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 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 CEO Glen Barrett said the independent studies back up what Jersey farmers have been claiming for years; that Jersey cows are more profitable and sustainable.
“We work on the principle that the Jersey cow is the most profitable cow in the dairy industry; this was an opportunity to gather hard evidence to support that,” Mr Barrett said.
“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.”
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. It is achievable with the right strategies and these studies will help guide us to that goal.
“Farmers are looking for profitability and now we have the proof that Jerseys are the most profitable cow.”
Jerseys currently make up about 15 per cent of the national herd and that figure has been steadily rising over the past decade.
Dr Little’s review found that Jerseys produce 6-11 per cent more energy-corrected milk (ECM) than Holsteins per kilogram of dry matter intake; 26-31 per cent more ECM per 100 kg bodyweight than Holsteins; have about 14-21 per cent higher feed intake capacity than Holsteins per 100kg bodyweight; and have about 5 per cent higher feed intake capacity than Holsteins per unit of metabolic weight.
“This review found that the Australian Jersey has several attributes compared with other breeds used in the Australian dairy industry that may contribute to the profitability and sustainability of Australian dairy farm businesses,” Dr Little said.
“In doing this review, I’ve discovered Jerseys are remarkably different to other breeds in a number of ways,” he 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 by about 1.1-1.4 g/100ml and 0.5-0.56 g/100ml respectively.
Jersey milk has higher concentrations of calcium, phosphorus and zinc but a lower concentration of potassium.
Jerseys have higher fertility than Holsteins which Dr Little said was likely due to genetic selection and energy metabolism, particularly in the transition period and early lactation, leaving Jerseys in negative energy balance for a shorter time.
“Fertility jumps out as a significant advantage,” he said.
They are also more heat tolerant due to 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.”
Their ability to eat relative to their bodyweight is higher and they spend more time grazing and eating more evenly across the day. There is also evidence indicating that Jerseys have higher NDF digestibility and may utilise dietary nitrogen more efficiently.
The review found that Jerseys appear to be performing well in mixed breed Australian herds, although those in straight Jersey herds produce more milk solids per year than those in mixed herds.
Dr Little found that Jerseys have demonstrated advantages in grazing systems, longevity, productive life, calving ease, fertility, heat tolerance and hybrid vigour contribution, are better suited to walking long distances for grazing and can adapt to different production systems.
They also potentially have a smaller environmental footprint.
“Several studies have suggested that the emission intensity of milk production is about 8-12 per cent lower with a Jersey herd compared to a Holstein herd when the life cycle analysis approach was used to calculate GHG emissions,” Dr Little said. “However, there may be little difference between the breeds in emission intensity of milk production, as Jerseys emit more methane per kg DM intake compared to Holsteins.”
The follow-up economic modelling to assess potential of Jersey cows to enhance the profitability of Australian dairy farm businesses found the Jersey breed is as well placed to deliver a profitable outcome as the other major pure breed cattle breed in Australia, the Holstein Friesian.
The follow-up economic modelling to assess potential of Jersey cows to enhance the profitability of Australian dairy farm businesses found the Jersey breed is at least as well placed to deliver a profitable outcome as the other major pure breed cattle breed in Australia, the Holstein Friesian.
Mr Barnett said his report was based on broad assumptions and not definitive but was designed to guide discussions about breed selection and identify under which conditions Jersey cattle are able to be 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. The HiCons also had higher milk production for both Holstein Friesian and Jersey herds.
His study found in the HiGrass system, the investment cost was $17.24 kg/Ms for the Jersey herd compared to $19.67 for the Holstein Friesian herd – a 14 per cent advantage, and in the HiCons system the investment cost was $12.30 kg/Ms for the Jersey herd compared to $14.38 for Holstein Friesian herd, a 13 per cent advantage.
He found Jerseys have a significantly higher income per hectare and feed utilised – an inherent advantage – 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). 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 added that the export market was pushing up prices for Holstein heifers, creating a lower entry price for Jerseys which improves 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.
“Based on the Jersey's reported higher dry matter intake per unit of body weight coupled with the Jersey's reported higher conversion of dry matter intake into ECM, it would be expected that under a higher feed intake model the Jersey would be able to exhibit these advantages more readily,” he said.
"It appears that the closer a Jersey is fully fed, the more she is able to fully express her comparative advantage."
Mr Barnett said any advantage the Jersey breed enjoyed in EBIT performance was further enhanced when measured against return on asset.
“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/