Economic impact of nutritional grouping in dairy herds

Abstract

This article evaluates the estimated economic impact of nutritional grouping in commercial dairy herds using a stochastic Monte Carlo simulation model. The model was initialized by separate data sets obtained from 5 commercial dairy herds. These herds were selected to explore the effect of herd size, structure, and characteristics on the economics and efficiency of nutrient usage according to nutritional grouping strategies. Simulated status of each cow was updated daily together with the nutrient requirements of net energy for lactation (NEL) and metabolizable protein (MP). The amount of energy consumed directly affected body weight (BW) and body condition score (BCS) changes. Moreover, to control the range of observed BCS in the model, constraints on lower (2.0) and upper (4.5) bounds of BCS were set. Each month, the clustering method was used to homogeneously regroup the cows according to their nutrient concentration requirements. The average NEL concentration of the group and a level of MP (average MP, average MP+0.5SD, or average MP+1SD) were considered to formulate the group diet. The calculated income over feed costs gain (IOFC, $/cow per yr) of having >1 nutritional group among the herds ranged from $33 to $58, with an average of $39 for 2 groups and $46 for 3 groups, when group was fed at average NEL concentration and average MP+1SD concentration. The improved IOFC was explained by increased milk sales and lower feed costs. Higher milk sales were a result of fewer cows having a milk loss associated with low BCS in multi-group scenarios. Lower feed costs in multi-group scenarios were mainly due to less rumen-undegradable protein consumption. The percentage of total NEL consumed captured in milk for >1 nutritional group was slightly lower than that for 1 nutritional group due to better distribution of energy throughout the lactation and higher energy retained in body tissue, which resulted in better herd BCS distribution. The percentage of fed N captured in milk increased with >1 group and was the most important factor for improved economic efficiency of grouping strategies.

Keywords: economics; nutritional feeding; simulation; stochastic.