ISSUE FOCUS 28 FEED & ADDITIVE MAGAZINE April 2025 Milk price only sets the margin 4% of the time, whereas production costs drive the margin 67% of the time. Global price pressures on raw materials like corn and soybeans, and even the inputs needed for those growing feed on-farm, controlling production costs is far more important than focusing solely on sale prices. This is why the best farm managers find the right balance between maximizing output and minimizing costs. More milk doesn’t always mean more money if the cost of production outweighs the returns. By focusing on efficiency, farms can achieve a sustainable business model, tailored to their business and unique set of challenges, even in the face of fluctuating global commodity prices. HOW DO WE ADDRESS FEED EFFICIENCY AT DSM-FIRMENICH? Testing silage for mycotoxins, and selecting optimal TMR for your herd can be supported by experts at dsm-firmenich. Additionally, products such as Crina® can improve protein utilization by creating more microbial protein for your animals. WHAT’S NEXT? In today’s complex agricultural environment, one size doesn’t fit all. Farmers need to rely on data-driven insights to make smart decisions about feed efficiency, animal health, and production strategies. The right solution for one farm may not be the best for another, and the key to long-term success is finding the right balance between performance and cost management. By focusing on cost of production, optimizing feed efficiency, and using innovative feed solutions such as Crina®, tailored to specific farm conditions, farmers can navigate the challenges of rising feed costs and maintain profitability in a highly competitive global market. Unit Gross Margin x Average Milk Price Gross Margin x Effective Operating Cost of Milk Average Milk Price (R$/L) y = 0.3574x - 0.2474 R2 = 0.0401 y = -0.83x + 2.5611 R2 = 0.6658 Gross Margin (R$/L) Gross Margin (R$/L) Effective Operating Cost of Milk (R$/L) 1.50 1.00 0.50 0.00 -0.50 2.30 2.80 3.30 3.80 1.10 1.60 2.10 2.60 3.10 1.50 1.00 0.50 0.00 -0.50
RkJQdWJsaXNoZXIy MTUxNjkxNQ==