2011 has been a year of record-high component prices, for both milk fat and protein. Based on these margin opportunities, dairy producers can take advantage of favorable market pricing to realize greater on-farm profits. The charts below compare 2011 pricing with 2009 and 2010, demonstrating the profit opportunities producers can capture.

Butterfat Pricing, 2009 - 2011 Milk Protein Pricing, 2009 - 2011

With higher component prices, additional profits can be realized from each hundredweight of milk sold. The sample calculation below further details the potential financial benefits that can be realized when component levels are boosted.

Economics of Increased Components

Ration Offers Opportunities to Maximize Components

The ration is one of the best tools to quickly influence component improvements—in some cases, in only days or weeks—when appropriate changes are made. Two proven nutritional practices can help you capture the greatest component profits this year:

  • Increasing ration DCAD and potassium levels. University research³ has shown that feeding DCAD Plus® Feed Grade Potassium Carbonate to raise ration dietary cation-anion difference (DCAD) and potassium levels can effectively increase milk fat production in a short period of time. The university study concluded cows fed DCAD Plus produced an additional 0.35% (+0.44 lbs.) fat per cow per day.
  • Amino acid balancing. As the building blocks of protein, amino acids are essential for increasing production of milk with high component levels. Lysine and methionine are the two most limiting essential amino acids, meaning they have the greatest impact on milk and component production. Feeding a high-quality bypass lysine source like MEGAMINE-L® Rumen Bypass Lysine provides a consistent level of protected lysine to the small intestine, where it can be used for protein synthesis.

1 Prices taken from June 2011 data at http://future.aae.wisc.edu/tab/prices.html#4.
2 Assumes milk fat - $2.29/lb; protein - $3.30/lb; Other solids - $0.303/lb. (based on March 2011 prices)
3 White R, Harrison J, Kincaid R, Block E, St-Pierre N. Effectiveness of potassium bicarbonate to increase dietary cation-anion difference in early lactation cows. J Anim Sci Vol. 86, E-Suppl. 2/J Dairy Sci 2008;91:Abstr.106.