Dairy Ration Feed Additive Break-even Analysis

V.E. Cabrera, K. Bolton, R. Shaver


Tool Overview

Opportunities abound to purchase and utilize a wide range of dairy cattle feeds and ration additives. Many feeds may be used to a dairy producer’s economic advantage given sufficient milk revenue to more than offset additive cost. Purchase options range from macro ration ingredients of forage to grain to protein supplements to micro nutrients. A common recommendation is that additives should offer a two to one return on investment in order to offer a reasonable prospect of profitability.

The “Additive” interactive decision making tool allows dairy producers the opportunity to determine, based on additive cost and available milk price, the breakeven milk production needed in order to pay for a ration ingredient. Inputs may be selected on spin buttons for Additive Cost (¢/cow/day) and Milk Price ($/cwt). Tool output is in terms of pounds of milk production needed to break even on the investment.

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