Cut Costs, Boost Bottom Line

AgriView’s Feb. 11 issue contained an article that shared tips with readers about how to continue to cut costs on dairy farms. Although milk prices are back to profitable levels, opportunities to cut costs still exist and can help increase your revenue.

Tips in the article provided by Iowa State University Extension dairy specialist Lee Kilmer included:

1. Never give up milk production. During tight times, it can be tempting to reduce or cut some ingredients from rations, but every time this happens, you cause production to drop and the value of that lost milk is greater than the value of your savings in feed.
2. Always maintain milk components – protein and milkfat are the determining factors of your milk check.
3. Don’t make feeding changes that could impact the health or performance of your herd. Be cognizant of the fact that these changes may not occur right away, but could take place over time, leading to a gradual loss in body condition.
   

Nutrition
Kilmer also provided reminders and tips about nutrition.

1. Only when an animal has proper nutrition can it produce milk. Each pound of dry matter (eaten) above a cow’s maintenance requirement will support an additional two pounds of milk production.
   Start thinking about feed costs as feed cost per hundredweight of milk sold, not per cow per day – this calculation takes into account both feed costs and production efficiency.
   Trim the fluff. This could be feed additives. Some additives are marketed based on extensive research, such as rumen buffers, ionophores, and monensin (sold under the trade name Rumensin). Others; however, are marketed on hype. Work with your nutritionist to determine the best additives for your herd.
2. Evaluate the prices of byproduct ration ingredients since they are not as vital to milk production as good forages and corn and soybeans. Kilmer said the challenge for nutritionists and producers is to identify and take advantage of “good” feed buys, and he said avoid purchasing the “byproduct of the week.” He sited the Wisconsin FeedVal computer program and the Missouri Dairymen’s ByProduct Feed page as two excellent sources to get started.
   
   Click here to read the full article.