Dairy October 1998 DRY COW AND TRANSITION COW NUTRITIONAL MANAGEMENT Dr. J. E. Tomlinson Dairy Nutritionist, M.S.U. Feeding and management of dry cows is not complex but dry cows frequently do not receive the attention they deserve. The tendency is to place less importance on dry cows because they are not lactating and their nutritional requirements are low compared to lactation requirements. The best approach to dry cows is to consider the dry-off date as the end of the present lactation and the start of the next lactation. Dry cow feeding and management has a major influence on milk production and health during the subsequent lactation so it is logical to consider the dry-off date on the start of the next lactation. Dry cows should be split into at least two groups: "Far off" dry cows--from dry-off date to 21 days prior to expected calving date and "transition" dry cows--from 21 days prior to expected calving date to the actual calving date. The nutritional management is different for these two groups so the following discussion is given by group. Far-off Dry Cows The nutritional requirements for these cows is markedly lower than the requirements during late lactation. Expressed on a total ration dry matter basis, the crude protein content should be 12.5-13% and the TDN level should be near 60%. Every effort should be made for cows to have a Body Condition Score (BCS) of 3.5-3.75 at the start of the dry period because cows convert feed to body condition more efficiently during late lactation than during the dry period. The objective should be to maintain bodyweight and BCS during the dry period. It is extremely difficult to feed dry cows to gain BCS during the dry period without creating problems relating to rumen function, health and/or subsequent lactational performance. If dry cows are fed to increase BCS (higher energy density rations), the maximum should be 0.5 (50-70 pounds bodyweight). Due to the high energy content of corn silage, the level fed to dry cows would be limited to 25 lbs./cow/day (less than 9 pounds of dry matter). This practice will help decrease the incidence of displaced abomasum, ketosis, and fat cow syndrome. The major forages fed to dry cows are preferably grass hay and/or grazing. Since most of the hay harvested in Mississippi is from high NDF grasses such as bermudagrass and bahiagrass, the hays should be analyzed for nutritional value. A high level of NDF in the total dry ration matter (above 55%) will tend to limit the dry matter intake below the normal of 1.8-2.0% of the cow's bodyweight. The calcium intake should not exceed 80 grams per day, and the phosphorus intake should be at least 35-40 grams per day. A calcium / phosphorus ratio in the range of 1.3:1 to 1.7:1 is recommended. The potassium level found in the total ration dry matter should be less than 1.5% to help avoid downer cow syndrome, hypomagnesemia (magnesium deficiency) and retained placenta. Selenium should be added to the total ration dry mater at the rate of 0.3 parts per million and vitamin E should be supplemented at 1000-1500 IU/cow/day. Transition Dry Cows The terms "Maternity Cows" and "Close-up Cows" were once used for cows within 21 days of the expected calving date. In more recent years, the term "transition" is used because these cows are in a transition between dry and lactating. Once a dry cow calves, her nutrition requirements rapidly increase due to the demands for milk production. Thus, the ration fed to fresh cows must be very nutrient dense because dry matter intake has not increased. Since the nutrition requirements are relatively low for far-off dry cows, the transition dry cows need a ration formulated with intermediate nutrient densities. A general rule of thumb is to feed a ration which is approximately halfway between thefar-off dry cow and lactating cow rations. On a total ration dry mater basis, the crude protein level should be 15-16% and the Net Energy of Lactation (NEL) should be .68-.70 MCal/lb. The transition ration obviously contains more concentrate and less forage dry matter. Thus, the microbes (bacteria and protozoa) in the rumen must adjust to this ration change since different species of bacteria digest concentrate than the ones which digest forage. The length of time required for microbes in the rumen to adjust to a significant ration change is usually 2-3 weeks. The same forage and concentrate ingredients used in the lactating ration should be used in the transition rations to enhance microbial digestion and acclimate the cow to a ration similar in ingredient inclusion to the lactating ration. Remember that effective fiber is always important for normal rumen function but it is also important just prior to and just after calving to minimize the incidence of displaced abomasum, acidosis, and ketosis. Non-structural carbohydrate level in the total ration dry matter should be above 35% not to exceed 40% in order to provide ample glucose for the cow's lactation. Protein fractions (undegradable, degradable, and soluble) should be balanced for maximal amino acid supply for lactation. In other words, the transition ration should "drive" glucose and amino acids to prepare the cow for lactation. As was true for far-off dry cows, calcium intake should be below 80 grams per day and phosphorus intake should be at least 35-40 grams per day with a calcium to phosphorus ratio in the range of 1.3:1 to 1.7:1. Keep the potassium level below 1.5% of the total ration dry matter to reduce detrimental mineral imbalances and interactions. If anionic salts are fed, be sure the ration is as palatable as possible since cows do not like anionic salts. Be sure the ration is balanced for a negative dietary cation-anionic difference (DCAD). Analyze forages for mineral composition to insure the ration is balanced correctly for DCAD. It is also a good practice to analyze the water supply for mineral content. Several herds have observed serious problems when feeding anionic salts due to the pH and mineral composition of the water. NOTE: Anionic salts are not a "cure all" for preventing calving disorders such as milk fever, but they can be effective under good management. Do not feed anionic salts longer than two weeks prior to calving. Monitor urine pH (should be 5.5-6.0) to be sure adequate amounts of anionic salts are fed. In summary, consider the beginning of the dry period as theSTART of the next lactation and NOTthe end of the previous lactation. Sound far-off dry cows and transition dry cow feeding and management programs will return far more dollars than are invested in them. If you have not implemented these practices, implement them soon and reap the rewards from cows calving this fall. If those of us in Dairy Extension can be of assistance to you, please contact us. Tighten Those Belts Dr. Bill Tucker Associate Professor, MSU Literally hundreds of dieting schemes are advertised throughout our country daily. Some guarantee weight loss if you perform bizarre acts, such as only eating pink-colored foods while standing on your head and simultaneously whistling Dixie through your nose. In fact, some people pay large sums of money to learn about these secrets to dieting success. Other folks, by contrast, have learned on their own that trimming fat can be as simple as using moderation at the supper table. Eating the same foods they normally consume, only in smaller quantities. Moreover, these moderation dieters soon find that after eating smaller portions for a while, the old belly starts to shrink a little and they actually feel full after eating a child's portion. The climate in the dairy industry in Mississippi today is not pleasant. Feed prices are too high and milk prices are too low. Dairy farmers are dispersing their herds in record numbers. Those who want to continue to milk cows are faced with the dilemma of finding ways to make a profit where little profit potential exists. In my opinion, no easy answers exist. It is very easy to type these words: "You need to trim the fatÖ tighten the belt". However, I don't think that Mississippi dairy farmers are fat. Those in the business have survived to this point by being a little better than average at seeking profits. The emergence of low input agriculture nationally indicates that more and more farmers are embracing its moderation approach. If the milk check is down because milk prices are low, these folks simply spend less money. They invest in few buildings or pieces of equipment and instead focus their capital on income-generating assets (cows, for example). They also utilize grass and nitrogen that nature provides. Converting to this type of farming requires a change not only in farming techniques, but also a change in mindset. Instead of focusing on maximum productivity through the consumption of large amounts of inputs, the farmer fixing legumes to take advantage of the cheap feed must focus on utilizing less input to optimize profitability. This advice is not profound, did not originate with me, and is not easy to implement. But it can workÖand at least I'm not asking you to whistle Dixie through your nose. ************************************************************ Upcoming Events......... Ms holstein black and white show.....................October 10 Open Dairy Show, MS State Fair 9:00a.m........October 16 Junior Dairy Show, MS State Fair 8:30a.m........October 17 MS-LA Dairy Management Conference.............November 12 MS Holstein Assn. Meeting...............................November 21 AUGUST 1998 HONOR ROLL HERDS* Dairy County No. Cows Lbs ECM** 2X/3X RHA Milk RHA Fat RHA Prot DOT MILTON & TERRY JEFCOAT JONES 229 52.0 2X 21964 742 693 08/19/98 STEWARD FARM INC. TATE 374 49.3 2X 22127 749 707 08/23/98 J & L DAIRY WALTHALL 202 47.8 2X 21510 753 693 08/18/98 MELVIN NICHOLSON NEWTON 126 47.7 2X 21402 842 683 08/17/98 N. MISS BR EXP STATION MARSHALL 96 47.5 2X 18920 697 616 08/04/98 BRAD BEAN AMITE 233 46.4 2X 21916 827 699 08/12/98 THOMPSON BROTHERS MARSHALL 146 46.0 2X 19469 694 628 08/09/98 RUTLAND FARM LINCOLN 105 45.1 2X 17879 610 594 08/17/98 KNIGHTS DAIRY FARM JONES 139 44.3 2X 19883 693 638 08/17/98 TURNIPSEED DAIRY JONES 400 43.4 2X 16414 615 527 08/23/98 JERRY N HOLMES WALTHALL 88 43.1 2X 16456 572 518 08/13/98 ROWZEE JERSEY FARM NEWTON 139 42.7 2X 16491 761 636 07/27/98 SPEAKS & SON WALTHALL 370 42.4 2X 18291 730 603 08/10/98 CAL MAINE FOODS DAIRY HINDS 1673 42.2 3X 19173 697 615 08/01/98 COASTAL PLAIN EXP STA NEWTON 170 41.4 2X 22131 819 736 08/09/98 PAUL W EDWARDS NEWTON 122 40.8 2X 18211 654 588 08/25/98 A L BOYD JR WALTHALL 81 39.9 2X 20785 630 622 08/19/98 ROWZEE JERSEY FARM NEWTON 133 39.7 2X 16403 757 633 08/18/98 RAY GALLOP & SONS MONROE 68 38.6 2X 19248 661 629 08/19/98 MAX LAWSON AMITE 209 38.5 2X 16373 615 540 08/18/98 QUIN'S DAIRY PIKE 78 38.5 2X 14786 518 477 08/03/98 MAX & TAMMY STINSON WALTHALL 310 38.4 2X 16516 602 543 08/04/98 GRAHAM DAIRY PONTOTOC 97 38.3 2X 17274 518 549 08/03/98 TODD & JERRY BULLOCK PIKE 106 37.5 2X 17400 607 560 08/08/98 GOTTAGO DAIRY COPIAH 176 36.8 2X 15844 598 524 08/11/98 SIMMONS DAIRY MONROE 78 36.4 2X 17086 0 0 08/08/98 R E COCKERHAM AMITE 95 36.1 2X 16946 504 543 08/27/98 JERRY SISCO LINCOLN 130 36.0 2X 15134 578 517 08/12/98 CHEEKS DAIRY JONES 146 35.9 2X 17595 574 583 08/04/98 LEON BARDWELL DAIRY LINCOLN 48 35.7 2X 17474 548 552 08/04/98 * Top 30 herds enrolled on supervised DHIA testing programs by test day energy corrected milk. ** ECM = (.3246 x test day milk) + (12.86 x test day lbs fat) + (7.04 x test day lbs protein) Dr. C.W. "Bill" Herndon Dairy Economist, M.S.U. BFP Increase Disappoints Industry, but Increases to $14.99 The August Basic Formula Price, or BFP, surprised most of the dairy industry because it did not increase as much as anticipated when it was reported at $14.99 per cwt. by the USDA. The August increase of 22 cents per cwt. means that the BFP has skyrocketed $4.11 during June, July and August in response to unprecedented increases in both butter and cheese prices during the summer of 1998. Extremely hot and dry weather continues to cause milk production to decline across almost all regions of the country, including California and the Pacific Northwest. The summer months of 1998 have been devilishly harsh where during June, July and August U.S. milk production was 200 million pounds less (-0.5%) than the same period of 1997. The reopening of schools this fall has placed more demand pressures on a very tight milk supply situation. Coupled with dairy product manufacturers starting to build inventories for the upcoming winter holiday seasons, many processors are searching for milk supplies to satisfy their bottling and manufacturing needs. This is especially true in the Southeast where during the second week of September, 239 truckloads of milk were imported into Florida and an additional 425 loads were shipped in other states of the region from as far away as California and Wisconsin. Milk supplies were so limited that Florida handlers were "short" 30 loads and forced to ration milk because of the inability to find milk and/or the trucks to haul milk. Dairy farmers can and should enjoy the current "high" milk prices but need to recall how quickly prices have usually fallen in past years. In fact, dairy prices have historically fallen much quicker that they rise so, producers must be prepared for the milk price and income volatility that has plagued this industry for the past 10 years. The August BFP was reported at $14.99 per cwt. which represents an INCREASE of $0.22 cwt. (up 1.5%) ABOVE the July BFP of $14.77. August 1998's BFP is $2.92 per cwt. (or 24%) HIGHER than the August 1997 BFP price of $12.07. Dairy producers need to remember that the August BFP will be used as the base price to calculate the October 1998 Class I and Class II milk prices and the August 1998 Class III milk price. Because more than 80 percent of Mississippi milk is utilized as Class I and Class II products, farmers will not notice the majority of this 22 cent increase in the August BFP until they receive their November checks. Weather -- and the very hot, dry conditions of the summer of 1998 -- will probably be remembered by the dairy industry for years to come because of its impact on creating a shortage of butterfat supplies and driving dairy product prices to "new, all-time" record levels. During August, national milk production fell 0.4% (52 million pounds) compared to last August which was the result of both a decreasing number of cows on U.S. dairy farms and diminishing amounts of milk output per cow. For instance, the USDA reports that there were 6,000fewer milk cows producing 5 pounds less this August compared to last year. The Southeast has, AGAIN, suffered more than other milk producing regions as was demonstrated above by the 500 to 700 loads of milk imported each week just to satisfy bottling requirements -- which is about twice the amount imported for the same weeks during 1997. Of the 20 major milk producing states, those recording the largest increases between August 1997 and August 1998 were: Idaho (+7.7%); New Mexico (+10.1%); and, New York (+2.5%). Over this same period, the "major milk" states reporting diminished output were Kentucky (-8.1%), Illinois (-5.7%), Iowa (-4.3%), and California (-3.2%). Butter and cheddar cheese prices are sustaining their astounding strength because of "tight" milk supplies. Both of these products are now traveling in new territories with all-time record high prices recorded for butter and cheese products during the first half of September. The market tones for all dairy products -- including nonfat dry milk --are being described as "firm" with demand remaining strong at the higher product price levels. For example, Grade AA butter prices have increased 65.75 cents per pound (+30.5%) since August 14 and are approaching an almost inconceivable level of $3.00 per pound. From mid-August to mid-September, the Grade AA butter market has set "new" records high prices for in four of five weeks increasing from $2.1525 on August 14 to $2.8100 on September 18. During August, analysts were concerned about the cheddar cheese markets because of growing price discrepancies between the 40# block and barrel markets. But, this situation has changed dramatically with the price difference between blocks and barrels virtually disappearing. Prices on the Chicago Mercantile Exchange (CME) for 40# block cheese prices were recorded at $1.6575 per pound on August 13 compared to $1.7475 on September 18 -- which represents a 9.00 cent (or +5.4%) increase over this five-week period. Barrel prices have shown even more strength over this same period by spiraling up 26.00 cents (or +17.5%) from $1.4875 to $1.7475 per pound. Amazingly, nonfat dry milk (NDM) prices have also illustrated increases during these five weeks and NDM prices are being reported 8 to 12 cents above the price support level. In fact, the USDA has NOT brought any amounts of non-fortified Western NDM since mid-August and has canceled previous commitments to purchase over 11 million pounds of NDM. Weather related milk production problems are finally resulting in a positive price outlook for NDM with prices are up 5 to 7 cents per pound and were reported in the $1.1000 to $1.1400 per pound range during the week of September 18. The dairy market seems to be searching for a foundation to anchor itself to during this period of record high dairy product prices. With feed costs at relatively low levels, milk producers are poised to respond to these high milk prices by producing a flood of milk when the hot weather finally breaks and with the onset of cooler temperatures. So, the market tone remains very "cautious" because this "short, tight" market situation could change very quickly. However, the dairy industry is expecting the BFP to exceed the previous record of $15.37 recorded two years ago in September 1996 and a "new" record is anticipated for the September BFP. The BFP has risen 38% ($4.11 per cwt.) during the past three months and is forecast to increase even more in reaction to soaring butter, cheese, and NDM prices recorded in September. Most market observers believe that BFP will set a new record and exceed the $15.50 level for September and, furthermore; some experts are predicting that the BFP could reach $16.00 -- or above -- when the BFP is reported for either October or November. This is very "heady" territory indeed! Daily Trading Begins on CME and Congress to Discuss FMMO Reform Extension On September 1, 1998, the Chicago Mercantile Exchange (CME) expanded the trading of 40# blocks and barrels of cheddar cheeses from a weekly to a daily basis and has added two grades of nonfat dry milk (NDM) which are also traded 5 days a week. During this current period of volatile and escalating cheese and NDM prices, daily trading has resulted in very active markets with sales activities recorded in each of the product categories on most days. Dairy industry personnel have indicated that they have been "very pleased" with the daily trading (as opposed to the previous once-a-week trading) of these dairy products which has allowed dairy markets to respond every day to a quickly changing demand and supply situation. Butter still is trading on the CME on a weekly basis -- on Fridays -- but there are plans to consider daily trading of this product, too. Congress has reconvened after its summer recess and has many different, complex and controversial issues to address. Heading this list is -- of course -- the Clinton scandal and Starr report followed by fast-track trade negotiating authority for the President, disaster relief from several hurricanes and, finally, agricultural appropriations. With the Congress already looking toward the next recess date of October 9th to campaign for mid-term elections, there is a lot to be done in a very short period of time. This summer the House passed an Ag. Appropriations bill containing language that extends the deadline for implementing the mandated Federal Milk Marketing Order (FMMO) reform from April 4, 1999 to October 1, 1999 (which would also extend the life of the Northeast Dairy Compact by this six months). However, the Senate's version of Ag. Appropriations legislation does NOT contain any time extension for completing the FMMO process. So, a House-Senate Conference Committee must now meet to work out the differences between the two chambers' versions of the Ag. Appropriations bill -- including the deadline extension for FMMO reform. News from Washington indicates that this Conference Committee is scheduled to meet during the last week of September. This Committee has and is receiving pressure to deny this time extension from processors who object to the Northeast Dairy Compact. Producer groups in the Upper Midwest who support changing the FMMO Class I pricing mechanisms to a plan called Option 1B have also voiced their objections to this deadline extension because groups that support the other Class I pricing plan, described as Option 1A, want the extra time to allow Congress to evaluate the consequences of these two alternatives. Early this summer, most political analysts thought the time extension was a "done deal" -- but the many high-profile controversies and subsequent delays have distracted most members of Congress and the result is in now question. Southeast F.O. #7 "Blend" Price Soars to $15.86 in August The Southeast Federal Order Milk Market Administrator reported the August 1998 "blend" or uniform prices for milk delivered in Federal Order (FO) #7 at $15.86 per cwt. (for 3.5% Butterfat milk) in Zone 7, see the Mississippi map for zones (Zone 5 minus $0.25, Zone 6 minus $0.10, Zone 8 plus $0.10, Zone 9 plus $0.20, Zone 10 plus $0.32, Zone 11 plus $0.50, and Zone 12 plus $0.57 per cwt.). The August "blend" price of $15.86 for Zone 7 of FO #7 represents a INCREASE of $2.08 per cwt. compared to the July price of $13.78. The August 1998 blend price is $2.49 (or 18.6%) ABOVE the August 1997 blend price of $13.37. The increase in the August blend price occurred because of dramatic increases in both the Class I and Class milk prices and despite a decrease in the Class I utilization rate (and a corresponding increase in the Class II and Class III utilization rates). This $2.08 rise in the August blend price is attributed to significant increases in both the Class I and Class II milk price of $2.22 per cwt. Class I utilization fell 3.4% (from 86.4% in July to 83.0% in August), while Class II utilization rose by 1.1% (from 8.6% in July to 9.7% in August) and Class III utilization increased by 2.3% (from5.0% in July to 7.3% in August). The August Zone 7 "blend" price was calculated using: (1) the June BFP price of $13.10 plus the $3.08 Zone 7 Class I differential for a Class I price of $16.18; (2) the June BFP price of $13.10 plus the 30 cents per cwt. Class II differential for a Class II price of $13.40; and, (3) the August Class III price of $14.99 (which is the BFP). Please consult the map in this newsletter to determine which Zone the plant you sell your milk to is located in FO #7. A dairy producer's uniform price and the amount of his milk check is affected by where the plant that processes his milk is located in the Southeast FO. UNIFORM or "BLEND" PRICE FOR AUGUST 1998   ZONE 5: $15.61 ZONE 6: $15.76 ZONE 7: $15.86 ZONE 8: $15.96 ZONE 9: $16.06 ZONE 10: $16.18 ZONE 11: $16.36   CLASS I PRICE FOR OCTOBER 1998 (using the August 1998 BFP)   ZONE 5: $17.82 ZONE 6: $17.97 ZONE 7: $18.07 ZONE 8: $18.17 ZONE 9: $18.27 ZONE 10: $18.39 ZONE 11: $18.57

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