Cost of producing a replacement heifer in family dairy system

Abstract

Objective: To estimate the production cost of a replacement heifer in the family dairy system of the Los Altos Region of Jalisco, Mexico, providing economic evidence to support ranchers’ decision-making in the region.

Design/methodology/approach: Information was obtained from three dairy farmers in the family farming system located in Tepatitlán, Jalisco, from May 2019 to May 2022, through the design and implementation of monthly tracking forms for technical and economic information. The unit of analysis was the heifer, with information obtained from 297 animals. These data were integrated into a database to analyze the activities and technologies implemented in the zootechnical areas and to estimate the unit cost of production of a heifer (CUPV). The CUPV was calculated by summing the quantity of each input used multiplied by its respective price in each production unit and dividing the result by the number of heifers produced.

Results: Eleven of the 17 activities and technologies analyzed were implemented by all three production units during the study period. None of the units had calving facilities or hired staff exclusively dedicated to calf care. The only activity that improved during the study period was the implementation of the progressive weaning method. The average CUPV was $37,789, with feed representing 96%, labor 1.4%, reproduction-related costs 1.3%, and health-related costs 0.6%.

Limitations on study/implications: Estimating the CUPV is essential to support milk producers’ decision-making in generating their own replacement heifers.

Findings/conclusions: Producing a replacement heifer costs on average $37,789.00 from month 0 to first calving, with more than 90% of the total cost allocated to feed.