This report presents the general results of an observational study that aimed to characterize and quantify heifer rearing costs and to combine them with observed performance. This study was conducted during the period from April 2021 to May 2022 and in which 93 Quebec farms were surveyed and visited. Of these 93 farms, six were under certified organic production.

Despite that the overall findings and results are presented in this preliminary report are intended to specifically serve as a reference for all dairy farms and by production system in Quebec, they can also serve as reference for the other provinces in Canada. An update including the rearing strategies identified as most performing will follow once we have completed the corresponding analysis.

A more detailed description on the methodology of the project and data analysis can be found in the final section of this report.

Use the side menu to access specific sections.

Here are the highlights of the project in general:

Mature weight is highly variable from farm to farm and should preferably be characterized for each herd.
Monitoring growth and reaching maturity targets will allow most herds to specify the timing of the first breeding of heifers while ensuring good maturity at first calving. According to the analysis of the growth and maturity of all herds, there is the potential to bred heifers for the first time 3 estrous cycles earlier than it was done in 2021 to breed them at optimal maturity and they will calve at 82% maturity if the feeding and management conditions after the first breeding have not changed since 2021.
In 2021, the rearing cost per heifer produced, from birth to first calving, was $4,822 and a considerable variation of $770 was observed among herds (range: $3,521-7,207).
The growth, costs and distribution of different expenses varied significantly across age groups.
The rearing cost per heifer and per age group as well as the distribution of the different costs did not vary with the level of production of the herd.
The investment made in form of labour was higher than in previous evaluations.
The heifer inventory relative to that of cows (heifer/cow ratio) was the factor that had the greatest influence on the total rearing cost per hectolitre of milk produced. In general, milk producers have the opportunity to re-evaluate their heifer inventory in order to reduce their total cost of rearing per hectolitre of milk.
On average, cows reimbursed their rearing cost at 43.0 months of age and have generated $4,507 in profit at the end of their productive life.
Producers with the lowest rearing cost where those with the lowest feeding cost and best labor efficiency compared with the rest of analysed herds.
The best rearing programs had lower rearing cost and superior first lactation performances which allowed for a shorter interval from the first calving to reaching breakeven between the rearing costs and the milk sales income.

1. Heifer growth and performance

Parameter	Bottom 20%^a	Median^b	Top 20%^a	Objective
Average mature body weight (kg)	745	767	808
Average maturity at first conception (%)	55	63	65	55
Average maturity at first calving (%)	78	86	88	82
Average ADG during rearing (kg/day)	0.76	0.84	0.87
Corrected 305-day milk yield^c ofr 3^rd lactation and more (kg)	11,795	12,483	13,410
Corrected milk yield^c for 1^st lactation compared to 3^rd lactation and more (%)	76	80	83	$\ge$ 80

^a Corresponds to the 20^th (bottom 20%’s limit) and 80^th (top 20%’s limit) percentile for each variable.

^a Corresponds to the 50^th percentile of each variable.

^c Milk corrected for energy at 3.5% fat and 3.2% protein.

Figure 1.1 Growth curve of heifers. The solid lines indicate the age and weight at the first current conception (in blue) and according to the optimal maturity (55% of the mature weight, in green). The dotted lines indicate the age and weight at the current first calving (in bleu) and those resulting from the first conception at optimal maturity (in green).

Conventional

Figure 1.2 Average daily gain (ADG, kg/day) by age group for the median (dark blue) and for the 80th percentile of conventional farms (top 20%’s limit, light blue).

Organic

Figure 1.2 Average daily gain (ADG, kg/day) by age group for the median.

2. Rearing cost and performance by age group

Conventional

The average rearing cost per heifer is: $4,859 (range: $3,521–7,207)

Daily rearing costs

Figure 2.1 The median daily rearing costs ($/day) per animal and per age group according to the main expenses for conventional farms (dark bands). The 20^th percentile (top 20%’s limit) of these farms is represented by the clear bars.

Note: Although the cost of gain is relatively high in the pre-weaning period, it is not recommended to cut feed costs but rather to optimize growth during this period, while heifers’ growth is predominantly lean and this gain is related to future lactation performance. As heifers age, heifers will deposit fat tissue faster. It is therefore favorable to offer a complete diet that supports the optimal growth of heifers at a young age

Daily labour per heifer

Figure 2.2 The median daily labour time (minutes/day) invested per heifer for each age group for conventional farms (dark blue). The 20^th percentile (top 20%’s limit) of these farms is presented by the light bars.

Cost of gain

Figure 2.3 The median cost of gain ($/kg gain) by age group and by main expenses for conventional farms (dark bands). The 20^th percentile of cost of gain (best 20%’s limit) of these farms is presented by the clear bands.

Rearing cost per heifer

Figure 2.4 The median of the total rearing cost ($/heifer) for duration in the age group according to the main expenses for conventional farms (dark bands) and for the 20^th percentile (best 20%’s limit) of these farms (light bands)

Organic

The average rearing cost per heifer is: $5,070 (range: $3,850–7,036)

Daily rearing costs

Figure 2.1 The median daily rearing costs ($/day) per animal and per age group according to the main expenses for organic farms (dark bands).

Daily labour per heifer

Figure 2.2 The median daily labour time (minutes/day) invested per heifer for each age group for organic farms.

Cost of gain

Figure 2.3 The median cost of gain ($/kg gain) by age group and by main expenses for organic farms.

Rearing cost per heifer

Figure 2.4 The median of the total rearing cost ($/heifer) for duration in the age group according to the main expenses for organic farms.

3. General rearing costs and parameters

Table 3.1 Distribution of rearing costs per heifer produced in 2021 for conventional and organic farms^a.

Conventional

The average rearing cost per heifer is: $4,859 (range: $3,521–7,207)

Rearing costs ($/heifer)	Bottom 20%^b	Median^c	Top 20%^b
Variable expenses
Calf value	210	177	132
Value of milk consumed^d	428	334	255
Forages^e	1,550	1,300	1,063
Concentrates^e,f	747	549	417
Veterinary expenses	107	80	58
Reproduction (ins. + embryos)	55	43	31
Straw and bedding	244	162	108
Custom raising	0	0	0
Misc. (regis., class., expo.)	103	68	44
*Total variable expenses*	*3,444*	*2,713*	*2,108*

Fixed expenses
Equp. & truck maint. & rent.	306	225	160
Buildings maint. & rent.	90	56	27
Manure mgmnt and others	115	60	0
MLT loans interest	92	58	30
Wages (salaries & pers. withdrawals)	1,125	711	350
Labour (hours)^g	38	24	16
Labour ($/hour)^g	30	30	29
Overhead	156	124	78
Equipment deprecation	241	176	106
Deprecation of buildings	465	294	155
Net worth renumeration	124	95	60
*Total fixed expenses*	*2,782*	*1,853*	*1,074*

*Total rearing costs*	*6,226*	*4,566*	*3,182*

^a For the study, feed, labour and custom raising expenses, if applicable, were estimated from data obtained during the on-farm visit. All costs are presented for heifers from birth to first calving. All other values come from the report provided by a management consulting group linked to Agritel. If these reports were not available, we used the average of the rearing costs of a subset of similar farms in terms of infrastructure and rearing management.

^b Corresponds to the 20^th percentile to represent the top 20%’s limit of each variable.

^c Corresponds to the 50^th percentile of each variable.

^d The value of milk consumed reported by the management consulting groups (Agritel) usually includes the whole milk only. For this study, the value of milk consumed includes any milk consumed by the calves during their rearing, either whole milk, milk replacer or both. Refer to Appendix 1 for the standard value used for whole milk.

^e The methodology used to calculate the quantities of forages and concentrates consumed and, consequently, the estimation of their values, differ between Agritel and this study. Agritel estimates the quantities of solid feed consumed during the production process (normally ignoring the period before calving) as a proportion of the balance of inventories (initial and final), quantities harvested and purchases by the farm for the fiscal year. In this study, the amounts of solid feed consumed correspond to the rations reported during the visit, for all phases of rearing (from birth to first calving). Refer to Appendix 1 for the standard values used for different forages and concentrates.

^f Agritel concentrate costs include the value of the milk replacer, if it is used by the farm during rearing. For this study, concentrate costs do not include the value of the milk replacer.

^g The hours of labour invested in the rearing of heifers were calculated according to the time reported during the visit for the different tasks in the different groups of heifers. If hourly rates (of the producer or employees) were not reported, standard values were used. Refer to Appendix 1 for the standard hourly rates used.

Organic

The average rearing cost per heifer is: $5,070 (range: $3,850–7,036)

Rearing costs ($/heifer)	Median^b
Variable expenses
Calf value	191
Value of milk consumed^c	896
Forages^d	998
Concentrates^d,e	295
Veterinary expenses	33
Reproduction (ins. + embryos)	41
Straw and bedding	106
Custom raising	0
Misc. (regis., class., expo.)	50
*Total variable expenses*	*2,610*

Fixed expenses
Equp. & truck maint. & rent.	260
Buildings maint. & rent.	64
Manure mgmnt and others	64
MLT loans interest	56
Wages (salaries & pers. withdrawals)	587
Labour (hours)^f	19
Labour ($/hour)^f	30
Overhead	157
Equipment deprecation	134
Deprecation of buildings	326
Net worth renumeration	73
*Total fixed expenses*	*1,770*

*Total rearing costs*	*4,380*

^b Corresponds to the 50^th percentile of each variable.

^c The value of milk consumed reported by the management consulting groups (Agritel) usually includes the whole milk only. For this study, the value of milk consumed includes any milk consumed by the calves during their rearing, either whole milk, milk replacer or both. Refer to Appendix 1 for the standard value used for whole milk.

^d The methodology used to calculate the quantities of forages and concentrates consumed and, consequently, the estimation of their values, differ between Agritel and this study. Agritel estimates the quantities of solid feed consumed during the production process (normally ignoring the period before calving) as a proportion of the balance of inventories (initial and final), quantities harvested and purchases by the farm for the fiscal year. In this study, the amounts of solid feed consumed correspond to the rations reported during the visit, for all phases of rearing (from birth to first calving). Refer to Appendix 1 for the standard values used for different forages and concentrates.

^e Agritel concentrate costs include the value of the milk replacer, if it is used by the farm during rearing. For this study, concentrate costs do not include the value of the milk replacer.

^f The hours of labour invested in the rearing of heifers were calculated according to the time reported during the visit for the different tasks in the different groups of heifers. If hourly rates (of the producer or employees) were not reported, standard values were used. Refer to Appendix 1 for the standard hourly rates used.

Table 3.2 Other general parameters of rearing in 2021.

Conventional

Parameter	Bottom 20%^a	Median^b	Top 20%^a
Age at first calving (months)	24.9	24.1	23.0
Daily rearing cost ($/day)	7.24	6.55	5.77
Cost of gain ($/kg gain)	9.22	8.12	7.04
Heifer/cow ratio^c	0.79	0.66	0.56
Total rearing cost ($/hl)^d	18.30	14.86	11.97
Net remplacement cost ($/cow)^e	4,406	3,869	3,068

^a Correspond to the 80^th (bottom 20%’s limit) and 20^th (top 20%’s limit) percentile of each variable.

^b Corresponds to the 50^th percentile of each variable.

^c Total number of heifers in inventory/total number of cows.

^d Total rearing cost per hectolitre (hl) = (Number of heifers produced x rearing cost per heifer) / number of hl produced in 2021.

^e Net replacement cost = rearing cost – Average price obtained for a cull cow .

Organic

Parameter	Median^a
Age at first calving (months)	24.4
Daily rearing cost ($/day)	6.43
Cost of gain ($/kg gain)	8.48
Heifer/cow ratio^b	0.65
Total rearing cost ($/hl)^c	18.32
Net remplacement cost ($/cow)^d	4,067

^a Corresponds to the 50^th percentile of each variable.

^b Total number of heifers in inventory/total number of cows.

^c Total rearing cost per hectolitre (hl) = (Number of heifers produced x rearing cost per heifer) / number of hl produced in 2021.

^d Net replacement cost = rearing cost – Average price obtained for a cull cow .

In Table 3.2, one of the most interesting parameters is the total rearing cost per hectoliter, because it considers different indicators of efficiency of rearing and milk production for the herd. As indicated in note “b” at the bottom of Table 3.2, the total cost of breeding per hectoliter is influenced by the total cost of breeding (number of heifers produced x rearing cost per heifer) and total production of hectoliters (number of cows x hectoliters produced per cow) per year. Therefore, this indicator indirectly integrates the rearing cost per heifer and the duration of the heifer rearing period (age at first calving) with the inventory of heifers, relative to the number of cows in the herd, and expresses them in relation to the level of production of the herd.

The influence of these factors on the total cost of rearing per hectolitre was assessed with a simple regression analysis. This analysis indicated that the heifer inventory relative to the cows in the herd (heifer/cow ratio) was the most influential factor in total rearing cost per hectoliter (Figure 3.1; R² = 0.43). The other factors were, from the most correlated to the least correlated, the rearing cost per heifer (R² = 0.25), milk production per cow per year (R² = 0.02) and age at first calving (R² = 0.001). The relationship with the heifer/cow ratio indicates that for every 0.1 heifer/cow more (or less) the total rearing cost of raising per hectoliter increases (or decreases) by $1.8. In general, milk producers have the opportunity to re-evaluate their heifer inventory in order to reduce their total cost of rearing per hectoliter. A heifer/cow ratio between 0.5 and 0.6 has been proposed as an objective and as a mean to achieve a culling rate between 25 and 30% with an age at first calving between 22 and 24 months. Only 17% of the herds in this analysis had a heifer/cow ratio within the recommended range.

Figure 3.1 Relationship between the heifer/cow ratio and the total rearing cost per hectoliter for the participating farms.

Age at first calving is recognized as a rearing parameter of economic importance for the herd. A shorter rearing time is related to a lower cost of breeding per heifer and a lower need for heifers to replace a given number of cows per year. Therefore, it is surprising that, in the present study, the age at first calving is neither correlated with the total cost of rearing per hectoliter nor with the cost of rearing per heifer (R² = 0.04). Age at first calving is not significantly correlated with the heifer/cow ratio (P = 0.23).These correlation analyses demonstrate the disconnect between heifer growth and the decision to perform the first breeding as described in Section 1. In other words, producers have improved growth performance, which is reflected in their rearing costs, but they did not take advantage of this improved growth to breed heifers at a younger age.This also results in a disconnect between heifer inventory and rearing performance in the herds here analyzed, whereas there should be a negative correlation between the heifer/cow ratio and age at first calving.

4. Lifetime profit estimation

This analysis follows the methodology used by Lactanet to generate its profitability report. Keep in mind that the objective of this analysis is not to reflect the actual profitability of cows or farms, but rather to help make a holistic comparison between farms by integrating the investment made in the rearing program while taking into consideration the longevity and performance of the herd. For this purpose, DHI data were used to estimate productive life, lactation production and lifetime production. Profitability was calculated as the difference between income (for the sale of milk and the culled cows) and total production costs. These costs consider the rearing cost, as calculated in this study, and subsequent costs during the production and dry periods, based on the average costs calculated with the Agritel database. Feeding costs during lactation were adjusted for the levels of fat and protein production.

Table 4.1 General parameters of longevity and productivity according to the production system.

Conventional

Parameter	Bottom 20%^a	Median^b	Top 20%^a
Breakeven age (months)^c	46.5	43.0	39.0
Time to reimburse replacement costs (months)^d	22.0	18.5	16.1
Average lifespan (months)^e	55.9	63.9	74.0
Number of lactations in lifetime	2.41	3.06	3.84
Lifetime days in milk (days)	796	1,031	1,234
Lifetime milk yield (kg)	27,130	36,355	45,065
Lifetime fat yield (kg)	1,081	1,425	1,825
Lifetime income ($)	16,404	23,411	30,779
Pofit per day of life ($/day)	1.39	2.41	3.55

^a Corresponds to the 20^th or 80^th percentile, as appropriate, to represent the top or bottom 20% limit of each variable.

^b Corresponds to the 50^th percentile of each variable.

^c The age at which the profit generated during the production cycle covers the net replacement cost.

^d Number of months between first calving and breakeven.

^e Based on herd culling rate.

Organic

Parameter	Median^a
Breakeven age (months)^b	43.5
Time to reimburse replacement costs (months)^c	19.7
Average lifespan (months)^d	76.1
Number of lactations in lifetime	3.96
Lifetime days in milk (days)	1,327
Lifetime milk yield (kg)	39,530
Lifetime fat yield (kg)	1,682
Lifetime income ($)	35,969
Pofit per day of life ($/day)	2.87

^a Corresponds to the 50^th percentile of each variable.

^b The age at which the profit generated during the production cycle covers the net replacement cost.

^c Number of months between first calving and breakeven.

^d Based on herd culling rate.

Finally, Figure 4.1 shows an overall picture of the profitability balance at different times during the rearing and productive life for conventional and organic herds in 2021.
These lines follow average values (for all farms or the top 20%), and for this reason these values do not exactly match those shown in Table 4.1, which contains the percentile 20, 50 (median) or 80 of each variable. This difference is even greater for organic herds for which there were few observations (6 herds) and high variability.

Conventional

Figure 4.1 Average balance of profitability over the life cycle for conventional herds (dark line) and for the top of 20% herds that reimbursed their replacement cost the quickest (light line). The initial value at birth is the average selling price of the calves. At first calving, the income from selling the culled cow is removed from the rearing cost to estimate the net replacement cost.

Organic

Figure 4.1 Average balance of profitability over the life cycle for organic herds. The initial value at birth is the average selling price of the calves. At first calving, the income from selling the culled cow is removed from the rearing cost to estimate the net replacement cost.

5. Targeting of influential rearing practices

A series of analyses were conducted to explore the relationships between the rearing practices, farm characteristics, rearing costs and lactational performance of conventional farms. Organic farms were not included in these analyses. These analyses aimed first to understand the impact of these variables on the total rearing cost, and then to study their effect on the interval from the first calving to reaching breakeven between the rearing costs and milk sales income. A univariate assessment was performed first to identify the variables having a significant effect on the rearing costs and on the interval to breakeven. Then, a clustering method was used to classify farms into three groups based either on the total rearing cost or the interval to breakeven. Farms were grouped in a way that minimized variability within a group and maximized the gap between group means. This cluster analysis was used to compare the efficiency of farms and to identify the practices put in place by the more efficient groups. This analysis is, however, limited by the low number of farms resulting in each group, which reduces the ability to detect a difference between clusters even if the variable in question was determined to be influential by the univariate analysis.

5.1 Rearing costs

The variables that influence the rearing cost the most were:

Age at first calving
Fixed and variable expenses (other than the feeding and labour costs)
Total feed costs (from end of weaning to the close-up period)
Labour costs (from birth to the close-up period)
Herd size

As expected, the rearing cost was directly related to the total length of rearing (age at first calving). The total rearing cost was particularly sensitive to feed and labour costs, which were mainly influenced by the concentrates content in the rations by and the number of labour-hours invested during the rearing period, respectively. This relationship was identified for every age group. In fact, the change in total rearing cost per heifer was influenced by the change in costs across all age groups during rearing. Herd size was also identified as an influencing variable that may be related to labour efficiency and a better utilization of fixed resources. No practice related to calf rearing appeared to have a significant effect on rearing cost.

These results were confirmed by the cluster analysis, which found that farms with lower rearing cost (minimum group; Figure 5.1.1) had lower feed costs, mainly related to those of concentrates (Figure 5.1.2). These farms also had lower labour costs, mainly related to the number of hours invested (Figure 5.1.3). Labour expenses were different between clusters for all age groups except for the close-up period.

Total rearing costs

Figure 5.1.1 Characteristics of clusters for minimum (31 farms), intermediate (45 farms) and maximum (11 farms) total rearing costs (mean ± standard error; $/heifer). Groups means are significantly different (P < 0.05).

Feeding costs

Figure 5.1.2 Feeding costs over the entire rearing period (mean ± standard error; $/heifer) across clusters based on total rearing costs: minimum (31 farms), intermediate (45 farms) and maximum (11 farms). Groups means are significantly different (P < 0.05).

Labour hours

Figure 5.1.3 Labour hours invested over the entire rearing period (mean ± standard error; h/heifer) across clusters based on total rearing costs: minimum (31 farms), intermediate (45 farms) and maximum (11 farms). Groups means are significantly different (P < 0.05).

5.2 Time from first calving to breakeven

This interval allows to focus on the balance between the rearing cost and the performance over the first lactation, which better reflects the quality of the heifer being produced and the rearing practices overall. The calculation of this interval uses the same protocol as the results presented in Section 4.1 (Figure 4.1), but only uses gross income from milk sales, since production costs vary from farm to farm and the use of standard production costs could bias the interpretation of a farm’s actual profitability. This is why the breakeven between rearing cost and milk sales is presented here in this section instead of the reimbursement of rearing cost.

The variables influencing this interval the most were:

• The total rearing cost (baseline)
• First lactation 305-day energy-corrected milk yield
• Age at first calving
• The Management Index
• The type of milk served to calves.

As it could be expected, this interval was particularly sensitive to the total rearing cost and energy-corrected milk over the first lactation. A lower cost of rearing and a greater first lactation yield was related to a lower interval. These observations support the results presented in Section 4. The influence of age at first calving on the interval may be related to its influence on the total rearing cost, as shown in Section 5.1. The association between an earlier age at first calving and greater milk production has been reported in the literature which can also contribute to a reduction in the interval. Data from this study also supports an inverse relationship between the age at first calving and milk production in the first lactation (data not shown).

A greater management index was associated with a lower interval. This index, developed by Lactanet, aims to evaluate how comfort and management influence the expression of the heifers’ milk production genetics in the herd. Thus, a positive index means that management and the environment allowed the animal to surpass its genetic potential. The negative relationship between this index and the interval to breakeven indicates that, even taking the herd’s genetic potential into account, a management that maximizes the expression of the heifers’ productive potential during their first lactation is beneficial for a rapid return of the investment made over rearing and the overall farm income.

In addition, an influence of the type of milk offered to young calves (whole milk or milk replacer) on the interval to breakeven was observed. This effect remained significant even after including the volume of milk offered and their interaction in the statistical model. Farms that offered whole milk had a shorter interval, but this difference was not significant between clusters. In similar way, growth during the rearing period was linked to a decrease in the interval, which can be related to reaching an earlier calving age, greater maturity at the first calving, greater performance during the first lactation, among other potential reasons. However, the type of milk had no relationship with the observed weight gains. No relationship was observed between the milk feeding system (automated feeder, bucket with or without nipple and bottle) with the rearing cost or weight gain. There wasn’t either a relationship between the feeding system and the performance after the first calving (lifetime gross income, first lactation energy-corrected-milk yield or lifetime milk production).

As mentioned above, no relationship was observed between the type of milk served and the total rearing cost. However, milk production in first lactation was affected by the type of milk served before weaning (P < 0.01), being 10,901 ± 235 kg and 10,063 ± 120 kg for herds that served whole milk or milk replacer, respectively.

Finally, farms that reported housing their weaned calves in groups were slightly associated with a reduction in the interval to breakeven. This type of accommodation normally improves work efficiency and could in turn reduce the total rearing cost.

Clustering farms based on the interval between first calving and reaching breakeven between the rearing cost and milk sales income (Figure 5.2.1) revealed that farms with a shorter interval had lower rearing costs (Figure 5.2.2), earlier first calving age (Figure 5.2.3) and higher first lactation 305-d energy-corrected-milk yield (Figure 5.2.4). Although these variables were expected to have an impact on the interval, they demonstrate that it is possible to have effective cost management during rearing while promoting performance before and after calving. It should also be noted that there was a difference of $1,878 in rearing cost between the extreme groups and a 32-day difference only in age at first calving. Considering that the median daily rearing cost was $6.6/d (Table 3.2), the difference in calving age alone does not explain the difference in total rearing cost; therefore other management characteristics should have come into play.

Time to breakeven

Figure 5.2.1 Characteristics of clusters for early (32 farms), intermediate (41 farms) and maximum (14 farms) interval from first calving to reaching breakeven between rearing cost and milk sales income (mean ± standard error; months). Groups means are significantly different (P < 0.05).

Total rearing costs

Figure 5.2.2 Total rearing cost (mean ± standard error; $/heifer) across clusters based on the interval from first calving to breakeven: early (32 farms), intermediate (41 farms) and maximum (14 farms). Groups means are significantly different (P < 0.05).

Age at first calving

Figure 5.2.3 Age at first calving (mean ± standard error; months) across clusters based on the interval from first calving to breakeven: early (32 farms), intermediate (41 farms) and maximum (14 farms). Superscripts a and b denote a significant difference among group means (P < 0.05).

Energy-corrected milk

Figure 5.2.4 First lactation 305-day energy-corrected milk (ECM; mean ± standard error; kg/heifer) across clusters based on the interval from first calving to breakeven: early (32 farms), intermediate (41 farms) and maximum (14 farms). Superscripts a and b denote a significant difference among group means (P < 0.05).

6. General description of the project

For the project, we selected Quebec herds registered in the DHI service offered by Lactanet, composed mainly of Holstein cows and, preferably, followed by a management consulting service linked to Agritel. A total of 93 dairy farms agreed to participate, six of which were under organic production. Participating farms were visited at least once between April 2021 and May 2022. The map of the geographic distribution of farms is shown in Figure 6.1.

Figure 6.1 Location of farms participating in the project. The orange dots represent organic farms.

During the farm visit, a sample or all heifers of all ages and one sample of mature cows were weighed using weight tape. Dairy producers or herds managers also responded to a questionnaire. This questionnaire identified rearing practices, the time required to complete all tasks related to replacement heifers, and rations fed, including the quantities of feed offered during rearing.

The other fixed and variable expenses related to heifer rearing were obtained through rearing cost reports provided by the management consulting service (Agritel) for the 86 herds that had a management consultant or were provided directly by producers. Standard fees were used for home-grown feeds (whole milk, forages and grains). Also, standard hourly rates were used to quantify the value of labour when they were not provided by the producer. The costs obtained by group of animals or for the entire farm were standardized, distributed and grouped by age group. The standard fees used in the calculations can be found in Appendix 1.

The 2021 management or production data for each herd were extracted from the Lactanet database to be used directly or indirectly in the calculation of the indicators presented in the different sections of this report. For the results presented in Section 4 of this report, milk production and lactation components were extracted for farm-born cows that finished lactation with a dry-off. The value of milk produced was obtained using the provincial average of the price of intra-quota components for 2021 (Appendix 1). Other calculations and procedures for estimating profitability and lifetime profit were described in Section 4.

Appendix 1 Standard values used for cost and income calculations by production system.

Value	Conventional	Organic
Whole milk offered to calves ($/l)	0.78	1.07
Corn silage ($/metric ton DM)	175	234
Grass hay, haylage or silage ($/metric ton DM)	222	222
Straw ($/metric ton DM)	150	150
Pasture ($/metric ton DM)	120	120
Organic forage wheat ($/metric ton DM)		688
Dry corn 86% DM ($/metric ton DM)	321	485
High moisture corn 72% DM ($/metric ton DM)	269
Barley ($/metric ton DM)	316	618
Oats ($/metric ton DM)	392	577
Wheat ($/metric ton DM)	375
Soybeans ($/metric ton DM)	600
Organic mixed grains ($/metric ton DM)		621
Producer wage ($/h)	30.34	30.34
Manager wage ($/h)	16.99	16.99
Operator wage ($/h)	15.89	15.89
Seeling price of milk fat ($/kg)	10.91	10.91
Selling prince of milk protein ($/kg)	7.99	7.99
Selling price of lactose and other milk solids ($/kg)	1.43	1.43
Transportations and marketing deductions ($/hl)	4.54	4.54
Organic production prime ($/hl)		20.64
Dry period costs ($/jour)	4.45	5.44
Overhead cost during lactation ($/jour)	9.47	12.08
Additional feed cost per kg of fat produced ($/kg)	3.46	3.95
Additional feed cost per kg of protein produced ($/kg)	1.88	2.15
Opportunity cost for quota purchase ($/kg gras)	1.36	1.36

Acknowledgements
We thank all the producers and their employees who gave their time, effort and data to bring this project to fruition.
We also thank the management advisors from the various agricultural advisory service groups for their cooperation.
Finally, our special gratitude and acknowledgement to our financial supporters. This project was funded through the Sectorial Development Program, under the Canadian Agricultural Partnership, an agreement between the governments of Canada and Quebec, and by a contribution from Les Producteurs de lait du Québec.

A large team was behind the design and smooth running of the project:

Rodrigo Molano - Dairy Production Expert in Rearing and Nutrition, Lactanet
Léonie Laflamme-Michaud - PhD Student, Université Laval
Olivier Brassard - Intern, Lactanet
Frédérika Nadon - Intern, Lactanet
Josiane Prince - Intern, Lactanet
René Roy - Agroeconomist, Lactanet
Simon Jetté-Nantel - Agroeconomist, Lactanet
Daniel Warner - Data Scientist, Lactanet
Simon Binggeli - Research professional, Université Laval
Édith Charbonneau - Professor, Université Laval
Débora Santschi - Director Innovation & Development, Lactanet

December 2023

Analysis of the cost and value of dairy rearing programs

Summary of overall project results

1. Heifer growth and performance

Conventional

Organic

2. Rearing cost and performance by age group

Conventional

Daily rearing costs

Daily labour per heifer

Cost of gain

Rearing cost per heifer

Organic

Daily rearing costs

Daily labour per heifer

Cost of gain

Rearing cost per heifer

3. General rearing costs and parameters

Conventional

Organic

Conventional

Organic

4. Lifetime profit estimation

Conventional

Organic

Conventional

Organic

5. Targeting of influential rearing practices

5.1 Rearing costs

Total rearing costs

Feeding costs

Labour hours

5.2 Time from first calving to breakeven

Time to breakeven

Total rearing costs

Age at first calving

Energy-corrected milk

6. General description of the project