Dairy Stochastic Analysis Tool
The Dairy Stochastic Analysis Tool (DSAT) is an example of one of many Dynamic Risk-Based Modeling Services Decision Innovation Solutions offers to help clients better quantify and plan for risk.
The DSAT model is specifically designed for dairy owners and managers, allowing them to better understand their production and financial challenges. DSAT addresses challenges such as feed costs, stock sources, and more.
The Challenge
When an expansion of an existing or a new dairy is planned, the owners and managers must find a balance between milk production stability and a younger average age of lactating cattle. In other words, what is the best ratio of cows purchased from existing herds (stable milk production)versus those purchased as replacement heifers? The decision has implications for both timing and volume of milk production, because a group of replacement heifers will both calve and dry up at about the same time.
The Results
Minimizing feed costs is the goal of most dairy producers. However, DIS has the ability to demonstrate that, in some cases, a higher-cost ration may prove more profitable for reasons such as improved herd health and/or increased milk production.