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JULY 2000
Production and Profitability
brought to you by
Monsanto

Sound Management Tools Improve Dairy Income Potential

While milk prices will always vary, the use of sound management practices and production-enhancing tools can offset negative price changes. Such is the value of a management tool like POSILAC® 1STEP bovine somatotropin.    

Producer experience with POSILAC shows excellent results in soundly-managed, well-fed herds with no resulting stress or negative health effects. Based on typical response levels, dairy producers’ return-on-investment from the product usually reaches or exceeds 100 percent, according to John Fetrow, V.M.D., M.B.A., Professor, University of Minnesota College of Veterinary Medicine.

The typical response is an increase of about 8 to 12 pounds of milk per treated cow per day,” says Fetrow. “For profitable results, research shows the response to POSILAC needs to be about six pounds of additional milk per supplemented cow, per day, when prices are at $10.50/cwt.,” he adds.

The economic returns from POSILAC use are based on a combination of milk production and milk price. Once basic profitability is established, Fetrow says producers’ return-on-investment usually increases promptly. 

Even when milk prices drop, producers most likely will find that POSILAC is a valuable management tool. Whenever the production response goes above breakeven, it remains a profitable tool even when the total profit margin is depressed. In other words, when milk prices drop, producers typically find that the profit derived from using POSILAC accounts for a larger percentage of their income. In some scenarios, when low milk prices occur, income derived from POSILAC may account for up to one-half or more of the total farm profits.

The ability of dairy cows to respond well to POSILAC depends on several factors: sound health, adequate cow comfort, and consumption of additional feed to secure nutrients needed for higher production levels. “When each of these factors is in place,” Fetrow explains, “producers are likely to secure the desired milk response.”


The ability of dairy cows to respond well to POSILAC depends on several factors: sound health, adequate cow comfort, and consumption of additional feed to secure nutrients needed for higher production levels.
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To ensure this response, producers should review their management practices and identify whether they are adequate or require improvement. In some cases, producers may need to enhance the composition of the ration they feed. Cows also may simply need more feed and more time to consume it.

POSILAC, which is manufactured by Monsanto Company, is approved for use in lactating dairy cows, beginning in the ninth or tenth week of lactation. It is administered to cows by subcutaneous injection once every 14 days. In repeated research trials and under practical dairy conditions, POSILAC increases milk production in healthy cows. Milk production responses typically rise in the first few days following administration and then gradually decline across the 14-day treatment period.

Unlike with the adoption of most production tools, the start-up costs for the use of POSILAC are minimum. In many herds, the only initial investment is the product cost. Likely returns can be calculated by subtracting the product and additional feed costs from the value of the additional milk produced. For many producers, this is the only necessary calculation. For some dairy farms, though, the cost of additional hired labor for ordering, administering and keeping records related to POSILAC may need to be considered.

No significant capital investments are necessary to use POSILAC unless facility investments are needed to support a good response. However, if basic facility investments are needed, they should be considered whether or not POSILAC is used. Response to POSILAC would be limited if facilities already compromise the herd’s production.

All in all, what we’ve found is POSILAC can contribute an important proportion of the dairy operation’s total profit,” Fetrow says. “As with any technology, those producers who learn to use it effectively in their herds stand to gain the most financial rewards.”

®POSILAC is a registered trademark of Monsanto Company.
™1STEP is a trademark of Monsanto Company.

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