Sharingideas,solutions ...2008/10/30 · Miami went from 100 cows to 10,000 cows. Todayitspans...

Volume 10: Issue 6

October 2008

Professional Dairy Producers of Wisconsin | 1-800-947-7379 | www.pdpw.org

Innovation embracedat Larson Dairy, Inc.

page 4

Ways to save energycosts, increase revenue.

page 19

Ration changes couldcost you.

page 20

Also In This Issue:

Diversity eyed

page 5

Human resouces workshop

page 12

Keeping a sound breeding program

page 27

BOTTOM LINESharing ideas, solutions, resources and experiences that help dairy producers succeed.

Management Highly Structuredat McArthur Farms

McArthur Farms consists of

four 2,000-cow dairies, 1,500

acres of citrus and over 500

head of beef cattle on 9,000

acres in south central Florida.

Of the 8,000 replacement

heifers, half are raised on the

farm and the other half by

contract growers.

This family operation, which

will be a tour stop during

PDPW's Managers Academy,

Jan. 20-22, was started by J.N.

McArthur in 1929. A vo-ag

instructor, he processed his

own milk and delivered it door-

to-door. By the mid 1950s the

herd size was up to 5,000

Jerseys.

When the state of Florida

enacted a nutrient

management plan in 1990 to

help control and reduce

phosphorus run-off from

dairies, McArthur Farms built

two freestall dairies and two

drylot dairies. At the same

time, it replaced the remaining

Jerseys with Holsteins to

coincide with Florida’s major

fluid market.

Today, each dairy operates as

individual profit/loss centers.

They also have their own dairy

managers, who oversee a

maternity manager, heifer

manager, calving manager,

maintenance manager, and

farm manager for crops and

heavy equipment.

Each dairy manager is

responsible for the costs of

running their operation. They

develop yearly budgets and

receive monthly statements to

monitor costs. Each dairy is

compared to the composite of

all the dairies.

John Gilliand is the vice

president of the dairy

operation for McArthur Farms

and he oversees all four

dairies.

“What we focus on is to always

feed cows for highest

production,” Gilliand says of

the farm’s overall management

strategy. “We don’t feed a lot of

byproduct and instead feed for

top production because you

don’t know when the milk price

is going to be at its best.”

Educating employees is

another business strategy

that’s important at McArthur

Farms. “The best way to make

money is not to lose money.

We teach them not to lose

cattle,” he says.

McArthur Farms employees 170

people in their total farming

operations, with 150 of them at

the dairies.

At the drylot dairies, cows are

let out to pasture, but it is not

considered a part of the ration.

After being milked in a parlor,

they are locked in a stanchion-

type facility for breeding,

sorting and other chores. From

there they enter a feed barn

where they receive a TMR.

See McArthur on page 6

Managers Academy is anMBA-level training thatfeatures two days of high-levelexecutive training and one dayof dynamic tours where youwill hear from fellow CEOsand managers. Held, Jan. 20-22 in Orlando, Fla., thisconference was speciallydesigned for those who have amind of a manager, heart of aleader and are up to abusiness challenge.

With an emphasis on upper-level businessmanagement,the ManagersAcademyoffers thenext stepin busi-nesstrainingspecific-allydesignedfor top-shelf farmmanagersand otherhigh-rankingindustryprofessionals. TheManagers Academy presents alevel of business trainingnever before obtained withinagricultural circles, and it is adirect result of personalrequests from our members.The program uses a hands-on,informational approach that issure to challenge the best andbrightest producers, CEOs andother managementstakeholders within the dairyindustry. If you are a dairyproducer, a dairy processor, ormanager in any other segmentof our industry, this training isfor you.

Providing you with facts andvaluable insight, an expertline-up of this caliber can only

be found at the ManagersAcademy. Gather up-to-the-minute market, consumerand food systemresearch directly fromthe industry’sexperts, includingBill Curley,Bliming andAssociates;Charlie Arnot,Center for FoodIntegrity; andGarrison Wynn,Wynn Solutions.Hear their

perspectives andgain insight that

directly impactsthe executivedecisions that youmake to drive growthin your business ororganization.

Tailored exclusivelyfor ManagersAcademy, you’ll alsoexperience Profitable

Negotiation™, a highlyengaging session

presented by JasonMitchell. Mitchell is an

expert interpersonal skills

instructor and managementconsultant who specializes in

negotiation, conflictresolution,

mediation, anddiversity from

BayGroupInter-national.

AlongwithMasters-leveltrainings,

you willenjoy a full

day ofstimulating,

one-of-a-kindtours. Stops will

include Larson Dairy, Inc.,McArthur Farms, CalcaterraAlligator Farm and WilliamsonCattle Company. You will havethe opportunity to hear fromeach company’s CEO to learnbehind-the-scenesinformation and get yourquestions answered.

Call 800-947-7379 for moreinformation or visit www.pdpw.org.

PDPWBoard of Directors

PresidentDean Strauss

Sheboygan [email protected]

Vice PresidentDoug Knoepke

Durand715-672-4348

[email protected]

SecretaryMarion Barlass

Janesville608-754-1171

[email protected]

TreasurerEric HillanLadysmith

[email protected]

Mark DiederichsMalone

[email protected]

Patty EndresLodi

[email protected]

Kevin GriswoldIxonia

[email protected]

Gary RuegseggerStratford

[email protected]

Russel StrutzTwo Rivers

[email protected]

Contact PDPW at:N5776 US Hwy 151, Suite 1

Fond du Lac, WI [email protected]

EditorialKaren Lee

[email protected]

AdvertisingBrenda Murphy608-250-4157

[email protected]

Dairy’s Bottom Line is publishedsix times a year by PDPW withcooperation from Agri-View.

Debbie CraveCrave Brothers Farmstead Cheese

Waterloo920-478-4887

[email protected]

Jeff RiechersM&I Marshall & Ilsley Bank

Darlington608-588-2526

[email protected]

Floyd SuttonZinpro Performance Materials

Freeport, Ill.815-235-9169

[email protected]

Doug WilsonCRI & Genex

Shawano715-526-7510

[email protected]

PDPW Advisors

PDPW StaffShelly Mayer

Executive Director800-947-7379

[email protected]

Julie GabrisMember Resource Manager

[email protected]

Kathy MuthProgram Manger800-947-7379

[email protected]

Susan OrthCommunications Specialist

[email protected]

Find the Best Business Trainingat Managers Academy

“The

Managers

Academy has helped

us bond with peers

from all over the U.S.

and allowed us to see

the dairy industry

from different angles.”

~Roger & Tamara Weiland,Weiland Dairy,

Columbus, Wis.“The

Academy has

forced me to look

at our business and

the future with more

global thoughts

of where we want

to be.”

~David Fisher,Mapleview Dairy,

LLC, Madrid, N.Y.

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Larson Dairy, Inc., is a threegeneration dairy farm inOkeechobee County, Fla.Founder and President RedLarson is still very involved inthe farm he started in 1947 afterserving as a pilot in World WarII.

The dairy has been locatednear Fort Lauderdale andMiami wentfrom 100 cowsto 10,000 cows.Today it spans10,000 acres intheOkeechobee,Fla., area withover 5,000head of milkingcows at three farms. One ofthose farms will be a tour stopfor PDPW's Managers AcademyJan. 20-22.

The dairy operation includesRed’s two sons, who each havefarms of their own, and a pair of

grandsons who operate two ofthe corporation’s farms.

Two of the three dairies havea double-32 rapid exit parlorand one uses a double-34parabone. Cows are kept inconfinement housing.

The heifer operation isconnected with the dairies.Heifers are raised for herdreplacements and bull calvesare raised to 300 to 400 poundsand sold to feedlots.

Larson Dairy employs around90 people with roughly 30 ateach site.

Most of the grain fed on thefarms is purchased and railedin. Corn silage is grown in the“glades” about 30 miles southof the farms, reports Red’sgrandson Jacob who managesone of the dairies. Larson Dairycontracts the variety grown anddictates cropping andharvesting methods. When theharvested crop arrives at the

dairies they take care of storagein bunkers.

Haylage is produced from stargrass and Hermathia. Theychop every 30 to 35 days andcan harvest four to sevencuttings a year. This is stored inbags. The dairies also make alot of dry hay.

The typical TMR mix includescorn silage; haylage; dry hay; agrain mix – which could containcorn, citrus pulp, corn glutenmeal; cottonseed or distillersgrain; soybean meal; a mineralpack; water and molasses.

Red was one of the first toinstall a lagoon system tocontrol wastewater to meet theenvironmental compliancerequired in the OkeechobeeLake basin. This efficientsystem relies on gravity flowwith a simple cleansing system,which cycles sand through inless than 24 hours.

Manure flows through threelagoons. The first one capturessolids, the second has some ofboth and the third is for liquids.The liquids are recycled forflushing the freestalls andirrigation through centralpivots.

“We try to reuse as much aswe can and recapture as muchof the nutrient value,” Jacob

says.The Larsons are currently

exploring ways to harvest ormine the solids for reuse aswell.

Finding new innovations andsolutions isn’t new for LarsonDairy. Red has always been oneto make changes when he sawthe need. He’s changed thedairy from flat barns to parlors,made strides in feedingstrategies, implemented A.I. toimprove genetics, and so on.“Over 60 years we’ve progressedlittle by little,” he says.

Through it all, Red says thekey is to remain consistent. “Tocontinue doing what we knowhow to do best. Through thegood times and bad times, weadjust as time comes and goes.”

Perhaps the biggestadjustment was following thesummer of 2004 when thedairies were hit hard by fourhurricanes. The area had beenevacuated by many, but theLarsons and their employeesstayed to care for the cows. Twobarns were destroyed, the mainpower supply was gone andsome cattle were lost, butthrough it all they stuck withwhat they knew how to do -produce milk.

By Karen Lee

Innovation Embraced at Larson Dairy, Inc.

Misters keep cows cool at one of the Larson Dairy, Inc.farms in Okeechobee County, Fla.

Red Larson


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Cattle, citrus and catfish arethe entities that compose theWilliamson Cattle Company inFlorida and Alabama. Thisranch will be a tour stop forPDPW's Managers Academy,Jan. 20-22.

The company was founded inthe late 1940s by FrankWilliamson. It is where his son,Frank “Sonny” Williamson Jr.,and grandson, Frank “Wes”Williamson III, have made theircareers. Today, the fourthgeneration is also taking on anactive role in the farm.

Their ranch is home to 10,000head of Brangus cattle. Thiscow-calf operation thrives withthe Brangus breed because itcombines the superior Angusgenetics for mothering andmeat with the Brahman’s abilityto withstand the sub-tropicalenvironment in Florida.

Calves are weaned at 10months of age, weighing 500 to600 pounds. The bull calves aresold as steers by the semi-loadto feedlots in Texas, Oklahoma,Kansas, Nebraska and Iowa.

The Williamsons keep a largeportion of the heifer calves forreplacements in their ownoperation.

“Fortunately in south Floridawe can grow grass almost year-round,” Wes says, noting for justthree months a year they needto provide supplemental feed.

The ranch in Alabama has afour-month span whenadditional feed is required.

In addition to the cattle, theyhave 8,000 acres in citrusgroves, with red and whitegrapefruit, which are sold forthe fresh export market, andoranges that are made intoorange juice.

Two different diseases –citrus canker and citrusgreening – are threatening theentire Florida citrus industry.“Those two diseases are reallyplaying havoc,” Wes says. “They

could put Florida out ofbusiness.”

For the Williamsons, citrusgreening is of greater concern.This disease is carried by oneparticular insect from one treeto the next and by the timesymptoms are recognized thetree is too far gone to be saved.The University of Florida andU.S. Department of Agriculturehave done a lot of research andspent a tremendous amount ofmoney in an attempt to findand remove the insect or inremoving the infected trees.

Their commercial catfish andsome cattle are raised inwestern Alabama. There theyhave 1,500 acres underwater inponds for the fish. They stockthe ponds twice a year with themajority done in the winter.They raise 10,000 fish per acreand feed each fish about twopounds of feed in a year’s timewhen they have reached aweight of 1 1/2 to 1 3/4 pounds.

When ready, they drag a netthrough the ponds to catch thelarge fish. A fish that isn’t bigenough can swim through theholes and stay in the pond untilits ready. They are then dippedin a live haul truck to severalprocessors in Alabama andsome in the Mississippi Deltaregion.

The Williamson CattleCompany relies on 17employees in Alabama and 23employees in Florida to get the

job done.Each entity functions as a

separate business enterprise,yet contribute to the companyas a whole.

Being diversified is veryhelpful, Wes says. Very seldom

See Williamson on page 8

Williamson Cattle CompanyDepends on Diversity

October 2008 • PDPW - Dairy’s Bottom Line 5ST

Continued from page 1In the pasture there isadditional access to TMR orforage.

These dairies, as well as thedry cow and heifer farms, havecooling ponds to keep thecattle comfortable.

The two freestall dairieswere struck by four hurricanesin nine weeks in 2004. Two ofthose hurricanes went directlyover the farms causing majorroof damage to the barns.With help from theDepartment of Agriculture inproviding cost-sharing,McArthur Farms replaced thedamaged freestall barns withfour new tunnel-ventilatedbarns. Each tunnel barn holds400 cows and priority is givento fresh and high-producingcows.

The barns are flushed withwastewater and solids getseparated and sold ascompost. The remaining liquid

is stored in holding pondsand distributed using centerpivot irrigation. From thefields it flows into a retentionpond where the phosphorussettles out. Lagoonsencompass 1,000 acres oftheir farm.

McArthur Farms growsBermuda grass and Hermathiaon 3,000 acres for forage. It iscustom harvested and storedin silage bags. Corn silage waspurchased last year fromcontract growers.

Now, they are convertingsome of their citrus land forgrowing corn for silage. Whenthe hurricanes in 2004destroyed the barns, they alsointroduced citrus canker, acontagious disease, to Florida.To help eliminate the spreadof the disease, thegovernment offered to payfarmers to destroy their citrustrees.

By Karen Lee

John Gilliand, vice president of the dairy operation forMcArthur Farms, is pictured in one of the barns that wererenovated after a hurricane in 2004.

McArthur


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Continued from page 5are all three commoditiesdown. Yet, on the flip side, veryseldom are all threecommodities up. Nonetheless,having all three entities helpsto even out cash flow forWilliamson Cattle Company.

Just like in every businesstoday, feed, fuel and fertilizerare adversely affecting all threeof the entities, Wes reports.

Fuel prices have drasticallyaffected the cattle business. Interms of freight expense, itused to cost seven to eightcents less per pound to raise acalf in Florida than to send itwest. Now that figure is 14 to15 cents a pound.

However, Wes says, it is stillcheaper to send the calf to thefeed than to raise them inFlorida because they gainmuch better in the dry climate.

For the catfish entity, feed isthe driving cost. Thepredominate feed is soybeanmeal which increased from

$252 per ton to over $400 perton. This increase in grain pricehas meant a $2.25 millionadditional expense in one year.

What allows the Williamsonsto remain profitable in timeslike these is that they knowwhat it costs to be successful.

“First and foremost you haveto know your cost ofproduction down to everypenny,” Wes says. “When youknow that you can make yourprojections by knowing yourbreakeven costs.”

He adds that they have neverbeen a company that has beenheavily leveraged. Thereforethey have less risk and lessdebt to service.

Wes also says he firmlybelieves in diversification. Avertically integrated farm isstill dependent on the pricereceived. By being horizontallydiversified it can lessen theoverall affect of a single cost.

By Karen Lee

Williamson


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Dairy ConnectNovember 5Foremost Farms USA, BarabooA challenging one-day trainingfocusing on communication skillsand industry issues to effectivelyinform communities aboutagriculture.

Youth Leadership DerbyNovember 8-9Brillion High School, BrillionA weekend lock-in for ages 15-18with hands-on labs, one-of-a-kindtours, career exploration andinteractive leadership workshops.

Production ManagementSymposiumNovember 18, 19 & 20This conference is designed forherd owners and managers, andit will highlight nutrition,reproduction and forageinnovations that yield more milkfor dollars invested.

Calf Care Workshopfor Hispanic EmployeesDecember 2 & 3UW-River Falls DairyLearning Center & EndresJazzy Jerseys, LodiA hands-on, one-day workshop,focusing on raising calves. Thistraining will be taught solely inSpanish.

Turnkey HumanResource WorkshopDecember 9-10Kalahari Resort,Wisconsin DellsThis high-level human resourcestraining will cover valuabledocuments needed in employeemanagement, including policyand employee handbooks,standard operating proceduresand paperwork needed whenhiring and firing.

Commodity MarketingInformational ClassDecember 11WMMB, Madison

This is the orientation session ofthis 6-class, year-long course,which focuses on marketing toolsand principles required forsuccessful commodity marketing

Managers AcademyJanuary 20-22, 2009Orlando, FloridaA dynamic, national conferencethat features executive businesstraining, one- of-a-kind tours andthe opportunity to hear fromindustry leaders.

Milker Trainingfor Hispanic EmployeesFebruary 4 & 5, 2009This one-day, hands-on trainingwill teach milking protocols andcow handling. This training willbe taught solely in Spanish.

Agriculture CommunityEngagement (ACE) RegionalMeetingFebruary 19, 2009Holiday Inn, Fond du LacA one-day meeting for dairyproducers, local elected officials,

industry leaders and communitymembers to address and learnmore about issues and changessurrounding the dairy industry.

Annual Business ConferenceMarch 17-18, 2009Alliant Energy Center, MadisonThe Annual Business Conferenceis industry’s premier educationalevent and PDPW’s hallmarkconference, featuring pricelessnever-before-seen producerpanels and other world-renownedexperts.

Heifer Facility ToursApril 9 & 10, 2009Throughout WisconsinTwo, one-day tours highlightinghousing and management stylesfor replacement heifers.

For complete conference details, visitwww.pdpw.org or call 800-947-7379.

PDPW’s Mission: To share ideas,solutions, resources and experiences thathelp dairy producers succeed.

2008-2009 PDPW Education Calendar


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Whether you have 1 or 101employees, this training is foryou! The Turn-Key HumanResource Workshop will be heldDec. 9-10 at the Kalahari Resortin Wisconsin Dells, with theoption to attend one or bothdays.

Learn from the experts withfirsthand experience as youdiscover effective interviewtechniques, start your very ownemployee handbook, tips andtricks of employee managementand other insight that will makeyour dairy become moreefficient and profitable.

The first day, Dec. 9, willfeature nationally-recognizedhuman resource expert,veterinarian and owner ofDairyWorks, Tom Fuhrmann.Fuhrmann will share hisexpertise and help you

jumpstart or improve yourexisting employee handbook.He’ll also walk you through thesteps to develop standardoperating procedures and putthem onto paper. Agriculturalattorney George Twohig will armyou with information you needto do the unpopular task offiring an employee.

Day two of the Turn-KeyHuman Resource Workshopincludes an engaging sessionthat will teach you “what to ask”and “what NOT to ask” as youinterview applicants. Leadingthis session is Melinda Mullenix,the Human Resource ServiceManager with AgCareers.com.Sandy Vande Zande, a senioraccountant, will guide youthrough the sea of applications,forms, reports, rules andregulations. She’ll provide you

examples of everything that theemployee and you, theemployer, should havecompleted (and done correctly).

A unparalleled producerpanel will provide you withadvice you can’t find anywhereelse. The panelists include:Doug Block from Hunter HavenFarms, Inc. in Pearl City, Ill.; LizDoornink from Jon-De Farm, Inc.in Baldwin; and Hank Wagnerfrom Wagner Farms in OcontoFalls.

No matter the size of yourstaff or your dairy, the Turn-KeyHuman Resource Workshop willarm you with the skills andknowledge to implement andimprove the human resourcemanagement on your dairy. Tolearn more and to register, visitwww.pdpw.org or call 800-847-7379.

Take Home the Resources You Needat Turn-Key Human Resource Workshop

“A value of PDPW

is the producers

that you meet.

The relationships

you build with

these producers are

very useful when

margins are tight

and you are trying

to make decisions

about your future.

Or maybe you are

having an employee

issue and you need

some advice.”

~Mitch Breunig, MysticValley Dairy, LLC, Sauk City


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When Paul Calcaterra Sr. hada hard time finding hides at aconsistent price to supply hisEl Paso, Texas, boot factory, hedecided to cut out themiddleman and purchase afarm.

It wasn’t cattle hides he waslooking for, but rather thosefrom alligators to use inmanufacturing the company’slarge line of exquisite Italianleather boots and the popularCowtown cowboy boots andwestern boots.

The boot factory has been inthe family for 38 years and theCalcaterra Alligator Farm insouth central Florida wasacquired eight years ago.

Paul Calcaterra Jr. is an ownerand manager of the alligatoroperation in Okeechobee, Fla.,which will be a tour stop forPDPW's Managers AcademyJan. 20-22. He overseeseverything from the collectionof eggs to feeding and finallyprocessing at the on-farmfacility.

The alligator eggs arecollected from privately andpublicly owned bodies of water.They fly over the nearby landwith a low-flying helicopter tolocate the alligator nests. Somecome from nearby ranches andone local dairy farm, McArthurDairy, Inc. (also featured in thisissue of Dairy’s Bottom Line),where the alligators live in thelagoons and nest in the fields.

In addition to collecting eggs,Calcaterra Alligator Farm is thelargest breeding facility in thenation. It houses over 250alligators for breeding. At 7years old an alligator will beginto lay eggs and will produceabout 35 at a time.

The farm is arranged in aseries of buildings toaccommodate various growthstages. Eggs are placed in a 90-degree hatchery where theyhatch from mid-August to mid-September. The Calcaterrashatch 10,000 to 12,000alligators in approximately onemonth’s time each year.

The baby alligators use atooth to help them break outfrom their eggs. However, PaulJr.’s two young daughters helpthose that struggle. They walkthrough the hatchery chirpingat the eggs. If the alligatorchirps back they bop the eggand release the 6-8-inch longbaby alligators.

As the alligators grow, theyare moved throughout thefacility based on size. Thebarns are dark to accommodatethe creatures’ nocturnal life-style. Each pen also has accessto ponds built with cement.

Paul Jr. spends time each daywashing the alligators. Thewash water flows into aretention pond and thendissipates into the ground.

See Calcaterra on page 14

Alligators Abound at Calcaterra Farm

At Calcaterra Alligator Farm, alligators are hatched fromeggs and grown until they are 4 1/2 to 5 feet long.


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PDPW would like to welcome Evan Schnadt, a senior atUW-Madison, as its intern through the school year. Evangrew up on a dairy farm in northeastern Iowa and hasbeen involved in agriculture his whole life. His family onlycash crops on the home farm now, but his passion for thedairy industry stays with him. He is currently completinghis dairy science major at UW-Madison and is very active oncampus. Evan is a member of Badger Dairy Club, NationalAgri-Marketing Association, the dairy judging team, as wellas a CALS ambassador. “I’m looking forward to meetinga lot of new people, networking, and the opportunity togain valuable skills,” Evan says about his internship oppor-tunity. His duties will include working closely with PDPW’smentor program, which pairs college students with a dairyproducer mentor. Another aspect of his experience will behis involvement with the internship program where he willwork to increase opportunities for students who would liketo explore a career in dairy production.

Fuel up and start yourengines for the PDPW YouthLeadership Derby, Nov. 8-9 atthe Brillion High School. Thetwo-day lock-in event,designed for teens ages 15-18,is chucked full of hands-onlabs, unique tours, interactiveworkshops and the experienceof a lifetime for young dairyleaders.

Coming into turn one, youwon’t believe what you’llexperience on the three one-of-a-kind tours or during one ofthe hands-on calf, food scienceand reproduction labs!

Coming out of turn two,you’ll navigate your waythrough high-speed interactiveworkshops that will send you

into a solid life-long position.Zooming down thestraightaway, you’ll see yourfuture and the manyopportunities available as youcross the finish line with a newplan and skills to last alifetime!

Along with these valuabletraining sessions and learninglabs, the Youth LeadershipDerby is packed withnetworking opportunities andfun, fast-moving activities. Allstudents ages 15-18 arewelcome. Dairy experience isnot necessary.

To register or receiveadditional information, visitwww.pdpw.org or call 800-947-7379.

Continued from page 13A protein pellet, mainly

derived from fishmeal is fed tothe alligators until they reachthe age of 18-24 months. Bythat time they’ve grown to 4 1/2to 5 feet long and are ready forslaughter.

Since alligators have a verylow mortality rate, theCalcaterras slaughter almost asmany as are hatched each year.This is done in their on-farmprocessing facility.Approximately 1,500 ponds ofalligator meat is processed aweek. It is sold to restaurantsand grocery stores. Hides aresent to a tannery in Sebring,Fla., and then delivered to theboot factory in Texas.

Paul, Jr. enjoys his new-foundcareer in alligator farming as ithas three to four months with alighter workload that allowstime for hunting – a passion ofhis.

The Calcaterra Alligator Farmis perhaps the only alligatorfarm in Florida that utilizes themajority of the animals. Mostfarms in the state are there forrecreation and tourism or meatprocessing.

Diversity is the key to theirbusiness success, Paul Jr. says.They also have a significantmarket for their product,attracting buyers from not onlythe United States, but foreignmarkets as well.

By Karen Lee

Calcaterra

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If you manage cows, theProduction ManagementSymposium is a must-attendeducational conference. Learneven more as you heardirectly from the Dr. MikeHutjens, Dr. Paul Fricke, NealVerfuerth and many otherexperts.

Held Nov. 18, 19 & 20 at theRadisson Paper Valley Hotelin Appleton, each day of theProduction ManagementSymposium will have aspecial focus. The first day,Nov. 18, will cover feed andfeeding efficiencies; Day 2,Nov. 19, will featurereproductive success andgetting cows pregnant faster;and Day 3 will showcasemanagement, energy andtechnologies. Single day and

three-day conference rates areavailable.

On the first day, whichfocuses on feed, Dr. MikeHutjens, dairy specialist atthe University of Illinois andrecently named World DairyExpo Industry Person of theYear, will share the latestinformation to get the mostfrom your investment whenfeeding high producing cows,while maintaining herd health.

On Nov. 19, the second dayof the conference, the leadspeaker will be Dr. Paul Fricke,a UW-Madison dairy scienceassociate professor andreproduction specialist. He’lllead off the day with cuttingedge and practical tips forgetting cows pregnant. Fromphysiology to heat

management tools, Dr. Frickewill help you decrease daysopen and maximize yourherd’s potential.

Dr. John Fetrow, professor ofdairy production medicine atthe College of VeterinaryMedicine at the University ofMinnesota, will be thehighlight on the third day ofthis one-of-a-kind conferencewhen he will challenge you tomake decisions that producepositive results during volatiletimes.

You’ll take home valuableknowledge and understandingthat you can implement onyour dairy for increasedprofitability. To learn aboutthe complete line-up ofexperts, visit www.pdpw.orgor call 800-947-7379.

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It’s tempting, during timeslike these, to try to tweak yourdairy cows’ rations. After all,who doesn’t want to savemoney when input costs are upand milk prices are expected tokeep slipping?

But beware. Trimming rationcosts could lead to costlymistakes. Maybe Ben Franklinwas thinking about herdmanagement when hecautioned against being “pennywise and pound foolish.”

Mike Hutjens, a University ofIllinois Extension dairyspecialist concurs. He says,“While ‘cheaper’ feedingprograms can be a plus,making correct decisions willbe important.”

Hutjens has what he calls“three golden rules” that

should be adhered to whenration changes are beingconsidered.

DON’T SACRIFICE MILKHis first rule reflects this old

adage: Don’t throw the babyout with the bath water.

In Hutjens’ words, the rule is,“Never give up milk yield, asincome will be reduced fasterthan expenses.” After all, it’s acow’s milk production thatpays her way and providesprofits.

Hutjens explains, “At today’sfeed prices, one pound ofration dry matter may cost nineto 11 cents. One pound of drymatter can support 2 to 2.5pounds more milk for Holsteincows, above their maintenanceneeds. Not feeding one pound of dry matter results in 10

cents savings while losing 36 to40 cents of milk income.”

So don’t try to save a dimewhile losing 40 cents.

KEEP COMPONENTS UPWhile dairy producers will

want to keep milk productionstrong, they need to rememberthe milk components, too. Sothis is the dairy specialist’ssecond “golden rule”: “Maintainmilk components.”

Hutjens notes that milkprotein was recently worth 3.27cents a pound. Butterfat wasrecently valued at 1.82 cents apound.

If ration changes are made,and if the butterfat and proteintests drop, reexamine thoseration changes. “Lowcomponents can reflectincorrect changes in a feedingprogram or impaired rumenfunction,” Hutjens reminds.

VIEW BIG PICTUREAnother thing to keep in

mind, according to Hutjens, iswhat ration changes might do

down the road a ways. Thatleads to his third “golden rule”:“Guard against feed changesthat affect the dairy herd longterm.”

Trying to save a few penniesnow can cost dollars later.Money can be lost because ofpoor herd fertility, heifers thatgrow slower, and more herdhealth problems in general.

“While milk response can becorrected over several weeks,getting cows pregnant andreducing somatic cell countscan take months to improve,”Hutjens warns.

DON’T DO THISIn addition to his trio of

“golden rules,” Hutjens has alist of five things to definitelynot do when it comes to finetuning rations.

First, don’t skimp on fat andoil.

“Pulling out roastedsoybeans, fuzzy cottonseed, orinert fats may not result in lostmilk production for several

See Ration on page 21

Ration Changes CouldBe Penny Wise, Pound Foolish

Photo by Ron Johnson

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Continued from page 20weeks,” he acknowledges. “Butafter four to six months, bodycondition score can drop, whichmay not be a problem until thenext lactation, when conceptionand fertility drops or cowscannot maintain peak milkproduction.”

Second, don’t ignore changesin your cows after altering theration.

Hutjens says, “Cows ‘talk tous’ every day, including milkurea nitrogen (MUN), fecalscores, body condition scores,dry matter intake, and milkperformance. If you make afeeding change and the cowresponse is negative, it was abad decision.”

Third, don’t give your heifersshort shrift.

“Pulling minerals, grain, andprotein from the growing-heiferration may seem minor, butlong-term health, growth, and

reproduction problems canresult, leading to older heifersand lower milk yield. Heifersrepresent a major future of yourherd,” Hutjens reminds. “Do notslow the growth of these futureherd replacements.”

Fourth, don’t stop balancingrations.

Hutjens advises, “Rationbalancing using a rumen modelprogram is a must in mosthigh-producing herds, toachieve optimal levels ofmetabolizable protein, meet athree-to-one ratio of lysine tomethionine with 6.6 percentlysine and 2.2 percentmethionine of essential aminoacids available in the smallintestine, and adjust energylevels based on feed intake andfeed ingredients,” the dairyspecialist explains. “Use aprogram that you find userfriendly and provides theoutput you want.”

Fifth, don’t try to save moneyby no longer hiring anutritionist. That, warnsHutjens, can be a “big mistake.”

He says, “While theconsultant cost can be $3 to $5a cow per month, the risk inlost milk performance, strategicfeed purchases, feed bunkreading, independent cow bodycondition scores, and a freshset of eyes can be ‘priceless.’Your nutritionist is part of yourmanagement team that impacts50 percent of the cost toproduce milk on your farm.”

To summarize, Hutjensreminds that a dairy farmbusiness is a “long-termcommitment.” So “do not makeshort-term feeding errors.”

Hutjens will share morefeeding tips at PDPW’sProduction ManagementSymposium, Nov. 18-20 inAppleton.

By Ron Johnson

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Professional Dairy Producers of WisconsinMembership Form

PDPW’s Mission: “To share ideas, solutions, resources and experiences that help dairy producers succeed.”

Membership Options:PRODUCER MEMBER – $100

Voting member - One member per dairy entity covers allmanagers, operators, spouses and employees. While each dairyhas one vote in making member decisions, every person withinthe dairy (operator, spouse and employees) enjoys the benefitsand member rate at PDPW events.

ASSOCIATE INDIVIDUAL MEMBER – $150Non-voting member - Membership is open to any individualinterested in the dairy industry who does not qualify as anindividual or a corporate membership.

CORPORATE MEMBER – $300Non-voting member - Open to any group, company ororganization interested in the dairy industry. With one corporatemembership, every person within the company/organizationenjoys the benefits and member rate at PDPW events.

Send this form to: Professional Dairy Producers of Wisconsin, N5776 US Hwy 151, Suite 1, Fond du Lac, WI 54937Or become a member online at www.pdpw.org, or call us at 800-947-7379, or contact us via e-mail at [email protected].

WHAT IS PDPW?Professional Dairy Producers of Wisconsin (PDPW) is the largest producer-led dairy organization in the nation. PDPW has grown from

our humble beginnings in 1992 when a small group of dairy producers saw a need for education and information that would helpWisconsin producers improve profitability. Today we are a network with thousands of dairy businesses from throughout the nation whohave the same passion for the future of the dairy industry. That passion helps us lead the success of the dairy industry througheducation.

WHO IS PDPW?PDPW membership represents the gamut of dairy producers. Every type of dairy producer and every size operation is represented

and welcomed in our membership. This breadth of our members is represented by the attendees at the PDPW Annual BusinessConference, dairy’s premier event. PDPW began as a Wisconsin-only organization. Today we have grown to a network of thousands ofproducers and industry leaders covering the country. In fact, we have producer members from fifteen states, representing dairies fromcoast-to-coast. These producers from across the nation seek business programming and resources only found at PDPW. We offer awide variety of educational programming designed to meet your specific needs and present new, innovative information that is usefulto you. One idea, solution and approach doesn’t work for everyone – each is unique. We are dairy producers – just like you.

Different operations, unique businesses, one vision: to lead the success of the dairy industry. No matter the type of your dairy or thesize of your herd, PDPW embraces the entire industry and lives its mission “to share ideas, solutions, resources and experiences thathelp dairy producers succeed.”

PDPW is all about connections. Connecting you with:•Resources to improve and grow your business•Advice and answers•Other dairy producers who share the same experiences you do•Industry leaders and experts•World class scientists and researchers•The next generation of dairy producers who are excited about their role in the industry•Industry’s preferred suppliers

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Dairy producers are alwayslooking for opportunities tomanage their herds moreefficiently. Why not approachenergy the same way?

Instead of simply paying thebill and then grumbling aboutit, the mostprogressiveproducers arebeginning tothink aboutenergy use onthe dairy nodifferentlythan how theyapproach theirmost important asset - theircows. In fact, they’re lookingbeyond energy efficiency andimmediate cost savings towhole-farm opportunities toboost profitability.

They’re even starting toexplore the idea of eventuallyturning their operationalenergy efficiency intoadditional income in the formof carbon credit sales.

Orion Energy Systems helpsproducers take a “systems”approach to energy use onfarms, says Mike Ontrop,director of agriculturaldevelopment.

Working out of Ohio, Ontroptravels the country consultingwith producers. He providesproducers with an entire longday lighting (LDL) system andhelps them implement it, evenhelping them secure rebatesfrom their energy supplier ifany are available.

When used correctly,Ontrop says LDL is one of themost profitable investments adairy producer can make, “andone of the easiest things todo,” potentially resulting in upto five pounds more milk percow per day and a typical netreturn of $100 per cow everyyear.

Ontrop says cows need 16to 18 hours of light (15 footcandles in a barn, on average)

and 6 to 8 hours of darkness,with the same time on and offevery day. In Wisconsin, that’soften lights on at 5 a.m. andoff at 10 p.m., regulated by atimeclock and a photocell,which automatically shuts thelights off in the morning,when natural lighting makesthe barn bright enough.

Ontrop says a lot ofindustrial applications arebeginning to cross over toagriculture. One notableexample is Orion's ApolloLight Pipe, in which sunlighttravels down through a sealedlight pipe, allowing focused,usable sunlight to enter abuilding.

This direct renewableenergy technology is startingto be used by dairy producerswith high-roof facilities likemachine sheds, farm shops,milking parlors and new crossventilated barns.

“Power is definitely notgoing to get any cheaper. Weknow that,” he states. Orionfocuses on conservation andthe most cost effective use ofenergy, advising producers toclosely examine when they’reusing electricity and possiblymaking changes that put moreof their demand “off peak.” Toassist with this Orion willsoon offer milk chilling andwater pumping technologies,and new manure digestersystems.

Carbon credit trading isalso on agriculture’s horizonand Orion is already involvedin it, Ontrop reports. Hepredicts the value of carboncredits to producers will likelyincrease in the future. Energywill transition from a costcenter to an income sourcefor conservation-mindedproducers, who farm smart intheir fields and conserve – oreven produce – energy in theirfacilities.

By Jane Fyksen

New Ways to View Energy on Farms:Save Cost…and Increase Revenues

Mike Ontrop


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Producer Profile

Patrick Christian farms with his three brothers and parentssouth of Lomira. They milk 720 cows and raise their ownheifers and calves. The Christians also grow their own for-age, including hay and corn, on 1,100 acres. Attendingconferences is the most valuable part of Patrick’s PDPWmembership. He enjoys the interesting seminars that areoffered, such as immigration and business-related topics.His favorite conference is the Annual Business Conferenceheld in March. There he’s able to pick from a wide range oftopics, see new technologies in the Hall of Ideas, and meeta lot of people from around the state.


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In a time of high feed andinput costs, many producerslook to areas of their operationwhere they can cut back. Thereproductive program is oneaspect of a farm whereproducers should not cut back,says Paul Fricke, UW-Extensionspecialist in dairy cattlereproduction.

“I would never recommend intough economic times to shortcut on the breeding program –you can’t do that,” said Fricke.“You can never give up onreproduction becausereproductive efficiency drivesmilk production.”

Fricke received his bachelor’sdegree in animal science fromthe University of Nebraska, andhis master’s degree anddoctorate from North DakotaState University. He came to

UW-Madison in 1995 for hispost-doctorate and acceptedhis current position in 1998,which includes 75 percentExtension work and 25 percentresearch.

Getting cows pregnant at firstbreeding is critical to thesuccess of the reproductiveprogram for any operation.Producers should have aspecific reproductivemanagement program in placeto achieve this.

“I’ve seen many differentfarms be successful withdifferent strategies,” said Fricke.

Every operation is different;therefore there are specificlimitations amongst all farms.What program may suite oneoperation, will not necessarilybe the best fit for another.

“Everybody has to do what

they’re comfortable with andwhat works,” said Fricke.“People should choose aprotocol that they canimplement, that they cancomply to and one that fitstheir management system.”

“The important thing is thatthey have some kind of a planto submit cows for first post-partum breeding,” said Fricke.

The chance for a producer toget a cow pregnant, especiallyat first breeding, begins withaccurate estrus detection.

“Accurate estrus detection isa foundation to a goodbreeding managementprogram,” said Fricke.“Inaccurate estrus detectioncauses incredible problemswith reproduction on a farm.”

See Breeding on page 30

Don’t Cut Corners in YourReproductive Program

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Want to learn to formulate a dairyration instead of gettin’ sold one?Go to www.kowconsulting.com or call:

Weaver Feeding & Management, LLCTom Weaver, CCA, Dairy Nutritionist andDirector of KOW Consulting Association25800 Valley View Rd, Cuba City,WI 53807Ph: 608-762-6948, fx 6949, mbl 608-574-0101Ex. Council WAPAC (Wisc. Assoc. Pro. Ag. Consultants)

Continued from page 27Once a program is developed

to achieve accurate estrusdetection, a synchronizationprogram can be utilized to helpget cows pregnant. There are avariety of synchronizationprograms that can be used.One of the most popularprograms is a standardPresynch-Ovsynch program.

In this program, the firstprostaglandin is given aroundday 36 post-calving (since it isearly post-calving, no cows willbe bred that show an estrus atthis point). Then, the secondprostaglandin is administered14 days later at day 50, post-calving.

“Typically what manyoperations will do after thesecond prostaglandin is they’ll‘cherry pick’ or go ahead andbreed the cows that show anestrus,” said Fricke.

Any cows that are not bredand found in heat after the

second prostaglandin will startOvsynch 12 days later and thenget an Ovsynch timed artificialinsemination, around 72 days inmilk.

“Typically when I see thisprogram in place on farms,you’re going to see somewherein the neighborhood of two-thirds of the cows inseminatedto an estrus after the secondprostaglandin and about one-third of the cows receivingtimed insemination to anOvsynch program for the firstpost-partum breeding,” saidFricke.

“Another very commonstrategy is to use a Presynch-Ovsynch program, but don’t doany estrus detectionbeforehand and just let all ofthe cows flow into the firsttimed insemination,” he said.

An new synchronizationprogram being developed byMilo Wiltbank at UW-Madisonthat producers can consider isthe Double Ovsynch program.

“It’s essentially two Ovsynch’sback-to-back,” said Fricke.

The downside of the programis that it includes anotherinjection, adds more days of theweek in cow handling and moreoverall cow handling periods.However, the results fromresearch show about a 5-10percent increase in conceptionrates to first postpartum TAIcompared to a Presynch-Ovsynch protocol, said Fricke.

“Research is still going onand we’re going to continue tolook at it,” he added.

Producers should also have aResynch program in place forcows that fail to conceive tofirst breeding.

“We recommend that 32 daysafter the first postpartumbreeding, you set up all cowswith a GnRH injection (thatwould be a week before theherd health check),” said Fricke.

The reason for 32 days is sothat the days of the week allstay the same for all of theinjections. On day 39, duringherd health check, non-pregnant cows receive

prostaglandin, followed by asecond GnRH injection 56hours later and 16 hoursfollowing that they get timedinsemination. This specificprogram is called Ovsynch 56.

Most important, Ovsynch56delays the TAI to about 16hours after the second GnRHinjection rather than breedingat the same time as the secondGnRH injection, a modificationcalled Cosynch. Recentresearch from UW showed thatOvsynch56 results in about a 9percentage point increase inconception rate compared toeither a 48 or a 72 hourCosynch approach. AlthoughCosynch protocols are easier toimplement, producers shoulduse Ovsynch56 for both firstpostpartum and Resynch TAI toachieve better fertility.

While there are numeroussynchronization programs thatproducers can utilize in theirbreeding program, they shoulddo their research and look to aprogram that best fits theiroperation.

“The big issue is to continueto be aggressive at breedingcows to try to get thempregnant,” said Fricke. “There’sno real magical thing that wehave to get them pregnantother than to continuallyexpose them to chances to getpregnant – and that’s reallywhat these synch and re-synchprograms do.”

Even when producers look tocut back in some way on theiroperation to minimize costs,the reproductive program is anarea they should not evenconsider.

“In reproduction you reallycan’t cut any corners, you can’tmake many changes,” saidFricke. “The consequences ifyou do are you’re going to haveless milk to sell in the futureand when the milk price goesup in the future, or theeconomy gets better in thefuture, you can’t just turn thataround in a short period oftime.”

By Kelsi Hendrickson

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DORCHESTERBob’s Dairy Supply

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JANESVILLETri-County Dairy Supply

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JUNEAUCentral Ag. Supply, Inc.

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Sharingideas,solutions ...2008/10/30 · Miami went from 100 cows to 10,000 cows. Todayitspans...

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