Progress 07/01/02 to 06/30/05
Outputs
Our major output for this project was a journal article in the Journal of Dairy Science, "Economic Returns to Holstein and Jersey Herds Under Multiple Component Pricing." 2005 (88:2269-2280). This study analyzed component data from herds participating in the Mideast federal milk marketing order from 2000 through 2002 and its implications for herd profitability. Also, a monthly simulation model was developed to evaluate the economic returns for a representative Holstein and Jersey herd in Pennsylvania under multiple component pricing. Analysis of the federal order data indicated component levels were highly seasonal and variable from farm to farm. A third of the herds during the course of a year realized a 1- to 3-mo. temporary reduction in milk fat or protein greater than one standard deviation. Consistently producing both milk fat and protein one standard deviation below the mean reduced the Class III value by $0.82/cwt, or 7.09%. The simulation model indicated that a
herd of 100 Holstein cows generated $31,221 more income over feed costs (IOFC) a year than a herd of 100 Jersey cows. While Jersey milk had greater gross value than Holstein milk due to higher component levels, total volume of milk and components produced by Holsteins offset this difference. Simulation results confirm that increasing milk fat and protein percentages by one standard deviation increased IOFC 7.7% for Holsteins and 9.2% for Jerseys relative to the baseline IOFC, with similar losses for component reductions. Increasing milk yield by one standard deviation increased IOFC by 19.6% for Holsteins and 23.9% for Jerseys relative to the baseline IOFC, again with similar losses for reductions in milk production. In all of the scenarios analyzed, the most important factor affecting IOFC was total amount of milk fat and protein produced, not the component percentage levels. In addition to a peer reviewed journal article, we also published two staff papers on this subject. One dealt
with the economics of milk component production, "Economic Returns Under Multiple-component Pricing." The other staff report focused more on linking milk components to in feed to components in milk, "Milk Components: Understanding the Causes and Importance of Milk Fat and Protein Variation in Your Dairy Herd."
Impacts
These two staff reports were presented at an Extension Conference organized with the Pennsylvania feed industry to provide training on the economics of multiple component pricing. This conference, "Growth the Milk Check, Grow Profitability," was held August 9 in Altoona, August 10 in East Earl, and August 11 in Chambersburg Pennsylvania in 2005. There were over 130 who attended this conference. The real success of the conference was to take the published research findings from this project and disseminate them to the feed industry in Pennsylvania.
Publications
- Bailey, KW, CM Jones, and AJ Heinrichs. 2005. "Economic Returns to Holstein and Jersey Herds Under Multiple Component Pricing." J. Dairy Science. 88:2269-2280.
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Progress 01/01/04 to 12/31/04
Outputs
Analyzed the impact of milk component production levels on Pennsylvania dairy farm profitability. Data from the Mideast Federal order for the period 2000-2002 was analyzed, and monthly population distributions for protein, milk fat, and other dairy solids were computed. A similar analysis was done of DHIA data. A simulation model was developed to assess the profitability of Holstein vs. Jersey dairy farms under uncertainties within the milk component pricing system. Its objective is to determine the profit-maximizing portfolio of dairy cows given the pricing system in much of the country, which is based upon milk components. We will use genetic algorithms within a Monte Carlo simulation model to identify the portfolio that results in the greatest expected utility of wealth (profits). We will also analyze results under alternative levels of risk aversion.
Impacts
Impact statement: this project is expected to help Pennsylvania dairy farmers better understand the relationship between milk productivity, component levels, and milk quality.
Publications
- Bailey, K.W., Jones, C. M. and, Heinrichs, A. J. 2004. Economic Returns to Holstein and Jersey Herds under Multiple Component Pricing. Journal of Dairy Science. Accepted for publication.
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Progress 01/01/03 to 12/31/03
Outputs
Osteopontin was detected in cow oviduct fluid using Western blot analysis. The isoforms detected were 55kDa, 28kDa and 25kDa. The 55kDa isoform was similar to that prevalent in semen from high fertility bulls. Integrin mRNA was also detected in oviduct tissue suggesting a functional role of osteopontin-integrin interactions in fertility of sperm and fertilization in the oviduct. The identification of a biodegradable polymer that releases biologically active interferon-tau has not yet been identified. Effort is currently focused on examining a greater variety of biodegradable polymers and on using recently obtained information to develop schemes for manipulating the endogenous production of interferon-tau. Although using a biodegradable polymer to deliver interferon-tau to the bovine uterus has not proved efficacious to this point, the laboratory is eager to continue to develop technologies that can be used to improve conceptus survival during early pregnancy. A
literature review was completed on milk component pricing. A large data set was obtained from the Mideast federal milk marketing order for analysis of producer milk component levels, volumes and producer prices. The data set was for years 2000-2002 and contains roughly 9000 records per month. The data were entered into SAS software and the distributions for monthly component levels and farm prices were computed.
Impacts
This information will lead to a better understanding of factors influencing sperm fertility in the cow oviduct. The development of schemes to reduce conceptus loss during early pregnancy will greatly impact dairy profitability. The work on component pricing will increase milk producers' understanding of production/marketing strategies.
Publications
- Gabler C., Chapman, D.A., and Killian,G.J. 2003. Expression and localization of osteopontin and integrins in the bovine ovduct during the estrous cycle. Reproduction 126:721-729.
- Bailey, K., Emvalomatis, G., and Wu, Z. 2003. Conditions of Competition for Milk Protein Products in the U.S. Market. Paper presented at the U.S. International Trade Commission hearing December 11, Washington, DC.
- Erikson, D.W., Chapman, D.A., Ealy, A.D. and Killian, G.J. 2003. Immunodetection of osteopontin on Holstein bull sperm and of alpha-v and alpha5 integrins on bovine oocytes. Biol. Reprod. Suppl. 1, 68:349.
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Progress 01/01/02 to 12/31/02
Outputs
Preliminary analysis has begun on analyzing the impact of multiple component pricing (MPC) on the profitability of Pennsylvania dairy farms. Data from USDA's federal order 33 listing component levels by month for 2001 has been requested for analysis. Likewise, data from the Pennsylvania Dairy Herd Improvement Association also listing MPC levels has been requested. In addition, a literature review in the Agricultural Economics and Dairy Science literature on MPC and milk prices is currently underway. During a previous Dairy Profitability Special Grant award we adapted methods for purification of bovine osteopontin from cow's milk Fractions were collected at 5 min intervals and run on 1D-PAGE to determine where the 55 kDa isomer of osteopontin was located, by probing with anti-osteopontin. Fractions containing the purified 55 kDa isomer of osteopontin were combined and dialyzed yielding a total of 2.1 mg of purified osteopontin per liter of milk. These methods have
provided us with a source of bovine Osteopontin for the proposed studies. We also determined if bull sperm naturally contained osteopontin. Sperm from 5 bulls were separated from seminal plasma using a Percoll gradient. After additional treatments to enrich the sperm, membranes were recovered in the supernatant after sonication in a solublization buffer. The membrane-containing fraction was dialyzed and an aliquot subjected to 1-D protein electrophoresis and Western blotting. Blots probed with antibody to bovine osteopontin revealed the presence of 40, 50, 55, and 70 kDa isoforms of osteopontin. These studies showed that osteopontin occurs naturally in the sperm membrane, although the amount and isoforms present appears to vary among bulls. In preliminary studies we added 10ug/ml of milk osteopontin for incubation with sperm prior to their use in invitro fertilization. We determined for two bulls that sperm pretreated with osteopontin had improved rates of fertilization over
non-treated sperm (77.5% vs.83.3%; 72.5% vs. 81.7%). Studies also determined that pretreatment of bovine oocytes with osteopontin prior to fertilization also significantly improved rates of fertilization and embryo development.
Impacts
The ability of PA dairy producers to improve the reproductive efficiency of their herds and to take advantage of changes in milk pricing are key to the future profitability of dairy farms in Pennsylvania. This project will result in improved knowledge in these areas for Pennsylvania dairy farms.
Publications
- No publications reported this period
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