The aim for many dairy farms is to be in the top 20% of herds, which should result in increased profitability.
The way to get there is by improving genetics, as higher fertility and better solids increase profitability.
But improving herd genetics is not something that can be done overnight – it may take five years to see breeding decisions pay off.
Top 20% of herds
Speaking at the Ballyhaise Dairy Open Day, Teagasc dairy specialist James Dunne said that the quickest way to achieve these goals is by purchasing high economic breeding index (EBI) heifers.
He said the use of EBI has lead to improved profitability in the Border, Midlands and Western (BMW) region. However, he added that some herds are still lagging behind in their EBI use and improvement.
“The top 20% continue to improve herd EBI at the same rate as farmers not in the 20%,” he said.
“The problem we see is that although process is being made, farmers are not closing the gap.”
Continuing, James said: “Buying in high-value EBI heifers is going to be the quickest way to close this gap.
“It can be done through breeding within your own herd, but it will take at least 10 years to achieve.”
Catching the top 20%
Later in the day, the crowd heard from Killian Brennan, a dairy farmer from Co. Cavan.
Since 2017 Killian has increased his herd EBI by €70, going from €93 to €163, by purchasing a number of groups of high-EBI heifers.
Milk solids having increased by 49kg/cow and he has moved from what he described as a milky-type cow to a cross-bred cow.
Speaking on the day, Killian said: “I went from being 1c/L below base price to 5-6c/L above base price.”
He was then asked about the increased income to the farm.
“Last year the average was 5,800L, but the herd is still maturing,” he began.
“So based off a 6,000L cow by 120 cows is 720,000L, multiplied by 6c/L is just over €43,000 in revenue.”
Killian is now breeding replacements only from third-lactation cows and down, which consist of the purchased-in heifers.
He aims to continue improving herd EBI, with the aim of reaching 500kg of milk solids.
The older cows within the herd are now getting beef straws using the dairy beef index (DBI), which Killian said has helped him achieve better prices for his calves.
Takeaway points
Although many farms may be improving their herd’s average EBI, it is unlikely that it is improving fast enough to catch up with the top 20% of herds.
A decision may need to be made regarding the purchase of high-value EBI heifers to improve herd genetics and accelerate the improvement.
These high-value heifers can then be used to generate replacements and continue to improve genetic gains.
Killian has already increased his farm’s profitability by €41,760, or €348/cow by making the decision to change his herd’s genetic make up.