Jersey profitability highlighted

Good news: Jersey Australia says independent studies back up what Jersey farmers have been claiming for years; that Jersey cows are more profitable and sustainable. Photo by Cath Grey

Two new studies have found that Jerseys have the attributes that can make them Australia’s most profitable and sustainable cows.

The studies by consultants Steve Little and Scott Barnett show that Jerseys have higher fertility, higher-production efficiency, and greater heat tolerance and longevity compared to other breeds, while modelling shows Jerseys have up to a 14 per cent advantage over Holstein Friesians in the cost of producing milk kg/Ms and a better return on asset.

Jersey Australia engaged Dr Little of Capacity+ Ag Consulting to review evidence in published studies on the attributes of the Australian Jersey compared to other breeds.

Following Dr Little’s report Jersey — The Most Profitable and Sustainable cow?, Jersey Australia engaged Mr Barnett of Scott Barnett & Associates to undertake desktop economic modelling of Jersey versus Holstein Friesians in Australian dairy production systems.

Jersey Australia chief executive officer Glen Barrett said the independent studies backed up what Jersey farmers had been claiming for years: Jersey cows are more profitable and sustainable.

“We needed the facts to back up the call and now we have them. All the evidence is backed by research that will stand up to any scrutiny,” he said.

Mr Barrett said the studies’ findings would be used to publicise the breed and inform farmers of the benefits of transitioning to Jerseys.

“Our ambition is to have 25 per cent of Jerseys in the national dairy herd by 2030,” he said.

“It is achievable with the right strategies, and these studies will help guide us to that goal.”

Jerseys make up about 15 per cent of the national herd and that figure has been steadily rising during the past decade.

Dr Little’s review found that Jerseys produce six to 11 per cent more energy-corrected milk (ECM) than Holsteins per kilogram of dry matter intake; 26 to 31 per cent more ECM per 100kg bodyweight than Holsteins; have about 14 to 21 per cent higher feed intake capacity than Holsteins per 100kg bodyweight; and have about five per cent higher feed intake capacity than Holsteins per unit of metabolic weight.

“In doing this review, I’ve discovered Jerseys are remarkably different to other breeds in a number of ways,” Dr Little said.

“I wish I had known what I know now about Jerseys and how to manage their nutrition when I was a young farm advisor.”

Fat and protein concentrations in Jersey milk are higher than those of Holsteins, and Jersey milk has higher concentrations of calcium, phosphorus and zinc, but a lower concentration of potassium.

“Fertility jumps out as a significant advantage,” Dr Little said.

They are also more heat tolerant because of their hair coat, skin structure, subcutaneous fat layer, and body surface area-to-volume ratio.

“Jerseys tend to live longer, produce for longer, and survive to later lactations more frequently than Holsteins in straight and mixed-breed herds,” Dr Little said.

“Increased longevity in a herd means the herd’s average milk production is higher and fewer non-productive replacement heifers are required.”

Jerseys’ ability to eat relative to their bodyweight is higher and they spend more time grazing and eating more evenly across the day.

Mixing it up: The review found that Jerseys appear to be performing well in mixed breed Australian herds. Photo by Daneka Hill

The review found that Jerseys appear to be performing well in mixed breed Australian herds, although those in straight Jersey herds produced more milk solids per year than those in mixed herds.

The follow-up economic modelling to assess the potential of Jersey cows to enhance the profitability of Australian dairy farm businesses found the Jersey breed was as well placed to deliver a profitable outcome as the other major pure breed dairy cow in Australia, the Holstein Friesian.

Mr Barnett said his report was based on broad assumptions and was not definitive, but was designed to guide discussions about breed selection and identify under which conditions Jersey cattle were more profitable than Holstein-Friesian cattle.

Mr Barnett developed two models: one with a high proportion of directly grazed grass (HiGrass) based on dairy farming systems of southern Victoria, Tasmania and south east South Australia, and the second with a higher proportion of purchased concentrates and purchased forage resulting in higher DM intake (HiCons) being fed reflecting northern Victoria, NSW, WA, and Queensland systems.

His study found in the HiGrass system, the investment cost was $17.24kg/MS for the Jersey herd compared to $19.67 for the Holstein-Friesian herd, and in the HiCons system the investment cost was $12.30kg/MS for the Jersey herd compared to $14.38 for the Holstein-Friesian herd.

He found Jerseys had a significantly higher income per hectare and feed used, however, their economic advantage was diminished by lower value per kilogram in the market.

“The major relative disadvantage the breed seems to suffer is the sale value of surplus stock (cull cows, bull calves and surplus heifers),” he said.

“This disadvantage may be overcome with current work being carried out on improving the dairy beef supply chain and educating buyers on advantages of dairy beef stock.”

Mr Barnett said the export market was pushing up prices for Holstein heifers, creating a lower entry price for Jerseys, which improved their return on asset.

His modelling found that the comparative advantage of Jerseys was more apparent in lower-grazing intake systems than in the high-grazed grass model.

“Jerseys are, at the very least, as good as Holstein-Friesians and have excellent production advantages that utilise their feed efficiency and follow through to an economic response,” he said.

The full reports can be found at: https://jersey.com.au/jersey-most-profitable-cow-project/