Feed a Big Item, What to do?

Feed is the big item for most dairy producers. Purchased grain prices have skyrocketed (and milk price is getting softer). Many people have been looking at the old Milk-Feed Price Ratio as an indicator of profitability in the dairy industry. Since 1985 up to the present period of time the Milk-Feed Price Ratio has been at a high of 4.34 in December of 1998 and a low of 2.05 for March of 2008! It may provide some indication of profitability, but it shouldn’t be a signal to short change your cows on grain. The most important thing is the margin per cow after feed costs, not the Milk-Feed Price Ratio. The same ratio with $20 milk leaves you a better margin per cow than when the milk price was $12. However, we all know that most all other expenses (besides feed) have also gone up. In addition, when the Milk-Feed Price Ratio is 2.05 the margin per cow becomes quite slim even if milk is $20/cwt. So, what can/should you do in response? There are a number of things to look at, but be sure you don’t nutritionally short change your cows.

1. Forage quality – I know you’ve all heard this one before, but its number one on the list. If these record high grain prices don’t get you to harvest your hay crop early this spring I don’t know what will.

Example: 1,350 lb. cow producing 75 lbs. of 3.7% fat, 3.0% protein. DMI = 49.5 lbs.

Ration	Lbs. of DM
Corn Silage. (42% NDF) Mixed Hylge(45% NDF) Grain Mix	15.5 15.5 18.5 (as fed = 20.79 lbs)
Corn Silage. (42% NDF) Mixed Hylge(55% NDF) Grain Mix	13.9 13.9 21.7 (as fed = 24.38 lbs)
Corn Silage. (42% NDF) Mixed Hylge(65% NDF) Grain Mix	12.6 12.6 24.3 (as fed = 27.30 lbs)
Mixed Hylge(65% NDF) Grain Mix	20.8 28.7 (as fed = 32.25 lbs)

Same level of milk production with grain required ranging from 20.8 lbs. per head per day up to 32.25 lbs. per head per day! If intensive rotational grazing is feasible for your herd and you have not used it, now is the time to give it a second look!

2. Check out our Team Website— we will again be taking forage samples from grass and legume fields from around our region as the hay crop matures. Results are often on the site within 24 hours of sampling. Use this data to help you decide when to harvest: http://cnydairylc.cce.cornell.edu/index.html

3. Preserve Forage Well – with fermented feeds in a bunker silo you need to PACK, PACK, and PACK some more. Cover it immediately with high quality plastic and old tires to hold it down. Dry hay should be put under cover as soon as possible.

4. Take Advantage of High Quality Forage – if you have high quality forage be sure you are taking advantage of it. Too often we see people producing high quality forage but they are feeding as much grain as when quality was lower. Pounds of forage NDF should equal 0.9% of body weight or higher and forage levels of 60% + of dry matter intake should be achievable.

5. Improve Feeding Accuracy – with a TMR be sure your forage dry matters are correct. Check them frequently and adjust your as fed weights accordingly. Take care when handling feeds to reduce shrink.

6. Feed Availability – cows should have feed available to them most all the time. If cows are without feed more than 1 – 2 hours per day (during the entire 24 hour period) you are probably giving up some low cost production. How often do you push feed up with a free stall system? In your tie stall barn how long after you leave the barn at night are cows without feed? Do some checking.

7. Be sure your supplier is competitive - during times of high feed prices we see producers changing suppliers more frequently. Feed suppliers are all experiencing the same market forces. Also, good service can be quite valuable, so be sure to take that into account.

8. Compare Costs Correctly – don’t get into the cost per ton mentality of comparing one feeding program to another. If you have to feed more of a cheaper feed it may actually cost you more in the long run. Look at costs per cow per day. Too often I’ve seen producers pressuring their supplier into making a cheaper feed (pellets especially) and then they end up adding flaked corn or corn meal to the diet to make up for the shortfall of the cheaper feed they had made up originally. With TMR feeding be sure the feeding programs being compared uses the same dry matter intake when comparing rations.

Here’s an example of what can happen when making comparisons if you’re not paying attention. Cows are actually consuming 50 lb. of DM per cow.

Ration 1 - 50 lbs. DMI – ration is 40% grain, 20 lbs. of grain DM = 22.22 lbs. as fed at $315/ton. – cow/day cost = $3.50

Ration 2 – assumed to be 47 lbs. DMI – ration is 40% grain , 18.8 lbs. of grain DM = 20.89 lbs. as fed at $325/ton – cow/day cost = $3.39

Ration 2 corrected to 50 lbs. DMI – ration is still 40% grain, now 20.0 lbs. of grain DM = 22.22 lbs. as fed at $325/ton - cow/day cost = $3.61!

9. Scrutinize the Extras – give a critical eye to the additives and extras you may have put into the ration when times were good. They may still pay, but be sure.

10. Get Cows Pregnant – what I mean is to get them pregnant on time. Herds with high average days in milk are often losing lots of money. For every 10 days past 180 that the average days in milk is, your herd will be down by 1.0 – 1.5 lbs. per cow per day. That adds up to some real big money!

11. Stay on Top of Your Transition Program – nothing hurts production more than all kinds of fresh cow problems. Even though some problems are unavoidable, a well managed dry, pre-fresh, and fresh cow program can really keep problems to a minimum.

12. Look at Milk Components – balancing diets for amino acids may cost a bit more per cow per day, but its milk income after feed cost that’s most important! What are they paying for milk protein now, somewhere in the $4.00 to $4.50 per pound range?

13. BST – the payback when milk is near or above $20 has never been better. Lots of controversy. You handler may say no. Premiums to not use it should be over $1.00/cwt when compared to using it per the label on healthy cows. You decide.

14. Don’t Forget Cow Comfort – other factors can have a big impact. Review stall comfort, resting time, udder health, lighting, water availability, ventilation, feed bunk surface, and other items.