(Adapted from the original article “Data detectives: Use your data to increase long-term efficiency and profitability” by Mark Case, published in Ag Proud (February 24, 2021). Additional commentary and recommendations have been included for the Indian dairy farming context.)
Even with significant improvements in dairy productivity over the past 50 years, most farms still have substantial opportunities to enhance efficiency and profitability. One of the most effective ways to achieve this is by leveraging farm-level data more systematically. While many dairy operations collect extensive performance and financial data, much of it remains underutilized in decision-making.
Farm accounting systems often provide benchmarking data that highlight performance gaps across herds. However, the key question remains: what do these numbers actually imply for management, and which performance indicators have the greatest influence on profitability?
A study analyzing 11 years of herd data (from 489 year-end financial and production records in the USA) identified six key drivers of dairy farm profitability based on net farm income. These “Six Dairy Financial Drivers” were found to explain nearly 85% of the variation in farm profitability.
By examining the data behind each driver, dairy managers can identify targeted interventions that deliver the greatest improvements in efficiency and economic performance.
- Somatic Cell Count (SCC)
High SCC is associated with reduced milk yield, lower reproductive performance, and higher mortality. The study found that every increase of 100,000 cells/mL in bulk tank SCC reduces milk yield by approximately 2.4 kg.
Management interventions such as mastitis control protocols, milking hygiene, equipment maintenance, bedding management, and cow comfort improvement are critical. Milk culture testing helps identify causative pathogens for targeted intervention.
Indian context: Regular teat dipping, improved hygiene practices, and the use of preventive ethno-veterinary approaches can help reduce subclinical mastitis and improve milk quality which will reduce the overall SCC in milk.
- Energy-Corrected Milk (ECM)
Higher ECM herds demonstrate better fertility, lower feed costs, reduced mortality, and improved herd health. Differences of up to 9 kg/day have been observed between high and low-performing herds.
Poor transition management, improper stocking density, and inadequate fresh cow care negatively affect production peaks and overall lactation performance.
Indian context: Strong emphasis on Artificial Insemination programs, transition cow management, and early lactation care significantly improves peak yield and lactation performance. The study showed a INR 106-per-hundred weight difference in net herd turnover cost
- Net Herd Turnover Cost
The study identified a difference of approximately INR 106 per hundredweight in net herd turnover cost between the most profitable and least profitable dairy herds. This raises an important management question: how can farmers meet heifer replacement needs without creating gaps in herd productivity or supply?
While maintaining the right number of replacement heifers is essential, producing the right quality heifers is equally critical for long-term profitability. Advances in genomics, structured mating programs, and selective breeding strategies can significantly improve the genetic merit and productivity of replacement stock, thereby strengthening overall herd performance.
Indian context: Greater attention is required toward artificial insemination practices, semen straw selection, and structured breeding plans. A more scientific and data-driven approach to breeding decisions can substantially improve herd quality and long-term productivity.
- Death loss
The study found a significant difference in death loss between the top-performing herds (4.3%) and the bottom-performing herds (10%), translating into an estimated impact of approximately INR 13,500 per cow per year.
Systematic recording of when and why cows die is essential for identifying underlying causes and implementing timely corrective measures. Most mortality events occur within the first 60 days in milk (DIM), particularly during the transition and early lactation period. If death loss is elevated during this phase, it indicates the need to critically evaluate transition cow management and fresh cow care protocols.
A low death loss rate reflects strong animal husbandry practices and is directly associated with higher net farm income. It is also important to assess whether appropriately trained personnel are assigned to animal care and whether standard operating procedures are consistently followed.
Indian context: In Indian dairy farms, mortality can be significantly reduced through structured training of farm staff in preventive health care and disease control practices. Special attention should be given to the transition period—approximately the last 60 days of pregnancy and the first 90 days after calving. In addition, dairy farmers should engage qualified and experienced veterinary practitioners from government, university, or private sectors to ensure timely and effective emergency intervention for sick animals.
- Pregnancy Rate
The most profitable herds recorded an average pregnancy rate of 27.4%. A higher pregnancy rate helps maintain the herd within an optimal range of days in milk (DIM), thereby improving overall production efficiency. The study further indicates that for every 10-day reduction in DIM, average milk production increases by approximately 0.5 to 0.7 kg per cow per day.
Indian context: Improving reproductive performance in Indian dairy herds requires a comprehensive and scientific approach. Key focus areas include strengthening artificial insemination programs, selecting bulls based on genomic indices, and implementing structured breeding policies. In addition, balanced nutrition—including mineral mixtures and essential feed additives—plays a critical role in fertility. Effective management of infertility, repeat breeding cases, and overall reproductive health is essential for improving herd productivity and economic returns.
- Heifer Survival Rate
he highest-profit herds recorded an average heifer survival rate of 95%. Standards such as the Dairy Calf and Heifer Association’s Gold Standards can be used to establish benchmarks, evaluate herd performance, and prioritize management interventions aimed at improving heifer survival.
Key focus areas include ensuring timely and high-quality colostrum feeding, maintaining systematic records of heifer health events, and continuously monitoring growth rates.
Indian context: Calf and heifer management remains an underprioritised area in many Indian dairy systems. Greater emphasis is required on comprehensive calf rearing practices from birth through the heifer stage, ensuring optimal growth and health. Female calves should ideally reach a body weight of 250–275 kg within 12 months to enable first artificial insemination. With an average daily gain of around 700 g or more, calving can be targeted between 22 and 24 months of age, significantly improving lifetime productivity and herd efficiency.
Conclusion
“If you can’t measure it, you can’t manage it.”
Farm data has limited value if it is merely stored in a computer, spreadsheet, or notebook without regular review and interpretation. Effective dairy management requires that data be systematically organized, frequently analysed, and actively used to support decision-making.
Dairy farms should adopt simple but robust systems to monitor and track key performance indicators over time. Such systems can play a critical role in improving farm-level decision-making by providing clear insights into herd performance, health, reproduction, and productivity. Ultimately, data-driven management enhances long-term efficiency, resilience, and profitability in dairy farming in India.
By Dr T M Gowrisankar, Independent Animal Nutritionist and Animal Feed Consultant