A Look at True Feed Costs

A Look at True Feed Costs
6/30/2017

When evaluating profitability and whole-herd success, a producer must look to the value of feed inputs rather than simply the cost. Essentially, a best-cost ration, versus a least-cost ration, can help an operation maximize returns. So how does a producer reach this best-cost operating level?

  • Producers must be careful not to choose feed inputs based on cost alone.
  • Producers must crunch the numbers to determine milk production and its value in relation to the total cost of feed, including forages and grains.
  • Create a plan to know where the smartest cuts should be made within you operation.

Sometimes, once a thorough business evaluation is complete, a producer may discover the problem rests more on the income side, rather than in the expenses. Knowing your true business picture can help you make the best decisions for your operation and, ultimately, make the best-cost feed decisions for your herd. To read the full article, click here.

Tags: Feed Costs, Management Tips