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Economic Analyses of Feeding Systems Combining Pasture and Total Mixed Ration

Department of Dairy and Animal Science, Pennsylvania State University, University Park 16802

Corresponding author:
P. R. Tozer; e-mail:
ptozer{at}psu.edu.

Partial budgeting was used to compare net incomes of high-yielding Holstein cows fed either a total mixed ration (TMR), a pasture-based diet, or a combination of both. Variables included in the analysis were milk income, feed, feeding, manure handling, fencing, and water system expenses (revenues and costs based on 2000 values). Base data were from 45 Holstein cows (109 days in milk), assigned to one of three dietary treatments: TMR (nongrazing with TMR ad libitum), pasture plus TMR (pTMR, with pasture in the day and TMR at night), or pasture plus concentrate (PC, pasture twice daily plus 1 kg of concentrate/4 kg milk). Data from those groups were projected to a case-study herd of 70 cows and subjected to sensitivity analysis at varying milk prices and feed and pasture costs. Although costs per kilogram of milk produced were lowest for PC cows, cows on TMR had the highest net income per cow per day ($5.61) because of higher yields of milk (38.1 kg/d) and milk components (1.24 kg/d of fat, 1.13 kg/d of true protein), although expenses were highest among all systems ($4.12). Cows on the PC had lower daily net income ($5.31) due to lower yields of milk (28.5 kg/d) and milk components (0.89 kg/d of fat, 0.79 kg/d of true protein) even though expenses were also lowest ($2.57). Cows fed the pTMR were intermediate in production (32.0 kg/d of milk, 1.06 kg/d of fat, 0.93 kg/d of true protein) but had similar daily net income per cow ($5.28) to the PC cows but were lower than the TMR cows. Sensitivity analysis showed that the TMR system was more profitable than the pTMR and PC systems, with expenses considered, except at combinations of lower milk prices and higher feed costs. Differences between the pTMR and PC systems were less, with PC being more profitable in half of the scenarios, particularly at lower milk prices and higher feed costs.

Key Words: economics • feeding system • grazing

Abbreviation key: PC = pasture plus concentrate, pTMR = partial TMR

This article has been cited by other articles:

				P. R. Tozer, F. Bargo, and L. D. Muller The Effect of Pasture Allowance and Supplementation on Feed Efficiency and Profitability of Dairy Systems J Dairy Sci, September 1, 2004; 87(9): 2902 - 2911. [Abstract] [Full Text] [PDF]