Feed equation key to profit maximisation

Maximising profit from feeding pasture to stock should be the main aim of every farmer, strategic management specialist Peter Floyd says.

The Waikato developer of the ECOGENT Process says that with Fonterra signalling a significant drop in the dairy payout, it is even more critical to focus on getting the best possible profit from every kilogram of dry matter eaten by stock.

‘‘Farmers must ensure that the number of stock they plan to winter and then calve matches feed supply predictions, and that the cost of providing enough dry matter of the right quality does not exceed the forecast returns,’’ he said.

‘‘Cow condition, pasture covers and brix levels, and supplementary feed options all have a very significant impact on herd size decisions that need to be made now. Farmers should be looking very hard at the sustainability of their current stocking rate and fertiliser regime, and identifying changes that would increase profitability.’’

Over many seasons ECOGENT farmers have found that pasture is always the most profitable feed and that maximising profit per day entails researching available feed combinations and setting the daily stocking rate accordingly, Floyd said.

‘‘Today’s farmers have the advantage of predictive tools like Profitpoint that takes into account the varying costs and quality of available feeds and forecasts returns and takes the guesswork out of decision making. I recommend producers to use them . . .’’ he said.