New tool for evaluating cow and herd profitability

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Editor’s note: The following information was provided by Erinn Evangelista, of the Dairy Records Management Systems in Raleigh, N.C.

Money Corrected Milk (MCM) is a milk check-based tool that reflects revenue generated per cow, based on how the dairy is paid for milk. The revenue generated is calculated using pounds of milk produced, component values and their respective market prices. Additions and subtractions for milk quality premiums, marketing charges, and hauling are included in the analysis. Models are available for both fluid and component markets.

Like Fat Corrected or Energy Corrected Milk, MCM is displayed as pounds of milk per cow per day or per lactation. Cows with higher MCM are generating more revenue per day, so ranking by MCM is identical to ranking by revenue per day. It can only be computed if fat and protein are known, so individual component testing is necessary.

Producers or their consultants simply enter milk check data into the MCM input screen in PCDART herd management software and MCM values are displayed for each cow. Additionally, there are numerous MCM database items that can be used to create a variety of management reports.

This revolutionary method for evaluating revenue generated by the herd based on actual milk check data is a new concept for our industry. Instead of relying solely on tank averages or rolling herd averages, individual cows can be evaluated for their contribution to the herd’s profitability and their components are taken into account. MCM allows consultants to show their clients how a ration change has impacted component production in addition to overall milk production and how that has changed the bottom line for the producer. 



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