Milk Prices, Costs of Nutrients, Margins, and Comparison of Feedstuffs Prices

April F. White, Graduate Research Associate, Department of Animal Sciences, The Ohio State University

Milk Prices

In the September issue, the Class III milk future for October was $16.83/cwt and November was $17.02/cwt. Class III milk closing price for October was $16.84/cwt, with protein and butterfat prices at $1.05/lb and $3.71/lb, respectively. The price of milk protein has decreased since the previous issue, and nutritionists feeding for components may find additional value in feeding for milk fat. In this issue, the Class III future for December is $16.18/cwt, with January 2024 at $16.38/cwt.

Nutrient Prices

It can be helpful to compare the prices in Table 1 to the 5-year averages. Since the September issue, the cost of net energy for lactation (NEL) has increased. The cost of NEL is about 44% higher than the 5-year average ($0.09/Mcal). The cost of metabolizable protein (MP) has decreased since the September issue and is currently about 5% higher than the 5-year average ($0.44/lb).

To estimate profitability at these nutrient prices, the Cow-Jones Index was used for average US cows weighing 1500 lb and producing milk with 3.9% fat and 3.2% protein. For the November issue, the income over nutrient costs (IONC) for cows milking 70 lb/day and 85 lb/day are about $10.45 and $10.88/cwt, respectively. Both values are expected to be profitable even though they continue a slight decline since July. As a word of caution, these estimates of IONC do not account for the cost of replacements or dry cows, or for profitability changes related to culling cows.

Table 1. Prices of dairy nutrients for Ohio dairy farms, November 28, 2023.

Economic Value of Feeds

Results of the Sesame analysis for central Ohio on November 28, 2023 are presented in Table 2. Detailed results for all 26 feed commodities are reported. The lower and upper limits mark the 75% confidence range for the predicted (break-even) prices. Feeds in the “Appraisal Set” were those for which we didn’t have a local price or were adjusted to reflect their true (“Corrected”) value in a lactating diet. One must remember that SESAME™ compares all commodities at one specific point in time. Thus, the results do not imply that the bargain feeds are cheap on a historical basis. Feeds for which a price was not reported were added to the appraisal set in this issue.

Table 2. Actual, breakeven (predicted) and 75% confidence limits of 26 feed commodities used on Ohio dairy farms, November 28, 2023.

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A screenshot of a computerDescription automatically generated

For convenience, Table 3 summarizes the economic classification of feeds according to their outcome in the SESAME™ analysis. Feedstuffs that have gone up in price based on current nutrient values, or in other words, moved a column to the right since the last issue are in oversized text. Conversely, feedstuffs that have moved to the left (i.e., decreased in value) are in undersized text. These shifts (i.e., feeds moving columns to the left or right) in price are only temporary changes relative to other feedstuffs within the last two months and do not reflect historical prices. Feeds added to the appraisal set were removed from this table.

Table 3. Partitioning of feedstuffs in Ohio, November 28, 2023.


At Breakeven


Corn, ground, dry

Wheat bran

41% Cottonseed meal

Corn silage

Whole cottonseed

Blood meal

Distillers dried grains

Gluten meal

Mechanically extracted canola meal

Feather meal

Meat meal

Solvent extracted canola meal

Gluten feed

Soybean hulls

44% Soybean meal


48% Soybean meal

Whole, roasted soybeans

Wheat middlings

Soybean meal - expeller



Alfalfa hay – 40% NDF


As coined by Dr. St-Pierre, I must remind the readers that these results do not mean that you can formulate a balanced diet using only feeds in the “bargains” column. Feeds in the “bargains” column offer a savings opportunity, and their usage should be maximized within the limits of a properly balanced diet. In addition, prices within a commodity type can vary considerably because of quality differences as well as non-nutritional value added by some suppliers in the form of nutritional services, blending, terms of credit, etc. Also, there are reasons that a feed might be a very good fit in your feeding program while not appearing in the “bargains” column. For example, your nutritionist might be using some molasses in your rations for reasons other than its NEL and MP contents.


For those of you who use the 5-nutrient group values (i.e., replace metabolizable protein by rumen degradable protein and digestible rumen undegradable protein), see the Table 4.

Table 4. Prices of dairy nutrients using the 5-nutrient solution for Ohio dairy farms, November 28, 2023.
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