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New Cost Benefit Indicator for Dairy Farmers
24/09/07

Dairy farmers can now evaluate the financial payback from including C16 rumen-protected fat in the early lactating cow ration, thanks to the availability of a new spreadsheet-based computer program from C&H Nutrition.

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The new Cost Benefit Indicator (CBI) program draws on a database of the different milk contract payment terms to predict the potential extra margin per cow that producers can make by including Energizer-RP10 in the ration.

According to C&H Nutrition business development manager Dr Alan Reeve, milk output responses to Energizer-RP10 are relatively predictable, depending on dietary inclusion level. The program uses this predictability to calculate the net financial gain over cost of inclusion for a cow yielding 30 litres a day, depending on the current milk contract terms.

“For example, we know that we can typically expect an extra 1.1 litres of milk and a 0.4% uplift in butterfat from an Energizer-RP10 feeding rate of 400g per head per day,” Dr Reeve explains. “But the question all milk producers want answered is how much financial return they can expect over and above the cost of adding the fat to the ration. Obviously, this depends on their milk buyer terms, but by running various feeding scenarios against the contract payment parameters the CBI program will give them a profit prediction.”

Dr Reeve points out that even with base milk price running at the mid summer levels of around 18-20p per litre, Energizer-RP10 was delivering a financial payback on virtually all milk contracts paying a premium for butterfat. But with base prices on some contracts now climbing to over 25p per litre, the CBI program predicts extra milk value of around 24p per head per day from those paying around 1.5p per % of butterfat, even after the cost of Energizer-RP10 is taken into account.

“Clearly, the value of this extra milk is significant,” he points out. “If your contract is advantageous, feeding Energizer-RP10 could easily deliver an extra £3,600 to a 100 cow herd over the first 150 days of lactation. That’s over a 40% increase on the Energizer-RP10 margins that could have been achieved earlier in the year.”

Milk producers interested in evaluating the profit from feeding Energizer-RP10 should contact their local supplier, or call C&H Nutrition on 01928 793090. A simplified version of the CBI program is also available on the company’s website at www.chance-hunt.com/nutrition

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