Lifetime profitability measures for dairy cows and their relationships to lifetime performance traits
The objectives of this study were to evaluate and compare alternative measures of individual cow lifetime profitability and to determine what lifetime traits are significantly related to profitability of dairy cattle. Profitability measures considered were: 1) lifetime milk revenue minus lifetime feed costs (MMF); 2) lifetime profit (LP); 3) discounted lifetime profit (DLP); 4) annualized DLP per year of total life (ADLPLTL); 5) annualized DLP per year of productive life (ADLPLPL); 6) DLP adjusted for opportunity cost of postponed replacement (DLPOC), and 7) economic efficiency (EF). Data for this study consisted of 1112 lifetime performance records of Holstein cows from the National Cooperative Dairy Cattle Breeding Project, which was implemented by Agriculture Canada in 1972. Correlations were highest among MMF, LP, and DLP. EF had slightly lower correlations with MMF, LP, and DLP, but higher with ADLPLTL and ADLPLPL. ADLPLPL and DLPOC had low correlations with all other measures. DLPOC was recommended as the best because it considered the opportunity costs of postponed replacement.For DLPOC, average milk revenue per lactation was found to be the most important income trait, followed by length of productive life. Days dry (average over completed lactations) had the greatest negative impact on profitability. Age at first calving and average number of veterinary treatments for reproductive diseases over lactations were both negative contributions to profit. Lifetime traits accounted for 65% of variation in DLPOC. Key words: Dairy cow, profitability, lifetime traits