How can dairy producers measure the real impact of reducing operational feed costs? While measuring cents per cow is essential, looking at the overall percentage change in feed costs is critical. But why does that matter?

According to Steve Martin, an ag economist, the percentage change is the best way to evaluate cost change opportunities. Building cheaper diets doesn’t have to mean lower-quality feed. Dairy operation size is likely the most significant driver for intelligent economic decisions. Martin says managing cost reductions and smart investments simultaneously is what leads to the best financial result.

Read more on dairy economics and managing feed costs here.