Factors Determining the Efficiency of Dairy Animals | Animal Husbandry & Veterinary Science Optional for UPSC PDF Download

Factors Affecting Dairy Farm Profitability

• Importance of Milk Yield:
  • Profitability in dairy farming isn't solely determined by high milk yields; other factors play crucial roles.
  • While milk yield is vital, the economic value of a cow is influenced by factors beyond just the volume of milk produced.
  • The fat and protein content of the milk, susceptibility to diseases, calving interval, and overall efficiency impact the farm's success.
• Milk Yield Efficiency:
  • The lactation yield, which is the amount of milk produced over 305 days, is a key indicator of a dairy animal's efficiency.
  • Consistent and persistent milk yield is essential for the animal to be considered efficient and profitable for the dairy farm.
• Life-Time Milk Production:
  • Efficient dairy animals consistently maintain high milk production throughout multiple lactation cycles.
  • Early maturation, low age at first calving (around two years), and quick conception after calving contribute to a high lifetime production.
• Fat Percentage in Milk:
  • Beyond milk volume, the fat percentage in the milk is crucial for determining efficiency.
  • Comparing two cows with equal milk yields, the one with a higher fat percentage contributes more efficiently to the farm's profitability.
  • Fat percentage is a key factor in evaluating the overall efficiency of a dairy animal.

Factors Influencing Dairy Cow Efficiency

• Feed Conversion:
  • The efficiency of a cow is determined by the amount of feed it consumes per litre of milk produced.
  • A lower ratio of feed consumed to milk produced signifies better efficiency in converting feed into milk.
• SNP Percent (Solids-Not-Fat):
  • Beyond fat percentage, the solids-not-fat (SNP) content in milk is crucial for evaluating efficiency.
  • A higher SNP percentage indicates a more efficient dairy animal in terms of milk production.
• Milking Speed:
  • The time taken by a cow to produce a specific quantity of milk is a factor influencing efficiency.
  • Faster milking speeds are desirable, as they contribute to overall labor efficiency and reduce the cost of milk production.
• Calving Interval:
  • The time between two consecutive calvings, known as the calving interval, impacts the efficiency of a dairy cow.
  • A calving interval beyond the optimum range (12 to 13 months) results in reduced overall lifetime milk yield.
• Fertility:
  • Fertility plays a crucial role in the efficiency of a dairy animal.
  • Reduced fertility or failure to conceive within a reasonable time leads to significant financial losses for the farmer.
  • Optimal fertility is a key factor in determining the efficiency of a dairy cow.
• Disease Susceptibility:
  • The susceptibility of cows to diseases like mastitis is heritable and affects lactation yields.
  • Animals more susceptible to diseases tend to have lower lactation yields, while resistant animals exhibit higher efficiency.
  • Resistance to diseases is an important trait contributing to the overall efficiency of a dairy animal.
• Temperament:
  • The temperament of a dairy animal, although challenging to evaluate, is a significant factor influencing its efficiency.

Economies in Dairy Farming

• Capital Requirements: Initial capital needs for dairy farming are high, but the advantage lies in consistent milk sales, reducing dependence on seasonal income.
• Conversion Efficiency: Dairying is an efficient way to convert grass and forage into cash, judged by the gross margin produced per forage hectare.
• Profitability Factors: Profitability depends on feed costs, capital investment, and various factors that differ across farms.
• Return on Capital: Return on the farmer's capital is a crucial measure of profitability, involving and being influenced by all production factors.
• Margin Metrics: Profitability is often expressed as gross or net margin per cow or per hectare for comparative purposes.
• Interpretation: A high overall return on capital is desirable, requiring maximum possible margins within existing limits.
• Limiting Factors:
  • Physical factors like buildings and labor may limit cow numbers, emphasizing the need for a high margin per cow.
  • Land limitations might allow achieving similar returns with fewer cows but require increased stocking rates for a higher margin per hectare.
• Final Profitability: Net margin, the ultimate profitability, is the difference between gross margin and fixed costs, whether per cow or per hectare.
• Gross Output: Gross output per cow, influenced by factors like yield, calving index, milk quality, and seasonality, is a key determinant of the gross margin.

Factors Influencing Dairy Cow Efficiency

• Lactation Yield:
  • Influenced by health, management, feeding level, and environment.
  • Breeds and hereditary factors play a role in optimizing lactation yield.
• Calving Index:
  • Represents the interval in days between calvings, ideally 355 days per year.
  • Achieving the ideal calving index is rare; the average is around 365 days.
  • Affects the effective milk output per year, considering the spread of milk sales over days.
• Breeding Efficiency Factors:
  • Relationship between calving index, percentage of dry cows, average lactation length, and lactation output.
  • Useful in identifying weaknesses and optimizing management within a dairy enterprise.
• Quality of Milk:
  • Quality, including compositional aspects like fat and SNF, impacts the price per liter.
  • Customers are willing to pay more for higher fat or SNF content and better hygienic quality.
• Seasonality:
  • Not a major factor in India presently but gaining importance in organized dairy projects.
  • Production trends vary during different climatic conditions and seasons.
• Net Herd Replacement Cost:
  • Difference between the cost of replacement animals and livestock sales from the dairy herd.
  • Depends on the rate of replacement, value of livestock sales, replacement animal costs, and herd size changes.
• Gross Output per Forage Hectare:
  • Determined by gross output per cow and stocking density.
  • Increasing stocking density can raise gross output per hectare, unaffected by extra feed costs associated with higher density.
• Net Output per Forage Hectare:
  • A valuable measure for comparing output per hectare, considering the margin after deducting feed costs from the gross output.
  • It reflects the ultimate profit, which is the difference between gross output and feeding costs.
• Variable Costs:
  • Includes concentrates, oilseed feeds, treatment costs, inspection, and other variable expenses.
  • Concentrate feeding aims to sustain or increase yield; the ratio of milk produced to concentrates fed is a valid measure of feed efficiency.
  • Additional feeds may need to be purchased based on the farmer's capacity to produce feeds and fodder.
• Miscellaneous Variable Costs:
  • Encompasses veterinary services, medicines, etc.
  • Variable components fluctuate with market prices; high veterinary charges may indicate issues in maintenance, husbandry practices, or herd management.
• Forage Costs:
  • Depend on the type and variety of forage crops.
  • Costs are influenced by inputs, fertilizers, plant protection measures, harvesting charges, materials for fodder conservation, and labor.
• Fixed Costs:
  • Indirect farm costs not easily allocated to specific farm enterprises.
  • Also known as overhead costs, common costs, or unallocatable costs.
  • Mainly consist of labor, building costs, and capital charges.

Dairy Enterprise Investments and Replacement Stock

• Dairy enterprises require capital investment in stock, buildings, and equipment.
• Under Indian rural farming conditions, investments are relatively lower compared to Western systems, with minimal family labor.
• Replacement stock is crucial for maintaining or increasing the herd.
• The rate of replacement is linked to culling intensity, aiming to improve herd productivity.
• Inadequate replacement stock may increase fixed costs, impacting profitability as additional costs may not be covered by produce sales.

Husbandry Factors Affecting Rate of Replacement

• Diseases: Conditions like mastitis, tuberculosis, Jehne's disease, brucellosis, etc., influence replacement rates.
• Infertility: Cows frequently returning to service due to fertility issues.
• Leg and Feet Issues: Incapacity of legs and feet affecting the cow's ability to produce milk.
• Injuries: Injuries such as cuts or wounds affecting milking.
• Temperament: Behavioral factors like being a slow milker, hard milker, kicker, or exhibiting vicious behavior.
• Genetic Quality: Exceptional breeding value may lead to retaining an animal despite shortcomings.

Economic Factors Affecting Rate of Replacement

• Every farm has a production benchmark, below which animals are culled and replaced.
• A minimum level for both quantity and quality of milk production is essential for retaining animals.

Salvage of Dry Animals

• Some farmers keep dry cows for about 10 months without breeding and then dispose of them.
• Government schemes and financial assistance from banks support the salvage of dry cows.
• Alternative methods involve farmers or women taking up the task, ensuring proper care, insurance, and returning the animals to original owners or others.

Evaluation of Livestock in Organized Farms

• Inventory value estimation helps assess the farm's financial position.
• Existing computational procedures may not consider all factors, and a suggested formula accounts for complexities.
• The book value of animals should cover the cost of rearing a calf till the age of first calving.
• The formula calculates the value based on the Expected Producing Ability (EPA) and the average cost of rearing in specific age groups.
• Appreciation in the value of animals due to improved genetic traits is considered in the formula.