Andie Majewski, Graduate Research Associate, Department of Animal Sciences, The Ohio State University
Managing feed costs is an important part in ensuring dairy farm profitability. It is necessary to be aware of the frequently fluctuating feed costs to make informed decisions about which feedstuffs are worth the investment. At times, investing in more expensive feed commodities may prove to have a positive return on investment by increasing milk production or feed efficiency. However, things like access to feedstuffs, milk and component yields, milk prices, and herd size also factor into the decision when dairy producers consider which feeds could result in greater income over feed costs.
Figure 1. Actual and predicted cost of feedstuffs with 75% confidence interval (CI) of 21 feed commodities fed on Ohio Dairy Farms; July 28, 2025. Feedstuffs that are priced above the upper prediction price limit are overpriced (red bars). Feedstuffs that fall within the upper and lower limits of the predicted prices are breakeven feeds (grey bars). Feedstuffs that are priced below the lower prediction price limit are considered a bargain (green bars).
Economic Value of Feeds
Figure 1 displays the costs for the 21 reported commodities in Ohio. These results were produced by SESAMETM for the central Ohio region on July 28, 2025. In Figure 1, the bargain feedstuffs (green), the overpriced feedstuffs (red), and the breakeven feedstuffs (grey) are displayed, along with their average costs and predicted costs. These prices and estimates are from a point in time and their economic classification may change from what is reported, though they remain as a useful tool to predict the cost of feedstuff changes in a ration and to summarize market trends in the Ohio region. In July, some corn products, such as corn grain and corn gluten meal are considered overpriced while some protein sources like soybean meal and soybean expellers can be considered adequately priced or a bargain. It is important to note that while the costs of these feedstuffs typically only vary slightly from one issue to the next, the ever-changing prices can make managing income over feed costs more difficult. Bargain commodities can have a place in a dairy cattle ration, especially in diets fed to lower producing members of the herd. However, it is important to consider the investment opportunity that might come from feeding “overpriced” feedstuffs, as some may help to improve the herd milk production and component values.
The appraisal set, shown in Table 1, predicts the prices for these commodities that did not have a current local price. These commodity prices were predicted by SESAMETM and represent the estimated value at one specific point in time and are therefore subject to change. These values may be used as a benchmark if you are considering purchasing these ingredients for your dairy farm.
Table 1. Estimated feedstuffs prices not reported for Ohio, July, 2025.
Feed Nutrient Prices
The cost of net energy of lactation (NEL) remained about the same as in the previous issue, decreasing by about $0.005/lb. The cost of metabolizable protein (MP) remained about the same as well, increasing by $0.003/lb. The cost of physically effective fiber (e-NDF) increased by $0.036/lb. Values of nutrients are shown in Table 2.
Table 2. Prices of nutrients for Ohio dairy farms, July 28, 2025, compared to May 25, 2025.
Milk and Milk Component Prices
The Class III milk price increased about $2.25/cwt since May and is now $$22.62/cwt. Additionally, the milk fat and protein prices increased by $0.39 and $0.36/lb, respectively. The Cow-Jones Index estimates the profitability of milk production, considering factors including the nutrient input costs displayed in Table 2, cow production metrics, and the current milk and component prices which are shown in Table 3. The prediction formula uses a 1500 lb cow, producing milk with 4.09% fat and 3.22% protein. This month, the income over nutrient cost (IONC) for cows milking 85 lb/day and 70 lb/day is about $14.35/cwt and $13.85/cwt, respectively. Both estimates are expected to be profitable, despite not including factors such as replacement and cull cows in the herd. These margins of profitability are much larger than those seen in the previous issue.
Table 3. Prices of milk and milk components, sourced from the Federal Marketing Order 33, for Ohio dairy farms, July 28, 2025, compared to May 25, 2025.
In July, there was an increase in milk and component prices for dairy producers in Ohio. This, in addition to the generally lower feed costs compared to those in the previous issue, may result in greater profitability this month for dairy producers.