A positive outlook for dairy farmers in Northern Ireland forecasts an increase in 2025 annual average milk price. This price improvement, coupled with stable production costs, should see improved profitability and net margins.
Feeding higher concentrate levels in dairy cow diets can significantly boost milk production, as the genetic merit of dairy herds in Northern Ireland has improved dramatically in recent years. Cows with a higher genetic potential have become capable of producing more milk when provided with higher concentrate feed levels if targeted at the correct phase of lactation.
Marginal feed rate provides an accurate picture of the cost-effectiveness of additional feed compared to average feed rate. This shows the amount of concentrates needed to produce extra litres of milk beyond a cow’s current production level, and allows farmers to determine if increasing feed rates will be financially viable.
A feed rate of 0.45 kg of concentrate per litre of milk was found to be most economically robust across a wide range of milk prices and concentrate costs. For example: increasing concentrate feed rate from 0.25 kg to 0.45 kg per litre of milk above Maintenance-Plus value led to a significant milk yield response.
When milk prices are good, the economic benefits of increased concentrate feeding can be substantial:
- Higher Margins: At favourable milk prices, margins per cow continue to increase even when the highest yielding cows are fed up to 17-18 kg of concentrate per day. This is because the additional milk produced outweighs the cost of the extra feed.
- Spread of Fixed Costs: Increased milk output allows fixed costs to be spread across more litres of milk, potentially improving overall farm profitability. This means that even if the margin over concentrate costs per litre decreases slightly, the net profit per litre can remain as good as or better than that of lower-yielding herds.
- Larger Milk Cheque: More milk production results in a bigger milk cheque, which can lead to increased bottom-line profit for the farm.
While higher concentrate levels can boost production, it’s important to consider efficiency:
- Feed-to-Yield Systems: Many Northern Ireland dairy farms use feed-to-yield systems, where concentrates are offered to individual cows based on their milk yield. This approach allows for more targeted and efficient use of concentrates.
- Rumen Stability: Careful management is required when feeding high levels of concentrates to maintain rumen health and prevent metabolic issues. Proper ration balancing is crucial to maximise the benefits of increased concentrate feeding.
- Milk Composition: It’s worth noting that very high concentrate levels can lead to a decrease in milk fat percentage. However, when milk prices are high, the increased volume often compensates for any slight reduction in composition-based payments.
In conclusion, when milk prices are favourable, feeding more concentrates to dairy cows in Northern Ireland can lead to increased milk output and improved farm profitability. However, it requires careful management and ongoing assessment to ensure that the economic benefits are realised while maintaining cow health and efficiency.
