is only inhibited by the quality of cows on the farm.
Nate Zwald, president of Progenco, said better management, the use of genomics and better nutrition have all come together to produce better, higher-producing cows.
And it’s happening fast.
“The amount of genetic progress we're making today, because of those technologies we just talked about, is at least three times the amount of genetic progress as it was 15 years ago,” Zwald said. “So, when we think about that, we're making the same amount of progress in five years as we used to in 15.”
On his own farm in Newton, Wis., Jordan Siemers has a group of cows that have reached the 3,500 Genomic Total Performance Index level, the highest tier of the Holstein Association USA genetic evaluation system.
Some cows are averaging 9 pounds of components or higher. He credits the farm’s use of good genetics and nutrition.
“With genetics and nutrition, the more we stack these things, it's almost like a compounding interest deal right now,” Siemers said. “We're stacking these big lines of genetics on top of each other. We can move so fast directionally. We can customize almost to your fat level, almost to your protein level of where we need to be. The way this is moving, the way that there's so much customizability in this industry, you can really make dollar-corrected milk work for you.”
John Goeser, a dairy nutrition and management consultant with Progressive Dairy Solutions, said forage quality and consistency can greatly affect a herd's ability to hit component targets. This means paying close attention to fiber intake as fiber, which is the least digestible nutrient, can lead to gut fill that can hinder a cow’s ability to feed and produce milk.
Nutrition is only part of the equation, though. The bigger challenge for most farmers is figuring out how to move a herd from average to component powerhouse, and that starts with breeding.
From a breeding standpoint, Zwald said this can happen quickly, within a single generation of breeding. Don’t just focus on bull selection.
“On an individual farm basis, there's actually more genetic progress made by the females you select to make the next generation of dairy replacements than there is just based on the bulls you use,” he said.
“There are a lot of great bulls across the industry, and the marginal difference between using this bull and this bull is less important than making sure you breed all of your best animals to sexed semen and ensure they have an offspring that is out of your best cow.”
Then there’s the question of breeding for higher protein.
Genetically speaking, pulling fat from protein is hard to do, Zwald said.
“When we breed for more protein, we generally get more fat,” he said. “And because fat has more genetic variation, it's easier to go faster in fat. And it's very hard to make progress for protein and not fat.”
Goeser said that driving higher protein is more complicated because half the protein a cow produces comes from microbial proteins in the rumen, which are built from carbohydrates and energy provided in the diet.
You can feed specific amino acids or what he describes as high-quality amino acids, such as lysine and methionine. But that process takes time to see results.
“I would say the amount of progress that we are going to make isn't going to be as quick as what we were able to do with milk fat, because we've already been feeding specific amino acids for 10, 15 years.” Goeser said.
In many discussions he’s had with farmers, Goeser said he focuses on setting transition cows up early for success by reducing inflammation and reducing stress. He suggests farmers choose a subset of animals to invest in first, and then evaluate the results before moving more of the herd forward.
“If we choose nutritionally to then push the foot down on the gas pedal a little bit further, it's going to be through transition in those first 100 days,” he said. “And then adding some supplements, and there are some interesting ingredients and technologies on the horizon that look to be improving the microbial protein potential and milk protein yield.”
Siemers said investing in good genetics and genomics can yield results quickly, but match it up with your farm’s needs.
“People have come to me over the years — a lot smaller operations — and ask, ‘How does this work?’” he said. “You can move fast. You know, you can really dial in individually on what cattle work in your environment. What are the cattle that are profitable in your environment?”
Before any of that works, though, farmers need the right data. Zwald said the simplest way to prove the value of genetics is to segment a herd and compare best performers to worst.
"The best genetics always outperform the worst ones," he said. "The only way it doesn't work is if you don't have the right identification on your animals, and you can't tell which ones are the best genetics."