Butterfat to be rated higher when calculating EBIs

by Stephen Cadogan

The large increase in butter prices in the global dairy market, and increased labour costs on farms, have been built into formulation of the Economic Breeding Index (EBI) by Teagasc.

The Dairy Farm Systems model used in the formulation of the EBI was last reviewed in 2014.

Prepared with the help of milk processors, it is based on current market returns, and short-term and long-term future returns.

From now on, it is planned to re-calculate the model every two years.

Meanwhile, a number of changes in the model will be built into the next EBI evaluation, results of which will be available on January 10.

EBIs will be re-calculated, for example, to reflect genetic merit for milk butterfat, which increases in value in the model, by €1.04 per kg, to €2.08, with milk protein falling in value by €1.06 per kg, to €5.58.

Butterfat yield in the milk would have been given an even higher value in calculating the genetic merit of animals, but it was devalued to take into account that it takes almost double the energy for a cow to produce a kilogram of fat than it does to produce a kilogram of protein.

The cost to processing a kilo of milk fat is also much higher than processing a kilo of protein.

Other traits of note include lameness and mastitis which get a higher negative value now, more accurately reflecting the impact they have on the cost of production.

The cost of labour insofar as it influences the EBI rating for cattle has also been updated, from €12.44 to €15 per hour.

The cost of a caesarean section has risen to €235, with a call-out fee of €90.

Due to the increase in labour cost, the cost of rearing heifers has risen from €1,545 to €1,570, and this will also be built into January EBI evalautions.