dairy marketing dr. roger ginder econ 338a fall 2009 lecture # 4

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Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

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Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4. Number of Dairy Cows, U.S. The Number of Dairy Cows Reached a Low of About 9.01 Million in 2004 Since Then the Number of Cows Has Risen to About 9.31 Million—Nearly as High as 1996 - PowerPoint PPT Presentation

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Page 1: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Dairy MarketingDr. Roger Ginder

Econ 338a

Fall 2009

Lecture # 4

Page 2: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Number of Dairy Cows, U.S

• The Number of Dairy Cows Reached a Low of About 9.01 Million in 2004

• Since Then the Number of Cows Has Risen to About 9.31 Million—Nearly as High as 1996

• What Do Think the Impact of this Change Will Be?

• What Can or Should Be Done to Change This Trend?

Page 3: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Number of Dairy Cows, IowaNumber of Dairy Cows, Iowa

264255 251

241230 225 220 215 210 209 201 193 194

205 213 216

0

50

100

150

200

250

300

93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08

Th

ou

san

ds

of

Co

ws

Source: NASS, USDA, on-line database, 3/23/09

Page 4: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Number of Dairy Cows,Selected States

Number of Dairy Cows,Selected States

0

500,000

1,000,000

1,500,000

2,000,000

1974 1978 1982 1987 1992 1997 1997adj

2002 2005 2008

Iowa Minnesota New York Wisconsin California

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

Page 5: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Dairy Farms by Herd Size

Iowa, 1997

10%34%

35%

21%

1 to 19 cows 20 to 49 cows

50 to 99 cows 100+ cows

Iowa, 2002

16%

31%

29%

24%

1 to 19 cows 20 to 49 cows

50 to 99 cows 100+ cows

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

Page 6: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Dairy Farms by Herd Size

Iowa, 2003

18%

33%

25%

24%

1 to 29 cows 30 to 49 cows

50 to 99 cows 100+ cows

Iowa, 2007

22%

30%

19%

29%

1 to 29 cows 30 to 49 cows

50 to 99 cows 100+ cows

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

Page 7: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Dairy Farms by Herd SizeDairy Farms by Herd Size

New York, 2007

22%

19%

34%

25%

1 to 29 cows 30 to 49 cows

50 to 99 cows 100+ cows

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

New York, 2003

18%

18%

39%

25%

1 to 19 cows 20 to 49 cows

50 to 99 cows 100+ cows

Page 8: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Dairy Farms by Herd SizeDairy Farms by Herd Size

California, 2007

22%

2%

74%

2%

1 to 29 cows 30 to 49 cows

50 to 99 cows 100+ cows

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

California, 2003

13%

3%81%

3%

1 to 29 cows 30 to 49 cows

50 to 99 cows 100+ cows

Page 9: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Average Number of Cows Per Farm, U.S.Average Number of Cows Per Farm, U.S.

26 33 3950

6178 73

99

121

142

0

20

40

60

80

100

120

140

160

1974 1978 1982 1987 1992 1997 1997adj

2002 2006 2008

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

Page 10: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Average Number of Cows Per Farm in Iowa

22 2732

3844

53 52

68

86

113

0102030405060708090

100110120

1974 1978 1982 1987 1992 1997 1997adj

2002 2006 2008

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

Page 11: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Average Number of Cows Per Farm, Selected States

Average Number of Cows Per Farm, Selected States

0100200300400500600700800900

Iowa Minnesota New York Wisconsin California

Source: Census of Agriculture, NASS, U.S. Dept. of Agriculture

Page 12: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Production Per Cow, U.S.Production Per Cow, U.S.

14.19 14.7815.57

16.18 16.4317.19

18.20 18.61 18.9619.97 20.4619.5818.76

18.1417.7716.8716.41

15.7215.0314.32

20.28

0.00

5.00

10.00

15.00

20.00

25.00

88 90 92 94 96 98 '00

'02

'04

'06

'08

Th

ou

san

ds

of

Po

un

ds

of

Milk

Source: NASS, USDA, on-line database, 3.23.09

Page 13: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Production Per Cow in Iowa

13.6515.12 14.95 15.53 15.70

17.1718.30 18.20

19.91 20.13 20.00

20.0920.72

18.9618.0217.52

16.0616.1215.3615.1014.64

0

5

10

15

20

25

Th

ou

san

ds

of

Po

un

ds

of

Milk

Source: NASS, USDA, on-line database, 3/21/09

Page 14: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Production Per Cow, Selected StatesProduction Per Cow, Selected States

0

5,000

10,000

15,000

20,000

Po

un

ds o

f M

ilk

Iowa Minnesota New York Wisconsin California

Source: NASS, USDA, on-line database, 3/21/09

Page 15: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

USDA, Federal Milk Market Administrator, Tulsa, 2/2005

Page 16: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

USDA, Federal Milk Market Administrator, Tulsa, 2/2009

Page 17: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Number of Cows & Production Per Cow, U.S.

Number of Cows & Production Per Cow, U.S.

8,4008,6008,8009,0009,2009,4009,6009,800

10,00010,20010,400

88 90 92 94 96 98 '00

'02

'04

'06

'08

Th

ou

san

ds

of

Co

ws

0

5,000

10,000

15,000

20,000

25,000

Lb

s. of M

ilk

Number of Cows Production Per Cow

Source: NASS, USDA, on-line database, 3/21/09

Page 18: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

U.S.DAIRY PRODUCTION--SUPPLY

• The Production “Plant”– Production Systems used– Producer Size Vs. Production Share

• Geographic Distribution of Production– Increases– Decreases

Page 19: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

GENERAL PRODUCTION SYSTEMS

Tie stall or stanchion

Traditional

Modern (humid and arid )

Modern (dry lot)

Rotational grazing

Page 20: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• Tie stall (stanchion) barn system– Cows tethered, milked, bedded in

stall– Milking unit moved stall-to-stall– Pipeline system through barn– Feed brought to cow– Loft and silo for feed– Smaller operations (less 100 cows)

Page 21: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• Advantages to Tie Stall System– Suited to cold weather– Cow comfort in winter– Aesthetics for many– Existing system On many farms

Page 22: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILTIES

• Problems With Tie Stall System– Labor intensive– High cost - $7,000-$10,000/cow

(with land and cows)– Expansion is difficult– Purchasing and handling

ingredients in volume can be difficult

Page 23: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• Tie stall (stanchion) barn system– Cows tethered, milked, bedded in

stall– Milking unit moved stall-to-stall– Pipeline system through barn– Feed brought to cow– Loft and silo for feed– Smaller operations (less 100 cows)

Page 24: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4
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Page 33: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• “Traditional” system– Milking and housing are separated– Housing in some type of

confinement system• Concrete corrals• “Utah” stalls (open with roof over

head)• Free stall housing (dry stalls)

Page 34: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• Feeding down middle and/or on sides• Feed pelleted concentrate in parlor

and forage is fed outside• OR total mixed ration of concentrate

and forage is fed• Parlor milking of cows

– Flat barn– Four on a side end-to-end– Herringbone

Page 35: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• Advantages—Traditional System– Adaptable to climate variability– Adapted to home production of

forages/grains– Adaptable to diversified family farm

• Problems– Labor requirements– Cost $4,000-$7,000/cow (with land and

cows)– Smaller size and input purchasing levels

Page 36: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• “Modern” free stall system --- Humid Areas– Free stall housing– Lagoon Manure Storage– Modern parlors– Free stall in humid areas

• Ventilation• Flush systems for waste in parlor• Flushing in concrete walkways and free

stalls

Page 37: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• “Modern” free stall system—Arid – Similar Free stall housing With

larger parlors– Reuse water 2 or 3 times– Free stall in arid areas

• Open sides • Fans during hot months• Flush systems for waste in parlor• Flushing in concrete walkways and free

stalls

Page 38: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4
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Page 45: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

DAIRY PRODUCTION METHODS AND FACILITIES

• Milking Parlors – High Capacity– Many use 3X milking schedule– Operate more or less continuously 24/7– Large bulk tank capacity geared to

tanker pickup

Page 46: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4
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DAIRY PRODUCTION METHODS AND FACILITIES

• Manure Handling in “Modern” Free Stall Operations in the Arid Areas– More Water is used than in drylot– Water May Be Used Multiple Times– Flush Water Has to be Managed To

Meet Environmental Regs.

Page 60: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4
Page 61: Dairy Marketing Dr. Roger Ginder Econ 338a Fall 2009 Lecture # 4

Questions?