D A I R Y I n i t i a t i v e s N E W S L E T T E R
V o l u m e 1 2 I s s u e 1 S p r i n g 2 0 0 3

$53 Million Gain Possible for Minnesota Dairies

Minnesota dairy farmers could gain $53 million by lowering bulk tank SCC from the current 400,000 state average to 200,000. This estimate is based on these assumptions:

$11/cwt milk price about 500,000 cows
18,000 lbs. of milk per lactation
average milk quality premium of $0.35/cwt.
33% of lactating herd are first-lactation cows

How does your herd stand? Using your herd DHI SCC values, milk price, and quality premium schedule, calculate what your potential gains could be.

ESTIMATE OF PRODUCTION LOSSES DUE TO SUBCLINICAL MASTITIS

Lactation Group	# Cows		Avg LS	GOAL	Production Loss/Unit LS	Milk Lost (lb/Group)

First Lactation:	__________	x	(_____________	-2.0)	x 220 lb =	___________

Other Cows:	__________	x	(_____________	-2.5)	x 440 lb =	___________


	_____________	x	_____________	=	_______________
	Total lb lost		Milk price per lb		Annual production loss to subclinical mastitis

ESTIMATE OF OPPORTUNITY FROM MILK QUALITY PREMIUMS

Maximum SCC premium from your milk plant:	$0._________	per cwt (at 150,000 SCC)
Average quality premium received last year:	$0._________	per cwt
Potential premium difference:	$0._________	per cwt

_________________	x	___________	x	=	_________________	/100	=	_________________
Rolling herd average		# cows			Premium difference per cwt			Annual premium opportunity

For a more in-depth economic analysis, check out "Annual Losses Due to Mastitis Above a Desirable Baseline Level," an Excel spreadsheet developed by John Fetrow of the University of Minnesota College of Veterinary Medicine. You can find it at www.ansci.umn.edu/dairy/toolbox/toolbox.htm.

D A I R Y I n i t i a t i v e s N E W S L E T T E R
Volume 12 Issue 1 Spring 2003