Managing $5, $6, $7 bu corn   DAIReXNET Dairy Webinar
$20 milk in 2004  is not $20 milk in 2008 <ul><li>Hay prices varying from  $200-$275 a ton  </li></ul><ul><li>Corn silage ...
Today’s Program <ul><li>Monitoring feed costs in 2008 </li></ul><ul><li>Strategies with high corn/barley prices  </li></ul...
 
Point 1 Monitoring  Feed Costs
Feed Costs 101 <ul><li>lb DM  $/ lb DM  $ / day </li></ul><ul><li>Forages   28  .10  2.80 </li></ul><ul><li>Grain energy  ...
Feeding Economics <ul><li>Feed costs per cow per day $5.90   </li></ul><ul><li>Feed cost per lb DM $0.118  </li></ul><ul><...
Economics of Feed Efficiency (70 lb milk, 12 cent lb DM) <ul><li>Feed efficiency DMI Difference </li></ul><ul><li>(lb milk...
Using the 55-15-30 Rule <ul><li>55%  of the ration is forage dry matter </li></ul><ul><ul><li>28 lb of dry matter </li></u...
Feed Economics  <ul><li>Dry matter intake vs. milk price </li></ul><ul><ul><li>2 pounds of milk per pound of DMI </li></ul...
Take Messages (Point 1) <ul><li>Calculate basic feed costs  </li></ul><ul><ul><li>Cost per lb of DM    (< 11 cents per lb)...
Point 2 Strategies with  Expensive Corn/Barley
Rumen Fermentable Carbohydrates—The Key <ul><li>Starch (corn or barley):    20 to 26% </li></ul><ul><li>Sugar (molasses or...
Alternative Starch Sources  (Source:  AminoCow Feed Library) <ul><ul><ul><ul><li>Starch Sugar  Sol Fiber </li></ul></ul></...
Lower Starch Levels <ul><li>Recommended levels:  20 to 26%  </li></ul><ul><li>Rumen fermentable carbohydrates </li></ul><u...
University of Florida
Shelled Corn Energy Values (Dairy NRC 1989) 0.96 Finely ground  (1100 micron) 0.94 High lysine  (floury) 0.93 Steam flaked...
Coarsely ground  grain in manure University of Florida
Take Home Message (Point 2) <ul><li>Consider all sources of rumen fermentable carbohydrates </li></ul><ul><li>Optimize fee...
Point 3 Other Managements Aspects
Management Factors <ul><li>Target MUN values between 10 to 14 mg/dl (low fermentable carbohydrates can raise herd values) ...
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Feeding Strategies With $5, $6, or $7 Corn- Mike Hutjens

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Mike Hutjens presented this material during the August 18, 2008 DAIReXNET webinar on Surviving High Feed Cost.

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Feeding Strategies With $5, $6, or $7 Corn- Mike Hutjens

  1. 1. Managing $5, $6, $7 bu corn DAIReXNET Dairy Webinar
  2. 2. $20 milk in 2004 is not $20 milk in 2008 <ul><li>Hay prices varying from $200-$275 a ton </li></ul><ul><li>Corn silage at $50 to 60 a ton </li></ul><ul><li>Corn grain at $5 to $8 / bushel </li></ul><ul><li>Breakeven milk prices have reached a new level ($16-$18 per cwt in Illinois) </li></ul><ul><li>It’s a new dairy game; we need to adjust! </li></ul>
  3. 3. Today’s Program <ul><li>Monitoring feed costs in 2008 </li></ul><ul><li>Strategies with high corn/barley prices </li></ul><ul><li>Other management aspects </li></ul>
  4. 5. Point 1 Monitoring Feed Costs
  5. 6. Feed Costs 101 <ul><li>lb DM $/ lb DM $ / day </li></ul><ul><li>Forages 28 .10 2.80 </li></ul><ul><li>Grain energy 10 .10 1.00 </li></ul><ul><li>By-product 6 .15 0.90 </li></ul><ul><li>Protein supp 5 .15 0.75 </li></ul><ul><li>Min/vit/additive 1 .35 0.35 </li></ul><ul><li>Consulting 0.10 </li></ul><ul><li>Total 50 5.90 </li></ul>
  6. 7. Feeding Economics <ul><li>Feed costs per cow per day $5.90 </li></ul><ul><li>Feed cost per lb DM $0.118 </li></ul><ul><li>Feed cost per cwt (80 lb) $7.38 (80 lb) $8.42 (70 lb) </li></ul><ul><li>Income over feed costs ($18) $10.62 </li></ul><ul><li>Feed efficiency (lb milk/lb DM) 1.60 (80 lb) </li></ul><ul><ul><ul><ul><li> 1.40 (70 lb) </li></ul></ul></ul></ul>
  7. 8. Economics of Feed Efficiency (70 lb milk, 12 cent lb DM) <ul><li>Feed efficiency DMI Difference </li></ul><ul><li>(lb milk/lb DM) (lb/day) (savings/day) </li></ul><ul><li>1.20 58.3 </li></ul><ul><li>99 cent </li></ul><ul><li>1.40 50.0 </li></ul><ul><li>74 cent </li></ul><ul><li>1.60 43.8 </li></ul><ul><li>59 cents </li></ul><ul><li>1.80 38.9 </li></ul>
  8. 9. Using the 55-15-30 Rule <ul><li>55% of the ration is forage dry matter </li></ul><ul><ul><li>28 lb of dry matter </li></ul></ul><ul><li>15% of the ration is yours call </li></ul><ul><ul><li>7.5 lb “swing” dry matter room </li></ul></ul><ul><ul><li>Forage quality </li></ul></ul><ul><ul><li>Economics of by-products </li></ul></ul><ul><ul><li>Cheaper nutrient sources </li></ul></ul><ul><li>30% of the ration is concentrate </li></ul><ul><ul><li>15 lb of dry matter (energy, protein, VM pack) </li></ul></ul>
  9. 10. Feed Economics <ul><li>Dry matter intake vs. milk price </li></ul><ul><ul><li>2 pounds of milk per pound of DMI </li></ul></ul><ul><ul><li>40 to 44 cents income vs. 12 cents expense </li></ul></ul><ul><li>Comparison of forages vs. grain vs. fat </li></ul><ul><ul><li>Corn silage ($60/t) = 12.5 cents per Mcal </li></ul></ul><ul><ul><li>Corn grain ($7/bu) = 20.3 cents per Mcal </li></ul></ul><ul><ul><li>Oil (49 cents/lb) = 21.8 cents per Mcal </li></ul></ul>
  10. 11. Take Messages (Point 1) <ul><li>Calculate basic feed costs </li></ul><ul><ul><li>Cost per lb of DM (< 11 cents per lb) </li></ul></ul><ul><ul><li>Feed costs per cwt milk (< $7.00) </li></ul></ul><ul><ul><li>Feed efficiency (> 1.5 lb milk/lb DM) </li></ul></ul><ul><ul><li>Income over feed cost (> $10.00/cwt) </li></ul></ul><ul><li>Compare to local values in your area </li></ul><ul><li>Are alternatives available (55/15/30)? </li></ul><ul><li>Avoid “bad” economic decisions </li></ul>
  11. 12. Point 2 Strategies with Expensive Corn/Barley
  12. 13. Rumen Fermentable Carbohydrates—The Key <ul><li>Starch (corn or barley): 20 to 26% </li></ul><ul><li>Sugar (molasses or whey): 4 to 7% </li></ul><ul><li>Digestible/fermentable fiber (beet pulp or citrus pulp): 10 to 14% </li></ul>
  13. 14. Alternative Starch Sources (Source: AminoCow Feed Library) <ul><ul><ul><ul><li>Starch Sugar Sol Fiber </li></ul></ul></ul></ul><ul><ul><ul><ul><li>------------------------%---------------------- </li></ul></ul></ul></ul><ul><li>Wheat 64 2 3 </li></ul><ul><li>Barley 58 2 3 </li></ul><ul><li>Whey 0 69 0 </li></ul><ul><li>Molasses 0 61 0 </li></ul><ul><li>Bakery waste 45 8 2 </li></ul><ul><li>Corn distillers 3 4 8 </li></ul><ul><li>Corn gluten 20 2 3 </li></ul><ul><li>Hominy 49 4 2 </li></ul><ul><li>Wheat midds 22 5 6 </li></ul><ul><li>Beet pulp 1 8-20 21 </li></ul><ul><li>Citrus pulp 2 24 34 </li></ul>
  14. 15. Lower Starch Levels <ul><li>Recommended levels: 20 to 26% </li></ul><ul><li>Rumen fermentable carbohydrates </li></ul><ul><ul><ul><li>Feeding high quality forage </li></ul></ul></ul><ul><ul><ul><li>By-product by-product feeds </li></ul></ul></ul><ul><ul><ul><li>Consider starch availability in the rumen </li></ul></ul></ul><ul><li>Addition of Rumensin (1 to 2 lb corn equivalent at 300 mg/day) </li></ul><ul><li>Reduce fecal starch losses </li></ul>
  15. 16. University of Florida
  16. 17. Shelled Corn Energy Values (Dairy NRC 1989) 0.96 Finely ground (1100 micron) 0.94 High lysine (floury) 0.93 Steam flaked (24/25 lb bu) 0.93 High moisture (>26%) 0.89 Ground (1500 micron) 0.84 Cracked (2200 micron) Mcal/lb DM
  17. 18. Coarsely ground grain in manure University of Florida
  18. 19. Take Home Message (Point 2) <ul><li>Consider all sources of rumen fermentable carbohydrates </li></ul><ul><li>Optimize feed processing to make nutrients available </li></ul>
  19. 20. Point 3 Other Managements Aspects
  20. 21. Management Factors <ul><li>Target MUN values between 10 to 14 mg/dl (low fermentable carbohydrates can raise herd values) </li></ul><ul><li>Consider more than one TMR group </li></ul><ul><ul><li>Save $1.25 per cow per day </li></ul></ul><ul><ul><li>Lower dry matter intake saves 60 to 75 cents </li></ul></ul><ul><ul><li>Moving cows can drop milk 0 to 5 lb per cow </li></ul></ul><ul><li>Increase corn silage levels (can lower feed costs 25 to 40 cents per cow based on current IL feed prices). </li></ul>

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