Fall 2023
The POINT Photo: Hedrich Rivers Bend Dairy LLC, Hilbert, Wisconsin with their CentralStar team. See page five for their story.
Is it time to change course on your heifer inventory? Cole Mark, Director of Consulting and Profit Strategies
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ou’ve likely seen the headlines about shrinking heifer numbers around the U.S. Herds right-sizing heifer inventories, dairy expansions, and the trend to buy instead of raise replacement heifers continues to push replacement values higher and higher. If you’re like many of your peers, you may be wondering if it’s time to adjust your breeding strategy. Obviously, I’m not an economist, so it’s difficult to recommend if you should or should not create and sell additional replacements based solely on expected demand. I can, however, confidently encourage you to think through the decision carefully, taking time to investigate key elements and potential pitfalls. If the new national landscape regarding replacement numbers has you contemplating entering this market, consider the following before changing course with your breeding program.
Know your facility capacity Overcrowded heifer pens can be disastrous leading to potential lost growth and development, decreased reproductive performance, poor hoof health, and everything in between. Many of these side effects last long into the future, impacting the performance of animals you keep for your dairy herd. Remember, you are a milk producer first and seller of cattle second. Do not allow the byproduct of your dairy (replacement heifers or beef calves) to negatively affect milk production.. Understanding feed inventory Although we have been blessed with more rain later in the season, it has still shaped up to be a dry summer. Bear in mind, Continued on page 2.
Know your market and costs This seems obvious, but do you have a secure market for surplus heifers that is actually profitable? When someone sells replacements, and I ask about the price, they’re usually pleased with around $2,500; which, here in Wisconsin, is a great price. But my question always is, did they make money? Hopefully, you know your rearing cost in detail, but if not, in most cases that number is well more than $2,000. When you combine that expense with the lost-opportunity cost of selling beef x dairycross calves, today, I surmise $2,500 is probably not enough. So, is your local market going to value your animals/genetics high enough to pay you a premium over market price?
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