6 Managing your non-forage feeds

Transcription

1 6 Managing your non-forage feeds With purchased feeds the single largest variable cost on most dairy farms, effective feed planning and budgeting is essential to establish the extent to which additional feeds are required to complement and supplement home-grown forage supplies. This allows concentrate and moist feeds to be selected and secured in the right quantity at the right time and, most importantly of all, at the best price. Following purchasing, sufficient care and attention needs to be given to both dry and moist feed storage to minimise the losses which can increase the real cost of these feeds substantially while meeting farm assurance requirements. What s in this section? Establishing non-forage feed requirements and value Purchasing feeds as reliably and economically as possible Allocating concentrates in the most effective way. Finally, the most appropriate system must be adopted for allocating relatively expensive concentrates to ensure they are fed to greatest economic effect. Contents Action plan Page 6:3 Feed budgeting Page 6:4 Feed costing Page 6:7 Feed purchasing Page 6:9 Feed storage and handling Page 6:12 Concentrate allocation Page 6:13 6 Managing your non-forage feeds Improvement through feeding 6:1

2 Summary Since other feeds tend to be more costly than good quality forages and are principally bought-in, their usage needs to be as accurately planned as possible in advance Having established any additional moist and concentrate feed requirements and knowing the extent to which different feeds can be accommodated within current storage and feeding system constraints, the ingredients available can best be compared on the basis of relative feed values or Utilised DM cost Realistic home-grown concentrate valuations need to take into account the extra cost of processing as well as the price at which the grain could have been sold rather than merely its cost of production Forward-buying usually several months or up to 18 months ahead in some cases is a useful way of reducing uncertainty and can be valuable in securing better purchased feed prices With some products significant purchasing advantages can be gained by getting together with other farmers to buy larger quantities than would be possible with a single herd Formulation details as well as ingredient listings should be sought from compound and blend suppliers to give additional information about feeds and their suitability as a complement to the available forages and other feeds The correct storage and handling of purchased feeds is important in maximising utilisation by minimising wastage Whatever system of concentrate allocation is employed, appropriate rates of feeding need to be established on the basis of cow requirements and the level of production likely to be supported by the forage and moist feeds available. See also... Section 2: Section 3: Section 4: Section 5: Planning your nutrition Planning your feeding Assessing your feed options Managing your forage feeds Section 7: Managing your feeding Section 11: Section 12: Factsheet 5: Common ration ingredients Worksheet 4: Farm feed costing Worksheet 5: Relative feed valuation Worksheet 6: Feed budgeting 6:2 Improvement through feeding

3 Action plan To make the most of your non-forage feeds. 1. Calculate any additional feed needs Establish whether additional feeds are needed to extend farm supplies in advance of the winter through simple feed budgeting (Page 6:4). 4. Secure the right feed information Insist on formulation details as well as ingredient listings from your suppliers, retaining samples of each delivery and analysing them as necessary (Page 6:10). 2. Assess relative feed costs Compare the non-forage ingredients available and which can be utilised within your feeding system for their relative feed values or Utilised DM cost (Page 6:7). 3. Establish your feed purchasing policy Establish the extent to which you will base your feed purchasing on spot, forward and/or group buying for the best value and security (Page 6:9). 5. Store and handle your feeds effectively Make sure you store and handle your non-forage feeds both to minimise wastage and to fully comply with specific farm assurance requirements (Page 6:12). 6. Establish how best to allocate your concentrates Decide on the best feeding to yield, flat rate or step feeding approach to concentrate allocation for your particular feeding system and regime (Page 6:13). Improvement through feeding 6:3

4 Feed budgeting Since other feeds tend to be more costly than good quality forages and are principally bought-in, their usage needs to be as accurately planned as possible in advance. As well as avoiding unnecessary extra costs and risks, good feed budgeting will also enable purchasing at times and in quantities that attract the most favourable prices and buying terms. The first essential of good feed budgeting is accurate assessments of the quantity and quality of the bulk feeds available (Section 3). Farm forage stocks further need to be related to overall feeding requirements in a simple budgeting exercise to identify the extent of any feed purchases or additional home production required to avoid winter shortfalls (Example 6.1). Initially, this budget can be based on reasonable assumptions of forage quantities and qualities together with the likely requirements of the milkers, dry cows, youngstock and other animals from standards or past experience. As more information becomes available from actual estimates of forage dry matter yield (Section 3) and analyses (Section 4), the budget and with it any feed purchasing requirements can progressively be fine-tuned for greater accuracy. 6:4 Improvement through feeding

5 Example 6.1: Feed supply budgeting Basal feed requirements Numbers Days fed Intake (kg DM/ day) Requirement (t DM) Milking cows Dry cows In-calf heifers Yearling + heifers month old heifers month old heifers Beef cattle >12 months Beef cattle 6-12 months Beef cattle 0-6 months Intensive bull beef >6 months Intensive bull beef <6 months Sheep (ewes & tups) Fattening lambs Replacement ewe lambs Total requirement Available forage stocks Fresh weight (t) DM (%) Utilisation (%) Availability (t DM) First cut grass silage Second cut grass silage Third cut grass silage Any other grass silage Bale silage (350kg wt/ bale) Haylage/hay Maize Whole crop cereals Forage grazing crops Forage root crops Catch crops Rye or Westerwolds Deferred winter grazing Total availability Safety margin (availability requirement) (6.7%) Improvement through feeding 6:5

6 Worksheet 6 provides a pro forma for individual feed budgeting. Extending forage supplies If external forage sources are not available, shortfalls in home-grown forage quantity can best be overcome by judicious purchases of moist feeds such as stockfeed vegetables and beverage by-products (Section 4). Since beverage by-products like brewers and distillers grains, apple pomace, molasses, pectinextracted fruit and pot ale syrup are produced virtually year-round, purchasing out of the main winter feeding season and storage on farm can be valuable in securing the best prices as well as ensuring supplies. Stockfeed vegetables are, similarly, available at times dictated by crop harvesting for human food processing, so good forward planning is equally important for the most cost-effective utilisation. Different types of forages require different nonforage feed balancing strategies, with some silages demanding particularly careful supplementary feeding attention. To balance high lactic acid (low ph) silages: Use feeds providing fibrous energy and adequate RDP Avoid feeds containing acids and too much rapidly degradable starchy energy Avoid all brewery and distillery by-products and citrus pulp Replace some of the grass silage with forage maize. To balance low lactic acid (high ph) or restricted fermentation silages: Use good quality concentrates with a range of energy types Be aware that intakes are likely to be low Supply good quality protein Limit urea-based feeds. Supplementing forage supplies The primary role of concentrate feeds is to supplement forage supplies with sufficient energy and protein to support the required performance within the cows appetite limits (Sections 2 & 4). Supply and demand means that more favourable terms can often be obtained for concentrate feed purchasing outside the main winter season, although this does depend on global grain and oilseeds markets. Accurate advance planning of concentrate feed needs based on good forage quality analyses (Section 4) can pay dividends in cost-effective purchasing. 6:6 Improvement through feeding

7 Feed costing Having established any additional moist and concentrate feed requirements and knowing the extent to which different feeds can be accommodated within current storage and feeding system constraints, the ingredients available can best be compared on the basis of relative feed values or Utilised DM cost. Processed barley and rapeseed meal are commonly used as the standard energy and protein ingredients in relative feed value comparisons (Section 4). Utilised DM costs are calculated in the same way as with forages (Section 5) but very much more simply because they incur minimal additional costs with the exception of depreciation on storage bins and feeding out (Table 6.1). Worksheet 5 provides a pro forma for calculating relative feed values. Table 6.1: Typical purchased feed costings Element Processed barley 18% Dairy cake Utilised DM yield (t/ha) Establishment costs ( /ha) Variable costs ( /ha) Contractor costs ( /ha) Total cash cost ( /ha) Cash cost ( /t utilised DM) Land charge ( /ha) Land charge ( /t utilised DM) Depreciation ( /t utilised DM) Sub-total ( /t utilised DM) On-farm cost ( /t utilised DM) Feed out costs ( /t utilised DM) Total cost ( /t utilised DM) Source: Kilpatrick C, Keady T, Cushnahan A and Murphy J (2002), Cost of Forage on the Northern Ireland Dairy Farm and Kingshay Farming Trust. Improvement through feeding 6:7

8 Worksheet 4 provides a template for individual farm feed cost calculations. Realistic home-grown concentrate valuations need to take into account the extra cost of processing as well as the price at which the grain could have been sold rather than just its cost of production. For moist feeds, of course, account needs to be taken of additional handling and storage losses, together with any extra feeding out costs. 6:8 Improvement through feeding

9 Feed purchasing Feeds can be purchased in several different ways, depending on requirements, preferences and attitude to risk. Evaluating spot buying Where feed is required for immediate use there is no alternative to buying at the best price that can be obtained on the day. Spot purchasing in this way is the best method of buying where lack of advanced information makes feeding requirements uncertain. While prices generally tend to rise with demand over the winter feeding season, they can fluctuate widely from week to week depending on wider supply and demand issues. Where feed ingredients are imported, for instance, shipping problems can suddenly make supplies very scarce and push prices high. Spot purchasing of all purchased feed supplies consequently leaves buyers highly exposed to the vagaries of the market and makes financial budgeting more difficult. Buying on the spot market can, however, be valuable in taking advantage of especially well-priced feed purchasing opportunities as they arise, the secret of success invariably being not to have to purchase at any particular time. Evaluating forward buying Forward buying usually several months or up to 18 months ahead in some cases is a useful way of reducing uncertainty and can be valuable in securing better feed prices. Forward buying also permits more accurate financial budgeting since the feed price is fixed at purchasing even though only paid for in the month of delivery. Buying on this basis, however, involves a legal contract to take the quantity of feed booked at the agreed price, regardless of how prices change in the meanwhile. Successful forward buying depends on two key things: Being able to use the tonnage of feed bought Buying it at the right time. It consequently requires considerably more planning as well as a good understanding and up-to-date knowledge of feed markets than spot buying. Poor timing of purchases can, of course, result in significantly higher feed costs. Well-informed consultants and the supply trade can be helpful in providing information on market trends to make forward buying as favourable and risk-free as possible. Equally, knowing when feed compounder buyers are active in a particular market can be very useful. Improvement through feeding 6:9

10 Evaluating group buying With some products significant purchasing advantages can be gained by getting together with other farmers to buy larger quantities than would be possible with a single herd. Since margins are generally very small with straight feed ingredients traded as commodities, bulk buying in this way tends to deliver only very marginal advantages, the timing of purchasing being far more important in securing the best value for money. Buying groups can often make valuable savings in compound feed purchasing. Discounts are, however, usually achieved at the expense of less service from the supplier no local specialist providing feeding advice, for instance or no complementary forage analyses or herd costings. These considerations clearly need to be set against the saving on offer to establish the overall value of the deal. It is essential that buying groups set sufficiently tight specifications for feed tenders so they can be confident of comparing like-with-like between suppliers. It is also important to ensure regular analyses of the feed supplied against the agreed specifications to be confident that quality is being maintained. Understanding feed information The Feedstuffs Regulations require all compound feeds (including blends) to be supplied with a number of declared analytical values including protein, oil, fibre and ash. Specified declarations are also required for other commercially-supplied feed materials, depending on the nature of the product. While declared values provide some information about the feed, the regulations permit a reasonably wide tolerance around them which may limit their use in ration formulation. For rationing purposes, it is also important to appreciate that these values are declared on a fresh weight or as fed basis rather than in the dry matter. Suppliers of compounds and blends are also required to list the ingredients or at least categories of ingredients, as part of the statutory declaration. Many will provide complete details of the formulation, at least on request if not actually with the delivery. These details should always be sought as they provide important additional information about the feed and its suitability as a complement to the forages and other feeds making up the ration. Factsheet 5 sets out the key attributes of common ration ingredients. 6:10 Improvement through feeding

11 Understanding supplier certification Modern farm assurance standards make it important to obtain purchased feeds only from certified sources. For compounds, blends and straights, suppliers should be certified by a recognised feed assurance scheme such as UFAS or FEMAS. For certain feeds not covered effectively by such schemes, including farm-to-farm transactions, it is always advisable to obtain a warranty letter and delivery note/invoice from the supplier to provide a record for traceability purposes and to have something to demonstrate the feed was supplied as fit for purpose in the event of enquiries. For home-grown cereals, for instance, it may merely be necessary to check dry matter and protein, whereas for less common or more variable food processing by-products like biscuit meal a full analysis including dry matter, protein, oil, fibre, ash and digestibility may be more valuable. As a good discipline, purchased feed deliveries should be visually inspected for any obvious defects such as contamination, moulding or excessive dust before they are unloaded. This will enable any unsuitable feed to be rejected without difficulty. Sampling and analysing feeds It is good practice to retain a sample of all purchased feeds for traceability purposes in case any production or product problems require investigation. Samples should be representative of the batch, large enough (0.5kg should be sufficient), free of contamination, identifiable and stored to avoid deterioration (freezing being a good approach). For feed types known to be particularly variable between batches, laboratory analysis of samples from each delivery may be advisable to enable accurate ration formulation (Section 4). The analysis required will depend on the feed type being considered, its relative importance in the diet and which parameters are considered most variable. Improvement through feeding 6:11

12 Feed storage and handling The correct storage and handling of purchased feeds is important in maximising utilisation by minimising wastage. Poor storage of moist feeds invariably results in losses far higher than typical levels of 10-15%. The level of losses needs to be taken into account in calculating Utilised DM costs (Example 6.2). Example 6.2: Moist feed losses Correct storage and handling is also becoming increasingly significant in terms of farm assurance particularly in safeguarding feeds against the development of moulds and protecting them from contamination by rodents and birds. Wastage levels as high as 33% for some purchased feeds can have a major impact on their particular value. Storing dry feeds Grain, straight feed ingredients and other high value dry feeds must be stored in weather-proof buildings from which both birds and vermin are securely excluded. Dry feed stores should also allow for the easiest possible delivery from tippers and handling with loaders, and be effectively protected from wind which can lead to serious losses in some situations. Stores for minerals and feed additives additionally need to be secure and equipped with weighing facilities wherever possible. Storing moist feeds Moist feeds typically incur higher losses in storage and feeding out, primarily through a combination of moisture loss in consolidation and nutritional and palatability losses through aerobic deterioration. The Utilised DM cost of a 25% DM moist feed purchased at 24/tonne with total losses of 15% is: 24 (25 100) x 100 (100 15) = As with silages, the key to minimising moist feed losses is good compaction and sealing to avoid heating and aerobic spoilage. Whether for long or short-term storage, all moist feeds should be covered as soon as they arrive, with sheeting weighted down to maintain good contact with the feed. The length of time and area of feed exposed to the air at feeding-out should also be minimised. Moist feeds like brewers grains need to be adequately contained and have facilities to intercept any effluent run-off, typically requiring a storage capacity of around 1m 3 per tonne. Liquid feeds such as molasses and pot ale syrup have to be contained in bunded tanks sufficiently well protected from damage and potential causes of spillage. Secure stands with easily operated valves and adequate clearance for machinery are also important for liquid feeds. 6:12 Improvement through feeding

13 Concentrate allocation Regardless of the feeding system (Section 3) there are three main ways in which supplementary concentrates can be allocated to dairy cows: Feeding to yield Flat rate feeding Step feeding. Feeding to yield Allocating concentrates on a daily or weekly basis according to yield is only really possible with parlour or out-of-parlour feeding systems (Section 3). It has the benefit of allowing cows to be fed individually and even challenge-fed in early lactation for slightly more milk than they are actually producing in an attempt to stimulate further production as yields climb towards their peak. Concentrate feeding is then scaled back as milk production steadily declines over the lactation to avoid the risk of over-feeding. Feeding to yield requires the time and cost of regular milk recording and continual adjustment of individual allocations which tends to make feed budgeting more of a challenge. It generally involves feeding a basal ration of forage with some concentrates to support maintenance plus a number of litres of production to all cows (Section 7), additional concentrates being provided to individuals at milking or through out-of-parlour feeders. Feeding to yield tends to result in lactation curves with a higher peak yield but more rapid decline as cows respond positively to the challenge of more generous early lactation feeding and negatively to the progressive restriction of allocations in mid to late lactation (Section 2). Flat rate feeding Completely opposite to feeding to yield, flat rate feeding involves providing all cows with the same quantity of concentrates each day throughout the lactation. This can be done through a combination of feeding in the parlour with the forage, in external troughs or feed passages or through external feeding alone (Section 3). Simplicity is the main advantage of this approach which tends to result in flatter but more persistent lactation curves as cows are given less incentive to build the highest possible peaks but not penalised as their production declines (Section 2). It generally involves a rate of feeding calculated to support mid-lactation levels of milk production for the average cow (Section 7). Major differences in performance ability between cows can, to a certain extent, be catered for by dividing the herd into different groups, each of which receives a different flat rate. Comparisons with feeding to yield in the past have revealed very little difference in performance over the lactation, the amount of concentrates fed rather than their timing being the critical factor. If good quality forage is available ad lib, lower levels of early lactation concentrate feeding also allow cows to consume increased amounts of forage. Experience has shown that higher genetic merit cows may be adversely affected by flat rate feeding, however, with excessive weight loss in early lactation and excessive condition gain in late lactation compromising fertility, in particular. Improvement through feeding 6:13

14 Step feeding Step concentrate feeding provides a convenient halfway house between feeding to yield and flat rate feeding, more closely meeting cows nutritional needs at each stage in the lactation, while maintaining as much simplicity as possible. It can involve an element of parlour feeding but can equally well be organised entirely through external feeding, usually using a forage box or mixer wagon (Section 3). Again the cows are fed as a herd rather than individually, only they are grouped and allocated concentrates according to their stage of lactation. Step feeding generally involves a rate of feeding calculated to support predicted levels of production at each of the lactation stages (Section 7). The accommodation will, of course, need to be suitable for maintaining several groups of cows at any one time unless the calving pattern is particularly tight. A more spread out calving pattern will add to the complexity of the system by necessitating more movement of individual cows between groups which can also be stressful for stock. TMR feeding Setting feed rates Whatever system of concentrate allocation is employed, appropriate rates of feeding need to be established on the basis of cow requirements and the level of production likely to be supported by the forage and moist feeds available (Section 7). It is important to appreciate that as concentrate feed levels are increased to support higher milk yields, each kilo of concentrate DM will displace an increasing quantity of forage DM intake to the point where the substitution rate (Section 2) makes it uneconomic to pursue increased yields (Table 6.2). Table 6.2: Typical concentrate feeding response rates Concentrates (kg) Response to extra concentrate (litres milk/ kg concs) Total mixed ration systems (Section 3) essentially involve a flat rate or step concentrate feeding approach with groups of cows fed different rations according to average performance or stage of lactation. In the most sophisticated TMR systems, the rations fed to the different groups are adjusted regularly on the basis of performance (Section 7) to account for changes in stage of lactation and/or milk output, providing cows with an almost seamless transition between rations. 6:14 Improvement through feeding