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James Smallwood, CRV
The dairy sector is in a strong position, with high milk prices, declining interest rates, and renewed confidence.
But as history has shown, farming is cyclical. While times are good, farmers have a golden opportunity to invest in their herds – accelerating genetic gain now to build resilience for when conditions are less favourable.
With peak cow numbers reached, the next stage of dairy’s evolution must focus on maximising the performance of existing herds. Fortunately, the tools and technology available today make it easier than ever to make smarter breeding and management decisions that will drive efficiency and profitability in the long run.
The power of genetic gain
One of the most significant levers for improving herd efficiency is genetic selection. CRV myHERD Testing data shows that the top 25% of cows produce, on average, 165kgMS more per season and Fonterra data shows they are over 16% more methane efficient per kgMS than the bottom 25%.
Yet, a concerning statistic DairyNZ shared with farmers at CRV’s Better Herd events in March, is that 21% of New Zealand’s replacement heifers come from the bottom quarter of the herd.
Continuing this replacement strategy, or non-strategy as it is, slows genetic progress and reduces potential profitability.
The good news is that farmers can change this trajectory. Genomic testing provides insight into an animal’s potential at just a few days old, offering the same reliability as waiting for five herd tests. This means farmers can make animal selection decisions much earlier, making sure they are only keeping and investing in their most productive animals.
Connecting tech for better decisions
The rapid advancement of farm technology is removing human variability from decision- making, allowing for more precise and efficient herd management – for example heat detection. By integrating technology like cow wearables, herd records, genomic testing, and auto-drafting systems, farmers can more easily identify their topperforming animals and ensure that replacement heifers come from the best of their genetic pool.
The improved reliability of sexed semen is also a game-changer. Farmers can now breed heifers from only their top cows while using beef genetics on lower-performing animals. This approach enhances genetic progress and supports growing industry incentives for more productive, emissions- efficient herds.
The economic case for investing
While it’s tempting to focus on immediate returns, history shows that efficiency matters most when times get tough. The difference between the top and bottom quartiles in a herd becomes even more pronounced when milk prices drop. A 165kg difference in milk solids is significant at a $10 payout, but at $5 payout, that gap becomes even more critical to maintaining profitability.
Investing in genetic gain today is an insurance policy for the future. The more efficient a herd becomes now, the better positioned farmers will be to weather fluctuations in milk prices, environmental requirements, and production costs.
Working together
CRV works alongside farmers to help them make the best breeding decisions by providing the tools, insights, and expertise needed to breed a healthy and efficient herd, faster. Through initiatives like our involvement in Fonterra’s Co-operative Difference programme, we’re also making it easier for farmers to access tools that support efficiency and sustainability on their farms.
So, as dairy farmers ease toward the finishing line of this record-breaking season, I encourage them to take the opportunity to invest in their herds now. Use the tools and technologies available to make smarter breeding decisions. Doing so will put them on the course for ensuring their herds remain competitive, productive, and resilient for years to come.
James Smallwood is managing director, CRV NZ
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