Jersey breed the key to higher margins, better efficiency

Dairy farmers will go to great lengths to obtain small premiums for their milk from incentive programmes, but there could be an easier way. 

The average Jersey herd will make a 67-cent margin this season over their Holstein Friesian counterparts says Jersey Advantage member James Courtman

“Some farmers are making significant changes to their business for initiatives such as A2 milk, all to get a small premium of 10-20 cents. But for herds with a high percentage of Friesian or crossbred animals they could achieve similar or better increases just by increasing their Jersey content come mating time,” says Courtman.

The 67-cent margin is a combination of higher milk price, lower replacement costs and more milk solids per unit of feed.

The average Jersey herd supplying Fonterra will earn 24-cents more than their Holstein Friesian counterparts due to the higher fat content and lower volume charges associated with the Jersey breed. 

Another 16-cents comes from lower replacement rates. Jersey herds, on average, have a 4-5% lower empty rate and this allows farmers to rear less young stock or sell more suplus stock each season. Around 20% of the 16-cent advantage comes from fewer discretionary culls or losses from collapsed udders, feet and leg problems, calving difficulties and less mastitis. 

The final 27-cents comes from Jersey’s ability to produce 8% more milk solids per unit of feed, a fact well documented in research. At 8% on a $6.75 payout that’s an extra 54-cents. Even with a loss of 13-cents due to lower meat returns, and 14-cents due to additional per cow costs, it still leaves 27-cents net.

Profit aside, the efficiency benefits of the Jersey breed also make them the ideal cow for the future, says Courtman.

 “The best way to reduce our carbon footprint is to improve the efficiency of the animals that we are milking and no other breed can compete with the Jersey cow there.”   

So what’s the advice to non-Jersey herds? 

“When it comes to thinking about your business and ways to add value or gain a premium for your milk, maybe it’s a lot simpler than you thought.” 

“Don’t get left behind this breeding season,” says Courtman.