Is 100lbs tank average profitable?

11/11/2021

In the face of rising inputs and unstable milk prices:
               - Is it costing more to make the milk than what producers are being paid?
               - Are herd averages and milk tank averages still the best way to determine profitability?
               - Is chasing a 100lb tank average or 30,000lb rolling herd average cost efficient?
               - Is the way that it’s always been done working?

The industry says you need to be at a feed efficiency of 1.5lbs of milk, or greater, for every pound of feed fed on a dry matter basis to be profitable. This means that for every pound of feed fed on a dry matter basis, the cow is making at least 1.5 pounds of milk from it.  The below chart shows the feed efficiencies from varying production levels and dry matter intakes before and with Microbiology Nutrition:
              90lbs of milk / 68lbs DMI = 1.3lbs of milk per dry matter pound
              (before Microbiology Nutrition)
              90lbsof milk / 45lbs DMI = 2.0lbs of milk per dry matter pound
              (with Microbiology Nutrition)
              68lbs of milk / 52lbs DMI = 1.3lbs of milk per dry matter pound
              (before Microbiology Nutrition)
              75lbs of milk / 45lbs DMI = 1.6lbs of milk per dry matter pound
              (with Microbiology Nutrition)

Evaluating feed efficiency puts the focus on the importance of cost per cow. Evaluating feed efficiency and cost per dry matter pound can be very enlightening for producers to see what truly works or doesn’t work for their herd.

Taking out of the ration what can’t be digested, such as straw or poor hay; Microbiology Nutrition delivers digestive health through nutrient density, significantly improving feed efficiency. The efficiency of Microbiology Nutrition makes farms more profitable. Producers cannot afford to feed anything that doesn’t have a benefit; therefore, Microbiology Nutrition is a nutrient dense approach to feeding cows, ensuring the cow gets the most of what she needs in every bite of the ration.

The dry matter pounds saved with the nutrient dense approach of Microbiology Nutrition is an opportunity that tightens down costs, while still being able to put milk in the tank. The efficiencies gained from Microbiology Nutrition makes farms more profitable with a focus on feed costs per cow – Gain more insights in How to Turn the Dairy.

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