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Maximixing Income over Feed Costs: Evaluation of Production Response Relationships

Department of Animal Science, University of California, Davis 95616

ABSTRACT

Introduction

Costs of nutrients necessary for the production of milk historically have comprised over 50% of the total costs of milk production. In recent years, ratios of milk/feed price have declined and at present feed costs may account for 70%, or more, of total costs of milk production. Income over feed cost (IOFC) is a major determinant of profits or losses in a dairy production enterprise.

Income over feed cost is basically a function of milk prices, nutrient or feed costs, and the response of cows to challenges in nutrient intake and supply. The correct balance of all nutrients is essential for either optimal or maximal response in milk production. In this paper, it will be assumed that energy costs and cow response to energy input are the major determinants of IOFC and that the supply of all other nutrients is adequate for optimal milk production at a given energy input.

The determination of production-response relationships, IOFC, and the resolution of factors involved in these functions have been the subject of several reviews and reports (2, 5, 8, 10).