Finances and returns for robotic dairies

Abstract

Automatic milking systems (AMS) became commercially available in the early 1990s. These systems provide flexibility and improve the lifestyle of farmers installing them. Because of the larger capital cost per kilogram of milk produced, observational studies in Europe and simulation studies have shown AMS to be less profitable than milking parlor systems, although previous findings are somewhat mixed. Improved performance of newer generations of AMS, better facility design to accommodate cow behavior, and better management of these facilities have the potential to make AMS more profitable. Wage rates are also increasing and sourcing high-quality milking labor is challenging. We developed partial budget simulations to model profitability of AMS compared with parlor systems for 120-, 240-, and 1,500-cow farms. Both the 120-cow and 240-cow AMS were more profitable than the parlor systems. However, the 1,500-cow parlor system was more profitable than the AMS. Breakeven labor analysis of the 1,500-cow system showed that at a wage inflation rate of 1% and a 0.91 kg/d lower milk production with the AMS system, the breakeven labor rate was $27.02/h. If the farm is able to achieve similar milk production between the 2 systems and wage inflation averages 3% over the 30-yr time horizon, the breakeven wage rate drops to $17.11/h. The major management factors that influenced the net annual impact were changes in milking labor cost and milk production. Another significant factor affecting net annual impact was the economic life of the AMS. An economic life of 13 yr or longer was required for an AMS to have a consistently positive net annual impact (depending on milk production per cow and labor cost). For every 227-kg increase in daily milk production per AMS, net annual income increased approximately $4,100. Cost-effective ways to optimize milk per AMS are to minimize attaching and milking times and to optimize milking settings.

Comparison of Parameters of Automatic Milking in Selected Countries in European Union and United States

“…Also, the currently presented results in this respect were similar to those obtained in previous studies (Waśkowicz et al, 2014;Piwczyński et al, 2020a). Salfer et al (2017) noted yet another important benefit for AMS farms, namely pelleted feed supplementation in AMS box was strongly associated with body condition and thus might cause the increase in milk production. When analysing the rumination activity of cows (measured by the number of minutes per day), it was found that rumination time was the shortest in the US (468.99 minutes), and the longest in the LV (504.86 minutes) (Table 4).…”

“…Castro et al (2012) found that varying number of cows per robot and the milk speed had the greatest effect on the daily milk yield in AMS. Salfer et al (2017) emphasised that management system in AMS equipped barns should be properly parameterized in such a way that it makes sure that cows occupy robots at the right time. In AMS, the amount of milk obtained by the robot per day is of key importance in shaping the profitability of production, which is directly related to the amount of milk collected per minute of the time cow spends in the milking stall -milk efficiency (kg/min).…”

“…In 1998 an estimated number of farms with AMS worldwide was 250, in 2009 it was over 8 ths while in 2015 over 14 ths (de Koning & Van der Vorst, 2002;de Koning, 2010;Taing, 2016). Salfer et al (2017) estimated that in 2017 over 35 ths AMS operated all over the world. Today, the number of only Lely robot milkers exceeds 30 ths worldwide (Lely International, 2019).…”

Robotic milking of dairy cows: a review

“…As higher milking frequency increase milk production, an important question is how to make cows access the AMS more often. Salfer, Minegishi, Lazarus, Berning and Endres (2017) reported that AMS management system should be properly parameterized so that the right cow could occupy the AMS at the right time. Early lactating cows, which theoretically seek more the AMS during the day, should have a greater number of permissions to access the equipment and be milked.…”

Teat traumatization in conventional and automatic milking system

“…Automatic milking systems (AMS) became commercially available in the early 1990 [1]. Opinions on this new milking technology vary among farmers, experts and researchers [2].…”