The costs of young stock rearing on dairy farms and its estimation by farmers in the Netherlands

Abstract

Young stock rearing is an important factor on dairy farms. However, the costs of young stock rearing are often unknown while most costs are contributed to the dairy cows. In addition to that, most farmers have great difficulties in estimating the costs of young stock rearing. Previous research shows that the costs of young stock rearing can be up to €1540 per successfully bred heifer or 13% of the cost price of milk (Mohd Nor et al., 2012). In order to calculate the young stock rearing costs on Dutch dairy farms, 43 farms were visited and a calculation of their young stock rearing costs was made using JonKos, a module designed by WUR Livestock Research, DLV and WUR Business economics (WUR Livestock Research et al., 2011). The average costs of young stock rearing on dairy farms according to this research project were €1559 per successfully reared heifer. Young stock rearing farms had lower average rearing costs than dairy farms (€1273 versus €1606 resp.), although this proved not to be significant (p=0.056; B=-0.294). The total hours spent on young stock rearing had a significant effect on the total young stock rearing costs per heifer on dairy farms (p=0,049; B=0.326). In addition, a rise in the average age at first calving did lead to a significant rise the costs of young stock rearing per 100 kg milk (p=0,01; B=0,426). The farmers that participated in this research project estimated their rearing costs to be €994 per successfully reared heifer, thereby underestimating the young stock rearing costs by €312 per heifer. There was no significant relation between the calculated young stock rearing costs on a farm and the estimation by the farmer, which leads to the conclusion that the farmers that participated in this project were not able to make an educated guess of their young stock rearing costs. All farmers that participated in this research project wanted more information on young stock rearing and the costs accompanied with the rearing period. In addition, all farmers would recommend calculating the costs of the young stock period to other farmers.