Challenges Loom as U.S. Faces a Sharp Decline in Dairy Heifer Numbers
Source: The DairyNews
Recent USDA data reveals a concerning drop of almost 15% in the population of dairy replacement heifers in the U.S. over the past six years, hitting a 20-year low.
This decline raises questions about potential hurdles in expanding U.S. milk production, hindering opportunities for boosting dairy exports.
Corey Geiger, lead dairy economist at CoBank, points out the imbalance, leading dairy farmers to reduce heifer replacement inventories by crossbreeding more dairy heifers and cows with beef bulls.
The rising costs of raising dairy heifers have surpassed the increases in their values, prompting farmers to adopt strategies like using beef semen to manage inventories, cut costs, and generate extra income from beef sales. In contrast to a decade ago, when dairy heifers yielded profits, the current scenario sees them being sold at a loss due to escalating rearing costs.
The decline in replacement heifers, largely unnoticed until recently, has resulted in an eight-year high in dairy replacement prices. This tight supply is expected to persist, impacting the future growth of U.S. milk production.
Even if dairy producers shift strategies and use more dairy bull semen in the coming years, it will take two to three years before the resulting dairy calves contribute to the milking barns, shaping a long-term challenge for the industry.
Corey Geiger, lead dairy economist at CoBank, points out the imbalance, leading dairy farmers to reduce heifer replacement inventories by crossbreeding more dairy heifers and cows with beef bulls.
The rising costs of raising dairy heifers have surpassed the increases in their values, prompting farmers to adopt strategies like using beef semen to manage inventories, cut costs, and generate extra income from beef sales. In contrast to a decade ago, when dairy heifers yielded profits, the current scenario sees them being sold at a loss due to escalating rearing costs.
The decline in replacement heifers, largely unnoticed until recently, has resulted in an eight-year high in dairy replacement prices. This tight supply is expected to persist, impacting the future growth of U.S. milk production.
Even if dairy producers shift strategies and use more dairy bull semen in the coming years, it will take two to three years before the resulting dairy calves contribute to the milking barns, shaping a long-term challenge for the industry.
