In 2016 the Penn State dairy herd averaged a gross milk price of $16.84/cwt with an average Class III milk price of $14.87/cwt and a basis of $1.97. The projection for 2017 is a $17.50/cwt Class III milk price. Corn price is ranging between $3 and $4/bushel and soybeans $10/bushel. It appears milk price will improve and feed prices will remain about the same compared to 2016. The one unknown is weather and how that will impact forage quality and quantity. These scenarios are not new and should not be a surprise to anyone working in the dairy industry. Precision feeding is the one constant that can maintain milk production, control feed costs, and manage forage inventories. All three items are important to maintain a respectable margin so expenses can be paid.
Over the past five years more Pennsylvania dairy producers have embraced precision feeding. This is being confirmed by comparing TMR analysis results with the formulated ration. A close match of nutrient specifications shows the farm is paying attention to feed management. There are some commonalities of farms doing an excellent job with precision feeding. The first is the lactating cow ration contains high amounts of corn silage with other alternative forage sources such as small grain silage. By balancing for metabolizable protein, the protein percent of the milk cow ration has been greatly reduced to 16 to 17% on a dry matter basis compared to levels observed in the early 2000s of 18 to 19%. This has improved the carbohydrate and protein balance for the cow and in many instances production has improved or been maintained. Progressive producers are routinely monitoring the dry matters of their feeds and adjusting the rations accordingly. They are also managing how crops are harvested and stored to better match the animal group being fed.
Shrink or feed loss can have huge implications especially when yields have been compromised due to weather conditions. Managing feed out from storage and during feeding can make a difference by several weeks on the amount of forage retained in inventory. Management is the key for keeping dairies in business and precision feeding encompasses many aspects related to cropping and feeding management.
Precision feeding is not only for lactating cows but also for dry cows and heifers. These groups can affect forage inventory, feed costs, and animal performance. They are the future income generators of the operation and precision feeding for these groups can make or break the budget.
Precision feeding is not only for TMR fed herds. Component feeding can be managed for precision feeding however it may require more attention to details. Grain mixes and protein supplements can be analyzed to compare to the paper formulation. Checking weights of grain scoops and hay/silage bales can help hone in on dry matter intakes. There are feeders available that minimize waste when hay/silage bales are offered free choice. Monitoring animal growth can confirm animals are receiving the correct amounts of feed or that feed space is adequate. If precision feeding is made a priority it can work on any dairy operation regardless of the feeding system or herd size.
Action plan for implementing precision feeding on the dairy operation
Monitor feed inventory, income over feed costs and ration agreement with the formulated diets on all animal groups on a quarterly basis.
Monitoring must include an economic component to determine if a management strategy is working or not. For the lactating cows income over feed costs is a good way to check that feed costs are in line for the level of milk production.
Source: PennState Extension
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