Dairies have an often untapped means of enhancing the profitability of their business. This economic potential lies in the ability of a dairy to increase herd size from internal herd growth (IHG). Dairies not desiring to grow can opt to sell their surplus animals; in this situation the approach is termed asset growth (AG). Either way, a business`s profits can be enhanced. In 2005 our PRO-DAIRY group held over 10 meetings across the state, and one entire two-day conference, where we shared the economic benefits of IHG, described the herd-management areas that most influence IHG, and demonstrated ways in which these areas could be managed to increase IHG. Over 700 producers and consultants attended these sessions and came away with an abundance of valuable techniques and information. The economic returns to dairies from these extension efforts are now being realized.

A large portion of dairies shrink in size each year and then have to purchase herd replacements in order to maintain herd size. This by itself is very expensive, but there is even more money lost in that the dairy could potentially have had animals actually for sale if internal herd growth (IHG) had been occurring. Dairies can easily grow by at least 10% per year through IHG. These additional animals can then either be used to increase herd size or be sold for additional income. This growth rate would result in approximately 18 additional cows and heifers in a 100-cow herd. Given an average price of $1,000 per animal, this $18,000 increase in either net worth or income is extremely significant, and can easily make the difference between a prosperous, sustainable dairy and one that is destined to go out of business.

Our PRO-DAIRY team developed a one-day course that discusses internal herd growth/asset growth, its importance, how other dairies have consistently achieved it, and how the attendees` dairies can achieve it as well. This full course was presented at 10 locations across the state and was attended by approximately 350 stakeholders. The PRO-DAIRY / College of Veterinary Medicine Fall Dairy Conference, attended by an additional 300 stakeholders, also focused on this topic. We also presented a more condensed version at the Advanced Dairy and Nutrition and Management meeting to an additional 120 stakeholders. Finally, The Manager, the PRO-DAIRY insert in Northeast Dairy Business, had one issue dedicated to internal herd growth. All of these efforts occurred in 2005; we could start to see the impact in 2006.

Producers have focused more on the factors that influence internal herd growth because of our extension efforts. For example, in 2006 one 900-cow dairy reduced calf mortality from 8.8 percent to two percent, resulting in an additional 35 replacement heifers. A second 900-cow dairy was able to reduce the stillborn rate from 16 percent to eight percent, resulting in 45 additional heifer calves in 2006. Another 700-cow dairy really focused on the factors influencing herd turnover rate and succeeded in reducing this from 46 percent to 33 percent -- a savings of 90 cows in one year alone in this herd. Undoubtedly, many of the 770 other producers and consultants who attended our meetings were also able to make dramatic improvements. The economic gain to these three dairies mentioned here, looking only at the increased calf numbers at the first two dairies and additional cow numbers at the second, would be approximately $160,000. If the other 768 attendees averaged 300 cows and improved only one fourth as much as these three example herds, then assets or revenues (depending on how given producers used their internal herd growth) for the entire group would have increased collectively by over $4 million. Obviously, the program had a large impact.

• John Conway (PRO-DAIRY)
• Jason Karszes (PRO-DAIRY)
• Tom Overton (An Sci)
• Mike Van Amburgh (An Sci)