efficiency and decreases considerably as production increases from 25 to 50 lbs of milk/cow/day"2. (M.J. Vanderllaar, Ph.D., 1997) I t is important therefore to help dairy producers understand that simply lowering the feed cost alone, especially when it compromises production, is not recommended. Studies have shown that feed efficiency increases as a cow produces more milk and that in general, income over feed costs (gross margin) increase as milk production increases, even when feed becomes more expensive 2. Generally, in order to maintain higher levels of milk production, higher quantity and quality of feed has to be provided and that, can increase cost of production. At the same time, to insure better feed intake and conversion, there must be an investment in better cow care, comfort, and management (ex. cooling systems, water availability per cow, feed availability, etc.). Nevertheless, in most situations when income over feed cost is increased, profitability also increases. (see tables
1 and 2 in Appendix B.)
It is also important to understand, that cost of feed per hundredweight is not the only financial measure that dairies should track. In some cases, such as when comparing profitability between different dairies, the total volume of milk production must also be considered. In the project shown in the appendix, the only costs monitored were those of the lactating herd, but usually dairies should include the feed costs of the dry cows as well. Nevertheless, the feed cost per hundredweight of milk sold is a better measure than simply looking at feed costs per cow.
Following, is a simple illustrative example, as it appears in "Making Your Feed Dollars Count: Sometimes We Just Need to Get Back to the Basics" by Jorge M Estrada and Gary F. Hartnell 3
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