MILK 4.0

What is the milk 4.0 program?

In today’s world, data is all around us and it is changing the way the world runs. Companies like Amazon, Google, Facebook, and Netflix all use data to increase efficiencies. The dairy industry is no exception to this data revolution. From ration balancing, feed monitoring, DHIA records, new monitoring technologies, smartphone applications, novel software programs, and genomics, the options for improving the profitability of your dairy operation through data are everywhere. This digital transformation has been referred to as the 4th industrial revolution, often shortened to 4.0.

When it was introduced, the original KDDC MILK (Milk Incentive Leadership for Kentucky) Program was the first of its kind. This program was very successful in helping dairy producers in our state and has been imitated by other dairy organizations. A series of events let to the need to create a new MILK program. As we started developing the program, it was clear that many of the next opportunities we wanted to lead the industry in are centered around data. And, like it’s predecessor, this program is a big leap forward. Thus, we have named the program MILK 4.0---to capture the new program’s focus on data and the leap forward in progressing the Kentucky dairy industry we all love. MILK 4.0 focuses on genomics, pregnancy rate, somatic cell count, and financial analysis. All of these data-based programs will help progress your dairy operation. We are looking forward to continuing this journey together.

MILK 4.0 Options

Changing data into information and providing dairy producers the tools to increase profitability and sustainability of their operations

PREG RATE OPTION
Reproduction efficiency has a direct impact on herd profitability with an increase in marginal milk gained, value of additional calves born, and decrease in replacement cost of cows culled for reproduction issues.

Measuring pregnancy rate is a more accurate and useful measurement of total herd reproductive performance. Pregnancy rate is the percentage of cows eligible to become pregnant that reported pregnant in a specific period of time.

The preg rate option is an incentive for high preg rate herds based on DHIA records. A herd with a 3-point improvement for the year or with a base 21-day preg rate of 27 or greater will qualify for a financial award. This award will come from an allocated $100,000 divided equally among all qualifying producers.

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MILK QUALITY OPTION
Milk quality has a direct impact on profitability. Lowering somatic cell count (SCC) can increase production, genetic potential, and reproductive performance; eliminate lost revenue from discarded milk; decrease treatment costs and culling; and improve competitiveness in milk markets.

Somatic cell count is an indicator of mastitis and milk quality. SCC over 200,000 indicates an mastitic infection and loss of quality.

The milk quality option is an incentive for low SCC herds based on milk cooperative market records. A herd with a decrease in SCC of 25,000 compared to the previous year or with a base yearly average of 175,000 will qualify for a financial award. This award will come from an allocated $100,000 divided equally among all qualifying producers.

GENOMIC OPTION
Collecting and utilizing genomic information in management decisions can potentially expedite a dairy's genetic potential by up to 3 years or more, increasing profitability and sustainability of a dairy.

Genomic information analyzes an animal's DNA to predict the genetic potential for milk production, reproduction, phenotype, health characteristics, and more.

The genomic option is a cost-share program to assist with the genomic testing. KDDC will provide a 50% match up to $20 a test with a max $6,000 per farm. Additionally, KDDC provides assistance with testing through Zoetis and understanding genomic information.

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FINANCIAL ANALYSIS OPTION
Effectively analyzing the finances on an operation aids with decision making, long-term planning, maintaining profitability, and correcting bottlenecks in the success of an operation.

Dairy Gauge is a financial analysis program created by the University of Tennessee to provide producers with a decision-making tool, compares operations to their peer group, and establishes benchmarks specific to the Southeast.

The financial analysis option provides Dairy Gauge at no cost to an operation. KDDC assists with collecting the needed information and understanding the report.

Criteria for qualifying for MILK 4.0

All producers must be enrolled in a qualified production testing program (DHIA) and/or equivalent program including installed recording equipment.
Testing must be done 2 times per quarter.
Must be a producer member of KDDC (hold a valid Kentucky Grade A Permit).
No adulterated milk for the month.
There is no requirement to participate in every option of the program- a producer may selectively participate in one, multiple, or all options.

Work with your area KDDC consultant to see if you qualify and for more information on enrolling in the MILK 4.0 Program.

Links for Additional Information

milk_4.0_packet__1_.zip
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