Reduce Feed Costs to Relieve Tight Dairy Margins

Ongoing challenges in milk prices and consistently tight margins make dairy producers wonder where more budget can be trimmed. Dairy experts from Iowa State University and the University of Minnesota say one area to look at is feed costs. When cows are in later lactation, look for ingredients that could be trimmed or removed or for local by-product replacements that could reduce ration costs.

Typically, a dairy cow can pay for its feed with 30 to 35 pounds of milk production. Accounting for today’s economic conditions, a cow must make 40 to 50 pounds to break even on feed costs. Stocking density could be an area for producers to consider, as well. Overstocking could work better for late lactation cows, as well as lessening heifer inventories. Ultimately, the specialists agreed producers should consult a dairy nutritionist before making any cost-cutting decisions.

Read more on cost-saving strategies for dairy producers here.