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ECONOMIC 
EVALOATION  OF 

MILKING  SYSTEMS 

IN  ALOERTA 


/4lberra 

AGRICULTURE 

Production  and  Resource  Economics  Branch 
Economic  Services 

February,  1985 
AGDEX  821-36 


Copies  of  this  publication  may  be  obtained  from 

Print  Media  Branch 
Alberta  Agriculture 
7000  — 1 1 3 Street 
Edmonton,  Alberta,  T6H  5T6 
OR 

Alberta  Agriculture's  district  offices 


ECONOMIC  EVALUATION  OF 


MILKING  SYSTEI4S  IN  ALBERTA 


BY 

RUDY  SUSKO 
& 

LEN  FULLEN 


PRODUCTION  & RESOURCE  ECONOMICS  BRANCH 
ECONOMIC  SERVICES 
ALBERTA  AGRICULTURE 
DECE3yiBER,  1984 


ACKiiKjmMX^mmrs 


The  authors  wish  to  express  their  sincere  gratitude  to  all  of  the 
dairy  farmers  who  allcwed  us  to  monitor  their  milking  operations  and 
obtain  data  for  this  study.  Without  their  cooperation,  information  pre- 
sented in  this  report  would  not  have  been  possible.  The  assistance  of 
the  Dairy  Division,  Alberta  Agriculture  is  also  gratefully  acknowledged. 


RUDY  SUSKO 
LEN  FULLEN 


Digitized  by  the  Internet  Archive 
in  2016 


https://archive.org/details/economicevaluatiOOsusk 


TABLE  OF  CDNTENTS 


PAGE 

V i 

LIST  OF  TABLES iii 

LIST  OF  FIGURES .....  . iii 

SECTION 

I INTRODUCTION . 1 

II  METHOD  OF  ANALYSIS 3 

III  DATA  AND  ASSUMPTION 6 

IV  ANALYSIS  OF  RESULTS  ..................  11 

V SUMMARY  AND  CONCLUSIONS  ................  19 

APPENDIX  A,  SYSTEMS  COST  TABLES  ...............  20 

APPENDIX  B,  SYSTEMS  LAYOUT  DESIQ^  ..............  26 

APPENDIX  C,  QUESTIONNAIRE  31 


11 


LIST  OF  TABLES 


TABLE#  PAGE 

1 LABOUR  AND  INVEST1«T  REQUIREMNTS  FOR  MILKING 

SYSTEJyiS  IN  ALBERTA 9 

2 COST  EQUATIONS  FOR  10  MILKING  SYSTEMS 10 

3 MILKING  SYSTEM  COST  COMPARISONS  WITH  TIME  RESTRICTIONS  . . 12 

4 MILKING  SYSTEM  COST  COMPARISONS  WITH  NO  TIME 

PESTRICTIONS 17,18 

LIST  OF  FIGURES 

FIGURE# 

1 MILKING  SYSTEMS  COST  FOR  VARIOUS  HERD  SIZES 14 

2 MILKING  SYSTEMS  COST  AT  MAXIMUM  CAPACITY  .........  15 

iii 


ga?i.it|.  _ |»,  .V 

■^^•■*‘  ■ "■‘’'''^^^'fl  i4  - ■ " BBnr  ' ^ 

"-  ■■■^m  j ' SI  _ 


I . IMTODUCTION 


Milking  chores  on  a dairy  farm  are  highly  labour  intensive.  With 
rising  labour  costs  a trend  to  nodemised  and  highly  inechanised  milking 
systems  has  become  evident.  Statistical  distribution  of  producers  by 
herd  size  in  Alberta  indicates  that  the  majority  of  milk  is  produced  by 
50-60  cow  operations.  The  type,  size  and  configuration  of  milking 
systems  in  existence  in  Alberta  is  undoubtedly  influenced  by  this  fact. 
Although,  modem  milking  parlours  are  too  costly  on  small  farms,  they  are 
conducive  to  milking  efficiency  on  medium  and  large  farms.  The  most 
prevalent  farm  size  in  a particular  production  area  will  also  have  a 
strong  influence  on  the  selection  of  milking  systems  in  that  area. 

A summary  of  housing  and  milking  systems  used  in  Alberta  in  1981 
shews  that  53.2  per  cent  of  producers  are  using  in-bam  (stanchion) 
milking  systems  and  of  that  number  55.5  per  cent  use  pipeline.  The 
remaining  46.8  producers  use  parlor  milking  systems. 

Numerous  studies  have  confirmed  that  labour  cost  is  the  most  sign- 
ificant item  in  milking  system  cost  and  in  some  cases  can  account  for  up 
to  80  per  cent  of  the  milking  system's  total  cost.  It  seems  obvious  that 
the  best  way  to  minimize  milking  cost  is  to  reduce  labour  requirements 
through  adopting  a milking  system  of  an  efficient  size  and  configuration 
that  meets  both  the  cwners  needs  and  herd  size.  However,  it  should  be 
realized  that  increased  capital  cost  will  at  some  point  exceed  the  saving 
in  labour  use,  resulting  in  lower  cost  efficiency.  The  degree  of  utiliz- 
ation of  a system  plays  an  important  role  in  cost  minimization  and 
therefore  a system's  suitability  for  a particular  herd  size  is  important. 

The  primary  objective  of  this  study  was  to  conduct  an  economic 
evaluation  of  alternative  milking  technologies  commonly  used  in  Alberta, 
so  that  a least  cost  system  could  be  identified  for  a given  herd  size 
or  a desired  milking  time. 


1 


More  specifically  the  objectives  were: 

to  establish  the  criteria  for  economic  comparison  of  various 
systems; 

to  determine  the  labour  requirements  for  alternative  systems 
used  in  Alberta; 

to  establish  the  capital  cost  for  selected  milking  systems 
used  in  Alberta; 

to  identify  the  least  cost  system  for  a large  range  of  herd 
sizes  and/or  a given  length  of  a milking  shift. 


2 


II.  METHOD  OF  ANALYSIS 


Economic  efficiency  was  used  as  the  criteria  for  determining  the 
best  systems  fran  selected  milking  systems  commonly  used  on  Alberta  dairy 
farms. 

Econonic  efficiency  was  defined  by  cost  per  unit  of  output  or 
average  cost.  It  was  therefore  necessary  to  develop  the  unit^  cost  for 
all  milking  systems  considered  in  this  study. 

Milking  system,  in  this  context,  is  defined  as  the  milking  proced- 
ure and  configuration  of  a milking  facility.  It  does  not  include  cow 
housing  or  the  milk  house.  Size  and  cost  of  the  bam  and  milk  house 
equipment  is  determined  by  the  size  of  herd,  while  the  milking  system  is 
a separate  entity  vhich  can  be  used  for  different  herd  sizes.  Although 
herd  size  is  iirportant,  other  factors  such  as  labour  use  and  investment 
cost  influence  the  selection  of  a milking  system. 

Selection  of  a particular  milking  system  also  depends  on  the  desired 
time  for  one  milking  shift.  For  a given  herd  size  an  operator  would 
likely  decide  on  different  systems  if  his  desired  length  of  milking  shift 
is  1.5  hours  instead  of  3 hours.  To  milk  1.5  hours  he  would  need  a 
larger  more  expensive  system  than  for  a 3 hour  milking  shift.  A trade- 
off between  capital  and  labour  would  result. 

Milking  system  cost,  as  an  efficiency  measure,  is  catposed  of  labour 
cost,  capital  cost  and  maintenance  cost.  Classification  according  to 
fixed  and  variable  cost  is  also  important.  The  following  diagram  shows 
the  cost  categories  for  a milking  system. 


CAPITAL 

COST 

LABOUR  COST 
SET-UP  & CLEAN-UP 

LABOUR  COST 
MILKING 

MAINTENANCE 

COST 

FIXED  COST 

VARIABLE  COST 

The  suitable  unit  of  output  volume  is,  in  this  particular  case,  the 
number  of  cows  handled  by  a system,  although  volume  of  milk  could 
similarly  measure  the  output  volume. 


3 


Variable  costs  are  directly  dependent  on  the  volume  of  output,  that 
is,  the  number  of  ccws  milked.  If  the  number  of  ccms  milked  doubles, 
then  the  labour  cost  for  milking  and  maintenance  (upkeep)  will  double. 
This  cannot  be  said  about  fixed  costs,  since  the  cost  of  capital  (deprec- 
iation and  interest)  and  the  labour  cost  for  setup  and  cleanup  would  be 
the  same  regardless  of  hew  many  cews  are  milked. 

The  follcwing  formula  shews  the  relationships  between  variable  and 
fixed  costs  and  the  nuittoer  of  cews. 

C = F + N X V 

Where:  C is  total  cost 

F is  fixed  cost 
V is  variable  cost 
N is  number  of  cows 

As  the  size  of  herd  increases  fixed  costs  will  be  spread  over  more 
CCMS,  thereby  reducing  the  magnitude  of  the  fixed  costs.  To  determine 
the  ultimate  measure  of  efficiency,  that  is,  the  average  cost  per  cow, 
the  above  equation  must  be  divided  by  the  number  of  ccms. 

F 

C = ~ + V 
N 

Where;  C is  average  cost  per  cow 

With  a total  cost  approach,  as  the  size  of  herd  increases  total 
variable  costs  increase  and  fixed  costs  remain  constant.  With  an  average 
cost  approach  the  roles  are  reversed.  Variable  costs  per  ccw  remain 
unchanged  and  fixed  costs  decrease  with  herd  size.  For  this  reason,  it 
is  important  to  distinguish  between  the  terms  total  cost  and  average 
cost. 

The  task  remains  to  determine  labour  and  capital  costs  for  each 
milking  system  considered  in  this  study.  Labour  cost  is  directly  related 
to  labour  use.  The  labour  requirement  for  each  milking  system  is  deter- 
mined by  the  technical  efficiency  of  each  system.  Technically  the  most 
efficient  system,  that  is,  the  highest  throughput  of  cows  per  given  time. 


4 


is  not  necessarily  the  most  economically  efficient.  Initial  cost  and 
thus  the  cost  of  capital  will  play  an  iirportant  role. 

In  sunmary,  the  method  used  here  to  identify  the  most  efficient 
milking  system  is  a comparison  of  costs  per  cow  for  selected  systems  most 
commonly  used  in  Alberta.  The  actual  data  used  in  establishing  costs  and 
the  assumptions  associated  with  the  data  cire  discussed  in  the  following 
section. 


5 


III.  DATA  AND  ASSUMPTIC»^S 


Rather  than  use  the  so-called  normative  or  recomnended  data  for 
selected  milking  systems,  actual  time  data  was  collected  from  farms  for 
this  study.  It  was  found  that  the  throughput  often  recorrmended  differs 
from  actual  practice. 

The  following  milking  systems  were  selected  for  comparison  and 
evaluation. 


# OBSERVED 


1. 

Stanchion  bam  - buckets 

S3^ 

7 

2. 

Stanchion  bam  - pipeline 

S5 

8 

3. 

Double  4 herrin(^Done 

D4 

7 

4. 

Double  4 herringbone  (8  units) 

D4-8 

9 

5. 

Double  6 herringbone 

D6 

4 

6. 

Do\±)le  6 herringbone  (12  units) 

D6-12 

8 

7. 

Double  8 herringbone 

D8 

5 

8. 

Double  8 herringbone  (16  units) 

D8-16 

3 

9. 

Trigon  12 

T12 

7 

10. 

Rotary  14 

R14 

60 


Examples  of  the  general  layout  or  design  of  these  milking  systems 
are  shewn  in  Appendix  B. 

Sixty  farms  were  visited  to  obtain  the  information  needed  for 
evaluation.  An  example  of  the  questionnaire  is  shewn  in  Appendix  C. 

In  order  to  establish  the  labour  cost  for  each  system  good  data  had 
to  be  obtained  on  the  throughput  for  each  system.  A stop  watch  was  used 
to  record  the  setup  and  cleanup  time  and  the  number  of  men  carrying 
out  these  tasks.  Actual  milking  time  was  recorded  for  three  and  four 
repetitions  on  each  milking  unit.  For  instance,  for  a system  with  four 
units,  the  time  for  16  cews  being  milked  was  recorded.  The  time  started 


These  abbreviations  are  used  interchangeably  and  the  numbers  represent 
the  number  of  milking  units. 


6 


with  the  first  cow  entering  and  finished  with  the  16th  ccw  departing. 
Total  time  (called  parlor  time)  included  all  activities  of  milking  chores 
such  as  washing,  installing  and  removing  machine,  actual  milking,  etc. 
The  milking  unit  activity  is  basically  composed  of  two  parts:  actual 

milking  time  and  machine  idle  time  before  the  unit  is  reconnected. 
Actual  milking  tijnne  is  more  or  less  determined  biologically,  but  idle 
time  is  influenced  by  the  configuration  and  size  of  the  milking  system 
and  the  operator's  skill  and  pace.  Given  the  average  time  length  for 
milking  a cow,  the  per  cent  idle  time  can  be  calculated  by: 

Tm  X N 
Tp  X U 

per  cent  of  idle  time 
milking  time  of  a cow  (minutes) 
total  parlor  time 
number  of  milking  units 

Sometimes  milking  chores  are  carried  out  by  more  than  one  man.  In 
comparing  labour  requirements  for  the  various  milking  systems,  the  work 
has  to  be  adjusted  to  a one  man  operation.  Machine  idle  time  was  useful 
in  making  that  adjustment. 

Working  pace  is  another  factor  that  influences  labour  requirements. 
Adjustments  were  made  for  an  average  working  pace,  so  that  the  results 
would  shew  efficiency  of  the  system,  not  the  operator. 

Milk  production  and  degree  of  mechanization  could  be  considered  as 
additional  factors  affecting  the  milking  time.  It  is  not  always  true 
that  higher  producing  cews  milk  longer  or  vice  versa.  A relationship 
between  milk  production  and  milking  time  was  not  apparent.  While  overall 
the  milking  time  was  influenced  by  the  degree  of  mechanization,  it  was 
reflected  in  incremental  capital  cost.  Higher  mechanized  systems  were 
using  less  labour  but  were  more  capital  intensive.  There  was  no  signifi- 
cant difference  in  degree  of  mechanization  of  the  systems  studied.  The 
occurrence  of  power  gates  and  autcmatic  take-off  units  was  considered  an 
incremental  cost  to  the  cost  of  the  basic  system. 

Recorded  milking  time  for  one  shift  served  as  the  basis  for  calcul- 
ating annual  labour  cost  using  a rate  of  $7.00  per  hour.  Cost  of  capital 


Ti  = 1 - 


Where: 


Ti 

Tm 

Tp 

U 


7 


8 


was  calculated  from  the  investinent  value  of  each  irdlking  system  as  listed 
in  Table  1.  Depreciation  was  calculated  at  5 per  cent  of  building 
(parlor)  value  and  10  per  cent  of  equipment  value.  Interest  charges  were 
calculated  on  average  investnent  value  at  12  per  cent  interest. 

Due  to  the  different  nature  of  the  in-bam  (stanchion)  milking 
systanns,  capital  cost  of  the  S3  and  S5  systems  is  composed  of  value  for 
the  equipment  only  and  not  for  housing.  Some  equipment,  stanchion  stalls 
and  pipeline  are  expressed  on  a per  cow  basis,  because  they  vary  as  to 
bam  size  and  herd  size.  However,  the  value  of  milking  units  and  pumps 
would  be  the  same  regardless  of  herd  size,  similar  to  a parlor  type 
facility.  This  has  implication  in  calculating  the  total  cost  since  a 
portion  of  the  capital  cost  is  variable  and  will  depend  on  the  herd  size. 

TABLE  1;  LABOUR  AND  INVES'^ElSiT  REQUIREMENTS  FOR  MILKING  SYSTEMS 
IN  ALBERTA 


SYSTEM 

SETUP  & 
CLEANUP  TIME 

MILKING  TIME 
MIN. /COW 

INVESTMEtLT^ 

BUILDING  EQUIPMENT 

S3 

32.33 

2.69 

_ 

$5400  + 237/Cow 

S5 

43.33 

2,01 

- 

7200  + 371/Cow 

D4 

23.77 

1.96 

$14143 

17256 

D4-8 

26.34 

1.67 

14143 

23637 

D6 

35.60 

1.76 

18160 

24300 

D6-12 

37.56 

1.17 

18160 

31534 

D8 

34.02 

1.33 

21767 

27888 

D8-16 

37.80 

1.07 

21767 

38508 

T12 

38.78 

0.96 

18490 

37164 

R14 

29.77 

0.99 

23005 

39568 

Based  on  Boeckh  Building  Cost  Guide  (1984) 


9 


Table  2 shows  cost  equations  for  all  ten  systems.  Total  system  cost 
for  any  herd  size  is  calculated  by  multiplying  the  variable  cost  by  the 
number  of  ccws  and  then  adding  the  fixed  cost.  Average  cost  is  calculat- 
ed by  dividing  the  equation  by  the  number  of  ccms,  i.e.  dividing  fixed 
cost  by  nuntoer  of  ccms  and  adding  variable  cost. 

These  equations  along  with  the  information  from  Table  1 are  useful 
in  finding  the  relationships  between  cost  and  herd  size,  and  cost  and 
milking  shift  time  shewn  in  the  following  section  and  the  appendix. 

TABLE  2:  COST  EQUATIONS  FOR  10  MILKING  SYSTEMS 

SYSTEM  FIXED  COST  VARIABLE  COST 


Stanchion 

- buckets  3 

3596.00 

283.97 

X 

No. 

of 

Cows 

Stanchion 

- pipeline  5 

4813.35 

253.64 

X 

No. 

of 

Cows 

H.  Double 

4 

6302.00 

192.65 

X 

No. 

of 

Cows 

H.  Double 

4-8 

7500.50 

168.52 

X 

No. 

of 

Cows 

H.  Double 

6 

8838.50 

181.03 

X 

No. 

of 

Cows 

H.  Double 

6-12 

10304.25 

123.87 

X 

No. 

of 

Cows 

H.  Double 

8 

9664.00 

140.79 

X 

No. 

of 

Cows 

H.  Double 

8-16 

11642.75 

118.00 

X 

No. 

of 

Cows 

Trigon  12 

11152.75 

104.02 

X 

No. 

of 

Cows 

Rotary  14 

11261.75 

110.12 

X 

No. 

of 

Cows 

10 


IV.  ANALYSIS  OF  RESULTS 


There  is  no  one  least-cost  system.  The  efficiency  of  a system 
varies  with  the  degree  of  utilization,  i.e.  the  volume  of  output.  A 
large  modem  system  would  be  underutilized  and  costly  for  a small  herd 
but  might  be  ideal  for  a large  farm.  Furthermore  technical  efficiency^ 
is  not  necessarily  indicative  of  economic  efficiency.  Although  labour 
use  and  labour  cost  are  significant  in  determining  a system's  efficiency, 
overall  econcmic  efficiency  also  depends  on  capital  cost. 

Results  are  shewn  in  two  ways;  a cost  comparison  for  a given  length 
of  milking  shift  and  a cost  ca:tparison  for  a given  herd  size. 

Cost  Versus  Length  Of  The  Milking  Shift 

The  survey  shewed  that  the  average  desired  length  of  a milking  shift 
is  1 3/4  hour.  This  of  course  varies  with  the  size  of  herd.  In  the 
analysis  we  chose  to  determine  milking  herd  size  for  a given  length  of 
morning  and  afternoon  milking  shifts.  Once  a system's  capacity  is 
determined  in  this  way,  the  resulting  costs  can  be  calculated  for  each 
system. 

Table  3 shews  hew  costs  per  cow  corpared  for  a range  of  herd  sizes 
utilizing  the  10  milking  systems  studied.  A stanchion  bam  with  3 
milking  units  (S3)  can  handle  only  22  cows  when  the  milking  shift  is  60 
minutes  long.  The  same  system  can  handle  67  cows  if  the  milking  time  is 
three  hours  long.  Through  greater  utilization,  annual  milking  system 
cost  can  be  reduced  from  $445.19  per  cow  with  1 hour  milking  time  to 
$337.71  with  three  hours  milking  time. 

It  was  assumed  that  3 hours  of  milking  for  one  shift  would  be 
maximum  for  a family  operation.  This  is  milking  time  only  and  excludes 
the  time  for  setting  up  and  cleaning,  as  was  shown  in  Table  1.  A Trigon 
system  with  12  milking  units  appears  to  have  the  highest  capacity  of  188 


Highest  throughput  for  a given  time. 


11 


TABLE  3: 

i'ULKING  SYSTEM  GOST  GOMPAJILSONS  WITH  TL^IE  RESTRICTIONS 

LABOUR 

LABOUR 

HERD 

MINUTES 

CAPITAL 

COST 

COST 

UPKEEP 

TOTAL 

SYSTEM 

SIZE 

/OOW 

GOST 

CLEAN. 

MIIK. 

COST 

COST 

1*0  HOUR  MILKING 

S3 

22*30 

4*14 

74*74 

123*45 

229*10 

17*90 

445*19 

S5 

29*85 

3*46 

95*50 

123*62 

171*18 

24*58 

414*89 

HD4 

30*61 

2*74 

139*73 

66*13 

166*93 

25*72 

398*51 

HD4-8 

35*93 

2*40 

146*33 

62*44 

142*23 

26*29 

377*28 

HD6 

34*09 

2*80 

170*33 

88*94 

149*89 

31*14 

440*29 

HD6-12 

51*28 

1*94 

135*23 

65*70 

99*64 

24*23 

324*80 

HD8 

45*11 

2*08 

149*99 

64*22 

113*27 

27*52 

355*01 

HD8-16 

56*07 

1*74 

150*22 

57*41 

91*13 

26*87 

325*63 

T12 

62*50 

1*58 

125*60 

52*84 

81*76 

22*26 

282*47 

R14 

60*61 

1*48 

143*98 

41*83 

84*31 

25*81 

295*94 

2*0  HOUR  MILKING 

S3 

44*61 

3*41 

55*86 

61*72 

229*10 

17*90 

364*58 

S5 

59*70 

2*74 

76*69 

61*81 

171*18 

24*58 

334*27 

HD4 

61*22 

2*35 

69*86 

33*07 

166*93 

25*72 

295*53 

HD4-8 

71*86 

2*04 

73*16 

31*22 

142*23 

26*29 

272*90 

HD6 

68*18 

2*28 

85*16 

44*47 

149*89 

31  * 14 

310*66 

HD6-12 

102*56 

1*56 

67*62 

32*85 

99*64 

24*23 

224*34 

HD8 

90*23 

1*71 

75*00 

32*11 

113*27 

27*52 

247*90 

Hri8~16 

112*15 

1*41 

75*11 

28*71 

91*13 

26*87 

221*81 

T12 

125*00 

1*27 

62*80 

26*42 

81*76 

22*26 

193*24 

R14 

121*21 

1*24 

71*99 

20*92 

84*31 

25*81 

203*03 

2*5  HOUR  MILKING 

S3 

55*76 

3*27 

52*08 

49*38 

229*10 

17*90 

348*46 

S5 

74*63 

2*59 

72*93 

49*45 

171  * 18 

24*58 

318*14 

HD4 

76*53 

2*27 

55*89 

26*45 

166*93 

25*72 

274*99 

HD4-8 

89*82 

1*96 

58*53 

24*98 

142*23 

26*29 

252*02 

HD6 

85*23 

2*18 

68*13 

35*57 

149*89 

31*14 

284*74 

HD6-12 

128*21 

1*48 

54  * 09 

26*28 

99*64 

24*23 

204*24 

HD  8 

112*78 

1*63 

60*00 

25*69 

113*27 

27*52 

226*48 

HD8-16 

140*19 

1*34 

60*09 

22*96 

91  * 13 

26*37 

201*05 

T12 

156*25 

1*2:1 

50*24 

21  * 14 

31*76 

22*26 

1 75  * 40 

R14 

151*52 

1 * 19 

57*59 

16*73 

84*31 

25*81 

184*45 

3*0  HOUR  MILKING 

S3 

66*91 

3*17 

49*56 

41*15 

229*10 

17*90 

337*71 

S5 

89*55 

2*49 

70*42 

41*21 

171*18 

24*58 

307*39 

HD4 

91*84 

2 * 22 

46*58 

22*04 

166*93 

25*72 

261*27 

HD4-8 

107*78 

1*91 

48*78 

20*81 

142*23 

26*29 

238  * 1 1 

HD6 

102*27 

2 * ;l.  1 

56*78 

29*65 

149*89 

3 1*14 

267*45 

HD6-:L2 

153*85 

1*43 

45*08 

2 1 * 90 

99*64 

24*23 

190*85 

HD8 

135*34 

1*58 

50*00 

21*41 

113*27 

27*52 

212*20 

HD8  - ;l.6 

168*22 

1 ♦ 29 

50*07 

19*14 

9 1 * 1 3 

26*87 

187*21 

11 2 

1 87*50 

1 * 17 

41*87 

17*61 

81  *76 

22*26 

163*50 

R14 

181*82 

1 * 15 

47*99 

13*94 

84*31 

2 ♦ 8 1 

172*06 

12 


ccws  and  a least  cost  of  $163.50  per  cov,  while  the  S3  system  has  lowest 
capacity  and  highest  cost.  Figure  2 shows  the  efficiency  of  each  syston 
at  maximum  capacity  i.e.  a three  hour  milking  limit.  It  also  shews  the 
relationship  between  labour  cost  and  capital  cost. 

The  irrportance  of  system  utilization  on  efficiency  is  shown  in 
Figure  1.  The  T12  curve  shews  a reduction  in  cost  as  milking  time 
increases^  from  1 hour  to  3 hours.  The  T12  system  cost  is  $163.50  for  a 
188  cow  herd  but  increases  to  $282.47  for  a 63  cow  herd.  For  siuplicity. 
Figure  1 shews  the  cost  trend  for  4 systems  only.  The  envelope  curve  of 
these  4 cost  curves  shews  the  least  cost  points  for  the  indicated  cow 
numbers.  Cost  curves  for  the  other  6 systems  are  shown  in  Figure  4 in 
the  appendix. 

Figure  5 in  the  appendix  summarizes  the  cost  analysis  at  different 
milking  times.  The  upper  graphs  shew  tlie  cost  per  cow  and  the  bottom 
graphs  shew  the  herd  size  with  three  different  milking  times  for  all  10 
systems. 


Cost  Versus  Herd  Size 

Costs  were  also  determined  for  a given  number  of  cews  being  handled 
by  a system  with  no  restrictions  on  milking  time.  Table  4 shows  the  cost 
of  each  milking  system  for  various  herd  sizes.  The  relationship  is 
graphically  illustrated  in  Figure  3 of  the  appendix.  When  only  25  cows 
are  being  milked  the  S3  system  would  have  the  lowest  cost  since  larger 
systems  would  be  underutilized  and  their  capital  cost  would  be  propor- 
tionately higher.  For  a 25  cow  herd  size  the  HD8-16  system  would  be  most 
costly  at  $583.71  per  cow.  Actual  milking  would  take  only  27  minutes. 


The  number  of  cews  handled  increases  fron  63  to  188  as  shewn  in 
Table  3.  Figure  1 is  based  on  Table  3 values. 


13 


450 

400 

350 

300 

250 

200 

150- 


MILKING  SYSTEMS  COST 
FOR  VARIOUS  HERD  SIZES 


■' r-p- 1 ^ ^ ^ . . ^ > r— , . 1 . ^ ^ ^ ^ 1 1—.  ^ ^ ^ ^ . . . I r 

50  100  150  200 

NUMBER  OF  CONS 


14 


o 

Lf) 


00 

—I 

m 


COST  - $ PER  COW 


^ 

M 

4=^ 

o 

O 

O 

O 

o 

o 

O 

O 

O 

Q 

o 

> 

Q 

M 

o 

C 

H 

*t! 

P 

O 

o 

o 

o 

o 

CO 

o 

CO 

CO 

15 


The  graphs  in  Figure  3 clearly  demonstrate  that  for  a 150  cow  herd 
the  T12  system  is  the  least  cost  system  and  the  S3  becomes  the  most 
expensive  one.  As  herd  size  increases  the  proportion  of  capital  cost 
decreases,  v^ile  labour  cost  changes  only  slightly.  The  length  of  milk- 
ing shift  for  the  S3  system  increases  from  1:20  hours  for  25  cows  to  6:43 
hours^  for  150  ccms. 

Other  tables  and  figures  are  included  in  the  appendix,  showing 
various  combinations  of  herd  sizes  and  milking  times  so  that  producers 
can  relate  the  efficiency  of  each  system  to  their  own  situation. 


This  is  perhaps  beyond  the  practical  range,  but  it  does  show  that  S3 
system  would  not  be  used  for  a 150  co/j  herd  and  T12  would  not  be 
used  for  a 25  cow  herd. 


16 


TABLE  4:  imiKING  SYSTEM  COST  COMPARISONS  WITH  NO  TIME  RESTRICTIONS 


LABOUR 

LABOUR 

HOURS 

MINUTES 

CAPITAL 

COST 

COST 

UPKEEP 

TOTAL 

SYSTEM 

/SHIFT 

/COW 

COST 

CLEAN. 

MILK. 

COST 

COST 

25  COW 

HERD 

S3 

1*12 

3.98 

70.67 

110.14 

229.10 

17.90 

427.81 

35 

0*84 

3.74 

102.80 

147.61 

171 . 18 

24.58 

446.18 

HD  4 

0*82 

2.91 

171 . 10 

80.98 

166.93 

25.72 

444.72 

HD4-B 

0,70 

2.72 

210.29 

89.73 

142.23 

26.29 

468.54 

HD6 

0*73 

3.18 

232.26 

121.28 

149.89 

31 .14 

534.57 

HD6-12 

0.49 

2.75 

277.40 

134.77 

99.64 

24.23 

536.04 

HD8 

0 . 55 

2.69 

270.67 

115.89 

113 <27 

27.52 

527.35 

HD8-16 

0.45 

2.58 

336.94 

128.77 

91.13 

26.87 

583.71 

T12 

0.40 

2.51 

314.00 

132.11 

81.76 

22.26 

550.13 

R14 

0.41 

2.18 

349.05 

101.42 

84.31 

25.81 

560.59 

50  COW 

HERD 

S3 

2.24 

3.34 

53.82 

55.07 

229.10 

17.90 

355.89 

35 

1.67 

2.88 

80.34 

73.81 

171.18 

24.58 

349.91 

HD4 

1.63 

2.44 

85 . 55 

40.49 

166.93 

25.72 

318.69 

HD4-8 

1.39 

2.20 

105.14 

44.87 

142.23 

26.29 

318.53 

HD6 

1.47 

2.47 

116.13 

60.64 

149.89 

31.14 

357.80 

HD6-12 

0.97 

1.96 

138.70 

67.38 

99.64 

24.23 

329.96 

HDB 

1 . 1 1 

2.01 

135.33 

57.95 

113.27 

27.52 

334.07 

HD8-16 

0.89 

1 .83 

168.47 

64.39 

91 . 13 

26.87 

350.85 

T12 

0.80 

1.74 

157.00 

66.06 

31.76 

22.26 

327.08 

r:L4 

0.83 

1.59 

174.52 

50.71 

84.31 

25.81 

335.36 

75  COW 

HERD 

S3 

3.36 

3.12 

48.20 

36.71 

229.10 

17.90 

331.92 

S5 

2.51 

2.59 

72.85 

49.20 

171.18 

24 . 58 

317.82 

HD4 

2.45 

2.28 

57.03 

26.99 

166.93 

25.72 

276.67 

HD4-8 

2.09 

2.02 

70.10 

29.91 

142.23 

26 . 29 

268.52 

HD6 

2.20 

2.23 

77.42 

40.43 

149.89 

31 . 14 

298.88 

HD6-;l.2 

1.46 

1 . 70 

92.47 

44 . 92 

99.64 

24.23 

261.26 

HD  8 

1.66 

1 . 78 

90.22 

38.63 

113.27 

2 .52 

269.64 

HD8-16 

1 . 34 

1 . 57 

112.31 

42.92 

91 . 13 

26.87 

273.24 

T12 

1.20 

1 . 48 

104.67 

44,04 

81.76 

22.26 

252.72 

R1.4 

1.24 

1.39 

116. 35 

33.81 

84.31 

25.81 

260.28 

100  COW  HERD 

S3 

4.48 

3.01 

45.40 

27.53 

229.10 

17.90 

319.93 

S5 

3.35 

2.44 

69 . 1 1 

36.90 

171 . 1 8 

24.58 

301.78 

HD4 

3.27 

2.20 

42.77 

20.24 

166.93 

25.72 

255.67 

HD4-8 

2.78 

1.93 

52.57 

22.43 

142.23 

26.29 

243.52 

HD6 

2.93 

2.12 

58.07 

30.32 

149.89 

31 . 14 

269.42 

HD6  - 12 

1.95 

1.57 

69.35 

33  ♦ 69 

99 . 64 

24.23 

226.91 

HDB 

2 . 2 2 

1 . 67 

67.67 

28.97 

113.27 

27.52 

237.43 

HD 8- 16 

1 . 78 

1.45 

84.23 

32.19 

91 . 13 

26.87 

234.43 

T12 

1.60 

1 . 35 

78 . 50 

33.03 

81 .76 

22 . 26 

215.55 

R14 

1 . 5 

1.29 

87.26 

25.35 

84.31 

25.81 

222.74 

17 


T/iBLE  4 (Continued)  : MILKING  SYSTEl4  COST  COMPARISONS  WITH  NO  TIME  RESTRICTIONS 


LABOUR 

LABOUR 

HOURS 

MINUTES 

CAPITAL 

COST 

COST 

UPKEEP 

TOTAL 

SYSTEM 

/SHIFT 

/COW 

COST 

CLEAN. 

MILK. 

COST 

COST 

150  COU 

HURD 

S3 

6*72 

2*91 

42*59 

18*36 

229*10 

17*90 

307*94 

S5 

5*03 

2*30 

65  * 36 

24*60 

171*18 

24*58 

285*73 

HD4 

4*90 

2*12 

28*52 

13*50 

166*93 

25*72 

234*66 

HD4-8 

4*17 

1*85 

35*05 

14*96 

142*23 

26*29 

218*52 

HD6 

4*40 

2*00 

38*71 

20*21 

149*89 

31*14 

239*95 

HD6-12 

2*92 

1*43 

46*23 

22*46 

99*64 

24*23 

192*57 

HD3 

3*33 

1*56 

45  * 1 1 

19*32 

113*27 

27*52 

205*22 

HD8-16 

2*68 

1*32 

56*16 

21*46 

91*13 

26*87 

195*62 

TJ.2 

2*40 

I * 22 

52*33 

22*02 

81*76 

22*26 

178*37 

R14 

2*47 

1 * 19 

58*17 

16*90 

84*31 

25*81 

185*20 

175  COW 

HERD 

S3 

7*85 

2*87 

41*79 

15*73 

229*10 

17*90 

304*52 

S5 

5*86 

2*26 

64*29 

21*09 

171*18 

24*58 

281*15 

HD4 

5*72 

2*10 

24*44 

1 1 * 57 

166*93 

25*72 

228*66 

HD4-8 

4*87 

1*82 

30*04 

12*82 

142*23 

26*29 

211*38 

HD6 

5*  .13 

1*96 

33*18 

17*33 

149*89 

31*14 

231*54 

HD6-12 

3*41 

1 * 40 

39*63 

19*25 

99*64 

24*23 

182*75 

HD8 

3*88 

1*52 

38*67 

16*56 

113*27 

27*52 

196*01 

HD8-16 

3*12 

1*29 

48*13 

18*40 

91  * 13 

26*87 

184*53 

TI2 

2*80 

1*18 

44*86 

18*87 

81*76 

22*26 

167*75 

R14 

2*89 

1*16 

49*86 

14*49 

84*31 

25*81 

174*48 

200  COW 

HERD 

S3 

8*97 

2 * 85 

41*18 

13*77 

229*10 

17*90 

301*95 

S5 

6*70 

2*23 

63*49 

18*45 

171*18 

24*58 

277*71 

HD4 

6*53 

2*08 

21*39 

10*12 

166*93 

25*72 

224*16 

HD4-8 

5*57 

1*80 

26*29 

11*22 

142*23 

26*29 

206*02 

HD6 

5*87 

1*94 

29*03 

15*16 

149*89 

31*14 

225  * 22 

HD6-12 

3*90 

1 * 37 

34*68 

16*85 

99*64 

24*23 

175*39 

HD8 

4*43 

1 * 50 

33*83 

14*49 

113*27 

27*52 

189*11 

HD8“16 

3*57 

1 * 26 

42*12 

16*10 

91  ♦ 13 

26*87 

176*21 

T12 

3*20 

1 * 15 

39*25 

16*51 

81*76 

22*26 

159*79 

R14 

3*30 

1 * 14 

43  * 63 

12*68 

84*31 

25*81 

166*43 

250  COW 

HERD 

S3 

1 1*21 

2*82 

40*34 

1 1 *01 

229*10 

17*90 

298*36 

S5 

8*37 

2*18 

62*37 

14*76 

171  * 18 

24*58 

272*89 

HD4 

8*17 

2*06 

1 7 * 1 .1 

8*10 

166*93 

25*72 

217*86 

HD4-8 

6*96 

1 * 78 

21*03 

O O 7 

K.}  <•  / 

142*23 

O/j  ^ oo 

198*52 

HD  6 

7*33 

:i.  * 90 

23  * 23 

12.13 

149*89 

31  * 14 

216*38 

HD 6- .1.2 

4*87 

1 * 33 

27  > 74 

13*48 

99*64 

24  * 23 

165*09 

HD8 

5*54 

1*47 

27*07 

1 1*59 

113*27 

27*52 

179*44 

HD8-16 

4*46 

1*22 

33*69 

12*88 

91  * 13 

26*87 

164*57 

T12 

4*00 

1 * 12 

31  *40 

13*21 

81  *76 

22*26 

148*63 

r:i.4 

4*12 

1 * 1 1 

34*90 

;l  0 * 1 4 

84*31 

25*8 1 

155*17 

18 


V.  SUMMARY  AND  OONCIiUSIONS 


Labour  can  account  for  as  much  as  80  per  cent  of  a milking  system's 
total  cost.  Today's  dairy  farm  operators  want  to  knew  how  labour 
requirements  and  labour  and  capital  costs  connpare  for  alternative  milking 
systems. 

The  ten  milking  systems  most  coitmonly  used  on  Alberta  dairy  farms 
were  cotpared  in  this  study.  The  objective  was  to  identify  a least  cost 
system  for  a given  herd  size  or  a desired  milking  time. 

Actual  milking  times  were  recorded  from  farm  visits  and  the  farm 
operators  were  asked  hew  much  time  they  would  ideally  like  to  spend 
setting  up,  milking  and  cleaning  up  each  day.  Current  investment 
requirements  for  dairy  buildings  and  equipment  were  used  in  a coEiputer 
program  developed  to  help  determine  corpatible  herd  sizes  and  related 
costs  for  each  of  the  ten  milking  systems  when  the  desired  milking  time 
per  shift  ranged  from  one  to  three  hours. 

When  three  hours  was  set  as  a maximum  milking  time  (excluding 
setting  up  and  cleanup)  for  a family  operation  the  trigon  12  had  the 
least  cost  of  $164  per  cow  and  could  handle  188  cows.  The  stanchion 
bam  with  3 milking  units  had  a cost  of  $338  and  would  handle  only  67 
cews.  The  other  systems  had  costs  ranging  between  $310  and  $180  and 
could  handle  fron  90  to  182  cews  v^en  three  hours  was  available  for  each 
milking  shift. 

When  67  cews  were  being  milked  in  a stanchion  bam  with  3 milking 
units,  labour  cost  accounted  for  82  per  cent  of  the  $338  total  cost. 
When  a trigon  12  was  used  to  milk  188  cows,  labour  cost  accounted  for 
only  55  per  cent  of  the  $164  total  milking  cost. 

The  relative  costs  of  the  ten  milking  systems  depended  on  how 
intensively  each  system  was  used  and  no  one  least  cost  system  could  be 
found. 


19 


APPENDIX  A 


ADDITIONAL 
SYSTEMS  COST  TABLES 
AND  FIGURES 


TABLE  5: 


SYSTEM  COST  AND  MILKING  Tir^IE 


COST  PER  ca^  ($) 


^COWS 


SYSTEM"' — . 

^ 25 

50 

75 

100 

150 

175 

200 

S3 

427.81 

355.89 

331.92 

319.93 

307.94 

304.52 

301.95 

S5 

446.18 

349.91 

317.82 

301.78 

285.73 

281.15 

277.71 

HD4 

444.72 

318.69 

276.67 

255.67 

234.66 

228.66 

224.16 

HD4-8 

468.54 

318.53 

268.52 

243.52 

218.52 

211.38 

206.02 

HD6 

534.57 

357.80 

298.88 

269.42 

239.95 

231.54 

225.22 

HD6-12 

536.04 

329.96 

261.26 

226.91 

192.57 

182.75 

175.39 

HD8 

527.35 

334.07 

269 « 64 

237.43 

205.22 

196.01 

189.11 

HD8-16 

583.71 

350.85 

273.24 

234.43 

195.62 

184.53 

176.21 

T12 

550.13 

327.08 

252.72 

215.55 

178.37 

167.75 

159.79 

R14 

560.59 

335.36 

260.28 

222.74 

185.20 

174.48 

166.43 

S3 

79.3 

79.8 

% LABOUR  COST 
80.1  80.2 

80.4 

80.4 

80.4 

S5 

71.5 

70.0 

69.3 

68.9 

68.5 

68.4 

68.3 

HD4 

55.7 

65.1 

70.1 

73.2 

76.9 

78.1 

78.9 

HD4-8 

49.5 

58.7 

64.1 

67.6 

71.9 

73.4 

74.5 

HD6 

50.7 

58.8 

63.7 

66.9 

70.9 

72.2 

73.3 

HD6-12 

43.7 

50.6 

55.3 

58.8 

63.4 

65.1 

66.4 

HD8 

43.6 

51.3 

56.3 

59.9 

64.6 

66.2 

78.1 

HD8-16 

37.7 

44.3 

49.1 

52.6 

57.6 

59.4 

60.9 

T12 

38.9 

45.2 

49.8 

53.3 

58.2 

59.9 

61.5 

R14 

33.1 

40.3 

45.4 

49.2 

54.6 

56.6 

58.3 

S3 

1 

07 

2:14 

MILKING  TIME  (HRS.) 
3:22  4:29 

6:43 

7:51 

8:58 

S5 

50 

1:40 

2:31 

3:21 

5:02 

5:52 

6:42 

HD4 

49 

1:38 

2:27 

3:16 

4:54 

5:43 

6:32 

HD4-8 

42 

1:23 

2:05 

2:47 

4:10 

4:52 

5:34 

HD6 

44 

1:28 

2:12 

2:56 

4:24 

5:08 

5:52 

HD6-12 

29 

:58 

1:28 

1:57 

2:55 

3:25 

3:54 

HD8 

33 

1:07 

1:40 

2:13 

3:20 

3:53 

4:26 

HD8-16 

27 

:53 

1:20 

1:47 

2:41 

3:07 

3:34 

T12 

24 

:48 

1:12 

1:36 

2:24 

2:48 

3:12 

R14 

25 

:50 

1:14 

1:39 

2:28 

2:53 

3:18 

21 


MILKING  SYSTLM 


HOURS  MILKING 


X 

a 


m 

cn 

o 


HOURS  MLKING 


O K)  4^  O 00 

ft-- > !■ I,.,—  I ■ II 


$ PER  COW 


22 


COSTS  AND  MILKING  TIME  FOR  VARIOUS  HERD  SIZES 


MILKING  SYSTEMS  COST 
FOR  VARIOUS  HERD  SIZES 


200 


MfLK5^4G  SYSTEM  MLKMS  SYSTEM  MLKWG  SYSTEM 


o 


HERD  SIZE 

I 


g 


S! 


8 


X 

o 

(Z 

X 


o 

id 

m 


HERD  SIZE 


$ PER  COW 


O H 

c H 

” P $ PER  cow 


a 


U1 


HERD  SIZE 


I PER  COW 


es 


24 


COSTS  & CAPACITY  FOR  VARIOUS  MILKING  TIMES 


MILKING  S <S7EM  MILKING  SYSTEM  MILKMJ  SYSTEM 


$ PER  CO~N 


% PER  COW 


X 

m 

X) 

o 

W 

M 


p 

2 

o 

Ln 

U’ 


d 

o 


o 

iD 

M 

m 

ho 

cn 


25 


MILKING  SYSTEMS  COST  FOP  VARIOUS  HERD  SIZES 


APPENDIX  B 

SYSTEJyiS  LAYOUT  DESIGNS 


26 


Door 


Manger 


NO.  722-1  SDB-2 


27 


FACE  OUT  STANCHION  BARN 


DRAIN 


FEEDER 


MILKING 

PIT 


7-8m 

22-26  ft. 


COW  PLATFORM 


FRO'IT 

GATE 


OPERATOR 
DOOR 


6m 

18-20  ft 


NO.  722-1  MP-6 


MILKING  PARLOUR  - DOUBLE  HERRINGBONE 


Cow 

Exit 


Cow  Entrance 


i 

I 


I 


29 


NO.  722-1  MP-8 


rOLKlNC:  PAKl.OUR  POLYGON 


Cov;  Cow 

Exit  Entrance 


On  rotary  herringbone  platforms,  the  cows  enter  and  exit  individually ...  and 
are  positioned  at  an  angle  to  the  direction  of  rotation  facing  the  outside  of  the 
platform.  Hieir  bodies  fit  together  in  a fashion  similar  to  conventional  herring- 
bone parlours.  Thus,  the  rotary  herringbone  is  smaller  in  size  than  a rotary 
tandem,  and  the  cow’s  udders  are  closer  together.  The  milker  works  from  the  inside 
of  the  platform.  These  platforms  generally  rotate  continuously,  allowing  18-35 
seconds  per  stall  with  provision  for  emergency  stopping. 


30 


NO.  722-1  MP-12 


MILKING  PARLOUR  - ROTARY  HERRINGBONE 


APPENDIX  C 
QUESTIONNAIRE 


31* 


Milking  System  Evaluation  (data  sheet) 


Name:  

Herd  Size:  

Mechanization:  CG  PG  FG  AW 


Milking  System: 

Date : 

PS  SS  AMD  other 


Time  (min.)  # of  Cows  # of  men  Time  (min.) 


1 , Set  up  time  (AM) 

(PM) 

2.  Parlor  time  (AM) 

(PM) 

3o  Machine  time  (AM) 

(PM) 

4,  Cleanup  time  (AM) 

(PM) 

AM 

AM 

PM 

PM 


Desired  Milking  Time:  AM  PM 

Working  pace:  12345 

Work  satisfaction:  12345  explain 


Original  price  of  parlor: 

$ 

Year: 

Replacement  value: 

$ 

Annual  repair  cost: 

$ 

Insurance: 

Corrment  and  observations: 

32