ISSUE FOCUS FEED & ADDITIVE MAGAZINE May 2024 31 “Phytogenics may offer a solution to optimize feed efficiency, support margin in dairy farming, and reduce costs in dairy farming. By focusing on optimal feed intake and thereby enhancing nutrient utilization, dairy farmers can navigate the challenges of feed costs and milk prices while maintaining profitability and sustainability in their operations.” Dairy farmers face ongoing challenges in maintaining profitability, especially with the constant fluctuations in feed and milk prices. The efficiency of nutrient utilization is crucial for profitability, given that feed costs typically account for 70-80% of the variable costs of milk production. Enhancing feed efficiency in dairy cows has become a key strategy for increasing profitability. This article delves into the evolving landscape of feed costs, the importance of feed efficiency in dairy cow margins, and the transformative impact of phytogenic feed solutions on dairy farm performance. EVOLUTION OF RAW MATERIAL PRICE AND MILK PRICE IN DAIRY FARMS The milk price experienced a significant increase in 2022 and 2023 but started to decrease toward the end of 2023, following the trend of dairy product prices. This decrease, coupled with high feed costs, has created a challenging situation for the dairy industry, often referred to as the "scissors effect.” For years, dairy farmers have dealt with fluctuations in feed prices and milk prices, impacting their profit margins significantly. These fluctuations highlight the need for strategies that can help stabilize costs and improve efficiency in dairy farming operations. Phytogenics, offer potential solutions to help farmers and feed mill companies save on feed costs while providing flexibility in feed formulation and diet optimization. By utilizing phytogenic feed solutions, dairy farmers can potentially manage their costs and improve profitability even in challenging market conditions. EFFECT OF FEED EFFICIENCY FOR THE MARGIN IN DAIRY COWS Feed efficiency (FE) is a critical factor for profitability in high-yielding dairy cows, alongside reproduction and longevity. FE is typically measured as the kilograms of milk produced per kilogram of dry matter consumed. It reflects the cow's ability to convert feed nutrients into milk or milk components. FE is not only an indicator of nutrient absorption and metabolism but also impacts the THE DAIRY DILEMMA: FEED COSTS, PRODUCTION PERFORMANCE, AND THE POWER OF PHYTOGENICS Thierry Aubert Phytogenic Ruminant Tech Lead Cargill Animal Nutrition
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