July 26, 2001

Dairy Specialist Offers Suggestions for Managing Shrinkage and Spoilage Losses

Cutting the amount of feed that is lost and spoiled has the potential to boost dairy producer profits, according to a North Dakota State University dairy specialist.

"Most industries track shrinkage and spoilage losses routinely and look for ways to reduce these losses through improvements in the way products are handled," says J.W. Schroeder of the NDSU Extension Service. "Dairy producers incur shrinkage and spoilage losses every day in their feeding programs and in salable milk that does not make it into the milk tank. But how many track those losses with the intention of making improvements?"

Studies indicate that typical shrinkage and spoilage losses on dairy farms are 5 to 9 percent for dry feed and 15 to 25 percent for wet feeds. For a dry feed that is fed at the rate of 6 pounds per cow per day and costs $120 per ton, the potential loss ranges from $1,100 to $2,100 per year at 5 and 9 percent, respectively, for 180 cows. Losses for a wet feed fed at the rate of 25 pounds per cow per day and costing $25 per ton range from $4,300 to $7,200 per year for the same herd. Feed mills normally have shrinkage and spoilage losses in the range of 2 to 3 percent.

"Those numbers illustrate the potential economic benefit of efforts to reduce shrinkage and spoilage," Schroeder notes. "Producers must also consider those losses when they calculate feed needs and the potential economics of feed."

What causes shrinkage and spoilage losses? Shrinkage is normally associated with losses due to wind blowing feed away, spilling feed when handling, or not weighing feed into the mixer. In silage and wet byproducts, shrinkage may result when nutrients seep out of the feed. Those losses are more difficult to measure without extensive sampling and analysis.

How can shrinkage and spoilage losses be controlled and minimized? Develop an inventory record system that will allow you to measure shrinkage and spoilage losses for all feeds, including forages, Schroeder recommends. It is useful to separate losses associated with feeding from storage when possible. This more detailed record keeping allows problem areas to be identified.

Properly storing feed is another key, Schroeder says. Minimize exposure to blowing rain and wind in commodity sheds. This may require renovation to facilities in some cases. Manage inventories to keep feed fresh. Use wet feeds (wet corn gluten feed, etc.) as quickly as possible or consider bagging them. Fill silos as quickly as possible, pack tightly, and cover to keep air and water out. Store hay in barns or under cover to reduce spoilage.

"Train employees to minimize shrinkage and spoilage and to identify situations that may contribute to higher-than-acceptable losses," Schroeder says. "Work with employees on material handling methods. Explain the reasons why a specific amount of each ingredient is used in the ration and the consequences of not feeding enough or putting extra in the ration."

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Source: J.W. Schroeder, (701) 231-7663, jschroed@ndsuext.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu