CHRIS WOELFEL
Dairy Specialist
Texas Extension Service
COLLEGE STATION.
Texas How many times have
you heard the statement. “I can buy
better heifers than I can raise,” or,
"I don’t see any difference
between AI sired heifers nand heif
ers I can buy through a dealer or
auction barn with no
information”?
This may be true, but it’s not
because all heifers arc of equal
genetic merit when it comes to pro
duction. This has been illustrated a
number of times in popular publi
cations where the difference
between the average AI sire and
natural service sire is approximate
ly ISOPTAS, which translates into
an added SISO per year income
from AI sired heifers.
Using top AI sires with PTAS
exceeding 200 will add another 25-
to 30-percent added income.
A Texas study illustrates the
point extremely well with a strik
ing difference in added income.
A Texas study illustatcs the
point extremely well with a strik
ing difference in added income
from AI versus commercial
heifers.
The study was conducted on the
Holtex herd in Lancaster, Texas,
following the dispersal sale in
1980, with results reported in
1983.
Home-raised, purchased regis
tered, and purchased commercial
heifers were fed a totally mixed
ration (TMR) and were kept under
the same housing, feeding and
management system.
The home raised heifers were all
bred at Holtex Farm. The pur
chased registered were purchased
after the dispersal sale from
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Texas Study Shows AI Heifers Perform Better
throughout the East and Mid West,
and the non-registered or commer
cial heifers were well-grown heif
ers with no pedigree information.
As shown in Table 1, the home
raised heifers out-produced the
purchased registered heifers by
1,636 pounds of milk. The home
raised heifers also out-produced
the commercial heifers by 4,026
pounds of milk.
_ it ic imnnrtant to note the home
raised heifers represented some of
the top genetics in the country at
MILK
CHECK
jj THOMAS JURCHAK
<■? n Dairy Specialist
. | n Lackawanna County
SCRANTON (Lackawanna
Co.) The sudden rise in cheese prices last month is coming closer to
home as it begins to show up in milk checks for April.
The Minnesota-Wisconsin Price Series jumped $1.13 in April fol
lowing a 28-cent rise in March for a total of $1.41 in two months.
Since the M-W price is the Basic Formula Price for milk pricing in all
federal orders, the increases are showing up already in the class prices
that regulated handlers pay and, in turn, the uniform or blend prices to
the producers.
The Class HI price increases first and that is up $1.32 in Orders 2 and
4, and up $1.41 in Order 36, reflecting the change in the M-W price, so
far.
Factored in the Class II price however, are the increases in cheese
prices last month, so you will sec big differences for milk going into soft
dairy products.
From $10.78 in March, the Class II price jumps $2.15 to $12.93 in
May and another 85 cents to $13.78 in June for a total of $3 worth of
increases in three months.
Class II utilization is increasing now with warmer weather and more
INC.
430 Concrete Ave., Leola, PA
717-656-2016
that time and that the difference
was real. There is no question that the
If genetic progress is taken into average genetic makeup of corn
consideration over the past 10 mercial heifers has improved over
years, you can add at least 1,000 to the past 10 to 20 years. However,
1,500 pounds to the average pro- the fact remains that genetics do
Table 1. Homebred Vcrtua Purchased Replacements 1
Ajc (calvinj)
303 d. ME
Difference
1 While. T. H.. Jr.. C. G. Woelfel. and R. A. Baron. 19*3.
“Number/jroup.
Authorized
Dealer For
KEYSTONE
CONCRETE
PRODUCTS
• H-Bunks
• J-Bunks
• Trench
Siio Walls
• Hog &
Cattle Slats
duction reported in this study.
Home-
Railed
26.1 M(5O) 2
18.759 lbs
1.656 lbs
ice cream is being consumed, so a S 3 increase in the Class II price will
be significant in your milk check.
Class I prices bottomed out in April, but will increase 28 cents in May
and $1.13 in June, again reflecting the increases in the M-W price.
Your milk check for April won’t show increases that high yet, but it
will be better by up to 42 cents a hundred weight, depending on which
federal order is regulating your handler.
These increases in Class prices are indications of things to come in
the next two months that will give you a farm price this summer higher
than last year.
Cheese prices increased another cent last month to $1.39 for blocks,
matching the high price of last August.
That was four weeks ago however, and the price hasn’t changed since
then, so I gues it’s safe to say it peaked.
The question is, what next?
It was a meteoric rise of 23 cents in seven weeks and if it stays there
you can count on an average milk price higher than last year, but it may
not hold all summer.
If cheese handlers were concerned about the milk supply and
replaced their inventory stocks this spring, they will now be buying only
what they need.
The export market for powder that helped to run up the cheese price
has nearly disappeared.
The Dairy Export Incentive Program has contracted for no additional
sales this month and powder prices are about like cheese prices good,
but not showing any movement.
Right now you can expect another good increase in the M-W price for
May which will get you higher prices at the farm at least through July.
What happens after that is the problem.
Will higher milk prices and new forage feed bring more milk to the
market or will the attrition in cow numbers check the supply?
There’s not much hope for improvement on the demand side with
schools closing for the summer, unless exports can be stimulated
through the incentive program or other efforts.
You’re looking at market-driven prices so far above the support price
that supports have little effect You’re seeing the volatility of free mark
et prices that function for nearly all other farm products that other pro
ducers must cope with routinely.
Their strategy is to hang on to as much of their income as they can
when prices are up because they probably won’t stay there. I hope dairy
product prices don’t fall this summer but it’s a gamble you may not want
to take.
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If there is No RFD AMERICA Route Service person
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contribute substantially to the level
of milk production.
All heifers are not created equal
and certainly heifers from top AI
sires arc superior. Is the difference
real? You bet cha’.
Purchased
Animals (R.)
2t.l M. (29)
17.103 lbs
2,370 lbs
Peaked Out
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Purchased
Animals (Non R.)
31.3 M. (20)
14.733 Ibt