In today’s challenging dairy market, where margins are ice-thin, finding ways to improve income over feed cost (IOFC) is crucial for maintaining profitability. With feed costs accounting for over half of the expenses on most dairies, optimizing feed efficiency and managing inventory can lead to gains for producers and nutritionists alike. The key is knowing where to look.

IOFC measures how effectively your feed investment translates into milk revenue—a critical indicator of financial performance. Cutting feed costs by taking out expensive ingredients might seem like the easiest way to improve IOFC, but this approach often backfires when milk production and herd health suffer, reducing performance. Instead, a more effective strategy is to focus on increasing the return from each kilogram of dry matter intake (DMI) while carefully managing feed inventory.

Optimizing DMI is central to boosting IOFC. To achieve this, start by analyzing your herd’s current rations with your nutritionist. Focus on providing consistent, high-quality feed that meets nutritional requirements without overfeeding. Stepwise adjustments in rations, rather than drastic changes, can improve herd performance while maintaining feed efficiency.

Helping cows convert feed into milk more effectively can be a struggle. Leveraging products like NEXT ENHANCE® CGO Feed Solution that support better nutrient utilization and performance without sacrificing body condition allows producers to achieve higher milk yields and component quality without increasing feed intake, ultimately driving better returns per kilogram of feed.

Feed inventory is often overlooked, but it plays a pivotal role in ensuring consistent and efficient milk production. Lack of proper planning or unexpected disruptions, such as weather, bad forage quality or supply chain delays, can derail even the best strategies. By regularly monitoring inventory levels and quality, producers can avoid shortages that force costly ration changes or, if unaddressed, can result in lower herd performance.

Incorporating tools designed to make feed more efficient into your feeding strategy can help buffer against these challenges. NEXT ENHANCE® CGO Feed Solution is designed to improve feed utilization by enhancing DMI efficiency, allowing cows to extract more nutrients from every bite and reduce manure excreted. This not only maximizes IOFC but also creates a buffer for feed inventory by reducing dry matter intake, giving producers greater flexibility in managing fluctuations in feed availability or cost.

Sometimes, it’s the small changes that yield the biggest results. Simple steps like reducing feed shrink, improving bunk management, and ensuring precise mixing can significantly enhance IOFC. Regularly benchmarking herd performance against industry standards can also help identify areas for improvement. These adjustments, while minor, can create a ripple effect that boosts overall profitability.

Improving IOFC isn’t just about immediate returns—it’s about long-term sustainability. By refining feed strategies, managing inventory effectively, and incorporating the right innovative products, dairy farmers can build a more resilient operation capable of weathering market and environmental fluctuations.

Warming up the farm’s bottom line this winter could be as simple as re-evaluating how your feed program supports your goals. With the right approach and the right tools, every kilogram of feed can work harder for your dairy, creating a more sustainable and profitable future.

As the temperatures drop, ensure your dairy is prepared to warm up the bottom line. Talk to your NOVUS representative today to discuss how you can optimize feed strategies with NEXT ENHANCE® CGO Feed Solution. Together, you can focus on improving IOFC and creating a resilient feed inventory management plan tailored to your dairy’s needs.

Visit www.novusint.com/NextEnhanceCGO to learn how NEXT ENHANCE® CGO Feed Solution can help you achieve better feed efficiency and profitability this winter.