Update for Minnesota DHIA Leaders
August 2001
The Numbers
I looked at the numbers in Minnesota DHIA today and where we were when I became manager 3.5 years ago. During that time we have lost 1217 herds, with over 95% selling out. This amounts to almost one herd a day for the 3.5 years. Meanwhile, we have signed up 500 new herds, and cow numbers are actually 4400 cows higher than 3.5 years ago. We now have over 200 herds in our system that reside outside Minnesota’s borders. We service 15 herds of over 1000 cows, 7 of which are outside Minnesota.
The trend is pretty obvious, less and larger herds. The current average herd size approaching 88 cows. Median herd size is 58 cows (there are as many herds of over 58 cows as there are under 58 cows).
Milk price reported in July averaged $15.77, highest since October of 1999.
June saw a decline in herds testing from the historical norm. June usually finds 93% of herds testing, but this year only 86% tested. That is the first low month on the charts for years. Is it related to the high milk price? July saw a partial rebound with 4% more herds testing than a year ago.
What’s New?
This has been a year on investment for us. Here is an update on the new services and areas we are rolling out in 2001:
Barron and Washburn
counties in Wisconsin switched to us from AgSource in April. They have a lab and office in Barron. They handle nearly 200 herds with 3 Field Techs. We expect to use this as a base of further growth in Western Wisconsin.PC Clean
services are now available. Subscribers agree to 2 visits a year. We physically clean the computer, use diagnostic software to test the hardware, and check for viruses. This service is currently provided by some of our Region Managers, in conjunction with their travel to an area.We have completed 25 dairy farmer computers through July.
Palm Computers, Desktop Computers, and Notebook Computers
are now available from Minnesota DHIA. We have been referring those interested in computer purchases to other companies for years, and occasionally selling off some of our used equipment. Our experience was that whenever someone with our software had a problem, they called us. This is the case regardless of whether the problem has anything to do with our software or not. We were already dealing with problems that belonged to another company. We realize that dairy managers don’t really care whose problem it is, they just want to get it fixed. Palms are the newest wrinkle here. We have software that allows a Dairy Comp user to load lists and other cow information into the Palm to carry with and use as a reference. The Palm is the size to fit in a big pocket. There is also some data entry ability that really doesn’t work all that well yet. We are lobbying for the same capabilities for Scout users. We have some Palm users who don’t even have our software, but like the Palm for its portability and flexibility. They keep phone lists, to-do lists, calendars, etc in the Palm. We have sold and installed 26 Palms through July.Triggers
that send out a congratulatory message or warning based on abnormal changes in SCC or Management Level Milk are being finalized. These are designed to bring significant changes to your attention via a special message in your report packet.ID
is an evolving issue that relates to on-farm management, food safety and possible government regulation. We are working with the Federal Vets and the Minnesota Board of Animal Health to offer American ID tags that are designed to meet expected state and federal food safety and bio-security needs, and meet the on-farm management needs of the dairy producer, heifer raiser, and eventually beef producer. We are working with 4 tag manufacturers to offer price, options, and high retention rates. Our newest offering is Z Tags, which many of you have recommended for tag retention (what good does it do to tag an animal if the tag isn’t there in 2 years?). We have offered Fearing tags for years, and many of you have started using the button tags as a practical replacement for the steel tags that pulled out and were hard to read. We are working with Reyflex and All Flex as well. Meanwhile, on the steel tag front, we are working with National Band and Tag to offer the traditional steel tag with a bar code for fast reading by vets and slaughterhouses. Some of the tag specs that seem eminent: Unique American ID number (8 digits), bar code, state of origin on the tag, country of origin on the tag, management number optional, double tagging with same American ID number suggested (double tagging with 2 different American ID numbers forbidden), tracking system in place (done in our DHIA system), tamperproof tags only.The tamperproof suggestion (there are currently no requirements) will affect some associations who currently use steel tags that are not tamperproof.
We have been promised acceptance of our tags for reporting vaccinations to the Board of Animal Health, and expect USDA to soon announce that American ID will be an official ID system nationwide (as it already is in many countries, including Canada).
Field Rep Pay
and raises is always a tough issue to deal with. Many associations, including some in Direct Service have been on the same rates for too long. If this is the year you look to change rates (now is not a bad time to do exactly that), keep fairness in mind. Usually, owner sampler rates are high enough (especially association fees), per cow rates are high enough, and 2x rates do not reflect the time and miles it takes to service them (read – the current rate is too low). Our suggestion is to look at raising supervised herds by adding on an hourly charge for milking time (duration). This more accurately reflects the cost of providing services. Probably the least fair rate change is the old standby raise of x cents a cow for all types of test. Keep in mind your cost of providing a raise. What will it cost your association to pay the Field Rep another dollar. In all cases, it is much more than a dollar. In direct service it costs us about $1.25 to pay the Field Rep a dollar. That’s a dollar for salary, and 25 cents to pay for social security, pension, worker’s comp and unemployment insurance, all of which are based on that salary that just raised.An interesting way of handling this issue is being used to our west. If the Field Rep wants a raise, they must make the request in writing by the end of the year. In January, an evaluation is sent our to the customers where a raise has been requested. The last question is actually a ballot that asks the customer to vote on whether to give the raise or not. Majority rules, and a ballot not returned by the customer is counted as a YES. The amount of the raise is part of a multi-step wage scale, so the amount of the raise is not set by the Field Rep. If the vote is yes the price goes up. When a new Field Rep starts, they start further back down the scale, and the rate to the dairy drops.
Mastitis Culturing
is an additional service we are offering through Field Reps who have elected to attend training and offer the service. The culture is done in the Diagnostic Lab at the University of Minnesota, which is considered the best in the land. Our partnership with the U means the experts there train us, and you have access to those same experts if you have questions on the results. The U gets trained people in the field to provide good samples and a liaison with the dairy. The list of those trained is enclosed.We are offering this because it is a good and needed service, it allows our Field Reps to gain income and expertise, and it puts us in a position to aid in researching new mastitis tests that may one day may reside in our labs. As a matter of fact, the Stearns lab is now offering mastitis culturing.
Note, two of the first articles in the current issue of Hoard’s Dairyman talk about the importance of regular tank culturing.
Meter Center Changes
have been implemented this summer. Last year we started coding the inside and outside meter cleanliness. The codes are a 1 for clean, a 2 for needs to be cleaned and a 3 for should not be allowed to have milk run through it. We think all meters need to be code 1s. If the meter is a 2 or a 3 when it comes in for the annual check, what is it like on the farm? Meter cleanliness codes are included with the bill to the association. We are trying to be more proactive in other areas involving meters as well. If the Field Rep does not have a meter carrier, we are encouraging them to get one. Gary has made carrying stands of PVC, and there are nice tubs available at several of the discount stores. Meter carriers cut down on breakage and should help on cleanliness as well.We also note that in some associations, each Field Rep is responsible for getting their meters in for testing. We have a couple of occasions this year where neighboring Field Reps drove to Buffalo with their meters on successive days. We have been encouraging them to car pool, as many of the Field Reps already do. The number of meters that 2 or 3 Field Reps have can usually be handled the same day. Actually, Gary’s only job is meter testing, so it would work better for him to have more meters on the days that he comes in.
In Service Training
was changed this year. We will have the traditional Fall Conferences, but Field Reps and their Contact people on our staff were asked to develop 5 hours of educational activities that are useful to them in their own units.What else is new?