The Ecofeed feed conversion efficiency index, which was introduced by Cogent Breeding in 2017, identifies animals with the genomic trait who do more with less, using fewer feed resources to produce milk. The index enables producers to select the most profitable cows and heifers with high feed conversion efficiency to breed from, improving overall farm performance and returns.  

The research project took place over three years, from 2020 – 2023, and was led by Kite Consulting’s head of genetics Rose Jackson. Four family-run Derbyshire and Staffordshire dairy farms, milking either twice or three times per day, took part in the trial. Herd sizes range from 180 – 500 cows, and are all predominantly housed.  

Alongside demonstrating the role of genomics in improved genetic gain and performance, the project aimed to establish a baseline for Ecofeed scores across the four Arla member farms, and quantify the potential for increasing the Ecofeed scores during the three-year trial period.  

Using a combination of genomic testing and a strategic sexed breeding strategy, the four trial farms all made significant gains in both genetic potential for milk solids and actual total solids production in analysis from 2020 – 2023.  

Using Cogent’s PrecisionMAP breeding programme and reporting tool, genomic tested females from each farm were analysed relative to the Ecofeed trait and each farm’s £CCI – Cogent’s unique Cogent Customer Index, which is based on £PLI (Profitable Lifetime Index), but also weighted to each farm’s milk contract.  

All farms in the project are Arla farmer members on components contracts, so milk solids were a key focus, alongside the Ecofeed trait.  

The breeding programme used female sexed dairy semen on all identified genetic elite females and Holstein bulls were selected on fat and protein, with all bulls scoring positive on the Ecofeed ranking.  

“Ecofeed is a relatively new trait, and while lots of work has gone into its development, we were keen to study this over a period of time in a commercial setting,” explains Siôn Parry, genetic data analyst at Cogent.  

Genetic progress was identified using two figures – £PLI and total milk solids.  

On average, the rate of genetic gain from Ecofeed genetics quantified by £PLI was £69.50/year over a 5-year period which is significantly higher than the UK average of £60/year. 

Milk recording data shows that all four trial farms achieved or exceeded 1000kg/cow/year in milk solids in 2023 demonstrating a 19% increase compared to 2020. It is estimated that up to 50% of this improved output is down to genetics.  

Comparing the whole herd to the 0-12 heifer group showed an average 51% increase in genetic gain for total milk solids (gPTA, genomic Predicted Transmitting Ability), meaning these heifers have 51% more potential to produce milk solids when they enter the herd compared to where the herd is currently. 

“These were very different farms genetically as a starting point, so we had to first establish the baseline for Ecofeed,” explains Kite Consulting’s Rose Jackson.  

Ecofeed is expressed relative to a baseline of 100, with scores over 100 meaning better feed efficiency. On average, the farms have improved by 3.8 Ecofeed points, which equates to a predicted DMI saving of 0.2kg/cow/day.  

“This has been a great project to show how we can improve production efficiency through genetic gain,” Rose continues.  

 “Selecting on the cow and heifer side for the Ecofeed trait, these results show that it is possible to gain in Ecofeed whilst maintaining the genetic gain we already see in other commercially important traits. The results have been substantial, which could have a huge impact continuing on that trajectory,” she says.  

The research has also demonstrated that the Ecofeed trait can help contribute to improved Arla climate check scores, which in the UK averaged 1.13 in 2023. The trial farms improved their climate check score by 11% av., dropping from an average of 1.19 to 1.04. 

“Feed efficiency, despite it being talked about for a while now, will become more and more important economically, and we have to use every tool we can to meet the industry target for carbon reduction. There’s no one answer, but Ecofeed genetics can certainly make a considerable contribution to this,” Siôn adds.  

“We should not underestimate the impact these advancements can make to the overall performance of the industry.” 

“At a challenging time, with fluctuating feed costs, and increasing pressure to reduce carbon output, this new approach to breeding offers a huge, and easily attainable, opportunity for dairy farmers to improve business performance.”  

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One speaker will be John Allen, the founder of Kite Consulting, which are recognised consultancy specialists in the UK dairy sector. He now is leading the corporate and global business for the AB Dairy business and works along the dairy supply chain with some of the UK’s leading operators and has linkages with international processors via the International Farming Community Network (IFCN).

He will be discussing, “Challenging Cheese: Futureproofing our industry,” at 14:00 on 27 June in the Seminar Theatre, which is located among the exhibitors in the hall. He has been recognised with a number of awards for his contribution to the industry.

There is a lot of free parking at the showground and there will be thousands of visitors attending. It is also free to attend, so make sure you sign up and get to the Expo.

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Arla has also announced it will be looking to export more of its UK products overseas. Again, the British flag has a good reputation for export markets and let’s face it, if you can get a decent return for your products versus the domestic market, it makes sense to head west where the customers are.

A report by Kite Consulting also looks at this burgeoning export market, and suggests that it may be preferable to some domestic markets for some processors. The report, entitled Beyond Reset, builds on the analysis Kite conducted in October 2021, in its report Opportunities ahead, which outlined long-term global demand growth for dairy products. (www.kiteconsulting.com).

The report notes that this access to global markets is one that wasn’t an option in the past, and introduces a new dynamic in the sector, particularly for the liquid side of the business. It also suggests that using liquid milk as a loss leader for British retailers is not likely to remain viable.

John Allen, managing partner of Kite Consulting, adds: “If retailers want to secure long-term supply from partners that are committed to fulfilling their decarbonisation objectives, they need to provide a competitive market return. There has got to be a reset, prioritising fresh liquid milk and valuing it accordingly. UK farming become a potentially better place to be for the long term. Being out of the EU makes it a better place to export from, whether we wanted to leave or not. It created a situation and dynamic for the export business.”

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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At present, the global dairy markets have not yet fully factored in the implication of such an invasion, so despite the current high dairy price levels, a further increase is possible. Ukraine and Belarus are net suppliers of dairy products to the global marketplace, while Russia is a net importer.

‘Panic buying’ in the global dairy market, resulting from an overnight loss of Ukrainian and Belorussian exports, may trigger further price increases, even when only moderate volumes are being traded. In the UK, farmer pressure on the UK processors to keep pace with global raw milk price increases is likely to build.

Despite ever higher milk prices, farm milk production may not respond, or may even contract, as energy prices rises lead to on-farm cost-of-production increases that may outpace milk returns, certainly in the short-term. Farm output growth that could somewhat dampen dairy price increases is, therefore, unlikely to happen in the short term.

UK dairy processors will face the effects of higher energy prices on their milk purchasing costs, their own operating costs, and on consumer buying power. A further increase of energy prices will drive up consumer inflation even further, hitting consumer buying power. Consumers are already clearly feeling food price inflation and retailers know this. This may impact on demand, and so UK retailers are likely to be highly resistant to further dairy price increases.

As a result, selling to global dairy commodity markets will potentially become even more attractive to those processors that have that option. Evidence of selling options in foreign commodity markets may be needed for UK retailers to be willing to accept further price increases from processors, which will be required to maintain UK milk supply if farmers are under further cost of production pressure.

Should this situation escalate, it will be important that UK dairy processors are able to increase sales prices even faster than they have been in recent months, to enable them to cover their own additional cost inflation and to be able to pass on higher income through milk price to farmers to cover further on-farm cost increases.

As a result, inflation of consumer dairy prices in the UK seems an inevitable consequence of conflict between Russia and Ukraine, due to the arising impact on global dairy markets.

For further information ,visit: www.kiteconsulting.com

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The UK dairy industry is well placed to capitalise on the Government’s recently launched “Made in the UK, Sold to the World” campaign as global opportunities for dairy are growing significantly, and UK farmers are some of the most environmentally progressive and efficient in the world. All that is required is the political will and support to facilitate investment by processors and farmers to allow the industry to seize the opportunities available.

That is the conclusion of a new report – ‘Opportunities ahead’ – by Kite Consulting, and sponsored by NMR, into the export opportunities for dairy after Brexit.

The report assesses the dairy consumption potential of 90 dairy-importing countries with a population of nearly 5 billion people – two-thirds of the world’s population. It shows that between 2011 and 2019 dairy consumption in those countries increased from 258bn kgs to 304bn kgs – an increase broadly equivalent to the total milk production volume for New Zealand for two years.

Kite’s analysis indicates that those countries will probably require larger import volumes as the decade progresses, at a projected 5.6% per year from 2019 to 2025, which is equivalent to 3bn kg LME (liquid milk equivalent) per year. Much of that will be in milk powders and cheese.

Additionally, evidence shows that local dairy production in the importing countries will not satisfy the increase in demand, as typically self-sufficiency decreases as economic development increases.

A further report – ‘EU Agricultural Policy’ – prepared by Hayley Campbell-Gibbons on behalf of Kite, indicates that the EU dairy industry is likely to decline over the next 6 years – by as much as 6.3% – because of the implementation of the EU’s Green Deal and the resulting updates to the Common Agricultural Policy.

Commenting on the reports, John Allen, managing partner at Kite Consulting, said: “What our analysis shows is that there is a growing opportunity for dairy exports coming at the same time as anticipated decline in the EU dairy industry. This is a huge opportunity for UK dairy and it is likely that UK processors will continue to grow exports to capitalise on these growth opportunities. This will probably put significant inflationary pressure on domestic dairy prices, as recent history shows that many dairy export markets can be more profitable than domestic ones. Indeed, we are already seeing this happening, with many dairy processors undertaking investment in the UK to allow them to access growth markets overseas.

“What’s exciting is that the UK dairy industry is well-placed to take advantage of this significant growth opportunity,” John added. “Our producers are already some of the most environmentally-efficient*, responsible and forward-thinking in the world. Most UK processors have already set net zero targets and are making good progress on decarbonising dairy, whilst further improving our already leading standards of animal welfare. With the required support, dairy can bring global wealth back into the UK’s rural communities, whilst at the same time driving forward an agenda focused on planet-friendly food production.”

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He says dairy has increased because of consumers looking after themselves more during lockdown and spending increasing time at home. “Cheese consumption has risen by 15.7% with more people eating cheese at lunch. Yoghurt sales have risen by 4.1% and butter by 16.1%, particularly block butter sales, due to more people home baking.”

Rob Hutchinson, operations director for Müller, says they had seen strong retail sales during the pandemic. “Cereal consumption is up 8%, which is good for milk sales. The challenge now is to maintain the level of consumption as we come out of lockdown,” he adds.

The panellists, which also included journalist and commentator Chris Walkland and chair John Allen from Kite Consulting, said they were optimistic about the UK dairy industry.

Hutchinson says, “I’m cautiously optimistic about the market outlook. The markets recovered after March last year and the global stock position is lower than we expected coming into this year, which is a good position to be in.”

The exception is cream, which is seeing a big mismatch in the price compared to the EU. This is largely because of Brexit and the extra export health certificates that are now required when exporting fresh products, like cream. Hutchinson adds, “We hope to see the situation improve as there’s no doubt this is having an impact on the cream price.”

Walkland said the outlook was good to firm for most commodities. “Cheddar is firm, mozzarella is firming, butter is good, and powders are okay, but cream is struggling. There are reasons to be optimistic on price, but sober on margins,” he adds.

Dairy-Tech Online is an online event running until 17 February. To view the programme of activity and to register for free go to dairy-tech.uk. You can rewatch the sessions by clicking the ‘rewatch’ tab on the Dairy-Tech website.

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Agriculture with Farm Business Management student Katie Ackland from Devon, won the award after going through a rigorous application process, which included writing a 1,500-word essay on a case study and delivering a presentation to the judges over Zoom.

The competition run by the Royal Association of British Dairy Farmers is designed to reflect real life challenges seen on dairy farms and wider policy issues, as well as identifying some of the sectors rising stars and new entrants.

Ackland, who takes home £750 and a trophy, said on winning the award: “I am absolutely delighted to have won. From growing up on my family dairy farm in Devon, through to completing my placement year on a dairy farm in Kent, I have always loved working and being involved within the dairy sector. Winning this award will give me a great opportunity to be recognised within the industry.”

Runner-up was second year Animal Science student Jessica Langton from Nottingham University. She hails from a small dairy farm in the Notts/Derbyshire border and has bold ambitions to grow the herd as well as diversifying.

She says entering the competition has increased her confidence and allowed her to demonstrate her passion for the industry to the judges. “It’s been a great experience and will hopefully, help me on my career path in the industry.”

This year’s competition saw some of the highest number of entries from universities and colleges right across the UK. The calibre of the entrants was so high that seven individuals were shortlisted in the finals rather than five.

RABDF vice chair and competition judge Di Wastenage said: “I was really impressed with the quality of the finalists in this year’s competition. Students from six universities and colleges ensured it was very competitive and a really difficult job for the judging panel.”

Robert Craig, RABDF vice chair and judge added: “The optimism and enthusiasm conveyed during the individual presentations was great to see and confirms the industry’s in safe hands for the future.”

Judge Chloe Cross from Kite Consulting, who set the case study, said the students had a great technical understanding: “This year’s finalists showed great understanding and sympathy toward the issues posed for the farming example set, touching on the ambition and desires of the family rather than just pushing for a system that they know and have experienced.”

Judge Robin Hawkey from sponsors Mole Valley Farmers said the passion and commitment from all candidates was admirable and to be congratulated. “The entrants were of a very high standard, demonstrating good knowledge of the current industry, but also of the challenges the industry faces with ideas and suggestions for the way forward.”

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