From birth to bulk tank: The costs of raising dairy heifers

It’s hard to believe that World Dairy Expo is already here and gone! If you missed my Expo Chat Session, or are just looking to review the messages, let’s hit the highlights of my talk on the costs of raising dairy heifers.

Calf/heifer value

It wasn’t long ago that I’d hear producers quip that, “I can buy a heifer for less than it costs to raise her.” At the time, this was probably the case, but does this hold true today?

A 2024 Iowa State University Extension and Outreach publication suggests that it costs $2,651 to raise a heifer. Recent reports from Equity in Lomira, Wisconsin, have top-quality springers costing between $3,100-$3,800. There is certainly added value to the unborn calf, but this statement may not be as clear cut as it once was. It is important to consider what we may be giving up with herd genetic progress, disease introduction and the general unknown of bringing in new animals as opposed to raising our own.

Cost per pound of gain

How do we measure how efficient a farm is at raising these high-value replacements? One important metric is cost per pound of gain. Cheap feed does not always equal cheap growth. Each farm must determine its individual goals and make feed and management choices to meet those goals.

Improvement on cost per pound of gain can come through a variety of strategies. For some, reducing days on milk or shifting breeding age earlier may be options. Minimizing feed waste, on the other hand, is applicable to all dairies.

Costs of raising heifers

The Iowa State study accounts for both fixed and variable costs associated with raising heifers. The fixed costs are housing and the equipment used to care for calves and heifers. While these costs vary greatly by housing type and feeding strategy, they are slow to change as they require larger investments of time and money to do so.

By contrast, variable costs, which include costs such as feed, bedding, veterinary cost, and labor and management, may be easier to manipulate.

When it comes to feed (both liquid and solid), consider balancing the cost of these products and the quality that they bring to the table. For example, a cheap calf starter may cost less to bring on farm but becomes expensive if high fines reduce intake and create waste.

Being proactive instead of reactive in calf management can reduce veterinary costs. Cleanliness, quality and timely colostrum feeding, and offering free choice water are just a few of the ways to improve chances of success. They are also reasonably cheap and easy strategies to implement if we have the right people in our calf barns.

Labor is probably the most difficult variable cost to contend with. Autofeeders may reduce the number of employees, but the quality of these people must be strong. They need to be both tech and calf savvy to identify calves in need of attention without the more individualized attention of a traditional system. Regardless of feeding strategy, calf employees are tasked with caring for the future of the herd.  Attention to detail is a critical quality in these individuals.

Replacement needs

How many replacements do we need? Recently, many farms have found themselves in a heifer deficit, having worked off the idea that it was cheaper to buy them than raise them. This was compounded by the high value of beef-cross calves, leading to more beef breedings to capitalize on this trend. While this is still the case, the higher replacement price tag means that it may be time to revisit the number of replacements needed. Your local Vita Plus consultant has access to tools that help to project these needs.

Change is a certainty as we look to the future of raising calves and heifers. A smart business move today may not be 5 years from now and producers must be ready to adapt. However, it’s indisputable that well managed calves and heifers are profitable calves and heifers.