Illinois dairy farmers are riding out a three-year market slump following an all-time high of $24 per cwt in September 2014. November 2016 Class III milk prices were at $16.76 per cwt.

Milk prices increased slightly at the end of 2016, according to Tasha Bunting, assistant director of commodities and livestock programs at Illinois Farm Bureau. The $1 upswing was helpful, but the losses are still significant.

Bunting says the estimated 670 dairy farms left in Illinois are lowering input costs, if possible, and hoping for an aggressive price recovery. “Everything is cyclical,” she notes. “Everyone is waiting for the pendulum to swing back.”

Woodstock dairy farmer Joel Kooistra says the price recovery at the end of 2016 helped, but it’s not enough. Market analysts predict a dollar increase in 2017, he notes.

“We’re running a hair above breakeven, and that’s difficult,” Kooistra explains. “If you have a larger herd, you can run a hair above breakeven and you’re OK. Running a hair above with 250 to 260 head doesn’t build cushions.”

The dollar increase in milk prices would provide some relief if input costs stay relatively low, Kooistra says.

Kooistra and his wife, Linnea, faced another challenge last year. Their dairy cooperative decided to eliminate bovine somatotropin, or BST, based on consumer pressure.

Bye-bye to BST
Kooistra says they relied on BST, a protein-based growth hormone, which helped boost milk production by 14 to 15 pounds per cow and played an important role in keeping cows at a profitable level when it was difficult to get them pregnant.

“BST is one of the greatest things in the dairy industry,” he notes. Despite losing BST, Kooistra says they’ve made adjustments on their farm to compensate for the production loss.

Among those adjustments, they began using sexed semen from genome-tested bulls on first-calf heifers. Female calves are naturally smaller at birth, making delivery easier for the heifers, Kooistra explains. First-calf heifers are almost 50% of their calving. With mostly heifer calves, cows that are difficult to get pregnant are easier to replace, Kooistra notes.

They also implemented a more thorough vet-check protocol prior to insemination, checking estrus stages for setup injections before syncing estrus and cleansing the uterus. Kooistra adds his veterinarian uses an ultrasound to ensure the heifer’s ovaries are at the correct stage of estrus. “We’re not inseminating anyone who isn’t in heat,” he explains. “If a cow is not in the correct place in her cycle, we restart her on protocol. Our conception rate bounced up tremendously.”

Kooistra credits their management team — including their herd nutritionist, financial adviser, veterinarian, inseminator and hoof trimmer — for bringing new ideas to the table to help them successfully get along without BST.

“Losing BST isn’t costing us as much as I thought it would,” he notes. “And healthwise, the cows are good.”

Fresh thinking and new ideas will keep Kooistra Dairy moving forward, despite the down market, he says.

Never stop learning, changing
The Kooistras hold regular management meetings to review benchmark reports that compare all the dairies their Vita Plus nutritionist advises, including price points and conception rates. The benchmark reports show stats without revealing names, Kooistra adds.

The outside experience and knowledge their nutritionist provides is crucial.

“Not four to five days go by without calling him,” Kooistra says.

The Kooistras' hoof trimmer helped them overcome a hoof-wart problem by suggesting a mineral supplement. Kooistra says they saw an “exceptional improvement” after a year of treatment, and the mineral supplement is more economical compared to hoof-wart treatments.

It’s the small, constant herd management improvements that help, Kooistra says. “And that’s what makes it fun,” he adds.

In a low-price market, Kooistra stresses the importance of learning new ideas to improve herd health, productivity and their bottom line. That’s why they plan to attend the Professional Dairy Producers of Wisconsin business conference held in Madison.

“It’s a great place to learn, and it’s the sort of thing that’s almost mandatory this year,” he says.

Bunting notes the 2017 Dairy Summit, sponsored by the Illinois Milk Producers Association and University of Illinois Extension, provides another opportunity to hear new ideas.

 “We just keep watching what we do and trying to find new ways to improve. Change is our only constant.”