February 6, 2003

Dairy Specialist Says Make the Right Cuts When Reducing Dairy Feed Costs

If long hours and hard work guaranteed good living, North Dakota dairy farmers would be living well. Despite that hard work, high feed prices due to drought, varying forage quality due to untimely precipitation and low milk prices have dairy farmers facing difficult economic decisions, according to a North Dakota State University Dairy Specialist.

"Feed accounts for 45-60 percent of the cost of producing milk," explains J.W. Schroeder of the NDSU Extension Service. Until better milk prices become a reality, lowering feed costs is often the only alternative for lowering cost of production. "As producers cut inputs it is very important to assure that they don’t lose more than they gain," he says . He offers some tips for producers to follow to reduce feed costs without affecting production.

Plan the year’s forage inventory. Schroeder says planning will allow producers to determine approximate concentrate ingredient usage. Once producers have an estimate of the amount of ingredients they’ll need they can lock in prices for certain commodities.

To optimize cow performance, plan the year’s feeding strategy in advance to help control feed costs and keep the ration consistent over long term, Schroeder suggests. Any significant changes in amount or type of forage fed usually result in decreased production.

Monitor the dry matter of silages and high moisture grain on a routine basis. Schroeder says this practice can reduce risk of over- or under-feeding a forage or concentrate, which will result in a nutrient imbalance, especially in protein and energy.

For many dairy farms, including a buffer in the diet is unnecessary, Schroeder says. Phosphorus is another mineral that is often overfed. Studies conducted over multiple lactations show that diets formulated to the 2001 National Research Council recommendations will not impede production or reproduction. A simple check can be made to determine if requirements are being met. Producers can examine the current ration for their lactating herd. If the phosphorus level is greater than 0.44 percent, it is likely that it can be lowered which will help reduce total feed costs.

Cows don’t have a specific protein need, they have an amino acid requirement, Schroeder points out. Protein levels can be lowered if the following criteria are met:

• Rumen degradable and undegradable proteins are balanced.
• The levels of amino acids in the diet are examined using a computer model.
• Forage quality is not a limiting factor affecting dry matter intake.
• Milk urea nitrogen (MUN) is used as a tool to evaluate the nutritional status of the herd.
• The herd is monitored on a regular basis for production and milk components.

"Evaluating and prioritizing feed additives is important to cost effectiveness," Schroeder says. Producers should not eliminate an additive that has proven itself in minimizing herd problems. However, if an additive is being fed and the benefits are not obvious, it is important to discontinue its use.

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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