Farmers always have questions about the EBI and what key model assumptions are used in allowing sires to score high or low on the EBI index. I was with a discussion group in Kilkenny last week and farmers had a number of queries which I have detailed below.
It is often the case that some people selling a product in the industry try to gently twist the story to suit their product. Dairy farmers need to be clear on what is the situation and what is driving the EBI result.
A number of farmers and those working in the AI industry have recently said to me that we need to redevelop the EBI because we are entering into a whole new world with no milk quota restrictions from 1 April.
Also, some farmers often say that producing more milk per cow is going to be the name of the game in coming years and surely the industry should be selecting bulls with a higher milk volume. To answer some of the queries, I talked to Laurence Shallloo from Moorepark this week, who is central to making changes to the EBI model with the ICBF at regular intervals.
Q: Laurence, when will the EBI model change or has it changed to reflect the fact milk quotas are going to be removed at the end of March?
A: The EBI is set up for selecting bulls for a post-quota scenario since 2007. Within the model it assumes that land is limited and if there is additional production it is coming from bought-in feed as forage and meal. So, be clear that the EBI index and the industry have been selecting bulls for the post-quota situation for a long time.
Q: Is a high weighting on fertility still necessary and is improved fertility delivering more milk?
A: There are still huge gains to be achieved at farm level by increasing herd fertility. Increasing the fertility status of the herd will have a significant effect on the herd’s milk yield. This works two ways – from a calving date point of view and a herd maturity point of view.
Nationally, the six-week calving rate is at 58% with a target of 90%. We estimate that getting to 90% is worth approximately €250/cow per year. Most of which would come from increased production as a result of improved fertility. We updated the economic values in 2013 to reflect changes that happen on an ongoing basis. We are always open to looking at other scenarios if they make economic sense.
Q: From your perspective and research looking at other international studies, are you comfortable with the suggestion there is no relationship between milk yield per cow and profitability?
A: There are a number of international studies that show there is no relationship between milk yield per cow and profitability.
One of the most recent set of results I have seen has come from a DairyCo analysis of UK dairy farmers. Essentially, the UK has been in a quota-free environment for the last 10 years, so the quota cap is not a limiting factor.
The results of the DairyCo’s Milkbench+ benchmarking service shows the findings of the first full analysis that have been carried out on Milkbench+ data.
The report raises many issues, including just how difficult it can be to make profit from milk production. However, it is clear that many dairy farmers have the opportunity to take positive steps in managing production costs that could significantly increase financial returns.
The three key findings they made and the three high-level conclusions were
The key determinant of profit is total cost of production, not milk price.The right balance between input use and milk output (herd size and average yield) is essential. In particular, the need for low-yielding herds to maximise utilisation of grass through a simple system and for small herds to contain fixed costs.Average yield per cow is not the main driver of profit. Higher yields are not the answer if they are produced at the expense of feed efficiency – every extra litre needs to be profitable.High-level conclusions
Milk can be produced efficiently from any of the major systems that are currently practised in Britain.Moreover, efficient milk production is possible at almost any scale of productionDifferent factors drive profit for each system. The impact these factors have on returns varies considerably.The need to fit the system that you use to your own circumstances has never been more important.
Farmers always have questions about the EBI and what key model assumptions are used in allowing sires to score high or low on the EBI index. I was with a discussion group in Kilkenny last week and farmers had a number of queries which I have detailed below.
It is often the case that some people selling a product in the industry try to gently twist the story to suit their product. Dairy farmers need to be clear on what is the situation and what is driving the EBI result.
A number of farmers and those working in the AI industry have recently said to me that we need to redevelop the EBI because we are entering into a whole new world with no milk quota restrictions from 1 April.
Also, some farmers often say that producing more milk per cow is going to be the name of the game in coming years and surely the industry should be selecting bulls with a higher milk volume. To answer some of the queries, I talked to Laurence Shallloo from Moorepark this week, who is central to making changes to the EBI model with the ICBF at regular intervals.
Q: Laurence, when will the EBI model change or has it changed to reflect the fact milk quotas are going to be removed at the end of March?
A: The EBI is set up for selecting bulls for a post-quota scenario since 2007. Within the model it assumes that land is limited and if there is additional production it is coming from bought-in feed as forage and meal. So, be clear that the EBI index and the industry have been selecting bulls for the post-quota situation for a long time.
Q: Is a high weighting on fertility still necessary and is improved fertility delivering more milk?
A: There are still huge gains to be achieved at farm level by increasing herd fertility. Increasing the fertility status of the herd will have a significant effect on the herd’s milk yield. This works two ways – from a calving date point of view and a herd maturity point of view.
Nationally, the six-week calving rate is at 58% with a target of 90%. We estimate that getting to 90% is worth approximately €250/cow per year. Most of which would come from increased production as a result of improved fertility. We updated the economic values in 2013 to reflect changes that happen on an ongoing basis. We are always open to looking at other scenarios if they make economic sense.
Q: From your perspective and research looking at other international studies, are you comfortable with the suggestion there is no relationship between milk yield per cow and profitability?
A: There are a number of international studies that show there is no relationship between milk yield per cow and profitability.
One of the most recent set of results I have seen has come from a DairyCo analysis of UK dairy farmers. Essentially, the UK has been in a quota-free environment for the last 10 years, so the quota cap is not a limiting factor.
The results of the DairyCo’s Milkbench+ benchmarking service shows the findings of the first full analysis that have been carried out on Milkbench+ data.
The report raises many issues, including just how difficult it can be to make profit from milk production. However, it is clear that many dairy farmers have the opportunity to take positive steps in managing production costs that could significantly increase financial returns.
The three key findings they made and the three high-level conclusions were
The key determinant of profit is total cost of production, not milk price.The right balance between input use and milk output (herd size and average yield) is essential. In particular, the need for low-yielding herds to maximise utilisation of grass through a simple system and for small herds to contain fixed costs.Average yield per cow is not the main driver of profit. Higher yields are not the answer if they are produced at the expense of feed efficiency – every extra litre needs to be profitable.High-level conclusions
Milk can be produced efficiently from any of the major systems that are currently practised in Britain.Moreover, efficient milk production is possible at almost any scale of productionDifferent factors drive profit for each system. The impact these factors have on returns varies considerably.The need to fit the system that you use to your own circumstances has never been more important. 
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