March 9, 2011

 

UK study shows higher corn content beneficial to feed efficiency

 

 

Milk producers to get the most out of feed efficiency next year should increase the corn content of their ration, according to a UK study.

 

Based on new cost analysis of dairy production for 2011-12, increasing the ratio of corn to at least 60% in a forage mix and giving as much grain corn as possible could reap large rewards.

 

With present wheat prices at GBP 200(US$323)/tonne for 2012 and cereal replacers likely to increase, dairy producers should start considering now about how they can get the most out of milk revenue and margins, said James Todd of forage specialists Grainseed.

 

"An obvious course of action is to maximise dry matter intake from home-grown forages. But which forages? And how do producers on mixed farms balance a herd's feed requirements with the tempting prospect of growing as much cereal as possible to sell off-farm?"

 

Using a common figure of  GBP 200 (US$323)/hectare for rent and considering all establishment, contractor and variable costs, Grainseed's new forage costs analysis suggest corn silage can be produced for about  GBP 117 (US$ 189)/tonne of DM compared to  GBP 138 (US$223)/tonne of DM for grass silage (based on a seven-year ley). Wholecrop wheat without additive is at GBP 122 (US$197)/tonne of DM.

 

"Analysis has looked at the costs of production for all forages over the last three years, tracking all the changes in costs in that time, and corn consistently comes out top in terms of costs a tonne of dry matter. But when you factor in cost a unit of energy, the difference becomes even greater."

 

"One of the biggest differences is grass's requirement for fertiliser and nutrients which for a typical 300 kilogramme N, 80 kilogramme P and 280 kilogramme K dressing a hectare accounts for more than GBP 700 (US$1,131)/ha. As fertiliser prices continue to rise, this difference can only grow."

 

"There is clear evidence that growers are turning more to corn as feed costs continue to rise," Todd said.

 

"This has been compounded by some growers waking up to the idea that, with wheat prices heading ever upwards, if you can grow wholecrop you should really be selling your wheat off-farm and be looking at replacing traditional cereals with more cost-effective options for your rations."

 

"Our costs analysis also shows the cost of production for crimped corn grain is now in the region of GBP 1400 (US$ 2,262)/hectare - again including rent at GBP 200 (US$323)/hectare and with crop nutrients contributing around GBP 400 (US$ 646) /hectare. At current prices and with the yield of grain at about 10 tonnes/hectare, total cost of production is about GBP 140 (US$ 226)/tonne.

 

This is probably above what most growers calculate as they often don't take into account the rent or the fertiliser value of slurry. "If you can buy crimped corn at GBP 150 (US$ 242)/tonne ex farm in 2011, you'll be getting great value."