Operations cut back on feed supplements, labor, new equipment

By CAROL RYAN DUMAS
Capital Press

While dairy operators have looked for ways to save money during the recent economic downturn, they didn't skimp on forage for their herds, a new survey shows.

University of Idaho Extension personnel conducted the mail-in survey to find out how the economic crisis affected practices on dairies, in particular the use of forages in rations.

The conclusion, although preliminary as responses are still coming in, is that forages were the only component of the ration that did not decrease, said Mireille Chahine, associate professor and extension dairy specialist at the Twin Falls Research and Extension Center.

"It was also clear that a big percentage of them reduced the inventory of hay, commodity and products stored on the dairy during the crisis," she said.

All dairies in Idaho received the survey, and so far about 20 percent have responded, which is typical, Chahine said. While small dairies responded more than medium and large dairies, the data was adjusted to reflect the industry as a whole.

The survey found 70 percent of the dairymen did not change the amount of alfalfa hay in their rations, 16 percent increased its use and 14 percent decreased usage.

What did change, however, was the amount of hay stored on the dairy. Thirty-five percent of respondents reduced the amount stored on their dairy, she said.

"Sheds are pretty empty; they want better cash flow," Chahine said.

While the crisis had no discernible effect on the amount of alfalfa hay in rations, dairymen reported decreases in their use of minerals, vitamins, additives, grains and protein supplements.

"The only component of the diet they did not reduce was actually forage," she said.

Minerals, vitamins and additives were decreased by 44 percent of respondents, grain was reduced by 37 percent and protein supplements were reduced by 26 percent.

Dairies also economized in other ways, with 67 percent of respondents reporting at least one cost reduction. In addition to reductions in ration components, they also listed labor reductions, foregoing replacement equipment, watching herd health closer and less expensive semen.

"I was personally surprised about the wide varieties of cost cuts that were implemented and that in some cases could have an impact on the long-term success of the dairy -- semen quality, teat dip usage, etc.," Chahine said.

"Obviously dairy producers were in very bad shape and they were looking for short-term solutions; it is understandable."

Other Extension personnel conducting the survey were Glenn Shewmaker, Rick Norell and Wilson Gray.

Survey of Idaho dairies

What cost reductions in herd management have you implemented?

67 percent of respondents reported at least one cost reduction:

* Every item of cost has been evaluated and decreased when possible

* No new equipment.

* Watch herd health closer.

* Use less expensive semen.

* Use less expensive teat dips.

* More hay and less concentrates.

What other strategies have you implemented to manage costs or cash flow?

61 percent of respondents reported at least one cost reduction:

* Do not stock up, buy month at a time.

* Not replacing equipment.

* Bare-bones budget.

* Cut whatever we can and keep up production.

* Purchase only essentials.

* As frugal as possible.

* Sold surplus heifers.

* Used all available resources and equity.

Source: University of Idaho Extension