Fernando Diaz DVM, PhD

Dairy Nutrition and Management Consultant

GPS Dairy Consulting, LLC

605.690.8122 cell

1910 Lincoln Lane | Brookings, SD 57006

fernandodiaz@gpsdairy.com |www.gpsdairy.com

Dairy Market Analysis I-29 Dairy Corridor

December, 2016

SUMMARY:

With this month’s feed pricing changes we see a ~$0.09/cow/day (or $0.001/lb DM) increase in the calculated nutrient cost

from Nov to Dec. Nov component pricing for butterfat was $2.10 vs $2.05 in Oct, protein was $2.81 vs $2.30 in Oct, and other

solids are around $0.18 (creeping up the last 6 months after being around $0.05 since Sep 2015). With these component shifts,

calculated month to month milk income increased to $13.60/cow/day (Oct $12.03) in Holsteins or $13.79/cow/day (Oct $12.27)

in Jerseys.

Dec, 16 Nov, 16 Oct, 16 Sep, 16 Aug, 16 July, 16 June, 16 May, 16 Apr, 16 Mar, 16 Feb,16 Jan,16 Dec, 15

Butterfat ($/lb) $2.10 $2.05 $2.31 $2.49 $2.60 $2.41 $2.28 $2.24 $2.20 $2.38 $2.31 $2.91

Protein ($/lb) $2.81 $2.30 $2.57 $2.57 $1.91 $1.48 $1.49 $1.85 $1.92 $1.74 $1.82 $1.36

Other Solids ($/lb) $0.14 $0.18 $0.11 $0.09 $0.08 $0.06 $0.05 $0.05 $0.05 $0.05 $0.04 $0.04

Dec, 16 Nov, 16 Oct, 16 Sep, 16 Aug, 16 July, 16 June, 16 May, 16 Apr, 16 Mar, 16 Feb,16 Jan,16 Dec, 15

Milk Income ($/cow/d) $13.60 $12.03 $12.42 $10.78 $10.41 $11.10 $11.18 $11.25 $11.17 $11.79 $12.50 $12.61

Nutrient Cost ($/cow/d) $4.83 $4.74 $5.54 $5.61 $5.75 $5.11 $5.61 $5.56 $5.71 $5.82 $5.96 $5.99 $6.15

Income Over Nutrient Cost ($/cow/d) $8.86 $6.49 $6.81 $5.03 $5.30 $5.48 $5.63 $5.54 $5.35 $5.84 $6.51 $6.46

Nutrient Cost ($/lb DM) $0.090 $0.089 $0.104 $0.105 $0.108 $0.096 $0.105 $0.104 $0.107 $0.109 $0.112 $0.112 $0.115

Dec, 16 Nov, 16 Oct, 16 Sep, 16 Aug, 16 July, 16 June, 16 May, 16 Apr, 16 Mar, 16 Feb,16 Jan,16 Dec, 15

Milk Income ($/cow/d) $13.79 $12.27 $12.86 $11.22 $10.82 $11.55 $11.67 $11.58 $12.38 $13.15 $13.18 $13.40

Nutrient Cost ($/cow/d) $4.59 $4.50 $5.22 $5.31 $5.45 $4.83 $5.23 $5.36 $5.45 $5.58 $5.62 $5.77 $5.93

Income Over Nutrient Cost ($/cow/d) $9.29 $7.05 $7.55 $5.77 $5.99 $6.32 $6.31 $6.13 $6.80 $7.53 $7.41 $7.47

Nutrient Cost ($/lb DM) $0.095 $0.093 $0.108 $0.110 $0.112 $0.099 $0.108 $0.111 $0.112 $0.115 $0.116 $0.119 $0.122

Milk Component Values (www.ams.usda.gov)

Milk Income and Nutrient Cost for a Holstein cow (1500 lb BW, 53.4 lbs DMI, 80 lbs/d milk w/ 3.6% fat, 3.0% prot., 5.7% other solids)

Milk Income and Nutrient Cost for a Jersey Cow (1200 lb BW, 48.5 lbs DMI, 65 lbs/d milk w/ 4.8% fat, 3.6% prot., 5.7% other solids)