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?

  1. A Nebraska dairyman has developed a sampler (not meter) that might prove useful in sampling large herds where samplers are not purchased or are poorly placed, and might prove useful in other dairies, for instance when you just need a sample for SCC or Johne’s. Our Zumbrota Lab analyzed the samples for the University of Wisconsin trial on the ability to accurately sample. We’ll know more by fall conferences. Price estimates are under $100 per sampler.
  2. Tru-Test has an electronic meter system that ties the meter into a hand held computer, recording weights electronically, and bar coding a sample vial. We expect to get the new meters on trial late this fall. While this may not be a practical meter in our average herd, it seems to have real merit in large herds, where Field Reps may spend 2 hours sorting samples after milking.
  3. Direct Service is implementing a $5 per herd price raise on all types of test. If the herd provides payment on sample day, there is a $5 discount.
  4. Consultants and Herd Owners can subscribe to e-mail notification of when a herd is processed. This is designed for those using software and wanting to know when the completed data is available for the most recent test. Customers can choose e-mail notification for $1 per herd per test, and can have the files attached to the e-mail for an additional $1.
  5. Antel-Bio has developed and is marketing a Milk ELISA test for Johne’s using the DHIA milk sample. We are sponsoring a meeting with Veterinarians and the University of Minnesota to get their reaction (and hopefully support) for offering this test through Minnesota DHIA. The problem with Johne’s testing is that none of the tests are always accurate, so there is no gold standard by which to judge the accuracy of new tests.
  6. Minnesota DHIA is in charge of the Moo Booth at the State Fair on Thursday August 30. If you would like to volunteer to help man or woman the booth, please call Nancy at our office. She will schedule a time and get you fair tickets and a parking pass.
  7. Turn Time for June was 1.96 days from sample day to completion of processing data and ready to mail. That is an all time low, and compares with turn time of 5.8 days ten years ago. And we still have some herds and some Field Reps that take too long.
  8. We are changing the Scout lease from a monthly charge that gets run through the billing of the local association and is controlled by the Field Rep, to an annual charge due at the beginning of each year. Customers will be notified of the change later this fall. This should simplify accounting for Field Reps, Locals, and for us. It will also give the herd owner the flexibility to pay for the software in December or January, depending on their tax situation each year.
  9. "Using DHIA information" lesson plans and presentations are nearly complete and will be sent out to FFA, adult vo-ag, and other interested parties this fall for use in the classroom.
  10. Body Condition Scoring (of cows) using a digital camera, and a small computer programmed with Hoard’s Body Scoring templates is being developed. We have used the system on one Minnesota herd, comparing results to a live human who is scoring at the same time. Preliminary data looks pretty good, but there is work yet to do. The company developing the system will be at World Dairy Expo promoting.
  11. Bio-security may (and probably should) become more of an issue this fall. We have long had the policy that Field Reps wear and wash their rubber boots, and sanitize meters. We know this doesn’t always happen. It needs to, so this will be an area of renewed emphasis at conferences this fall. We are looking into promoting coveralls as well. The most effective way to insure this gets taken care of if for local dairymen to demand it of your Field Rep.
  12. Our 500th active software install is Morrison County Board Member Galen Jansen. I remember Galen asking me 2 years ago at the district meeting to have someone come out and show him Scout. I guess all good things come to those who wait? Actually, we tried to get Galen going earlier, but we couldn’t get together until this summer.
  13. A new Billing Program is being provided to Field Reps that requires less key entry and provides greater security. This program is used to generate bills on sample day and to provide summary information for the bookkeeper on payday.
  14. We are looking to place an order for new 110# meters early in 2002. We will attempt to assemble a large order and negotiate a per meter savings of $20-$40.
  15. Saw the statistic the other day that claims nearly half the dairy cows in the U.S. are milked by someone who speaks Spanish. We may need to join a few other DHIAs who now offer Spanish language training to Field Reps.
  16. Our health insurance rates increased 17% for next year. I have visited with a few independent agents, and they tell me that is a low increase, and that all insurance costs will go up at least 15%.