 |
|
|
|
|
|
|
| |
|
Monitor income over feed costs
| By Todd Steen, TFC Nutritionist |
5/24/2012 |
Current dairy industry trends suggest milk prices are dropping and feed prices continue to be volatile, which may require tough decisions to maintain acceptable profit margin. When feed represents half or more of production costs, producers tend to focus primarily on feed cost per ton. Certainly, economical feeding programs are a plus, but not at the expense of cutting essential nutrients that produce profit.
When evaluating feeding programs, milk production should never be conceded. Dairymen are in business to sell milk, and arbitrarily cutting costs, such as switching a feeding program, often results in greater loss of income from lower milk yield than savings in expenses. There are three methods of measuring feed costs, and two of them are basically meaningless. Feed costs as a percent of milk sales is particularly weak since both feed and milk prices vary drastically. Feed cost per cow per day is limited at best due to the poor correlation with milk production. As a rule, feed cost per cow per day increases as milk production rises, giving the false impression that higher-producing cows are less profitable.
The best method is to determine feed cost per unit of milk produced or assess income over feed cost (IOFC). Although IOFC varies among farms, this measurement allows the primary use of feed cost to be monitored for progress toward the producer’s goals. When calculating cost per hundredweight (cwt) of milk, more milk may not lower the cost of feeding the cow but will increase IOFC.
Always remember that the maintenance cost of a cow is essentially the same whether she produces 40 pounds or 75 pounds of milk. The gain in efficiency per animal leads to more profit. If, by switching to a low-cost feed, milk production slips, the producer generally loses money. It is imperative to provide proper nutrients and management at the best possible cost for the desired production. If nutrition is compromised, the cows could lose production, dry matter intake (DMI), and/or bodyweight.
When reviewing rations, remember that the objective is to provide required nutrients at the best cost. Analyze the forages, which represent the largest component of the total diet. Properly balance for rumen fermentation and function. The most economical way to feed dairy cows is to ensure adequate rumen-available protein for maximum output. Also, select feed additives that fit your ration and result in positive return on investment. If not, remove them.
It’s also wise to check feeding management. Cows should always have access to fresh, palatable feeds and water. Remember that an extra pound of intake can result in about 2 to 2.4 pounds of additional milk.
For a more detailed comparison of the true cost of a well-balanced ration versus a less-expensive ration, visit
Co-op’s website and read my previous article on this subject:
http://bit.ly/EvaluatingDairyFeed.
Remember, your Co-op feed and animal health specialist is a valuable resource to help analyze your feeding program and balance rations for the most cost-effective and productive results.
|
|
|
|
|
|
|
|
|
|
|
|