Culling decisions are important to the financial success of a dairy farm. A
nnual-culling rates for most dairies;range from 25% to more than 35%. Altho
ugh computerized record systems have improved the quality of dairy records,
minimal progress has been achieved toward better analysis of the data. Pro
fit, cash flow (CF), and risk must all be considered when determining which
cows to cull. The distinction between fixed costs (FCs) and variable costs
(VGs) must be made to analyze culling decisions properly. Based on economi
c principles, only pertinent VCs should be considered in the culling decisi
on. Relevant opportunity costs of postponed replacement must also be consid
ered, depending on the degree to which existing cow facilities are being ut
ilized. Potential profits and related culling decisions are evaluated on th
e basis of future CFs in relation to milk production, reproduction, and udd
er health. Culling models that simulate future dairy cow performance demons
trate the potential differences in cow values, related seasonal effects, re
productive performance, and mastitis, even though mature-equivalent milk pr
oduction predictions may be equal.