DAIRY farmers have been warned to be cautious if re–formulating dairy rations to reduce feed costs in a time of low milk prices.

Philip Ingram, Cargill's ruminant specialist, said there was a danger of hitting feed efficiency and, ultimately, profitability.

"In fact, targeting greater feed efficiency, possibly by better use of feed inputs, will lead to better returns, which is especially important when milk prices are lower," he said.

"An improved ration may increase feed costs marginally but the subsequent increase in yields will offset this. And at a lower milk price, this return will be significantly higher than in periods of higher milk prices."

As an example, Dr Ingram gave a diet improvement that increases feed cost per day from £4 to £4.09 and leads to a 1.5 litre increase in yield, or an approximate five per cent increase in feed efficiency.

This would yield 11 per cent more income over feed cost when milk price is 20ppl compared to a seven per cent increase in income when the milk price is 33ppl.

"Producers mustn’t lose sight of this improved feed efficiency in their effort to temporarily reduce costs," he said. "When the goal is cost reduction, producers often have to settle for slightly less production. In most cases this means a reduction in feed efficiency and a less profitable situation because total costs have to be spread across fewer litres."

Dr Ingram encouraged producers to drive for increased feed efficiency by looking to get more from their forages.

He said: "There’s a lot of feed value in these forages that is typically wasted. Using a feed ingredient that can increase fibre digestion in these forages can make a lot of sense. For example, the feed additive Amaferm has been shown to consistently add 5.4 per cent to feed efficiency by breaking down the fibre in silages.”

He also encouraged producers to review cow comfort and day-to-day feeding and management routines. "These have a greater impact on feed intake and feed efficiency than many in the industry give them credit for, so it is worth making sure that they are up to scratch," he said.