Dairy Grist
WESTERN & PRAIRIE EDITION A PERIODIC NEWSLETTER PRODUCED BY GRAND VALLEY FORTIFIERS VOLUME 24, ISSUE 2 | SUMMER 2022
Dear Friends, After what seemed like a long, relatively cold and variable winter, Spring has sprung and farmers across our country are busy in the fields getting their crops into the ground, evaluating winter kill and fertilizing their winter wheat. As always, high yielding, high quality crops and forages are key to farm profitability and year-round, herd performance. This year however, with fuel, fertilizer…and frankly every other inputs’ costs increasing by double digit percentages, the need for and the importance of “precision farming” both in the field and in the barn has never been greater. This edition of the Dairy Grist is very focused on providing perspectives and strategies to maximize farm profitability during these inflationary times. Now, more than ever, having a total farm plan, developed in collaboration with trusted advisors, having access to accurate on-farm data and agreeing on the right key metrics to monitor and benchmark against will pay big dividends. We believe that Income Over Feed Cost (IOFC) is one of these key metrics and through a couple of the articles below provide some tips and tricks to maximize IOFC accordingly. I trust that you will find this edition of the Dairy Grist helpful and that it will spark beneficial conversations with your Nutrition Consultant and other advisors to your farming operation. With an on-going desire to serve dairy producers in increasingly better ways, we are very pleased to welcome Nikki Campbell to our Ontario Ruminant team, along with Stan Claassen who’s joining our Ontario team as a summer intern. In Manitoba we welcome James Kinley in a summer intern role. We look forward to introducing them to the dairy producers that we are privileged to work with in the respective regions of the provinces. Sincerely, Ian Ross, President & CEO, GVF group of companies
INCOME OVER FEED COST: GET TO THE NEXT LEVEL EFFICIENTLY
by: NUTRITION DIRECT TEAM Ruminant Nutrtionists, Grand Valley Fortifiers, Nutrition Direct
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eed costs and overall operational profitability are front of mind for producers and are making for extremely engaging conversations on farm. Internally, GVF has been collecting and summarizing feed cost data for producers for many years now. For 2021 data, in addition to our usual benchmarks and summaries, we also investigated a case study of comparing some of the differences between the top 20% of herds for Income Over Feed Cost (IOFC) (Total Gross Milk Revenue – Total Feed Costs) and the bottom 20% of herds for IOFC. There are many factors that IOFC does not account for. These factors include whether a producer is currently filling quota, labour efficiency, total herd inventory, or the effectiveness of the reproduction program on farm. What IOFC does bring us is an answer to a specific question when comparing to different ration options or between different herds: Am I currently feeding the most nutritionally efficient milk cow ration right now? If not, is there a profitable path to increasing this specific metric? With this case study, we found that there was an astounding $10/cow/day difference in IOFC when comparing the top 20% group and the bottom 20% group. To put that into context, for two farms both milking 100 cows, that would be a $365,000 difference in profit over the course of a year! So, what are some of the differences, from a nutrition perspective, that lead to this vast difference in profitability between different farms?
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1. Feed Home-Grown Grain: The top 20% of farms for IOFC are more likely (70% vs 50% of farms) to feed homegrown grain (such as high moisture corn or cob meal) rather than purchased energy concentrates such as dry ground corn. This factor is very intuitive as the cost to grow and store grain will be more cost effective than buying it in, resulting in a decreased level of total feed costs for the same nutritional ingredient. Note that for producers without enough land-base to grow their own grains, this is not an easy problem to fix due to the price and scarcity of land. The next point is more attainable for all producers.
2. Feed High Corn Silage Diets: The top IOFC group feeds an average of 65% corn silage diets, as a percentage of total ration forage dry matter. The bottom group tends to be more around 50%. Why go high corn silage for milk cows? Good quality corn silage results in consistent rations with less undigestible fibre (uNDF) and high palatability resulting in higher dry matter intakes which produces more milk and/ or components. Corn silage also brings a highly fermentable source of starch that can fire up the rumen bugs to allow them to build the most cost-efficient protein available, which might even help reduce the amount of purchased protein you need, if the cow can make it herself.
Ian Ross, President & CEO | David Ross, VP & CMO Mark Bowman | Jeff Keunen | Kathleen Shore, Ruminant Nutritionists Mat Schwenker, Layout Editor