Balchem Corporation · NASDAQ:BCPC

Balchem — Technical Presentation (November 2024)

25 slides from Balchem's technical presentation, November 2024

  1. Slide 1: Optimize your calf program: What does the future hold?

    6/1/21 Optimize your calf program What does the future hold? • Robert James, Ph.D., PAS • Professor Emeritus – Va. Tech – Dept. of Dairy Science • Down Home Heifer Solutions, LLC 1 A little different approach •Biology of the calf •Dairy industry challenges (or opportunities)! •Consumer perspective D

  2. Slide 2: What issues are “driving” our industry?

    6/1/21 What issues are “driving” our industry? • Improved financial management • Minimizing costs vs optimizing returns? • Short- or long-term gains? Preparing for the future vs daily survival?? • Animal “welfare” – Seeking the win:win solutions. • Labor – availability, effectiveness, efficiency, $

  3. Slide 3: Primary goal of all heifer rearing programs

    6/1/21 Primary goal of all heifer rearing programs • Raise the highest quality heifer that can maximize profits when she enters the lactating herd. • No limitations that detract from her ability to produce milk under the farm’s management system. • Optimize profits by obtaining highest quality heife

  4. Slide 4: Financial management – applied to calves

    6/1/21 Financial management – applied to calves! •Historical = low cost/day • Limited milk • Early weaning • Calf ranch approach – economy of scale, specialization and protocol development – past and future??? •What about optimizing returns? 7 Low-cost/day rearing – Is this a sustainable goal? •DCHA

  5. Slide 5: Preweaning morbidity and growth rate

    6/1/21 Preweaning morbidity • Respiratory disease <10% • Define respiratory disease? • Ultrasound lungs? • Impact of respiratory disease on lifetime performance? • Rossini et al (2004) – Treat >2X = reduced herd life and increased AOFC. • Bach et al (2010) – Treat >4x =1.87 odds of not completing 1s

  6. Slide 6: Instead of cost/day – optimizing cost per lb of gain

    6/1/21 Instead of cost/day – Optimizing cost / lb(g) of gain our returns – biology Nutrient requirements and $$ for maintenance and gain 11 $ / pound gained for 120 lb calf Thermoneutral conditions Type of liquid diet 2 qt. twice daily (1lb solids) 3 qt 3x daily (2.25 lb. solids) Whole milk – 3.25

  7. Slide 7: Impact of environment on ADG

    6/1/21 Impact of environment on ADG • At colder temperatures – energy is diverted from growth to maintenance = Less efficiency and higher cost/gain • At higher intakes, protein intake may be limiting daily growth and excess energy = more body condition Whole Milk Intake Environmental Temperature (oF

  8. Slide 8: What is “normal” preweaned nutrition for mammals?

    6/1/21 Advantages of body condition in preweaned calf? 15 What is “normal” preweaned nutrition for mammals? 16 8

  9. Slide 9: Optimizing returns

    6/1/21 Optimizing returns 18 Optimizing returns – raise what you need! •Cost to rear replacement heifer exceeds their market value. • 2019 Dairy replacement cost - $2,094 – $2,607 - J. Karzes. • May 7 USDA / AMS - $1,009 •Selling “surplus” heifers is not profitable 19 9

  10. Slide 10: Optimizing returns – cont’d.

    6/1/21 Optimizing returns - cont’d. •Control involuntary culling rate in milking herd •Minimize calf mortality •Optimize potential of what you raise • Nutrition – feed them to realize genetic potential • Health – minimize impact of disease. • Biosecurity risk of purchasing replacements. 20 Optimizin

  11. Slide 11: Impact on calf nutrient requirements and labor effectiveness

    6/1/21 Impact on calf nutrient requirements 22 Impact on labor effectiveness 23 11

  12. Slide 12: Impact on controlling shrink; calf welfare

    6/1/21 Impact on controlling shrink 24 Calf “welfare” Calf and consumer perspective 25 12

  13. Slide 13: Impact of calf management systems on performance and consumer perceptions

    6/1/21 Impact of calf management systems on calf performance and consumer perceptions • Paired or group-housed • Earlier starter intake • Adapt better to novel situations • Less stressful weaning Costa et al, 2016, Jensen et al, 2014 • Impact on behavior as cows???? L. Raatz – Wagner Farms 27 Transp

  14. Slide 14: Canada transport rules; labor availability

    6/1/21 Calves may be transported for up to 12 hours as long as dehydration, starvation and exhaustion are prevented. Canada – Once 12 hours is reached, they February must be provided with feed, water and rest. 2020 Calves 8 days and under may only be transported once and are prohibited from going to

  15. Slide 15: Improving labor efficiency and effectiveness

    6/1/21 • Washington state – 200,000 farm Minimum workers wage and • >40 hours/week – overtime overtime pay • California – phased in >26 or <25 employees • 9.5 to 8.0 h/day • 55 to 40 h/week 31 What can be done to improve labor efficiency and effectiveness? What can be done to improve labor retention

  16. Slide 16: Labor efficiency and effectiveness

    6/1/21 Labor efficiency and effectiveness 33 Calf care tasks can be labor intensive • Maternity – calving, colostrum harvest/storage • Newborn care – navels, vaccinations, colostrum feeding, transport • Milk prep / pasteurizer / storage • Milk replacer • Milk feeding – bucket or bottle, sanitation •

  17. Slide 17: Impact of housing on labor effectiveness and efficiency

    6/1/21 Impact of housing on labor effectiveness and efficiency? 35 Do you have a calf manager or calf feeders? Calf Manager Calf feeder • Passionate about calf growth and • Enjoy routine – time of day, days of welfare. week, expectations for their work. • Open minded to new technology • Not especial

  18. Slide 18: Nutrient management

    6/1/21 Inclusion of youngstock and calves in nutrient management plans Nutrient Factor for farms considering calf management and heifer growers. Accommodate nutrient flow from calf raising facilities 37 Facilities for calves and nutrient effluent management 38 18

  19. Slide 19: How do you “manage” your calves?

    6/1/21 How do you “manage” your calves? • to handle or direct with a degree of skill: such as: • to exercise executive, administrative, and supervisory direction of, manage a business • Hmmm…. Apply this to the calf enterprise 39 What does the future hold and are you ready? • Where is your calf [pro

  20. Slide 20: What records do you have to “monitor” your calf program?

    6/1/21 What records do you have to “monitor” your calf program? •What is the status of calf program today? •Communication Calves Calf “feeder” Calf manager Herd manager or herd owner DVM Industry partners – feed, equipment 42 Examples •Daily monitor – off feed, slow drinkers •Weekly or monthly repor

  21. Slide 21: Daily calf monitor

    6/1/21 Daily calf monitor Milk prep Mixing AM PM No. of calves 235 235 Lbs of Milk 1050 1030 Lbs of water 900 1000 Lbs of milk replacer 150 150 Total lbs of solution 2100 2180 Temperature of 105 95 solution on truck when leaving barn 44 Daily calf monitor Feeding Temperature milk – last calf fed 92

  22. Slide 22: Daily calf monitor – health

    6/1/21 Daily calf monitor Health Document all treatments in log and report abnormal event to DVM or mgr. Number of scouring calves 0 8 Number respiratory calves 0 0 Number of navel calves 1 2 Deads (immediate report) 0 1 Tag numbers treated 2367e, 2369e, 2100e, 2108e, 2109e, 2110e, 2115e, 2116e E= e

  23. Slide 23: Essentials for calf management

    6/1/21 Essentials for calf management • Calf management team – feeders, managers, herd management, DVM, industry partners • Communication pathways • Records – minimal lag and relevant to achieving goals (growth, health, financial. • Commitment to improvement. 49 Impact of technology •Robotic milking

  24. Slide 24: What are the “bottlenecks” with your calf program?

    6/1/21 51 What are the “bottlenecks” with your calf program? • Is your calf program important to the herd future? • Identify bottlenecks • Prioritize – timeliness, impact on farm profit and sustainability – now and in the future • Develop a management mindset with calves • Do what’s best for your ca

  25. Slide 25: Optimize the calf program for the future!

    6/1/21 • Biology of calf growth and development Optimize the • Calf behavior – cow behavior • Labor efficiency, effectiveness and satisfaction calf program • Nutrient management for the future! • Profit 53 25

Balchem — Technical Presentation (November 2024) on 6ix